Zhaojin Mining's stock plummeted 5.01% during intraday trading on Wednesday, extending recent losses for the gold miner.

The sharp decline follows a fatal underground accident at the company's wholly owned subsidiary Zhaoyuan Jintingling Mining on May 13, which resulted in 3 deaths and 2 injuries. This marks the second fatal incident this year after a shaft accident in February killed 7 workers. In response, all production mines in the Zhaoyuan region have been ordered to cease operations for safety inspections, raising concerns about the direct impact on gold output and potential delays to expansion projects due to tightened regulatory scrutiny.

Adding to investor uncertainty, Chairman Jiang Guipeng resigned on May 19, with Wang Leyi appointed as the new Chairman, Executive Director, and President. The broader gold sector also traded weaker during the session, amplifying selling pressure on Zhaojin Mining as market participants apply a persistent safety-risk valuation discount to the company.