Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 113

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 113
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 in jewelry, silverware, medicine, electronics, brazing alloys, chemical equipment, catalysis, photography,
etc.

Silver is an internationally
traded commodity, the price of which is established on commodity markets throughout the world. Silver tends to trend in lockstep with
gold, but it also has its own unique market trend because it has stronger industrial attributes compared with gold. During 2024, there
was still a forecasted silver supply deficit. Although the world economy faced many risks and uncertainties caused by the Russia-Ukraine
conflict, the Israel Hamas war, and persistent high inflation and interest rate in many major economies, global industrial demand for
silver remained strong in 2024. This was mainly attributed to the rapidly developing and prosperous photovoltaic industry, new energy
vehicle industry and AI industry. The price of silver was strongly supported by an increase in industrial demand, a rise in the price
of gold, and an expected potential decline in the US Dollar index and US Treasury yields. During the year, the SHFE silver price started
out at CNY5,972 (US$818) per kg and soon dropped to its annual low of CNY5,743 (US$787) per kg in late January 2024. It then rose notably
until late May 2024 and reached an annual high of CNY8,733 (US$1,197) per kg. After that, silver price fluctuated within a narrower range
until the end of the year. The closing price at the end of 2024 was CNY7,470 (US$1,024) per kg, representing an annual increase of approximately
25%.

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The following table shows the world silver supply
and demand over the past five years:

|                                        |     | 2020 |       |     | 2021 |         |     | 2022 |         |     | 2023 |         |     | 2024 |         |
| World mine production (million ounces) |     |      | 783.4 |     |      |   829.0 |     |      |   836.7 |     |      |   830.5 |     |      |   823.5 |
| World total supply (million ounces)    |     |      | 957.4 |     |      | 1,004.3 |     |      | 1,015.4 |     |      | 1,010