Persistence Gold Group Ltd (Persistence Gold) has released supplemental details on the divestment of its wholly owned subsidiary, Yantai City Mujin Mining Co. Ltd., following an independent valuation required under Hong Kong Listing Rules.
The fair value of 100 % equity in the target company was determined at RMB205.00 million by Masterpiece Valuation Advisory Limited. The appraisal date is 31 March 2026.
Key valuation drivers • DGZ Mine accounted for RMB137.00 million of the equity value, assessed via a discounted cash-flow model. – Life-of-mine: 10 years (2026-2035) – Average feed grade: 3.8 g/t; recovery rate: 98 % – Total output forecast: 4,557 kg of gold – Capital expenditure: RMB795.40 million over the mine life – Discount rate (WACC): 9.6 %
• CH and HH Mines contributed RMB68.00 million, benchmarked against five comparable M&A transactions in China. A conservative price multiple of RMB34,000 per kg of indicated gold resources was applied to their combined 1,990 kg resource base to account for their non-producing status.
Sensitivity analysis shows that a 1 percentage-point change in the discount rate moves the valuation by roughly ±20 %, while a 5 % swing in the gold price alters the valuation by about ±32 %.
Transaction terms Persistence Gold will sell 52 % of the target’s equity for RMB106.60 million, matching the proportionate valuation. The group expects to book an unaudited gain of approximately RMB3.80 million, calculated against historical investment costs of RMB102.80 million. The shareholder loans will be transferred at face value, generating no incremental gain or loss.
Governance and assurance Ernst & Young verified the arithmetic accuracy of the cash-flow forecast underpinning the valuation, and the board confirmed that all assumptions were made after due and careful enquiry. The independent valuer and SRK Consulting China Ltd. (Qualified Person’s Report) declared no conflicts of interest.
This disposal qualifies as a discloseable and connected transaction under the Hong Kong Listing Rules. All other information previously announced on 26 August 2026 remains unchanged.