WISER ASSET

REAL ASSET / CIRCULAR INVESTMENT

Gold tailings circular investment research

Start production with No. 2 tailings and use available cash after costs and agreed dividends to secure Mines No. 3 and No. 4; build the Guizhou line concurrently, forming a coordinated Hunan–Guizhou processing layout that gradually moves toward regional operations, with resources and capacity supporting the financing proposal.

View project rationaleView funding arrangements
CAPACITY / THREE LINES50015003000Existing line in HunanProposed new line in HunanProposed new line in Guizhou5000tonnes/dayHunan 2,000 + Guizhou 3,000 · Planned capacity across two locations
5 million tonnesTarget mine-supply quantity · 300 + 100 + 100
5,000 tonnes/dayPlanned capacity across two locations · Hunan 2,000＋Guizhou 3,000
RMB 2 millionInvestment-attraction target for securing Mines No. 3 and No. 4 in the same group
80 million to 100 millionProposed financing amount · RMB
01 / Core rationale

Production collections and ore-source expansion

The project plans to support ore supply reinvestment with production collections, optimize subsequent ore-securing investment through investment attraction, and gradually organize regional processing after the Guizhou plant starts production. Hunan phase production and Guizhou line construction proceed in parallel; subsequent ore-securing expenditure depends on actual sales receipts, profit distributions and available cash.

5 million tonnesTarget mine-supply quantity · 300 + 100 + 100
5,000 tonnes/dayPlanned capacity · Hunan 2,000＋Guizhou 3,000
RMB 2 millionInvestment-attraction target for securing Mines No. 3 and No. 4 in the same group
80 million to 100 millionProposed financing amount · RMB

Solid lines show business paths; dashed lines show construction, ownership and financing conditions. Enlarge to view.

Gold tailings | Circular investment rationaleCore approach: process material and collect sales proceeds first, deduct costs and dividends, then secure further mine supply; build plants concurrently to establish resources, production lines and a financing foundation.Solid line: business cycleDashed lines: construction intentions, conditions and financing targetsResources, construction and financing still require implementation and verificationStarting point | No. 2 tailingsResource volume: 3 million tonnesOf which 1 million tonnes is phased ore supplyMine material + freight: ≤RMB 300/tonneHunan | Initial participation in No. 2 processingExisting 500＋new 1,500 tonnes/dayHunan planned total 2,000 tonnes/dayParticipate initially in processing the phase's 1 million tonnesGold production / Realizing cash inflowsProcessing proceeds from the phase generate collectionsRecovery rate, full costs and collection cycleDetermines available returns and reinvestment speedReturn distribution | Deduct costs, pay dividends, reinvestDeduct processing and other costs first, then distribute dividends as agreedCash available after dividends invested in securing subsequent oreSpecific dividend ratios, collection accounts and approval mechanisms remain to be definedIn parallel | Local preparations in GuizhouNew 3,000-tonne/day line, approximately 6 monthsAfter commissioning, participate in coordinated processing of the phase's 1 million tonnesPlant site, approvals and investment budget remain to be finalizedCircular expansion | Resource pool ≥5 million tonnesNo. 2: 300＋No. 3: ≥100＋No. 4: ≥100New resources re-enter the processing cycleResource agreements, deliverable quantities and grades require validationSecure through investment promotion | Tailings Nos. 3 and 4The same group of mines, each at least 1 million tonnesOriginal ore-securing budget: RMB 5 millionRMB 2 million target for securing mine supply through investment attractionReinvest the balanceAdditional ≥2 million tonnesProcessing and collections across two locationsConcurrent preparationsAfter completion | Regional processing and asset arrangementsGuizhou tailings processed in Guizhou; Hunan tailings processed in HunanGuizhou planned 3,000 tonnes/day; Hunan planned 2,000 tonnes/daySale of production lines related to No. 1 / exchange for gold or resources: conceptAsset ownership, transaction entities and ongoing operations await confirmationProposed financing basisResource pool ≥5 million tonnes＋production line assetsProduction lines at both locations under one operating entity: objective5,000 tonnes/day combined: planned capacityResources, construction and ownership must be established togetherFinancing and performance commitments | ConceptProposed financing of RMB 80 million–100 million5 million-tonne performance commitment＝ore supply quantity commitmentFinancing structure, use of funds and ore delivery progressand responsibility clauses remain to be documented in a written proposalSwitch to local processing after completionResource baseCapacity composition: No. 1 existing 500＋new Hunan 1,500＋new Guizhou 3,000＝planned 5,000 tonnes/day.The original 500 continues; Hunan's new 1,500 is planned for approximately 3 months and Guizhou's new 3,000 for approximately 6 months; concurrent operation and final ownership of each line await confirmation.Funding must first be secured for plant construction, initial purchasing and transport, and working capital in Hunan and Guizhou; the RMB 2 million ore-securing payment does not represent the full launch investment.Key conditions: ore supply agreements, production-line construction, collection distributions and asset ownership must be implemented together.

Hunan processing base

The No. 1 project currently has capacity of 500 tonnes/day and plans a new 1,500-tonne/day line, for a planned Hunan total of 2,000 tonnes/day to handle initial processing of the No. 2 phase's 1 million tonnes of ore supply.

Guizhou production line construction

A 3,000-tonne/day line is proposed in Guizhou, with construction planned for approximately 6 months. Once operational, it will participate in processing the phased ore supply; Hunan and Guizhou will coordinate operations according to commissioning and production schedules, gradually forming a two-location layout for nearby processing.

Subsequent mine-supply commitments

After deducting costs, agreed dividends and necessary reserves from production collections, available cash is used to secure Mines No. 3 and No. 4. Each has at least 1 million tonnes; the original commitment budget for these mines in the same group was RMB 5 million, proposed to be reduced to RMB 2 million through investment attraction.

Financing arrangements

The resource portfolio consists of No. 2's 3 million tonnes and at least 1 million tonnes each from No. 3 and No. 4, targeting at least 5 million tonnes of ore supply; the performance commitment concerns supply quantity. Proposed financing is RMB 80 million–100 million; specific fund uses, delivery deadlines and fulfillment conditions will be established separately.

02 / Key figures

Resources, capacity and investment accounted for separately

Of No. 2's 3 million tonnes of ore supply, 1 million tonnes is allocated for phased processing coordinated between Hunan and Guizhou.

Key figures and bases | Resources, capacity, funding and financingResource supply, capacity construction, mine-supply commitments and financing arrangements are finalized separately.01 Resources | 3＋1＋1＝5 million tonnes (base case)No. 2 has 3 million tonnes, including 1 million tonnes allocated to this phase; do not add them together.Nos. 3 and 4 each have ≥1 million tonnes and are the same two additional mines targeted through government investment promotion.Proposed ore supply pool ≥5 million tonnes, with a target grade ≥0.9 grams/tonne for each of the two additional mines.The 5-million-tonne performance commitment concerns mine-supply quantity; resource agreements and deliverable quantities require verification.02 Capacity | Hunan 2,000 + Guizhou 3,000 = planned 5,000 tonnes/dayNo. 1 has an existing 500-tonne/day line.No. 1 plans a new 1,500-tonne/day line, initially processing material from Mine No. 2.A new 3,000-tonne/day line is planned in Guizhou.Retain the original 500; after phased commissioning, lines jointly process the phase's 1-million-tonne ore volume.03 Mine-supply commitment | Two mines in the same group; proposed budget reduction from RMB 5 million to RMB 2 millionRMB 5 million: original mine-supply commitment budget for Mines No. 3 and No. 4.RMB 2 million: target budget to secure the same group of mines through government investment promotion.Additional resources remain ≥1 million tonnes from each of the two mines, without double counting ore supply or funds.RMB 2 million is the ore-securing target for the same group; construction and working capital are calculated separately.04 Construction and processing period | Three lines to process 1 million tonnes in coordinated phasesNew Hunan 1,500 deployed in approximately 3 months; new Guizhou 3,000 prepared and built in approximately 6 months.The phase's 1 million tonnes are processed in coordinated stages by the existing 500-tonne, new 1,500-tonne and new 3,000-tonne lines.Full-capacity arithmetic only: 1 million tonnes ÷ 5,000 tonnes/day = 200 effective operating days.Actual completion time must account for commissioning sequence, effective operating days and operating load.05 Ore price and grade | Use a consistent basis before calculating distributable returnsNo. 2 purchase budget RMB 50/tonne; seeks to reduce this to RMB 30/tonne through negotiation and subsidies.No. 2 ore plus freight ≤RMB 300/tonne; this is not the full processing cost.No. 1 purchase price 130–160＋freight 160, totaling RMB 290–320/tonne.No. 2 surface tests show 0.9 g/tonne and middle-layer tests 1.7 g/tonne; neither represents the whole-mine average grade.1.7 g/tonne is excluded from the calculations; actual grade must be verified through representative sampling.Returns depend on recovery rate, full costs, dividend ratio and collection cycle.06 Assets and financing | Transaction arrangements must align with ownership objectivesRMB 15 million invested in No. 1-related assets; asset scope requires confirmation.Proposed sale to Hunan projects Nos. 5/6, or exchange for gold or Guizhou resource tonnage.Investment amount does not equal sale price; assets, pricing and transaction entities must be defined.The goal of placing production lines under one operating entity must be coordinated with sale / swap arrangements.Financing of RMB 80 million–RMB 100 million, with a performance commitment to supply 5 million tonnes; terms remain to be finalized.Ore delivery, production-line ownership, use of funds and performance-commitment responsibilities must be set out in writing.Funding and contract conditions: verify ore commitments, plant construction, working capital and ore-supply performance commitments separately.
MatterPlanned arrangementsNature and implementation conditions
Mine-supply portfolioNo. 2: 3 million tonnes + No. 3: ≥1 million tonnes + No. 4: ≥1 million tonnesProposed mine supply of at least 5 million tonnes; confirm delivered quantities, quality, deadlines and destinations by contract.
Phased ore supply1 million tonnes, processed in phases through coordination between two locationsIncluded in No. 2's 3-million-tonne ore source; processing duration depends on commissioning and scheduling at both sites.
Mine-supply commitment fundsMines No. 3 and No. 4 in the same group: RMB 5 million budget → Proposed reduction to RMB 2 million through investment attractionAccount for the same ore-source group together; implement investment-promotion terms, resource delivery and payment milestones through dedicated agreements.
Hunan capacityNo. 1 existing 500＋planned new 1,500＝2,000 tonnes/dayThe total assumes the original 500 remains available and the new 1,500 can operate concurrently after commissioning.
Guizhou capacityProposed 3,000 tonnes/day; planned combined capacity at both sites of 5,000 tonnes/dayThe new Hunan line is planned for approximately 3 months and Guizhou for approximately 6 months; construction start, acceptance and stable operation milestones will be scheduled separately.
Financing and performance commitmentsProposed financing of RMB 80 million to RMB 100 million; 5 million tonnes refers to mine-supply quantityMine-supply quantity is managed separately from cumulative processing volume and gold output. Financing purposes, terms, phases and responsibility clauses remain to be finalized.

The proposed financing plan expands from a scenario of 3 million tonnes of resources supporting RMB 60 million to at least 5 million tonnes supporting RMB 80 million, increasing resource support through low-cost commitments to subsequent mine supply. Construction and full-cycle funding budgets for each line must be assessed separately as the basis for financing amounts and use of funds.

Grade and resource quality.No. 2's surface grade is provisionally listed at 0.9 grams/tonne; the stockpile-wide average requires representative sampling. The middle-layer figure of 1.7 grams/tonne is localized data and is currently excluded from modeling. Subsequent supply agreements must specify grade, wet/dry basis, metering and acceptance standards.

03 / Phased production scheduling

Phased processing arrangements for 1 million tonnes of ore supply

If all planned 5,000-tonne/day capacity participates, 1 million tonnes corresponds to 200 effective operating days. The full processing period must account for phased commissioning, ramp-up and operating load. The calculation provisionally assumes the same start date for both locations, 30 days per month and consistent tonnage bases, with separate consideration of the original 500-tonne line's participation.

% · Reflects operating load and available production-line time
10,000 tonnes · Planned phase ore source: 1 million tonnes

The additional 1,500-tonne line is provisionally assumed to start on day 90 and Guizhou's 3,000-tonne line on day 180. If the original 500-tonne line participates fully in phased ore processing from day one, the continuous full-capacity scenario finishes in approximately 335 days. This is theoretical scheduling; actual duration depends on commissioning, effective operating rates and ore supply. All line quantities must share a wet/dry-tonne basis and satisfy transport and local supply conditions.

04 / Capital cycle

Coordinate profit distributions with cash available for reinvestment

Gold sales revenue, costs and profit are proposed to be accounted for monthly, with dividends and reinvestment arranged by agreement after sales proceeds are received. Available cash is used to secure ore sources Nos. 3 and 4. Separate funding plans for Hunan production and Guizhou plant construction coordinate construction payments, operating working capital and ore-securing expenditure.

Accounting mattersPreliminary arrangementsConfirmed conditions
Purchasing and transportNo. 2 procurement is provisionally budgeted at RMB 50/tonne, targeting approximately RMB 30/tonne after negotiations and subsidies; the procurement-plus-transport budget is no more than RMB 300/tonne.Standardize dry/wet tonne and tax-inclusive bases, and finalize procurement and transportation quotations.
Full costsBeyond procurement and transportation, account for processing, testing, environmental protection, taxes and allocated construction costs; break processing expenses into reagents, energy, labor and other items.Full budget to be determined separately; reconcile ore-payment offsets, construction investment and depreciation separately to avoid double-counting.
Recovery ratePreliminary scenario provisionally calculated at 85% to compare gold output and cash circulation.Establish actual recovery through this mine's sampling, process tests and continuous trial production.
Dividend arrangementsSet dividend scenarios of 30% and 40% separately, calculated on the profit base determined under the agreement.Final ratios, rights scope and distribution base are determined by dedicated agreements.
Accounting and paymentsOperating data are proposed to be aggregated monthly; after sales proceeds are received, distributions follow the agreement before ore-securing payments are arranged.List sales collection terms, start dates and payment milestones separately, coordinating construction and working-capital needs.

Confirmation of estimation parameters.The 85% recovery rate and 30% and 40% dividend ratios are preliminary modeling scenarios. Actual recovery must be established through trial production; final distribution ratios and the profit base are determined by agreement. Complete unit costs are calculated using aligned tonnage and expense scopes.

Cash arrangements for reinvestment.Determine cash available for mine-supply commitments after deducting costs, agreed dividends, necessary working-capital reserves, restricted funds and outstanding upfront investment payments. Reconcile gold output, accounting profit and sales receipts separately; the profit balance after dividends does not directly equal spendable cash.

Cash available for reinvestment this period = actual sales receipts − current cash costs and taxes − agreed dividends − necessary working capital and restricted funds − outstanding upfront investment payments

Deductions are calculated without double counting. Contractual profit determines the distribution base; cash actually received determines payment and reinvestment capacity. The two must be reconciled.

Construction and startup funding

Funding sources must be secured before sales collections for construction of the new 1,500-tonne line in Hunan and 3,000-tonne line in Guizhou, plus initial procurement, transportation, trial production and working-capital expenditure. RMB 2 million is the fundraising target for securing the two subsequent mines; construction and operating startup funding are accounted for separately.

Funding plan confirmation conditions

Funding plans must specify representative mine-supply grade and dry/wet basis, actual recovery rate, full unit costs, net settlement unit price, sales collection terms and dedicated dividend and reinvestment arrangements.

Monthly funding plans should list construction payments, purchasing and transport, production and sales, sales receipts, dividends and reinvestment amounts, checking the timing of the target RMB 2 million ore-securing payment against plant construction and operating working capital expenditures.

05 / Implementation conditions

Implementation conditions and decisions

  1. Production line ownership and transaction counterpartiesOwnership and operating rights for the existing 500-tonne line, new 1,500-tonne line and Guizhou 3,000-tonne line; specific assets to be sold or swapped; and how they will come under one operating entity after the transaction.
  2. Specific conditions for securing ore through investment attractionInvestment attraction conditions, payment milestones, resource delivery agreements and policy fulfillment arrangements required to reduce the same group's No. 3/4 budget from RMB 5 million to RMB 2 million.
  3. 5-million-tonne ore-supply commitmentMapping ore source identifiers to specific mine sites and contracting entities; total supply period, quantities and quality requirements for each mine, dry/wet basis, weighing and acceptance, receiving plants, batch delivery plans and liability for non-delivery.
  4. Scheduling for the 1-million-tonne phaseThe processing share of the existing 500-tonne line, construction and commissioning dates for the two new lines, mine-supply allocation after Guizhou commissioning, transportation capacity and feed matching at each base.
  5. Upfront funding and financing receipt arrangementsEntities responsible for construction investment, initial purchasing and transport, and working capital in Hunan and Guizhou; financing receipt times, staged arrangements and spending purposes.
  6. Unified accounting and distribution rulesActual project costs, recovery rates, collection timing and applicable dividend percentages; monthly or batch accounting mechanisms, net cash available for securing ore and necessary reserves.

Simplified rationale

The project plans phased Hunan production alongside Guizhou plant construction. Hunan's existing 500-tonne/day capacity and proposed 1,500-tonne/day line handle initial processing; after Guizhou's 3,000-tonne/day line is commissioned, both process No. 2's phased 1-million-tonne ore volume and progressively transition to local operations. Available cash after costs, agreed dividends and necessary reserves secures ore sources Nos. 3 and 4; the original budget for securing this group is RMB 5 million, with a government investment-promotion target of RMB 2 million. The resource portfolio comprises No. 2's 3 million tonnes and two subsequent mines of at least 1 million tonnes each, targeting at least 5 million tonnes of supply. Planned combined Hunan and Guizhou capacity of 5,000 tonnes/day supports the resource and capacity basis for an RMB 80–100 million financing proposal. Implementation requires asset ownership, construction and working capital, supply deadlines and reinvestable-cash arrangements to be established.
Physical-asset investment research Gold tailings circular investment research