On May 20, Gem Co.Ltd(002340) ( Gem Co.Ltd(002340) , SZ) held the annual general meeting of shareholders. Xu Kaihua, chairman of the company, disclosed the planning of Indonesia’s nickel resource project.
Xu Kaihua said that in the past, the company made nickel because there was no nickel, “nickel is for the safety of resources”, so it was not impossible to buy nickel. Moreover, the company’s downstream (customers) can see the company’s guarantee in nickel resources, and will feel that the company’s precursor supply is stable.
At the same time, Xu Kaihua also said that the company will not take nickel as a “value embodiment”, will not “do too much nickel”, and will buy part of it. The company will expand the recycling (business), which is the competitiveness. The annual output of nickel is 60000 to 80000 tons.
In Xu Kaihua’s eyes, “high nickel” is irreversible. Grade I nickel must be in short supply in the next few years. The price may be between 16000 US dollars and 18000 US dollars / ton, but it will not be too high. If it exceeds 20000 US dollars / ton, it will be abnormal, which is speculation.
