Event: according to SMM, 54.29% of the equity of snowway mining is being auctioned on JD bankruptcy auction platform. GCL group participated in the auction after acquiring 99% of the creditor’s rights and 43% of the equity of snowway mining in order to obtain the controlling right.
Snowway mining officially entered bankruptcy proceedings last April and is currently auctioning on JD bankruptcy auction platform.
Founded in 2008, Yajiang Sinoway Mining Co., Ltd. holds 57.1% equity of the company. Chengdu Sichuan Xingneng equity investment fund center (limited partnership), initiated by New Hope Liuhe Co.Ltd(000876) group, is the second largest shareholder of Sinoway Mining Co., Ltd., with a shareholding ratio of about 43%. Snowway mining officially entered bankruptcy proceedings in April 2021. As of December 13, 2021, the people’s Court of Yajiang County has ruled to confirm 18 claims of snowway mining, and the amount of claims confirmed is 1.04 billion yuan. From May 16, 2022, the 54.29% equity of snowway mining held by Chengdu Xingneng new materials Co., Ltd. will be auctioned on JD bankruptcy auction platform.
GCL group has completed the acquisition of 99% of the creditor’s rights and 43% of the equity of snowway mining and participated in the bidding to obtain the controlling stake. According to the daily economic news, GCL system of Gcl Energy Technology Co.Ltd(002015) has completed the acquisition of 99% creditor’s rights and 43% equity of snowway mining. At present, it is still participating in the bidding of 54.3% equity of snowway mining, hoping to obtain the controlling stake of the latter.
Snowway mining owns 18.53 square kilometers of exploration right and 1.14 square kilometers of mining right of delanongba lithium mine. Delanongba lithium mine is located in the northeast of Yajiang County, Ganzi Prefecture, Sichuan Province. It is the core mining area of methylka, a world-class spodumene mine. According to the evaluation report, taking June 2021 as the base date, the retained resource reserves of delanongba lithium mine are 24.924 million tons, the lithium oxide resources are 293200 tons, and the average grade is 1.18%. In addition to the recorded reserves, the lithium oxide reserves reaching the detailed survey level are 530000 tons, and the lithium oxide reserves reaching the general survey level are more than 1 million tons. It is a super large lithium mine. In addition to lithium, the mining area is also rich in niobium, beryllium and tantalum. The open-pit mining production scale of the super large lithium mine is 1 million tons / year, the underground mining production scale is 720000 tons / year, the service life of open mining mine is 14.34 years, and the service life of ground mining mine is 8.37 years. Based on the normal production year, the annual output of lithium concentrate is 147000 tons, the annual output of tantalum niobium concentrate is 66.78 tons, and the overall value of the exploration right is 974 million yuan.
GCL group is a leading enterprise in photovoltaic and new energy, and has industry-leading polycrystalline and single crystal technology; It also has the leading production capacity of polycrystalline and single crystal. Its subsidiary Gcl Energy Technology Co.Ltd(002015) is mainly engaged in clean energy power generation, cogeneration, power exchange and comprehensive energy services. As a leading mobile digital energy operator in China, relying on green energy operation and comprehensive energy services, the company strives to build a convenient, economic and green travel ecosystem from clean energy production, charging and changing services to energy storage, and is committed to providing integrated energy solutions for motorized travel.
Sichuan mining development may continue to speed up. Sichuan is rich in Spodumene resources. The Ministry of industry and information technology and local governments have policies to support the development of lithium resources in China. Previously, Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) and others have relied on Sichuan mine to lay out the new energy industry chain. According to SMM, the Sichuan mine currently in production is mainly methylka and yelonggou lithium mine, and Lijiagou lithium mine is also expected to be put into operation in 2022h2, while Cuola and dangba lithium mines may restart. With the continuous influx of capital, the development of Sichuan mine may continue to accelerate.
Event: according to SMM, China’s social inventory of electrolytic aluminum was 965000 tons on May 19, 2022, down 38000 tons from last Thursday.
After the electrolytic aluminum Festival, the operating rate of processing links has gradually increased, and the social inventory has continued to decline. The current operating rate still has room to improve year-on-year and month on month. It is expected that the profit of electrolytic aluminum is expected to be boosted under the logic of “low inventory + demand repair”. Recently, the policy of resumption of work and production in East China has been gradually opened. At the same time, the adjustment of infrastructure special debt and real estate credit policy reflects the gradual force of steady growth policy. As the impact of the epidemic on the industry is gradually dissolving, the operating rate of China’s leading aluminum downstream processing enterprises still has room for repair compared with the weak influence of the epidemic in the same period last year, the demand is gradually improved, and the price of electrolytic aluminum is expected to remain high.
During the epidemic period, the social inventory of electrolytic aluminum continued to go. According to SMM statistics, on May 19, 2022, China’s social inventory of electrolytic aluminum was 965000 tons, down 38000 tons from last Thursday and 22000 tons from the end of April, a year-on-year decrease of 5.39%.
The resumption of production and work was promoted, and the operating rate of processing enterprises was gradually repaired. According to SMM, on May 12, 2022, the operating rate of China’s leading aluminum downstream processing enterprises reached 58.6%, with a week on month increase of 1.3 percentage points, and there is still room for improvement of 16.2 percentage points year-on-year. Among them, the operating rate of aluminum profile has been significantly repaired, and the weekly operating rate has increased by 6%. The orders and delivery volume of enterprises from May to June are good. This week, most aluminum profile and recycled aluminum alloy enterprises in Guangdong have returned to the operating level before the festival. In the future, many vehicle factories in Jiangsu, Zhejiang and Shanghai will gradually resume work, which may stimulate the recovery of the operation of aluminum processing enterprises for automobile and further stimulate the demand for electrolytic aluminum.
Risk tip: the demand for new energy is less than expected, and the macro-economy fluctuates greatly
