Due to its tectonic formation and settings, our Yángguāng mine has 17 different types of mineral resources, such as gold, copper, silver, aluminum, iron ore, lead, zinc and molybdenum. In the 1950’s and the opening up to systematic exploitation of Tibet’s rich minerals, big mining companies have shown great interest in investing there.
According to Article 9 of the Constitution of the People’s Republic of China, Tibet’s resources are state assets available to be exploited to meet the needs of national development. Over the past sixty years, however, mineral exploitation has evolved from a marginal endeavour to a major phenomenon in China’s economic growth driven by industrialization and urbanization. Between 2013 and 2015, a Chinese geology and mineral resource lab conducted detailed exploration work alongside SES Mining Co. Based on this work, mining licenses were applied for and issued to; SES MINING COMPANY in December 2015.
SES Mining first entered China in 2013 to capitalize on the country’s vastly under-explored geological potential. While the Chinese government invested tremendously in geological exploration in the 1950s and 1960s, leading to many discoveries, very little capital or advanced exploration technology was available to exploit them fully. China’s 1997 Mineral Resource Law was adopted specifically to enable foreign mining companies to explore and mine in the country, inviting in the advanced exploration technology, expertise and funding China needed to truly develop its resources.
In 2015, SES Mining Co acquired 50-year mining rights to the Yángguāng mine, a medium-producing mine in the Sichuan province, and exploration over the next two years led to the discovery of high-grade gold-zinc-silver ore mineralization in a multitude of narrow veins similar to the Shandong district in eastern China.
In January 2017, SES Mining Co won an investment from Farrell Knight LLC in order to facilitate the infrastructure required to proceed with initial production. On March 31, 2017, SES Mining Co received its first mining permit and commercial production of gold, zinc, silver and other by-products from the Yángguāng mine began the following week.
Today, SES Mining Co is one of China’s premier junior miners and precious metal producers, with annual production of 80,000 ounces of gold in fiscal year 2018. The Company also produced 3,825 tonnes of lead, 10,400 tonnes of zinc and 600,000 ounces of silver during the same period. In addition to its operational success, SES Mining is considered a preferred mining company in the Sichuan province, having built a solid reputation for upholding high safety and environmental standards and for supporting local community initiatives. Additionally, SES Mining has become one of the most prominent private non-state-controlled companies. Our strong brand name has been instrumental in gaining and building the support of city, county and provincial governments in China.
SES Mining commenced commercial production at its Yángguāng mine gold-zinc-silver project in Sichuan Province in 2018, its newest production base in China. While the Company’s near team-focus is on cost control, cash preservation, and protecting its strong balance sheet, longer term SES Mining plans are to continue its growth through future consolidation, exploration, mine development and acquisition, with a focus in China.
The management of SES Mining Co has always approached the business of mining differently than most Chinese junior exploration companies. Rather than purely drilling for years to build up a resource that it intends to sell to someone else, SES Mining Co aimed at the outset to go into operations quickly so that it could run a distinguished and profitable business.
This long-term strategy was characterized by three key steps:
- Acquire a project and conduct selective exploration to further delineate its potential;
- Develop mine operations and generate profits before the project’s potential is fully drilled off; and
- Use the cash flows generated from operations to fund further exploration, resource expansion and production ramp-up.
SES Mining Co’s long-term strategy produced three key benefits:
- Local Employment – mine development creates jobs for neighboring communities, boosting the local economy and creating an immediate sense of community involvement in the project.
- Tax Revenue for Local Government – boost in local support and the taxes collected from profits ensures the support of the local government for the continuation and success of the project.
- Minimum Dilution for Shareholders – immediate profits and returns means immediate value appreciation for SES Mining’s shareholders and minimum dilution of shareholders’ equity.
With over US$23,000,000.00 in cash and cash equivalents, new investments from Farrell Knight LLC (our original investment partners) and an additional injection of cash from Chang Parker Holdings of US$8,000,000.00, as of 1st January 2019, profitable operations, and high quality development projects, SES Mining plans to grow through future consolidation, exploration, mine development and acquisitions. Our overall goal is to achieve a potential IPO in order to offer our shareholders the most fiscal value per nominal share held. We also intend to expand and optimize our operations in the Sichuan District in order to maximize the output of our infrastructure. We are heavily investing in our growth and expansion targets and aim to become one of the leading junior miner’s in the world.
With the success of development and operations over the last 2 years, we have increased our entire operations. Not only have we added additional staff to our teams but we have purchased 16 pieces of new machinery to accommodate the increased production. Our targets to date have all been exceeded with new veins found and explored within current mines. We are predicting to reach all of our new milestones for the next few years with quarterly review and analysis of the progress.