SMM July 1: today, Tianqi lithium industry quickly rose after the opening of midday trading, with an intraday increase of more than 7.4%, with a particularly strong performance. As of the close, Tianqi Lithium Industry rose 2.55% to 63.60 yuan per share.
According to the news, after June 30, Tianqi Lithium Industry issued a "Progress announcement on the implementation of Capital increase and share expansion of wholly-owned subsidiaries and the introduction of Strategic Investor transactions", saying that as of June 30, 2021, IGO subsidiary investors had paid a total of US $1.395 billion (including the previously paid transaction margin of US $70 million) to TLEA and the company's overseas subsidiaries and other relevant bank accounts in accordance with TLEA's payment instructions.
However, in view of the fact that it takes a certain time for large funds to be transferred to the account, the relevant bank accounts such as TLEA and the company's overseas subsidiaries have not yet received all the money for this capital increase; and once the money is received, TLEA will go through the TLEA registration change and complete the transaction in accordance with the delivery process. After the completion of the change, the proportion of shares held by Tianqi Lithium Industry is 51%, and that of investors is 49%. Tianqi Lithium Industry still has a controlling stake in TLEA, and TLEA is still included in the scope of the company's consolidated statements.
According to the company's previous plan, the financing, worth about US $1.4 billion, will be used to repay the principal and interest generated by Tianqi Lithium's previous syndicated merger loan for the acquisition of Chile's SQM, which is expected to be no less than US $1.2 billion.
After the debt has been paid off, Tianqi Lithium Industry, which has always been criticized for its high debt ratio, is expected to drop its asset-liability ratio to about 63%, and the financial pressure has dropped sharply.
In this regard, Guojin Securities analysts commented that after more than half of the company's debts are resolved, Tianqi Lithium Industry is expected to turn losses into profits in 2021. According to the previous financial report, the net profit loss of Tianqi Lithium Industry belonging to shareholders of listed companies was 1.834 billion yuan in 2020, which was significantly reduced compared with the same period in 2019. Thus it can be seen that in the increasingly hot lithium battery industry, the performance of Tianqi Lithium Industry Company is also developing in a better direction.
In addition, Guojin Securities also said that after comprehensively considering the valuation level of the leading company Ganfeng Lithium Industry, Tianqi Lithium Industry was given a reasonable market capitalization expectation of about 130 billion yuan, with a target price of 88 yuan, covering a "buy" rating for the first time.
It is worth mentioning that on the same day, Tianqi Lithium Industry also announced that the company's shareholding company Xiamen Xiamen Tungsten New Energy Materials Co., Ltd. applied for registration in Science and Technology Innovation Board's initial public offering. So far, Tianqi Lithium holds 5.6604 million shares of Xiamen Tungsten New Energy, accounting for 3% of its total share capital before the initial public offering, with a sales limit of 12 months from the date of listing.
What is even more admirable is that Tianqi Lithium Industry has been continuously distributing the world's best lithium ore resources. It not only controls the Greenbush mine, which is the world's largest ore lithium resource with the lowest production and operating costs, but also participates in Atacama Salt Lake, the world's largest salt lake lithium extraction resource. According to statistics, Tianqi Lithium Industry currently has a lithium concentrate production capacity of 1.34 million tons, with a planned production capacity of 1.94 million tons.
While actively arranging lithium concentrate, the company also acts frequently in lithium salt products, and its two-phase 48000-ton battery-grade lithium hydroxide project in Quinana, Australia has been put into production soon. The first phase is expected to start production in the third quarter of 2021 and reach production in the fourth quarter of 2022. Overall, the total planned production capacity of the company's lithium salt rights and interests is 139000 tons.
As of July 1, the average price of battery-grade lithium hydroxide was 94000 yuan per ton, up 95.8 percent from the lowest price in 2020, according to SMM spot quotations.
"Click to see more SMM metal spot prices.
According to SMM research, the price of lithium hydroxide in smelters continued to rise in July, the production capacity of some large smelters reached a bottleneck, the increment of the supply side may gradually slow down, the average monthly growth rate of the demand side is expected to be 10-15% in the second half of the year, the structure of supply and demand tends to be better, and the price of lithium hydroxide will still show an upward trend in the future. "View details
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