\u3000\u3000 Sinomine Resource Group Co.Ltd(002738) (002738)
Event: Sinomine Resource Group Co.Ltd(002738) plans to acquire 74% equity of bikita company held by AMMS and Samm for us $180 million. According to the resource estimation report issued by IRES, the accumulated explored lithium mineral resources in bikita lithium mining area are 29.414 million tons of ore, equivalent to 849600 tons of Li2CO3 equivalent.
Comments
1. Acquire bikita and strengthen the layout of lithium resources. Sinomine Resource Group Co.Ltd(002738) has a cooperative relationship with bikita for more than 10 years. Since 2007, it has been the exclusive agent of cesium garnet and lithium permeable feldspar produced by bikita in China. At present, the beneficiation capacity of bikita is 700000 tons / year, the retained lithium mineral resources is 29.414 million tons, the average grade of Li2O is 1.17%, and the content of Li2O metal is 344000 tons. The company is studying the production expansion plan of 1.05 million tons / year.
At the same time, there are still many unverified LCT type (lithium cesium tantalum type) pegmatite bodies in the mining area, which has the potential to further expand the reserves of lithium cesium tantalum mineral resources.
2. Lithium resources bloom in many places, and short-term and long-term resources are guaranteed.
(1) 120000 tons of spodumene beneficiation in the company’s Tanco mine has been put into operation, and 500000 tons are planned in the long term, of which 180000 tons are expected to be put into operation by the end of 2022. Tanco mine has 4.6028 million tons of proven + controlled lithium mineral resources (Li2O ≥ 1%), with an average Li2O grade of 2.44% and a Li2O content of 112200 tons
(2) take shares in PWM and seize the resources. The company plans to subscribe for 5.72% equity of PMW in Canada in December. Within three months after the completion of the transaction, Hong Kong China Mining rare and PWM signed an underwriting agreement for all lithium, cesium and tantalum products of the case Lake project. In addition to taking shares, the company also provides the company’s leading exploration and development technology to ensure the smooth progress of future projects.
3. The lithium salt project is about to become a new growth point of the company.
(1) 25000 tons of new lithium salt production capacity has reached the production capacity, and the large-scale production is imminent. At present, the company has a capacity of 6000 tons / year of industrial lithium carbonate to produce battery grade lithium carbonate and high-purity lithium carbonate. At the same time, the company has invested in the construction of a flexible production line with an annual output of 15000 tons of battery grade lithium hydroxide and 10000 tons of battery grade lithium carbonate, which has been completed and put into operation. It is expected to gradually expand in 2022.
(2) the lithium chloride transformation project of the company was completed to consolidate the leading position in the industry. The transformation of the company’s lithium fluoride production line is about to be completed, and the production capacity will be increased from 3000 tons / year to 6000 tons / year, so as to further consolidate the leading position.
Risk warning: the expansion of the project is less than expected, macro factors and other risks
