PDF《2018》

s operation include nickel, copper, zinc and lead in Xinjiang Uyghur Autonomous Region ( Xinjiang ), the People'

s Republic of China (the PRC ).The mining and exploration tenements and ore processing plants in Xinjiang are located close to the municipal city of Hami county, which is approximately

400 kilometers ( km ) southeast of Urumqi, the capital of Xinjiang. Huangjinmei tenement, which is the Company'

s gold operation, is located

15 km by sealed road from the regional town of Jinchuan, Ningshan County. The town of Jinchuan is located approximately

140 km south of Xi'

an City and is connected by the G210 state highway. The Company'

s subsidiaries, Hami Jinhua Mineral Resource Exploiture Limited ( Hami Jinhua ) and Hami Jiatai Mineral Resource Exploiture Limited ( Hami Jiatai ), own two mining permits and three exploration permits in Xinjiang, the PRC. The price of copper, nickel, zinc and lead fluctuated wildly in

2018 as the factors that boosted or depressed the commodity'

s price alternated with each other to prevail in the relationship between supply and demand. The price of copper reached at its peak near the mid of 2018, the price dropped gradually to its low in August 2018, and rebounded slightly near the year end. On the other hand, the price of the Nickel also reached its peak near the mid of

2018 but dropped gradually to its year low near the year end. In contrast, the markets of lead and zinc showed their weak, having around 20% and around 26% decline in price respectively during

2018 (Source: The London Metal Exchange) Since the commodities'

price had not yet stabilised at a high enough level for the business segment to be profitable, the Group continued to defer the mining activities and sch........