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Uranium is gaining momentum - CGN Mining news (1164.HK)

Updated: Jul 13, 2022

CGN mining released full year 2020 earnings yesterday, today Glory Sun Financial announced the initial research coverage on CGN Mining and released its first rating report with a BUY recommendation -> target price at HK$0.86/share.

I am planning to write a complete investment thesis/DD blog post about CGN Mining soon but wanted to share these exciting news with you early in a quick post, linking the original documents.

CGN Mining (1164.HK) 2020 earnings

On March 31, 2021, CGN Mining released an announcement of its annual results for the year ending 2020. CGN Mining achieved revenue of approximately HK$2,862 million in 2020, an increase of 38% over the same period in 2019. The main reason was that CGN Global Uranium, the wholly owned trading subsidiary, vigorously developed the international market and both its sales volume and sales revenue achieved significant increase compared with the same period in 2019. The profit for the year was HK$155 million, a slight decrease of 3% from the HK$160 million recorded in 2019. Basic earnings per share was 2.35 HK cents. The board of directors recommended the payment of a final cash dividend of 0.5 HK cents per share for the year ended December 31, 2020.

The report also includes some news about upcoming acquisitions on page 25:

“Acquisition of New Uranium Resources Projects

In 2021, the Company will strive to implement the relevant completion work on New Kazakhstan Uranium Project in the first half of the year on the one hand, and will seek for potential uranium resource investment opportunities in major uranium-producing regions such as Central Asia and Africa on the other hand, and start to build a sustainable development resources pipeline of “exploration +inproduction”.

Furthermore, the Company will seek for establishing strategic cooperative relationships with internationally renowned uranium producers and traders to study the feasibility of joint development of uranium projects in various modes.”

Find the complete 2020 annual report below:

2021-03-31 Annual Results Announcement f
Download • 171KB

Uranium is gaining momentum. Get Ready!

As mentioned above, today Glory Sun Financial released a new sector report titled "Uranium is gaining momentum. Get Ready!". As part of the report they announced the initial research coverage on CGN Mining and released its first rating report

"Our pick for the Uranium bet- CGNM (1164.HK) CGNM (1164.HK), a sister company of CGN Power (1816.HK), is the sole listed pure uranium company in East Asia and the only pure uranium player backed by nuclear power group globally. Backed by the parent company’s huge internal demand for natural uranium, coupled with the well-established trading infrastructure and the cost-competitive and high-quality uranium assets, CGN mining (1164.HK) would be a perfect pick for investors who believe in the uranium industry recovery story, esp. in the China market. CGN mining (1164.HK) is currently trading at a discounted PB multiple to the peer group and therefore represents greater upside in our view. We initiate with a BUY recommendation and HK$0.86/sh price target based on a DCF valuation using the WACC of 14%. "

Please find the complete sector report below which also includes commentary on the whole uranium sector:

Glory Sun Research Report--- Uranium is
Download • 1.39MB

This is all I wanted to share today. I am working on multiple bog post covering different topics and will release them as soon as possible.

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