Shengyu Mining invested in the Congo (Gold) to set up a company to increase cobalt reserves

Shengyu Mining (600711) announced on the evening of May 7 that the wholly-owned subsidiary Sheng Sheng Shanghui intends to establish Congo (Golden) Shengyu Mining Co., Ltd. in the Democratic Republic of the Congo. The main purpose of the establishment is to integrate the acquisition, exploration and production management of Congo (Gold) mineral rights. Registered capital is $1 million.

Shengyu Mining said that Africa Congo (Golden) has abundant copper and cobalt resources in the world, and the local cobalt mine and cobalt products have obvious cost advantages. This investment has further strengthened the company's deep-growing layout in the country of origin, which is conducive to increasing the company's cobalt resource reserves.

It is worth mentioning that in March, Shengyu Mining announced that it intends to purchase 100% of Zhuhai Kelixin Metal Materials Co., Ltd. at a price of 1.2 billion yuan in a non-public offering of shares.

Since its establishment in 2002, Kelixin has focused on the research and development and production of refined cobalt. It is one of the largest refined cobalt producers in China. In 2017, Ke Lixin's operating income is expected to exceed 500 million yuan, and the net profit attributable to owners of the parent company is expected to exceed 92 million yuan. The controlling shareholder and actual controller Lin Fensheng promised in this transaction that the accumulated net profit from the beginning of 2018 to the end of 2018, the end of 2019 and the end of 2020 should not be less than 100 million yuan, 215 million yuan and 350 million yuan respectively.

After the completion of the acquisition, Kelixin will become a wholly-owned subsidiary of Shengyu Mining. It is estimated that from 2018 to 2020, Kelixin will contribute a total net profit of not less than 350 million yuan to Shengyu Mining. In the future, Cosmo will be put into production. After that, according to its scale, the annual net profit contributed was close to 800 million yuan.

Based on the accurate grasp of the development trend of the new energy power battery industry, Shengyu Mining began to focus on the comprehensive layout of cobalt materials from 2016, and gradually established the “cobalt raw materials” + “copper and cobalt smelting” + “cobalt product trade” + “cobalt material deep processing” The complete business system of each module of "+" cobalt recovery.

At the same time, the company actively deployed overseas markets. In 2017, it started construction of a wet production line with an annual output of 10,000 tons of electric copper and 3,500 tons of crude cobalt hydroxide (metal amount) in Congo (Golden). It will be put into operation in July this year. The company's cobalt material inventory continued to increase, and its development momentum was sufficient. In 2017, the cobalt business achieved operating income of 23.46 billion yuan and gross profit of 723 million yuan, which has become a new growth point for the company's profits.

With the completion of this acquisition, the industrial chain layout of Shengyu Mining Cobalt Materials Business will be further improved. Shengyu Mining will realize the extension of the cobalt industry chain from upstream to midstream. The overall cobalt business scale will expand rapidly and become domestic. Enter the ranks of leading domestic cobalt material suppliers.

The page contains the contents of the machine translation.