lithium ore, which started with 335 million yuan, was raised to 400 million yuan, but the price was not capped. The auction was still in overtime, and the bidders were stuck
According to the bidding announcement, from May 16 to 17, 54.29% equity of Yajiang snowway Mining Development Co., Ltd. (hereinafter referred to as “snowway mining”) held by Chengdu Xingneng new materials Co., Ltd. (hereinafter referred to as “Xingneng new materials”) was auctioned on JD bankruptcy auction platform. So far, 18 people have signed up for the auction.
According to the plan, the auction should have ended at 10 a.m. on the 17th. However, unexpectedly, the target attracted fierce competition from bidders, and the auction continued to trigger the delayed bidding mechanism. As of the press release of the reporter on May 18, the bidding price of 54.29% equity of snowway mining was 412 million yuan, 122 times higher than the starting price of 3.3529 million yuan, delayed 2347 times, and 501400 people watched. However, the reporter noted that there are only two buyers competing to bid, code named “141057995” and “141106537”P align = “center” why is it so attractive
Why is snowway mining so attractive? This is closely related to its holding of delanongba lithium exploration right. Delanongba lithium mine is located in the methylka core mining area in Yajiang County, Sichuan Province. It is one of the six core lithium mines in Western Sichuan. The evaluation report based on June 2021 shows that delanongba lithium mine has 24.92 million tons of retained resource reserves, 293200 tons of lithium oxide and an average grade of 1.18%.
The lithium mine in Western Sichuan has attracted much attention from the outside world. In July last year, the Department of natural resources of Sichuan Province issued the overall plan of mineral resources in Sichuan Province (20212025) (Exposure Draft), which pointed out that by 2025, the new resources of lithium mine will be at least 500000 tons of lithium oxide, and the total annual mining volume will be at least 500000 tons, so as to accelerate the development and utilization of lithium resources in Sichuan, and form a lithium resource industry cluster in Western Sichuan by 2035.
But the risks remain. According to the announcement of bidding and investment, the exploration right of snowway has expired on June 30, 2021. Previously, it has handled the reservation of exploration right for three times. At present, it is continuing to handle the fourth reservation of exploration right. The relevant administrative departments are organizing the investigation because the exploration certificate is suspected of illegal and illegal reasons in the acquisition and addition of minerals. Therefore, the progress of exploration right reservation is slow and there is a risk of mining right loss. According to the announcement, the manager does not promise to handle the transfer procedures of exploration rights for the intended investors.
In fact, as early as February 2020, 54.29% of the equity of snowway mining was auctioned on the JD platform. At that time, the starting price was 849 million yuan. However, the auction was suspended because outsiders raised objections to the seizure of the subject matter. In addition, the reporter learned from caizhao.com that the management of snowway mining has publicly recruited interested investors for four times, and no one has signed up for the first three times.
Even with the latest bid of 412 million yuan, it is still several times lower than the starting price of 849 million yuan in 2020. “The starting price is determined by the vote of the creditors’ meeting. It is inconvenient to disclose more information before the bidding is over,” a relevant person of Xingneng new materials told the reporter of the international finance newsP align = “center” bidder’s identity is speculated
The bid dozens of times higher than the starting price also makes the outside world have different opinions on the identity of bidders. The guesses are mainly focused on the enterprises entering Sichuan lithium resources, including Sichuan New Energy Power Company Limited(000155) , Sichuan Road & Bridge Co.Ltd(600039) , Youngy Co.Ltd(002192) , Chengxin Lithium Group Co.Ltd(002240) , Gcl Energy Technology Co.Ltd(002015) , etc.
In August last year, investors asked Sichuan New Energy Power Company Limited(000155) questions about the auction of snowy mining, Sichuan New Energy Power Company Limited(000155) responded that the auction progress needs to contact snowy company or relevant institutions for consultation, and the company has no relevant information.
Gcl Energy Technology Co.Ltd(002015) is a nearby building. The company holds 4285714% equity of chuanshang fund, the second largest shareholder of snowway mining Gcl Energy Technology Co.Ltd(002015) previously announced at the performance exchange meeting that it planned to extend to the lithium industry, the upstream raw material of mobile energy. The person from the company’s board secretary office told reporters that he did not know whether to participate in the auctionP align = “center” lithium concentrate prices rise
Globally, lithium auctions are still hot. On the afternoon of April 27, Pilbara, an Australian lithium supplier, held the fourth lithium concentrate auction, with a transaction price of US $5650 / ton, a record high, an increase of 140% over the previous transaction price. The auction of lithium concentrate in Pilbara is the wind vane of the global price trend and sends a signal for the upward trend of lithium price. On May 24, Pilbara will hold the second lithium concentrate auction in the year.
Huaxi Securities Co.Ltd(002926) said that at present, the contract price of Q2 overseas lithium concentrate long-term association is US $5 Jiangling Motors Corporation Ltd(000550) 0 / ton, and Pilbara’s recent auction price is as high as US $6250 / ton after being converted into bid. At the same time, the evaluation price of lithium concentrate has exceeded US $6000. Under the background of tight supply and demand, the bank expects the price of Q3 Australian lithium concentrate to rise further, and lithium salt is difficult to be corrected under the support of high cost.
Xiangcai Securities pointed out that the high transaction price of Pilbara’s first auction reflects that lithium salt enterprises are still optimistic about the future market and purchase actively. In the short term, the lithium supply is still tight and the downstream demand is strong, driving the lithium price to rise steadily. In the medium term, the development cycle of upstream lithium ore is long, and the supply shortage pattern is expected to be difficult to change in the next 2-3 years. Downstream electric vehicles and energy storage have accounted for more than 60% of lithium demand. With the high growth of downstream demand, the lithium industry is expected to achieve high growth.
