Study On Investment Returns And Risk Analysis Of Hongtu Company Merges CC Company’s Gold Ore

Hongtu Corporation carried out the main business transformation strategy toreverse the losses situation, implementing by non-public private placement to raisefunds to purchase CC Gold Limited, has made the company held the South African’sCC high-quality gold assets. This paper analyzes the M&A’s returns and risks inorder to provide reference for decision-making. and it has a certain practicalsignificance.The paper mainly adopts the method of empirical research study.Through the project investmentgoals.Product market supply and demand forecast，Investment of resources, etc.Analyzed theacquisition of the net present value, internal rate of return of investment, investment payback periodof financial indicators, such as the investment benefit of acquisition, sensitivity and the profit and lossbalance analysis, probes into the safety of the project investment.Through research, the main conclusion is,Successful project can realize theaverage annual net cash flow is2.0961million. And financial Net present value ofthe project is108.2million yuan. This M&A program’s path is mature, withexcellent project trustee operations manager, it benefited to realize win-win situationand collaborative development. After the successful acquisition, Hongtu can be builtinto one of China’s largest gold mining and processing enterprises.