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One of China’s largest non-state gold producers, Chifeng Jilong Gold Mining, is actively exploring international acquisition opportunities but remains cautious amid volatile gold prices. Also known as Chifeng Gold, the company has expanded production aggressively, growing from just 2 tonnes in 2019 to 15.2 tonnes in 2023. It now operates five mines in China, as well as one each in Ghana acquired in 2021 and Laos.
Chinese gold miners, including Chifeng, are stepping up their international M&A activity, competing with global majors amid a sustained rally in gold prices. The company’s recent listing on the Hong Kong Stock Exchange in March, raising HK$2.82 billion ($361 million) has provided direct access to capital markets. Its shares have soared over 80% since debut. “There are so many projects on the market that owners are willing to sell and there seem to be more takeover opportunities this year than in previous years. Hong Kong gives us quick access to capital so when we identify attractive investment opportunities, we can move quickly,” said Lydia Yang, Chief Executive Officer of Chifeng Gold.
With global gold production stagnating and new exploration lagging, many miners see mergers and acquisitions as the most viable path to growth. According to Bloomberg data, precious metals deals have grown by nearly a quarter this year and account for more than half of total deal value in the broader metals sector. Despite favourable conditions, Chifeng is taking a disciplined approach. Gold has slipped nearly 8% from its peak of around $3,500 an ounce as easing geopolitical tensions particularly between the US and China have reduced its appeal as a safe haven.
“High prices make it difficult to agree on valuations, as sellers’ expectations continue to climb. It may be better to wait until the market stabilises,” said Yang. Lastly, she confirmed that Chifeng has no current plans to diversify into other resources, reaffirming its strategic focus on gold.
