Hanrui Cobalt is expected to achieve volume and price rise in the future

Hanrui Cobalt is expected to achieve volume and price rise in the future

We estimate that there'll be big move for cobalt lithium in the second half of this year

With the launch of several models with high energy density and high cruising range in China, such as SAIC and BYD, the pulling of cobalt will be significantly enhanced. Beijing and Guangzhou announced the local subsidy policy for new energy vehicles, which is basically the same as the national subsidy policy. The key subsidies for mid- to high-end passenger-only electric vehicles have already eliminated the market's negative expectations for new energy vehicle subsidy policies.

At the same time, affected by environmental protection supervision in Jiangsu and Jiangxi, many cobalt salt plants stopped production and reduced production. In June, domestic cobalt production decreased by about 1,500 tons, down about 20% from the previous month, and only cobalt sulfate in June fell 38.1%. At present, the company's resumption of production is still uncertain, and it is expected that domestic cobalt salt will be at a low production level in the future.

Although lithium is in full bloom in the development of lithium resources in the world, for example, DSO and other Australian ore dressings are difficult to implement due to domestic environmental protection and high pressure, and domestic supply of high-quality minerals and high-quality lithium carbonate will remain tight for a long time.

After half a year of the industry chain active destocking cycle, the entire industry chain is currently in a state of extremely low inventory. With the continuous development of high-energy vehicles in the second half of the year and the advent of the traditional peak season of 3C, the production of cathode materials has increased, and the entire industry chain has a large probability of replenishing the inventory cycle in the third quarter.

We have specially arranged the company related to cobalt lithium in China. If you don't know what to buy, buy these few with your eyes closed!

Shengyu Mining: The integration platform for the "cobalt" cobalt industry is being established

The company has taken advantage of the advantages of trade to cut into the cobalt industry and has now formed a resource security system based on raw material reserves, long-term lease of mining raw materials, and long-term raw material trading agreements with qualified suppliers. In the past 17 years, the company achieved a gross profit of 700 million yuan through trade and processing.

After the completion of the 3,500-ton cobalt smelting capacity of Cobalt source new materials and the completion of the acquisition of Kelixin, the company's cobalt plate is expected to obtain a basic industrial chain from resource trade, copper and cobalt smelting and cobalt deep processing. In 18 years, the increase of cobalt resources is limited. The largest incremental KCC in the whole year has a crisis. The supply of cobalt may be lower than expected, and the valuation is expected to continue to rise.

According to the current cobalt price estimate, the company's 18-year cobalt sector gross profit is expected to reach more than 1.4 billion yuan. Dayu Kelixin built 10,000 tons of cobalt salt production capacity, 100,000 tons of automotive lithium battery recycling production line and 30,000 tons of ternary precursor production line; the company's participation in CNM's Munari nickel mine is expected to recover within 6 months after the funds are in place. Production, the expected production capacity of nickel concentrate is 4650 tons of nickel and 360 tons of cobalt.

After the completion of nickel ore and recycling capacity, the company's upstream industrial chain of cobalt and new energy will be more complete.

Huayou Cobalt Industry: the leading domestic cobalt industry, fully benefiting from the rise in cobalt prices

In 2018, with the company's PE527 project and Mikas technical transformation project gradually reached production, the company's own mine output will reach 4,000 tons, which will make the company's local procurement + self-owned mining materials account for about 50%; 17 years through the participation of NZC14. 76% equity, holding 51% equity of LuckyResource and layout lithium battery recycling, providing resources for the company's long-term development.

With the expansion of the company's downstream customers, the company's cobalt production in 2018 is expected to increase from 23,700 tons in 2017 to 30,000 tons, which will have about 26% of incremental space. The market acceptance of ternary materials is expected to continue to increase, and the capacity utilization rate will rise steadily.

It is expected that the cobalt price will rise and fall in 18 years, the company's cobalt products will continue to increase, and the performance is expected to exceed expectations.

Hanrui Cobalt: Cobalt rookie, expected to achieve volume and price rise in the future

The company has been cultivating Congo for many years. It is familiar with the procurement channels and models of local cobalt raw materials. It has a stable and expanding source of mineral resources. The company's subsidiary, Congo, has established a concentrate of 4,000 tons (metal content) of cobalt concentrate.

At the processing end, the company currently has a capacity of 1,500 tons of cobalt powder, 800 tons of cobalt carbonate capacity and 2,000 tons of cobalt hydroxide capacity. The subsequent construction of 3,000 tons of cobalt hydroxide is also expected to reach a total production of 5,000 tons of cobalt hydroxide.

In addition, the company will use the investment fund to build another 3,000 tons of cobalt powder and 5,000 tons of cobalt hydroxide capacity. After the project is put into production, the company will fully benefit from the continuous rise of cobalt prices, and its performance is expected to continue to maintain rapid growth.

Luoyang Molybdenum Industry: International Mining Giants Going Global

The company focused on the tungsten and molybdenum business in the early days and has been the leading tungsten and molybdenum producer in China.

After the listing of A-shares in 2012, it actively entered overseas and successively acquired high-quality assets such as Australia's NPM copper and gold mines, Brazil's CIL phosphate mines and NML antimony mines, Congo (Gold) TFM copper and cobalt mines. The company has grown into tungsten, molybdenum and copper. The world's top mining companies with cobalt, antimony and phosphorus businesses.

In 2016, the company acquired an 80% stake in TFM, the second largest copper-cobalt mine in the DRC. It has an ore reserve of 183 million tons and a copper and cobalt grade of 2.6% and 0.31%, respectively. One of the largest reserves and the highest grade of copper and cobalt minerals.

Benefiting from the high level of the new energy industry, cobalt prices rose rapidly after the company's acquisition. In 2017, the copper and cobalt business accounted for 58% of the company's total operating revenue, contributing to the company's net profit attributable to shareholders of the company's shareholders of 1.923 billion yuan. The first major business category of income. In the future, as the new energy automobile industry continues to improve, the copper and cobalt business will continue to contribute enough profits to the company.

Tianqi Lithium Industry: Saudi Aramco in the New Energy Era

The company is a domestic lithium faucet, and its resources, it has a spodumene mine giant Thaleson's current lithium concentrate production capacity of 740,000 tons / year (expansion plan to reach 1.34 million tons of capacity in 19 years); processing has two injections and Zhangjiagang Production base, lithium salt production capacity of 34,000 tons (Australian base construction capacity of 48,000 tons, Suining proposed capacity of 20,000 tons).

The company intends to acquire SQM's 23.77% stake with self-raised funds of approximately US$4.066 billion, plus a previously held 2.1% stake. After the completion of the acquisition, the company is expected to acquire a total of 25.86% of SQM.

SQM owns the mining quota of Salarde Atacama Salt Lake. The main products are potash such as potassium chloride, iodine, lithium salt and other Salt Lake development related products. SQM also owns Mt. Australia. 50% stake in Holland Lithium Mine and 50% stake in Cauchar-Olaroz Salt Lake. According to the company's expansion plan, it is expected to form a lithium resource capacity of 315,000 tons and an equity production capacity of 270,000 tons in the future.

Cars are inseparable from oil, and new energy vehicles are inseparable from lithium. In the context of the increasing popularity of new energy vehicles, the demand for lithium industry is expected to gradually increase from 237,400 tons of LCE in 17 years to more than 3 million tons of LCE. After the comprehensive promotion of new energy vehicles by the lithium-rich giant Tianqi Lithium and the Salt Lake lithium giant SQM, the market share of the two companies is still expected to remain around 12%, accounting for 10% of the market share of Saudi Aramco, the world's largest oil company. Similar.

The company is about to enter the production period, and the lithium industry is expected to continue. If the acquisition is completed successfully, the company will also have the world's leading spodumite and Salt Lake resources.

Haofeng Lithium Industry: Double the resources and processing capacity

The company is the leader in domestic lithium processing. As of the end of 17 years, the company's lithium salt processing production has been close to 40,000 tons / year. According to the February 25 exchange of the Shenzhen Stock Exchange interactive platform, the company's new 20,000-ton lithium hydroxide production line has been completed and put into production. The 17,500 tons of lithium carbonate production line still under construction is scheduled to be put into operation in the fourth quarter of 18 years. It is expected that the company's lithium salt processing capacity is expected to reach 77,000 tons by the end of 18, which is consistent with the company's lithium resource volume.

The MtMarion spodumene mine, which holds 43.1% of the company's shares, began producing spodumene concentrates in February 2017. According to the project operator MineralResource's 2017 annual report and the 2018 semi-annual report; MtMarion shipped a total of 318,000 tons of lithium concentrate in 2017, equivalent to 32,000 tons of lithium carbonate. According to the announcement of Mineral Resources Limited, MtMarion's mining capacity has reached 400,000 tons/year in June 17th. The ongoing technical transformation is expected to bring MtMarion's lithium concentrate products from 4% grade and 6% grade lithium concentrate. 50% upgrade to all 6% grade products.

In addition, Haofeng Lithium also owns the contractual rights of Pilbara Phase I 160,000 tons of lithium concentrate and the second phase of 75,000 tons of lithium concentrate underwriting; and the Americas Lithium Industry 80% underwriting rights (the first phase is equivalent to 10,000 tons of lithium carbonate, Phase II 10,000 tons of lithium carbonate). After all projects are put into production, the company's lithium resource capacity is expected to reach 100,000 tons of lithium carbonate equivalent.

The company's output is expected to grow fast from the second quarter.

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