Event: the bankruptcy liquidation equity auction of 542857% equity of Yajiang snowway Mining Development Co., Ltd. held by Chengdu Xingneng new materials Co., Ltd. was concluded on May 21.
The bankruptcy liquidation auction of 542857% equity of snowway mining in Yajiang County fell on May 21, and the transaction price of the subject matter was 2.002 billion yuan. According to the information disclosed by the battery network, if the amount of creditor's rights and the price of increased exploration minerals are converted according to the proportion of 54.29% equity, the amount is 1.237 billion yuan, and the total consideration may be as high as 3.237 billion yuan. Snowway owns the exploration right of delanongba lithium mine. The reserved resource reserves of lithium mine are 24.92 million tons, Li2O is 293200 tons, and the average grade is 1.18%; There are also associated ta2o and other resources. The conversion coefficient of equivalent LCE between lithium oxide and lithium carbonate is 1:2.47, that is, delanongba lithium mine has 720000 tons of LCE, and the LCE cost of this auction may be as high as 8300 yuan / ton. In 2020, China's lithium resource output accounted for 17% of the global output, but China's lithium consumption accounted for 54% of the global lithium consumption, making China's lithium raw materials heavily dependent on imports. By 2020, more than 70% of China's lithium salt raw materials came from overseas. The importance of lithium in the current geopolitical and controllable situation has not been highlighted, and the independent influence of lithium resources has not been strengthened. In this context, Chinese lithium industry giants have accelerated their layout in high-quality lithium resources areas outside China, and the competition for high-quality lithium resources will further intensify.
In 2021, the price of lithium carbonate was in the upward range throughout the year, and the annual increase of battery grade lithium carbonate was more than 400%. In the first quarter of this year, battery grade lithium carbonate rose to more than 500000 yuan / ton, an increase of about 80% compared with the beginning of the year. Although the price of lithium carbonate has dropped since the second quarter, it is still at a high level. Behind the soaring price of lithium carbonate is the strong demand for new energy vehicles. As of April this year, China Shanxi Guoxin Energy Corporation Limited(600617) automobile has promoted 10.33 million vehicles in total, becoming an important part of leading the electric transformation of the global automobile industry. Looking forward to the future, the penetration rate of new energy vehicles will continue to increase, and the tight supply and demand of lithium carbonate may continue.
The competition for lithium resources is becoming more and more fierce, and Zhejiang Tiantie Industry Co.Ltd(300587) plans to acquire 21.74% equity of Tibet Zhongxin. The main mineral resources of Zhongxin mining area in Tibet are magnesium, lithium, boron, potassium and mirabilite. At present, the mine has not been developed and utilized on a large scale. In the past three years, a small amount of hydromagnesite has been mined and sold. Other mineral resources such as lithium and potassium have not been mined. Among the surface brine resources, the LiCl resource reserves are 6452 tons (5429 tons for 332 and 1023 tons for 333). The high price acquisition reflects the shortage of lithium ore. The layout of the company in the upstream is conducive to improving the safety and stability of the source of raw materials for subsequent products, so as to improve the market competitiveness of changgeely products.
Core view
Investment suggestion: since 2021, the price of lithium carbonate has remained in the upward range throughout the year, showing the high prospect of the industry. In the future, with the continuous improvement of the penetration rate of new energy vehicles, the tight supply and demand of lithium carbonate may continue. We suggest to focus on the layout of upstream lithium resource enterprises: Zhejiang Tiantie Industry Co.Ltd(300587) (buy).
Risk warning: global macroeconomic fluctuation risk; The risk of falling lithium prices; The sales volume of electric vehicles is lower than expected; The risk that the actual resource reserves of the mine are different from the estimated value, and the risk that the lithium resource reserves are less than expected, resulting in no obvious business synergy of the company.
