China Natural Resources, Inc.

CHNR ·Basic Materials, Gold
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $4.30
Market Price $4.09
Undervalued By 4.9%

Method: Net asset value (NAV) approach: book equity of CNY86.33M (~$12.2M USD at ~7.1 CNY/USD) consisting almost entirely of an illiquid minority equity-method stake in the Moruogu Tong lead-silver mine in Inner Mongolia, plus just CNY0.48M (~$68K) of cash; applied a 55% discount to that book equity for minority-interest, governance, and capital-repatriation risk typical of small US-listed China reverse-merger names, then divided by 1.26M shares outstanding.

Reasoning: Cash fell 84% year-over-year and the company generates no meaningful free cash flow, so a DCF is not meaningful; value is better captured by discounting the carrying value of its mining equity stake for the well-documented difficulty US shareholders have had monetizing minority interests in Chinese mining joint ventures, with no added credit yet for the non-binding HooRii Technology AI stake deal.