A piece of news caused the share price of lithium mining giant to plunge. On February 7, Tianqi Lithium Corporation(002466) once fell by more than 7%, and the market value evaporated nearly 8 billion yuan a day, leaving 330000 shareholders stunned.
quinana project production delay?
Tianqi Lithium Corporation(002466) intraday sharp diving
On February 7, due to a news on the Internet, Tianqi Lithium Corporation(002466) share price plunged during the session, once falling more than 7.45%. As of the closing, the stock was reported at 83.08 yuan, down 6.02%, with a total market value of 122.7 billion yuan, and the market value evaporated nearly 8 billion yuan on the same day.
In response to the delay in the commissioning of the Australian quinana project of Netcom Company, Tianqi Lithium Corporation(002466) the relevant person in charge responded: “quinana is now in normal trial operation, and the investor exchange meeting just held by the project party did not say the delay.”
At an investor exchange meeting at the end of last year, Tianqi Lithium Corporation(002466) said that at present, the company’s phase I lithium hydroxide project in quinana, Australia has been basically put into operation and has begun to put into trial operation. During the follow-up trial production, the company will start to send samples to customers, and will continue to carry out targeted commissioning and rectification according to the problems in the trial production and customers’ demand for products, so as to make the marketable products meet customers’ requirements.
The main works of the company’s quinana phase II project in Australia have been basically completed and the construction is suspended. Tianqi Lithium Corporation(002466) pointed out that the company’s project team currently focuses on the commissioning, production and capacity climbing of quinana phase I lithium hydroxide project. Previously, the company and Igo injected funds into tlea in the same proportion of capital increase, which was mainly used for the commissioning and operation of the Australian quinana lithium hydroxide plant owned by Tlk, a wholly-owned subsidiary of tlea. After the phase I lithium hydroxide project is put into operation, its products will be mainly sold to existing order customers such as ski and northvolt to realize cash flow, laying the foundation for the restart of phase II lithium hydroxide project.
Since the phase II lithium hydroxide project is close to the phase I lithium hydroxide project, and the common projects of the two projects mainly include office administrative logistics system, water system, power system, compressed air system, boiler system, infrastructure, etc., the phase II project has a strong correlation with the phase I project, the company will effectively verify the mature operation of the phase I project, combined with market trends The company’s capital liquidity, project feasibility and other factors comprehensively consider the restart plan and capital investment plan of phase II lithium hydroxide project in the future. For the restart plan of quinana phase II project, please refer to the relevant announcements subsequently disclosed by the company.
will lithium mines in Chile be nationalized?
Tianqi Lithium Corporation(002466) clarification
In addition to the quinana project, a proposal recently adopted by Chile’s constituent assembly may also have an impact on Tianqi Lithium Corporation(002466) . It is reported that the constitutional assembly of Chile has preliminarily adopted a proposal to promote the nationalization of copper, lithium and other strategic assets.
In this regard, the relevant person in charge of Tianqi Lithium Corporation(002466) clarified that the nationalization of (lithium mine in Chile) has not yet been actually implemented. Previously, the company has signed a contract with the local government and obtained the lithium resource quota before December 31, 2030, which will not be changed. In addition, assuming that the nationalization policy of lithium mine in Chile is implemented, how to deal with the mining equity acquired by the company locally (the Chilean government) also needs to give specific plans.
Previously, Tianqi Lithium Corporation(002466) after several rounds of bidding and negotiation, finally successfully purchased 23.77% class a equity of sqm held by nutrien group, and obtained the maximum value of voting rights of class A shares, so as to realize the strategic layout of the world’s best salt lake lithium resources, which is conducive to the company’s improvement of resource layout and further enhance its long-term competitive strength, It is also conducive to promoting the upgrading of Shanxi Guoxin Energy Corporation Limited(600617) industry, which is of great strategic significance.
It is understood that sqm is mainly engaged in the production and sales of lithium and its derivatives, special plant fertilizers, potassium fertilizers and industrial chemicals. It is the world’s leading producer of lithium chemical products and the largest producer of iodine and potassium nitrate. Atacama Salt Lake in Chile is a lithium salt lake with high lithium concentration, large reserves and mature mining conditions all over the world.
Tianqi Lithium Corporation(002466) Hong Kong Stock Exchange
It is worth mentioning that recently Tianqi Lithium Corporation(002466) submitted a listing application to the main board of the Hong Kong stock exchange, with Morgan Stanley, China International Capital Corporation Limited(601995) and China Merchants Bank International as its co sponsors.
Tianqi Lithium Corporation(002466) announced the launch of H-share listing and issuance in September 2021. He said that the submission of listing application materials to the Hong Kong stock exchange is an important step in the process of H-share listing. The company will continue to actively and orderly promote the work related to H-share listing, and disclose the relevant progress of the project in a timely manner in strict accordance with the provisions and requirements of relevant laws and regulations.
According to the prospectus, this offering Tianqi Lithium Corporation(002466) will be used to repay the outstanding balance of sqm debt, allocate funds for expansion projects (including but not limited to quinana Plant Phase II and Anju plant 20000 t / a lithium carbonate capacity), and for general corporate purposes, but the specific amount of raised funds is not disclosed.
Tianqi Lithium Corporation(002466) is China’s top and the world’s leading new energy materials company with lithium as the core. It is the only lithium producer in China that is 100% self-sufficient and fully vertically integrated through large, consistent and stable lithium concentrate supply. The operation of Tianqi Lithium Corporation(002466) covers the key links of the lithium value chain, including the mining of lithium ore and the production of lithium concentrate and the production of lithium compounds and derivatives.
According to the wood Mackenzie report, Tianqi Lithium Corporation(002466) is the world’s largest lithium producer in terms of production in 2020, and ranks third in terms of revenue generated by lithium in 2020. It is also the world’s fourth largest lithium compound producer and the second largest lithium compound producer in Asia.
Tianqi Lithium Corporation(002466) turn loss into profit
On January 26, Tianqi Lithium Corporation(002466) disclosed that the performance forecast for 2021 showed that the company expected to realize a net profit attributable to the parent company of 1.8 billion yuan to 2.4 billion yuan in 2021, reversing losses year-on-year; It is estimated that the non net profit deducted will be 1.08 billion yuan – 1.6 billion yuan.
Tianqi Lithium Corporation(002466) said that the company expects the operating revenue in 2021 to increase significantly compared with that in 2020, mainly due to the impact of many positive factors, such as the improvement of the global prosperity of new energy vehicles, the acceleration of capacity expansion of lithium-ion battery manufacturers, and the pick-up of downstream cathode material orders. The sales volume and average sales price of the company’s main lithium products in 2021 increased significantly compared with that in 2020.
Zheshang Securities Co.Ltd(601878) said in response, Tianqi Lithium Corporation(002466) as a leading enterprise with lithium as the core, it has the world’s highest quality lithium ore and salt lake, with low comprehensive cost, Chengfeng project expansion and industry prosperity, and its performance has turned losses into profits and gradually improved. Tianqi Lithium Corporation(002466) is a leading enterprise in the new material industry with lithium as the core. Relying on four high-quality lithium sources and five bases, the company realizes the global layout of lithium business. At present, it has a capacity of 1.34 million tons of lithium concentrate and 44800 tons of lithium chemical products. In 2021, after introducing Igo strategic investors, the company added $1.4 billion in cash inflows to repay the syndicated loans and project construction brought by the merger and acquisition of sqm. The company’s debt pressure and bottom of profitability reversed, the quinana project was promoted in an orderly manner, and the production capacity is expected to be released. Under the situation that the lithium industry is in short supply, the release of the company’s production capacity superimposes the downstream boom, and the lithium price runs at a high level, driving the growth of performance.
As of January 20, Tianqi Lithium Corporation(002466) had 334300 shareholders.
