SMM9: on September 8th, Shengtun Mining issued its "Progress announcement on overseas Investment". The 37th meeting of the company's board of directors examined and approved the "proposal on investing in the project with a high annual output of 34000 tons of nickel in Weidabe Industrial Park, Indonesia". The joint venture company Youshan Nickel Indonesia Co., Ltd. (Youshan Nickel) carried out the construction of a project with an annual output of 34000 tons of nickel.
It is reported that the first batch of Ferro nickel was successfully produced on September 5, 2020 by the No. 1 electric furnace with an annual production capacity of 34000 tons of nickel in Weidabe Industrial Park, Indonesia, which was built by Youshan Nickel Industry Co., Ltd. in Weidabe Industrial Park, Indonesia. The company said that the Youshan Nickel Project with an annual output of 34000 tons of nickel metal and high matte has been officially put into production, which has expanded the scale of the company's overseas nickel business, which will produce better economic benefits in the future, help to further enhance the company's profitability and sustainable development ability, and will have a positive impact on the company's financial statements.
In recent years, Shengtun Mining Industry has turned its attention to new energy metals and accelerated the layout of cobalt and nickel resources. Cobalt has developed rapidly since the company strategically laid out its cobalt material business in 2016. As of the first half of this year, Shengtun Mining Co., Ltd. has an annual production capacity of 30000 tons of electrode copper and 3500 tons of cobalt comprehensive utilization project in the Democratic Republic of the Congo and stable production in Zhuhai Ke Lixin. At the same time, in the Democratic Republic of the Congo (DRC) to build an annual production of 30000 tons of copper, 5800 tons of crude cobalt hydroxide (metal) wet process project, to further increase the company's cobalt production capacity. In March this year, Shengtun Mining completed the acquisition of Enzuli, further enhancing the company's ability to control upstream resources. In addition, the company also plans to invest in the Kalongwei copper and cobalt mine owned by Enzuri, with an annual production capacity of 30028 tons of cathode copper and 3556.4 tons of crude cobalt hydroxide.
In terms of nickel, the company's holding subsidiary, Youshan Nickel, has invested in a project with an annual production capacity of 34000 tons of nickel in the Weidabe Industrial Park in Indonesia. The design capacity of the project is 43590 tons of high nickel matte per year and 34000 tons of high nickel content. High nickel matte is the raw material for the manufacture of high purity nickel sulfate. High purity nickel sulfate is an indispensable core material for ternary batteries and has a broad market prospect. Shengtun Mining Industry invests in high nickel matte projects in Indonesia. It is a strategic step in the development of cobalt-nickel new energy battery metals.
The continuous promotion of Shengtun Mining's business in the Democratic Republic of the Congo has also become its performance growth point. On August 11, Shengtun Mining announced its semi-annual report that the company achieved operating income of 22.165 billion yuan in the first half of the year, up 57.09% from the same period last year. The net profit belonging to shareholders of listed companies was 44 million yuan, down 31.52% from the same period last year. From the perspective of the second quarter, the performance has improved significantly, and the company's net profit attributable to shareholders of listed companies is 67 million yuan, up 54.86% from the same period last year.
Caitong Securities believes that the company's cobalt production capacity is expected to be comparable to that of first-line cobalt enterprises, with 30,000 tons of copper and 4000 tons of cobalt approaching full production. The second phase of the project under construction is 30,000 tons of copper, 5800 tons of cobalt and 30,000 tons of copper of Enzuri project, and 3556 tons of cobalt will enable the company to produce 90,000 tons of copper and 13000 tons of cobalt in the next two years. In addition, the company's holding subsidiary, Youshan Nickel, has invested in the construction of a high nickel matte project with an annual production capacity of 34000 tons in Weidabe Industrial Park, Indonesia. The project is not only profitable, but also raises the company's valuation under the tide of high nickelization of cathode materials, so it is expected that the company's performance will enter the fast track.
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