Author: Couloir Research Team October 22, 2025
PLEASE REVIEW THE DISCLAIMER ON PAGE 2
Investment Highlights
- China Gold International Resources Corp Ltd. (TSX: CGG) (“CGG”, or “Company”) is a polymetallic miner with two producing assets in the Greater China Region — the CSH mine and the Jiama mine. The Compan y has delivered a 1,324% return to shareholders since our initial report o n August 27, 2000.
- Parent in contempt: Global Mareva order heightens liquidation risk: China National Gold Group Hong Kong (CNGHK), which owns 40.01% shares in CGG, has been found in serious contempt of court over its refusal to transfer ownership of the Soremi Copper-Zinc Mine in the Republic of Congo to Gerald Group, a U.S.-linked commodities firm. In addition to contempt fines, the court has issued worldwide freezing (Mareva) injunctions against CNGHK assets, including 34.1 million shares of CGG (worth C$767 million). This exposes CGG shares to forced liquidation risk.
- Governance overhang: CGG has not provided any disclosures or commentary regarding the litigation, the contempt judgment, and asset-freeze rulings, indicating a potential governance and transparency gap for investors.
- We view these developments as incremental risks to CGG’s valuation multiple. While the company continues to report strong operational performance, unresolved legal and reputational issues surrounding its parent could result in de-rating.
- We are placing our target price and rating ‘Under Review’ pending disclosure and clarity from the Company.
China Gold International Resources (CGG) is 40% owned by China National Gold Group Hong Kong (CNGHK). In recent months, multiple international court rulings have escalated the legal exposure for CNGHK, which may harm CGG shareholders. The dispute stems from the ownership of Soremi Investments Ltd (SIL), the owner of the Soremi copper-lead-zinc mine in the Republic of Congo. In 2022, the Hong Kong International Arbitration Centre (HKIAC) ruled in favour of Gerald Group being the rightful owner of SIL and also stated that CNGHK must transfer its shares to Gerald Group. Following CNGHK’s refusal to follow the orders, Gerald Global began enforcement actions in the British Virgin Islands (BVI), where Soremi is incorporated, seeking rectification of the share register and compliance with the HKIAC awards.
In July 2025, the BVI court found CNGHK in serious contempt of court, imposing a record US$2.5 million contempt fine and ordering the rectification of Soremi’s share register in favour of Gerald Global. Further to this, in October 2025, the Hong Kong Court of First Instance granted worldwide freezing (Mareva) injunctions against CNGHK’s assets, including 34.1 million shares of CGG worth C$767 million.
Although CGG itself is not a named party to the proceedings, public records suggesting that the shares of CGG owned by CNGHK may fall within the scope of the freezing orders expose CGG shares to forced liquidation risk.
We believe these developments justify applying a governance-risk discount in CGG’s valuation multiple until transparency improves and the outcome of the enforcement actions becomes clearer. We are placing our target price and rating ‘Under Review’ pending disclosure and clarity from the Company.
This report has been prepared by an analyst on contract with or employed by Couloir Capital Ltd. The analyst certifies that the views expressed in this report, which include the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report, accurately reflect his or her personal views about the subject securities and the issuer. No part of his / her compensation was, is, or will be directly or indirectly related to the specific recommendations.
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