Zangge Mining Plans to Acquire 92% Stake in Congo Potash Project with ~2 Billion Tonnes Resources

Date of Conference Call: September 18, 2026 Date of Announcement: September 20, 2026

Participants

The company hosted a conference call with representatives from the following institutions:

• Securities Firms: Guosen Securities, Guolian Securities, Guotai Haitong, Founder Securities, Zheshang Securities, East Money Securities, Kaiyuan Securities, Huatai Securities, Huachuang Securities, Dongwu Securities, Industrial Securities, China Post Securities, CICC, CITIC Securities, Guotai Junan, Shanxi Securities, Tianfeng Securities, Minsheng Securities, China Galaxy, Southwest Securities, GF Securities, Guohai Securities, Zhongtai Securities, Minmetals Securities, Orient Securities, Guosheng Securities, Industrial Securities Global, BOCOM Schroders, China Asset Management, Essence Securities, Shenwan Hongyuan, Morgan Stanley, Merrill Lynch Capital, Everbright Securities, Changjiang Securities, Western Securities
• Fund Management Companies: E Fund, Harvest Fund, China Southern Fund, Boshi Fund, China Universal Fund, Fullgoal Fund, ICBC Credit Suisse Fund, Zhongou Fund, Penghua Fund, China AMC, Tianhong Fund, Hua Bao Fund, Dacheng Fund
• Other Institutions: Jinglin Asset Management, Gaoyi Asset Management, Zhengxingu Investment, Yuanyuesheng Asset Management, Qianhe Capital, Huanfang Quantitative, Shanghai Juming Investment, China-Africa Development Fund, Pacific Asset Management, Huatai Asset Management, China Life Pension Insurance, Ping An Pension Insurance

Key Discussion Points

1. Details of the Kanga Potash Acquisition

Background: On September 16, 2026, the company's 10th Board of Directors held its 13th (extraordinary) meeting, approving the resolution to establish a holding company and acquire a 92% equity stake in Kanga Potash (KP). The announcement was made on the evening of September 17.

Core Assets of KP:

• KP's primary assets are greenfield potash projects located in the Republic of Congo (Brazzaville)
• Held through two wholly-owned subsidiaries: SEPK (holds the Kanga potash mining license) and OEC (holds the Loango potash exploration license)
• Kanga Mining License: Area of 321 km², valid until June 2047
• Loango Exploration License: Area of 286 km²

Resource Estimates (NI 43-101, 2018):

• Kanga mining rights: Indicated resources of 810 million tonnes of KCl at an average grade of 17.12%
• Inferred resources of 1.179 billion tonnes of KCl at an average grade of 16.47%
• Total KCl resources: approximately 1.989 billion tonnes
• The project demonstrates considerable resource scale and favorable grade, indicating strong development potential

2. Progress of the Laos Project

• The company is actively advancing the application for a mining license in Laos
• Maintaining close communication and regular coordination with relevant Lao authorities
• Project preliminary work is progressing in an orderly manner
• The company will proceed prudently based on mining license progress and actual project conditions
• The acquisition of the Congo (Brazzaville) Kanga project will further diversify the company's overseas potash resource portfolio
• Future resource allocation and capacity planning will be coordinated based on progress in both Laos and Congo (Brazzaville)

3. Strategic Impact of the Acquisition

• Potash resources are a critical resource guarantee for the company's core business
• The acquisition supports the company's strategy to secure high-quality overseas potash resources
• Strengthens resource reserves and enhances sustainable development capabilities
• Aims to create greater value for shareholders

4. Role of Controlling Shareholder Zijin Mining

• Zijin Mining has extensive experience in overseas mining project development, construction, and operations management
• Zijin operates multiple mining projects in Africa
• The company will leverage Zijin's expertise in overseas resource development, project construction, operations management, and risk control
• The two companies have established a strong cooperative foundation through the Julong Copper Mine project
• Zangge Mining brings over 20 years of technical expertise in potash beneficiation, flotation processes, and potash fertilizer production operations
• The company will combine its own professional capabilities with Zijin's overseas project experience to convert resource advantages into economic benefits

5. Rationale for Joint Investment with Yuntianhua

• The joint investment is a strategic initiative to expand resource reserves
• Benefits include:
• Leveraging complementary advantages in capital and industry
• Risk-sharing
• Jointly advancing the Kanga project toward timely completion and production
• Yuntianhua's wholly-owned subsidiary, Xindu Chemical, participated in the transaction
• Both companies, together with professional firms (Deloitte, Zhonglun, Shirui), conducted comprehensive technical, financial, and legal due diligence
• The participation of industry players reflects recognition of the Kanga project's resource value and development prospects
• Enhances project development certainty and synergy

6. Impact on Dividend Policy

• Investment funding will come from the company's own funds and self-raised capital
• Based on current arrangements, the transaction will not have a material adverse impact on the company's financial condition or operating results
• The company will continue to pursue a proactive and stable shareholder return policy
• Cash dividend policy will maintain continuity and stability, balancing operational development and capital needs

Company Overview

Main Business: Production and sales of potassium chloride (KCl) and lithium carbonate (Li₂CO₃), with products widely used in agriculture, new energy vehicles, energy storage, and consumer electronics.

Financial Highlights (2026 Interim Report)

| Metric | H1 2026 | YoY Change | |--------|---------|------------| | Revenue | RMB 2.065 billion | +23.05% | | Net Profit Attributable to Parent | RMB 3.638 billion | +102.09% | | Core Net Profit (excl. non-recurring items) | RMB 3.706 billion | +104.92% | | Q2 Revenue | RMB 1.349 billion | +19.83% | | Q2 Net Profit Attributable to Parent | RMB 2.064 billion | +96.05% | | Q2 Core Net Profit | RMB 2.130 billion | +101.22% |

Key Financial Ratios:

• Debt ratio: 7.77%
• Investment income: RMB 2.814 billion
• Finance costs: RMB 5.9383 million
• Gross margin: 66.69%

Analyst Ratings

Over the past 90 days, 12 institutions have issued ratings:

• Buy: 10
• Outperform: 2

Note: The above content is compiled from publicly available information by Securities Star and is for reference only. It does not constitute investment advice.