Ten years will be the decade when gold prices skyrocket. No one will expect gold prices to increase to almost 1,900 USD per ounce in the future.
That's why Feng Yu wants to control the supply of gold to get the most profits. But gold prices had increased, and it's time to start mining. Kirilenko had bought those few mines, and it's not a problem to mine 300,000 ounces of gold a month.
But there will be more profits in the future, and that's why Kirilenko decided to limit the mining temporarily. At the same time, Kirilenko needs to upgrade his equipment and technologies to make more profits in the future.
Feng Yu called Kirilenko to discuss with him. Kirilenko agreed without hesitation. If it weren't for Feng Yu, Kirilenko would have started mining and selling gold in bulk.
Now, Feng Yu had found a big client, and there's nothing to hesitate about. Furthermore, Kirilenko will not reject Kirilenko's offer.
Now, Kirilenko can wake up smiling every night as gold prices continue to rise. Others are losing money in the stock market, and they are making money in the gold market.
Although Feng Yu had reminded him not to use high leverage, the profits are still high. Most importantly, Kirilenko does not need to worry too much. Feng Yu will inform him immediately if he has any updates.
Kirilenko felt lucky to have such a good friend. When others are doing business with others, they are afraid the other party will interfere too much, and they will have less authority.
But Kirilenko wants Feng Yu to interfere more. This is because every time Feng Yu interferes, the company and Kirilenko will make more profits.
"Feng, how are we going to invest the money we made from selling gold?" Kirilenko asked.
"Can you still buy gold mines?" Feng Yu asked.
"Why not? It should not be a problem. But gold prices are rising, and those people might not be willing to sell their gold. Even if they sell their gold, the prices will be higher. "Kirilenko replied worryingly.
"It's fine. Gold prices will double in the next four years. Of course, we still need to consider inflation and our returns. You decide how much is worth it. If possible, invest in gold mines. This is a good investment. "Feng Yu explained.
"The price of gold can double in four years? Alright, then we won't be limited to Russia. We can go to other countries to take a look. I remember there are some gold mines in the US. "
Kirilenko is proud of himself. Don't you Americans always take advantage of us Russians? This time, let me take advantage of you.
"Sure, if the price is right, we can invest some more money."
"No need, can I get a loan? If it's really not enough, we'll talk about other things. "Kirilenko smiled.
Although the interest of a loan was high, it was definitely not as much as they could earn from the gold futures market. Therefore, a loan was the most cost-effective.
"Alright, you decide."
…
After hanging up, Kirilenko immediately asked his men to contact the US mining giants. He told them that Russia's Polar Bear Mining Group is interested in acquiring the gold mines and the price is negotiable.
The first company he contacted was Freeport, an old American mining company with a history of more than a hundred years. The company owned a lot of gold mines, some of which were rich.
However, the company had plans to expand their business. They did not only want to do gold mining, but also copper mining, iron mining, and other non-ferrous metals.
But the company does not have sufficient funds, especially when the US stock market is not doing well. Their share prices are also falling. They had wanted to acquire another company, but they do not have the funds.
They could have issued shares to raise funds. But the share prices were too low now, and they need to issue a lot of shares to raise funds. Also, they still need to invest in some projects, such as upgrading their equipment.
At this time, someone told them that Russia's top tycoon wants to buy their gold mines, and they were tempted. This was because Russia's top tycoon is very generous when he makes a move. Since Russia's top tycoon wants to buy their gold mines, they should sell them at a high price.
This tycoon's company's mines were all located in Russia, and he wants to expand his company. So, Kirilenko sent his men to contact him to see if the price is right.
If the price is right, Kirilenko can sell a few gold mines. Last year, the gold prices had fluctuated a lot, and this year, the gold prices will rise. But no one is sure.
If the US can settle the war in Afghanistan, the US will become the country that attracts foreign investors again. Everyone will focus on the stock market again, and the gold prices might fall.
Kirilenko felt that the US will win the war soon. Didn't the US government say that Putin has nowhere to hide?!
Kirilenko used the mining company's assets as collateral to get a large loan from Russia. After that, he negotiated with Freeport and gave them some profits. Kirilenko signed a contract to buy out six gold mines in Indonesia, Australia, the US, and Peru.
Just when everyone thought that the Polar Bear Mining Group's expansion was over, the representative of Barrick arrived. They were the same as Freeport. They felt the profits from the gold mines will not be high in the next few years. Since there are people who want to buy gold mines at high prices, they will sell their gold mines for money.
Anyway, they can use the money to buy other gold mines. What's more important is to get through this crisis.
Barrick's shareholders had suffered losses in the stock market for the past two years. The mining speed of the gold mines determined that they will not be able to get the money quickly to make up for their losses in the stock market.
Since someone is willing to buy their gold mines at high prices, why not sell them?
So, Kirilenko negotiated with Barrick to buy eight gold mines in the US, Canada, Brazil, Argentina, and Australia.
After two times, some smaller gold mining companies also contacted Kirilenko. These companies only own one or two gold mines, but some of them have permanent mining rights. That means they can continue mining until the mine is empty.
Kirilenko did not hesitate to buy another nine gold mines.
Anglo from South Africa also sold three gold mines to Polar Bear Mining. These few years, gold prices are not high, and their profits are very low. Furthermore, these mining companies have high debt ratios.
For example, Polar Bear Mining does not have any debt in the past. Because of this, the company's debt ratio had increased to 78%, which is much higher than the warning level. But Kirilenko and Feng Yu are not worried. They can use their funds to repay their debts anytime. Furthermore, many of their mines are not producing a lot of gold. Once they increase their production, their debt ratio will drop!
Now, Polar Bear Mining owns 32 gold mines, and they are officially the top gold mining company in the world!
… …
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