The past ten years have also been a decade in which the price of gold has skyrocketed. No one could have imagined that the price of gold could rise to close to US$1,900 per ounce in the future, an increase of several times.
Therefore, Feng Yu needs to control the supply volume in order to maximize profits. But the price of gold has risen and it should be mined. Based on the mining volume of the few rich mines that Kirilenko bought, 300,000 ounces a month is not a problem.
But we can earn more in the future, so mining is temporarily restricted. Only by innovating equipment and technology at the same time can we earn more profits in the future.
Feng Yu called Kirilenko and discussed the matter with Kirilenko. Kirilenko agreed without saying a word. If Feng Yu hadn't disagreed, he would have wanted to mine and sell gold in large quantities to make money.
Now that Feng Yu has found a big customer, there is nothing to hesitate about. Besides, the cooperation conditions are also very good, so of course he will not object.
Now watching the price of gold continue to rise, Kirilenko can wake up with a smile every day. While others lose money in the stock market, they continue to make money in the gold market.
Although Feng Yu reminded him not to use high leverage, the profits were considerable. The important thing is that he doesn't need to worry too much. If there is news from Feng Yu, he will be notified as soon as possible.
He felt lucky to have such a good friend in his entire life. When other people do business with others, they are afraid that the other party will control them too much and reduce their power.
But Kirilenko especially hopes that Feng Yu will take more care of some things, because every time Feng Yu intervenes, the company can make more money, and he can make more money.
"Feng, how should we invest the money we earn from selling gold?" Kirilenko asked.
"Can you still buy gold mines?" Feng Yu asked.
"Why not? There must be no problem. But the price of gold is rising, and those people may not be willing to sell it. Even if they sell it, the price will definitely be higher." Kirilenko said with some worry.
"There is no problem with the high point. The price of gold may double in the next four years. Of course, we must also consider inflation, our investment income, etc. How much is more cost-effective is your own judgment. If possible, invest in gold mines , is a very safe business." Feng Yu explained.
"Can the price of gold double within four years? Okay, then we are not limited to Russia. We can go to other countries. I remember that there seem to be some gold mines in the United States."
Kirilenko was a little proud. Haven't you Americans always taken advantage of us Russians? This time, let me take advantage.
"Yes, if the price is right, we can invest some more money."
"No, can I get a loan? If it's really not enough, let's talk about other things." Kirilenko said with a smile.
Although the interest on the loan is high, it is definitely not as much as they earn in the gold futures market, so the loan is the most cost-effective.
"Okay, then you decide."
…
After hanging up the phone, Kirilenko immediately arranged for his men to get to work, contacting the mining giants in the United States and saying that the Russian Polar Bear Mining Group was interested in acquiring gold mines, and the price was negotiable.
The first company I contacted was *, an old mining company in the United States with a history of more than a hundred years. The company has many gold mines, some of which are rich ores.
However, the company has plans to expand its business. They do not want to just do gold mining, but plan to enter copper ore, iron ore and other non-ferrous metal mining.
The company's funds are not sufficient, especially when the U.S. stock market environment is not good at this time, and their stock prices are also falling. They wanted to acquire another company, but unfortunately they didn't have the money.
It could have been a public issuance of additional shares to raise funds. But now that the stock price is so low, it will take a lot of public offerings to raise sufficient funds. And they also need to make necessary investments in some projects, such as updating equipment.
At this time, someone told them that the richest man in Russia wanted to buy a gold mine, and they were immediately tempted. Because it is said that the richest man in Russia was very generous when he made a move. If the other party takes the initiative to buy, how can they sell it at a high price
This rich man's company has all its mines in Russia, and it plans to expand abroad. So they sent someone to make contact to see if the price was right.
If appropriate, it is not impossible to sell a few gold mines. The price of gold fluctuated greatly last year. This year everyone said that the price of gold will rise, but no one is sure.
If the United States resolves the war in Afghanistan, the United States will definitely become the number one country in attracting foreign investment again, and people will return to investing in the stock market, and then the price of gold may fall.
To put it bluntly, they believe that the United States will win soon. Didn’t the political ax say that the lamp puller has nowhere to hide!
Kirilenko used the mining company's minerals as collateral for loans and lent a large amount of funds from Russia. Then he quickly negotiated with the * company, gave up some profits, and quickly signed a contract with the other party to buy the other party's six gold mines in Indonesia, Australia, the United States, and Peru.
When everyone thought that the expansion of Polar Bear Mining Group was completed, representatives from Barrick also arrived. Like the * companies, they believe that the profits of gold will not be too high in the past few years. Since there are scammers who like to buy at high prices, then sell them and make money.
Anyway, they can still use the money to buy other gold mines. The important thing is to get through the current difficulties.
Shareholders of Barrick have also lost money in the stock market in the past two years. The speed of gold mining determines that they cannot get money quickly to make up for their losses in the stock market.
If someone is willing to pay a high price for their gold mines, why not sell them
So Kirilenko reached an agreement with Barrick and purchased eight mines in the United States, Canada, Brazil, Argentina, and Australia.
After two consecutive visits, some small gold mining companies also took the initiative to contact them. They only have one or two gold mines, but some of them actually have permanent mining rights, which means they can mine until the mine is empty.
Kirilenko showed his spirit of buying and buying, and without hesitation, he won nine gold mines again.
There is also South Africa's Anglo-Saxon Company, which also sold three gold mines to Polar Bear Mining Group. In recent years, the price of gold has been low, and their profits have been extremely low. What's more, these mining companies have relatively high debt ratios.
For example, Polar Bear Mining Company had no debt before, which is simply weird. As a result, the company's debt ratio has also risen to 78%, far exceeding the warning line. But Kirilenko and Feng Yu are not in a hurry. They can mobilize funds to repay debts at any time. What's more, the mining volume of many of their mines is not large. Once production capacity is increased, the debt ratio will drop rapidly!
At this point, the number of gold mines controlled by Polar Bear Mining Company has reached 32, and it has officially become the top giant in the world's gold mining industry!
(End of chapter)