\u3000\u3000 Sinomine Resource Group Co.Ltd(002738) (002738)
Event: its wholly-owned subsidiary, Hong Kong Zhongkuang rare, plans to acquire 100% equity of AFMIN and 100% equity of amzim100 jointly held by AMMS and Samm at the benchmark consideration of US $180 million. The announcement shows that AFMIN and amzim, the subject of the transaction, currently hold 74% of the equity of bikita company. The main asset of bikita company is the bikita lithium project in Zimbabwe. Bikita is implementing internal restructuring and share repurchase cancellation. If the final internal restructuring of bikita is approved by the government, Sinomine Resource Group Co.Ltd(002738) will hold 99.05% equity and corresponding related creditor's rights of bikita; If the final internal restructuring of bikita is approved by the government and the implementation of share repurchase and cancellation is completed, then Sinomine Resource Group Co.Ltd(002738) will hold 100% equity and corresponding related creditor's rights of bikita company. The preconditions of this transaction are all completed, and the subsequent delivery of bikita lithium project in Zimbabwe will be started after confirmation by all parties.
Bikita mine has lithium cesium tantalum resources, which will significantly increase the amount of lithium resources in the company's equity, and has considerable development potential. The ore type of lithium deposit in bikita mine is lithium permeable feldspar and spodumene type ore with cesium garnet. According to IRES, the amount of lithium mineral resources retained is 29.414 million tons, the average grade of Li2O is 1.17%, the content of Li2O metal is 344000 tons, equivalent to 849600 tons of LCE. With Tanco lithium mine, the company's lithium mineral equity resources may reach 906000 tons of LCE, and the ownership rate of lithium resources has increased significantly. Bikita has an existing beneficiation capacity of 700000 tons / year, including lithium permeable feldspar concentrate and cesium garnet concentrate. Before this acquisition, the company signed an underwriting cooperation with bikita on cesium garnet and lithium permeable feldspar concentrate in 2012. After this acquisition, the company will further optimize bikita's Beneficiation capacity, and plans to build a beneficiation scale of 1.05 million tons to help match the company's own rate of lithium compound raw materials.
"Tanco + bikita" is expected to consolidate the company's leading position in cesium and rubidium in the world, ensure core lithium resources to cooperate with the release of smelting capacity, give full play to the company's exploration advantages and layout potential resources for a long time. (1) At present, the 120000 ton spodumene mining and beneficiation capacity of Tanco mine has been put into operation, and the first batch of self-produced 2000 ton spodumene concentrate has been in transit, indicating that the project is progressing smoothly. The beneficiation capacity is expected to continue to increase from 4000 tons of LCE in the second half of 2022, with a total beneficiation capacity of 500000 tons / year in the long term. (2) It is proposed to acquire 74% equity of bikita lithium mine (with the opportunity of wholly-owned holding). Its existing 700000 tons of beneficiation capacity and 70000 tons of concentrate capacity are calculated according to the grade of 4% - 6%, which is equivalent to about 5800-8800 tons of LCE. In addition, the newly-built beneficiation scale of 1.05 million tons, or can be converted into 8800-13100 tons of LCE. Calculated by the median, the total LCE is 18200 tons. Plus the existing and expanded capacity of Tanco, It will significantly improve the company's resource ownership rate, which is expected to boost the release of 25000 tons of lithium salt production capacity, or will have a positive impact on the performance in 2022. (3) In addition, the company distributes green space projects such as case lake, Paterson lake and Gullwing tot Lake through equity participation PWM (about 5.72%), or reserves upstream resources for long-term smelting capacity expansion. In addition, the company has leading experience in geological exploration technology, and the cooperation between the two sides will bring good coordination results.
Cesium rubidium salt business holds high-quality resources and has a clear voice in the global pricing of the industrial chain. The company has high-quality cesium garnet mineral resources. Its Tanco mine has 42200 tons of cesium oxide resources. At the same time, the bikita mine to be purchased also has cesium garnet resource reserves. With the advantages of high-quality cesium ore resources, the company has a clear voice in the global pricing of cesium salt industry chain.
The smelting capacity of the company has been significantly improved, and lithium fluoride has been embedded in Tesla industrial chain. (1) Smelting end: the company's 25000 ton battery grade lithium hydroxide and battery grade lithium carbonate production lines have reached production capacity and are in good operation, and the 6000 ton lithium fluoride technical transformation project has also been completed. (2) Client: the 25000 ton lithium salt production line has high quality and stable quality. It has been recognized by many companies and high-quality enterprises at home and abroad, and has formed some sales. In particular, lithium fluoride products have high quality and stable performance, occupy a high proportion of market share, and successfully enter Tesla supply chain system.
Investment suggestion: we expect the company's operating revenue to be 2.117 billion yuan, 6.021 billion yuan and 7.062 billion yuan respectively from 2021 to 2023, and its net profit to be 525 million yuan, 1.782 billion yuan and 2.371 billion yuan respectively, with corresponding EPS of 1.61, 5.33 and 7.09 yuan / share respectively. At present, the corresponding PE share price is 39.8, 12.1 and 9.1 times. Give a "Buy-A" rating, with a 6-month target price of 75 yuan / share.
Risk tip: the demand is less than expected, the metal price is less than expected, the project progress is less than expected, and the acquisition progress is less than expected
