Company: CHNR
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001079973-25-000143
Chunk: 58

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-01-27
Form: POS AM
Chunk 58
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 or
future exploration programs or any acquisitions will result in the identification of deposits that can be mined profitably.

Volatility in the market prices of metals may adversely affect the results of our operations.

The market prices of lead, silver and
other metals have experienced significant volatility in recent years. Market prices depend upon many factors beyond our control, which
include industry specific factors such as supply and demand and the level of customer inventories, as well as factors such as local and
world-wide general economic conditions and disruptions caused by unforeseen domestic or international crises such as the global outbreak
of COVID-19, or geopolitical tensions, including the ongoing military conflict between Russia and Ukraine. The uncertainties surrounding
the market prices of metals and the costs of extraction may adversely affect our ability to operate on a profitable basis if our mining
exploration proves fruitful.

During 2023, the world
witnessed the continuation of the Russia-Ukraine conflict, the Israel Hamas war, the Red Sea crisis, persistent high inflation and interest
rate in many major economies, which led to disruptions to, and notable fluctuations in, the commodity market worldwide and resulted in
high volatility in the market prices of lead, silver and copper. In 2024, the Shanghai Futures Exchange (“SHFE”) lead price
hit a low of CNY15,790 (US$2,164) per ton and a high of CNY20,050 (US$2,747) per ton, the SHFE silver price reached a low of CNY5,743
(US$$787) per kilogram (“kg”) and a high of CNY8,733 (US$1,197) per kg, and the SHFE copper price hit a low of CNY67,380 (US$9,233)
per ton and a high of CNY88,940 (US$12,187) per ton, each reflecting high volatility. The extent to which demand and prices will be supported
in the future is highly uncertain, as the impacts of the interest rate hikes in major economies, especially the U.S., the ongoing geopolitical
tensions and remaining effects of the COVID-19 pandemic continue to cause disruptions to the global economy and to business activities
at all levels. Any widespread resurgence of COVID-19 or other pandemics, or further geopolitical tensions, could significantly and adversely
impact market sentiment and the broader economy. Aggressive monetary policies of major economies could also cause unexpected consequences
beyond mere economic downturns, such as large-scale bankruptcy