Video: Junior market dominated by ‘the lame, the halt and the blind,’ says Rule
Over two-thirds of today’s junior miners are essentially worthless, says resource speculator Rick Rule.
A unit of state-owned China National Gold Group on Tuesday put its 63% stake in an indebted copper miner up for sale on a Beijing government-run M&A platform for a token 1 yuan ($0.14).
China Gold Group Resources Co is selling its stake in Inner Mongolia-based West Ujimqin Qi Daolun Daba Copper Mine Development Co on the China Beijing Equity Exchange, a filing to the bourse showed.
The copper miner had total liabilities of almost 255 million yuan ($36.6 million) as of Nov. 30, the filing showed.
China has been encouraging state-owned enterprises to improve their efficiency by offloading “zombie” companies that have performed poorly and suffered long-term financial losses.
The filing did not specify whether the copper miner was currently producing or the scale of its resources.
Chinese news website Jiemian.com said the loss-making firm had almost 18 million tonnes of copper ore reserves.
A China Gold spokeswoman said the company had nothing else to add beyond what it said in the filing.
($1 = 6.9670 Chinese yuan renminbi)
(By Tom Daly and Beijing Newsroom; Editing by Jason Neely)
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