Today, A-share lithium giant Ganfeng Lithium Co.Ltd(002460) (002460. SZ) announced that the company and GFL International Co., Limited (hereinafter referred to as “Ganfeng international”) signed a cooperation agreement with process minerals International Pty Ltd (hereinafter referred to as “PMI”), which agreed that PMI would provide the company with spodumene underwritten by it in MT Marion spodumene project, and the company would process it into lithium compound products agreed by both parties, and the company would be responsible for sales. Up to now, the company and PMI each hold 50% equity of reed industrial minerals Pty Ltd (hereinafter referred to as “rim”) in Australia. Rim’s MT Marion spodumene project is one of the largest spodumene producers in the world.
Recently, the company received a notice from rim that RIM’s management is considering the technical transformation and expansion of the capacity of MT Marion spodumene project through the optimization of production process and the development of contact minerals. The expansion project is preliminarily expected to be put into operation in the second half of 2022, and the original capacity scale is expected to increase by 10 ~ 15%. In addition, the capacity of contact minerals will be increased, It is expected to increase the capacity scale by an additional 10 ~ 15%.
raw ore capacity will increase
Today, Ganfeng Lithium Co.Ltd(002460) ushered in good news, and the company’s upstream resources may be expanded.
Ganfeng Lithium Co.Ltd(002460) announced that recently, the company and its wholly-owned subsidiary Ganfeng international signed a cooperation agreement with PMI, which agreed that PMI would provide the company with spodumene underwritten in MT Marion spodumene project, and the company would process it into lithium compound products agreed by both parties, which would be sold by the company. Up to now, the company and PMI each hold 50% equity of rim50 in Australia. Rim’s MT Marion spodumene project is one of the largest spodumene producers in the world.
According to the announcement, the company has received a notice from rim that RIM’s management is considering the technical transformation and expansion of the production capacity of MT Marion spodumene project through the optimization of production process and the development of contact minerals. The expansion project is initially expected to be put into operation in the second half of 2022, and the original energy scale is expected to increase by 10 ~ 15%. In addition, the production capacity of contact minerals will be increased, and it is expected to increase the production capacity by an additional 10 ~ 15%.
According to the annual report of Ganfeng Lithium Co.Ltd(002460) 2020, MT Marion’s current output is 400000 tons / year of lithium concentrate, which is the main source of lithium raw materials for the company.
According to the underwriting agreement, Ganfeng Lithium Co.Ltd(002460) can underwrite all lithium concentrates produced by MT Marion from 2017 to 2019. Not less than 190000 tons of lithium concentrate will be sold every year after 2020. If the final technical transformation reaches the target, the upstream concentrate supply of Ganfeng Lithium Co.Ltd(002460) will be improved.
Compared with talison owned by another lithium giant Tianqi Lithium Corporation(002466) , Ganfeng Lithium Co.Ltd(002460) has a more obvious resource bottleneck.
Since this year, lithium sector companies have successively disclosed performance forecasts, and the performance elasticity of upstream mining enterprises is undoubtedly greater. Tianqi Lithium Corporation(002466) it is expected to achieve a net profit of 1.8 billion ~ 2.4 billion yuan in 2021, compared with a loss of 1.8 billion yuan in 2020. Taking the predicted median value, it earned 1.57 billion yuan in a single quarter in the fourth quarter of last year, almost twice the profit in the first three quarters. The Ganfeng Lithium Co.Ltd(002460) that released the performance forecast on the evening of January 24 also earned nearly 2.7 billion yuan in a single quarter in the fourth quarter, which is the sum of the net profits of the first three quarters.
The reporter of the daily economic news noted that under the background of large capacity expansion of the new energy industry, Ganfeng Lithium Co.Ltd(002460) is also actively distributing upstream resources. At the beginning of this year, Ganfeng Lithium Co.Ltd(002460) signed the strategic framework agreement with the people’s Government of Haixi Prefecture, Qinghai Province to strengthen the comprehensive development and utilization of lithium resources in Haixi Salt Lake and increase the exploration and development of lithium salt lake.
However, it is difficult to know whether this cooperation can stimulate the company’s share price. After the festival, Ganfeng Lithium Co.Ltd(002460) and lithium sector enter the adjustment together. Today’s share price fell 5.7%.
the mining war continues
Contrary to the decline of lithium shares, the spot price of lithium concentrate is still rising.
According to the data of business agency, on January 1, the average price of battery grade lithium carbonate in East China was 282000 yuan / ton, and that of industrial grade lithium carbonate was 266000 yuan / ton. As of the 27th of last month, the comprehensive price of industrial grade lithium carbonate was 350000 ~ 383000 yuan / ton, and the comprehensive price of battery grade lithium carbonate was 360000 ~ 41000 yuan / ton.
Stimulated by the price rise of lithium concentrate, industrial companies have significantly increased capital expenditure.
Just today, another listed company disclosed that it had joined the mine grabbing war.
Sinomine Resource Group Co.Ltd(002738) (002738. SZ) plans to acquire the equity of bikita lithium mine in Zimbabwe, with a transaction price of up to US $180 million.
Bikita lithium mine project is in the production stage, and the main products are technical grade lithium permeable feldspar concentrate and cesium garnet concentrate with high grade and low impurities. The beneficiation capacity of the target company is 700000 T / A.
Chengxin Lithium Group Co.Ltd(002240) also acquired 51% equity of Max mind, and its wholly-owned subsidiary owns mining warrants for a total of 40 rare metal ore blocks of sabixing Lithium Tantalum mine project in Zimbabwe. Among them, the main mineral lithium oxide resources of 5 mining rights are 88500 tons, and the associated lithium oxide resources are 5200 tons. The other 35 mining rights are in the preliminary preparation stage of exploration.
