Chapter 134: This Mine Is No Ordinary Find!
At the Zise Mining headquarters building, Chen Jinhe welcomed a special guest with a bright smile: Li Feiqun, Director of Investment Banking at Jiangda Securities in Hong Kong.
The decision to appoint Jiangda Securities as the lead underwriter for their planned main board listing in Hong Kong had already been made.
The company's transition into a joint-stock enterprise was a key step toward going public.
Next, they would need to advance reforms in management, financial operations, and information disclosure until they met the listing standards.
This visit from Li Feiqun was intended to offer tailored advice and strategic guidance for that process.
Chen Jinhe made no effort to hide the company's internal workings. "Director Li, we deeply appreciate you making time in your schedule to visit us. Please point out anything we need to improve. We want to make sure our adjustments are targeted and effective."
"Zise Mining is an excellent company. That's beyond question,"
Li Feiqun responded in thickly accented Mandarin from Hong Kong—his pronunciation clearly affected by a "plastic Cantonese" inflection.
"Your operations are already quite good. But to pass a listing review and gain the trust of institutions and shareholders, you need to be even better. I won't sugarcoat anything. Let me share a few observations based on what I've seen so far."
"Please, Director Li. We welcome all feedback."
Unlike usual, where others recorded the notes, this time Chen Jinhe personally held a notebook and pen, listening intently.
"For the past three years, Zise Mining has benefited from significant tax incentives provided by local authorities. Based on net profit figures, your earnings have been enough to meet main board listing standards."
Li didn't hold back. He went straight to the point.
"But this also means a lot of uncertainty. From the financial statements, we see your net profit has been gradually declining. You explained this is because your mine transitioned from producing mostly gold to mostly copper.
That's a major operational shift, and it introduces risk. Your future profitability is under question."
"No need to worry on that front," Chen quickly responded. "We've been expanding production at our copper-gold mine. Our profits will only go up in the future."
But of course, it wasn't just about his own confidence—what mattered was whether investors and funds believed it.
"This time I brought a mining expert with me. He told me your mine used to produce gold at 4% ore grade. Now that the gold is mostly gone, you're down to just 0.3%."
"Well…"
Chen Jinhe was momentarily speechless.
Indeed, the gold was running out. That's why they'd shifted focus to copper.
"And one more thing—your company only has one mine. That makes your revenue stream too concentrated."
Li pointed right to the company's biggest vulnerability.
"I'm not a mining expert, but I do know this—an enterprise's potential is tied to the resources it controls.
What's that called again…"
"Retained reserves," the mining expert next to him chimed in.
"Yes, retained reserves—that determines a mining company's future!
Look at all those foreign mining firms with multibillion-dollar market caps. Some of them haven't even begun production, but investors are lining up to buy their stock—just because they've secured a massive deposit.
It goes to show how vital it is for a company to hold significant mining rights. Investors and institutions bet on future growth."
Chen Jinhe knew this better than anyone.
If Zise Mining wanted long-term success and to build a century-old foundation, retained reserves were crucial.
It was like setting sail in a ship—the fuel in the tank determines how far you can go.
They had already acquired several small mines in the province, but none of those were game-changers.
After seeing Li Feiqun and his team off, Chen Jinhe sat alone in his office, deep in thought.
Knock knock!
Tao Mingzhi arrived at the door with his technical team and a stack of documents. "Chairman!"
"You're back from Tibet?"
Chen's eyes immediately scanned their windburned faces. He knew how harsh the Qinglong site was and instantly dropped all his worries to greet them warmly. "Come in and sit down."
They remained standing. Tao pulled out a report from the stack—the report.
"Chairman, you should take a look at this."
"What's going on?"
Seeing it was a summary report, Chen's interest was immediately piqued.
He had only received one fax during their time in Tibet. It listed some drill results and said the project was showing expanded mineralization. That was within expectations.
But what he saw now stunned him.
"Qinglong Copper Mine has already delineated 14 million tons of copper metal reserves!"
Tao couldn't hold it in anymore.
"How much?!"
Chen looked up from the report, staring at Tao in disbelief.
"Fourteen million tons," Tao repeated, controlling his excitement, "Qinglong Copper Mine is officially the first ten-million-ton super copper deposit in China!"
"Is this real?"
Chen froze. It had only been about two months since detailed exploration began.
How could results expand this quickly?
When did mineral exploration become so efficient?
"It's real. The data is reliable—no fluff," Tao assured him, patting his chest.
"The Qianzhou Geological Bureau deployed everything they had—technical staff, rigs, geophysics equipment—all focused on Qinglong. Drilling ran 24/7. No one slacked off."
Chen's face grew solemn. "That's the true spirit of the geological profession."
"Chairman, at the project's peak, we had over 300 people on-site!"
Tao grew more animated. "I've never seen a project like this. Usually you get twenty or thirty people—maybe fifty with drillers. But Qianzhou brought in two to three hundred people. It was nonstop action!
Everyone was competing to do more, to meet targets!"
Chen nodded with admiration, clearly moved.
"Qianzhou Geological Bureau and Team 101 really know how to work hard. What they've done for Qinglong Copper Mine is extraordinary.
This reminds me of life in the field twenty years ago. One truck, a few dozen team members—we'd be dropped in the middle of nowhere and scatter across the hills, searching for ore with dedication."
Looking at the group in front of him, his heart swelled.
"You've all worked hard. I assume the site is snowed in by now?"
"It is," Tao confirmed.
"Well, now that the project's paused, you should rest and recover. Take care of yourselves."
Chen always made a point to care for his team's health. He turned back to the report.
Despite being only ten pages long, it laid out the project results clearly and powerfully.
"Fourteen million tons of copper!"
He paused again at the figure and saw that the report was signed by Li Zaiqiang.
In that moment, he realized—this mine is no ordinary find.
"Xiao Wang!" he called to his secretary.
"Yes, Chairman?"
"Call the board and senior management to my office immediately."
"Right now? We're almost off duty…"
"Right now. It's urgent."
Not long after, the office was packed with senior leadership.
"Fourteen million tons?"
Yao Zhenyu's voice cracked as he looked at the report. "This is the first ten-million-ton super copper deposit ever discovered in China! Zise Mining just made history!"
"Wukuang's Qulong was only 3 million tons confirmed and a speculative 10 million, and it made national news.
But that was just speculation. Ours is backed by drill data—solid, verifiable numbers!"
"This puts us among the top in copper reserves nationwide. We could even claim to be number one!"
"Should we notify CCTV and get them to cover this?"
"We didn't mention Qinglong to Director Li Feiqun before because we didn't have solid numbers. Now with 14 million tons, this deposit ranks globally!"
"We'd be top 20 worldwide. If word gets out, not just domestic, even foreign mining giants will try to acquire us!"
"Director Li said our retained reserves weren't enough for sustained growth. Well—now we've got potential!"
The room erupted in excitement as everyone expressed their thoughts.
Chen waited for the buzz to settle before speaking slowly.
"Let's put other matters aside. The reason I called you here is to share some news: Li Zaiqiang and Li Tang are both staying at our company's guesthouse."
"The credit for Qinglong goes to Li Tang!"
"No matter what, we must thank him properly!"
"Li Tang is our lucky star!"
"Team 101 also deserves recognition. Chief Engineer Li Zaiqiang is a veteran expert—dependable and sharp!"
Chen nodded, knowing full well how much they owed Li Tang.
"I've reserved the best restaurant in the capital. Tonight, we honor Li Tang and Li Zaiqiang properly!"
"We'll show them what Jian'an hospitality is all about!"
"Only the freshest seafood!"
"And the finest wine!"
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