China Goldstone Signs Tripartite Deal to Build Mine-to-Market Gold Platform
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
China Goldstone (1380) has entered into a memorandum of understanding with First Asia Merchants Bullion Limited (First Gold) and First Gold Shop Holdings Limited (First Gold Shop) to establish a tripartite strategic partnership that extends its gold business from upstream mining through trading, minting, retail and recycling . The deal aims to build a vertically integrated gold platform connecting mine to market, with the company's shares closing at HK$0.50 on Friday, up approximately 4.2% .
Key Points
- First Gold has operated as a bullion dealer since 1991 and holds AA-class membership at the Chinese Gold and Silver Exchange Society, Hong Kong's only government-recognized physical precious metals exchange founded in 1910 .
- First Gold Shop owns and develops the "First Gold Shop" retail brand, which already operates physical stores in Hong Kong's core shopping districts and plans to open multiple outlets in Southeast Asia over the coming years .
- China Goldstone will supply gold from its Chilean mining operations to First Gold's trading and retail systems, jointly driving expansion of a premium gold retail platform in Southeast Asia .
- The company may acquire equity stakes in First Gold through strategic investments, including supplying gold on preferential commercial terms in exchange for equity rights .
- The cooperation also covers institutional-grade hedging, authorized gold bar minting, gold recycling and mutual investment rights, with First Gold and First Gold Shop entitled to explore potential investments in China Goldstone .
Why It Matters
The partnership marks China Goldstone's second major strategic move within six weeks, following its June 28 announcement to acquire the Pumillahue gold project in southern Chile, which has already identified approximately 2.5 tonnes of gold resources in initial drilling . By capturing downstream premiums from branded investment bars and finished jewelry rather than selling at spot prices, the company could significantly expand profit margins per ounce and transform from a pure mining play into a full-chain gold platform investment .
The partnership marks China Goldstone's second major strategic move within six weeks, following its June 28 announcement to acquire the Pumillahue gold project in southern Chile, which has already identified approximately 2.5 tonnes of gold resources in initial drilling . By capturing downstream premiums from branded investment bars and finished jewelry rather than selling at spot prices, the company could significantly expand profit margins per ounce and transform from a pure mining play into a full-chain gold platform investment .