The quantity and price of lithium salt products are on the rise! 2021 of the net profit of Tibet Mining has been successfully turned from deficit to profit.

SMM January 28th: last night, Tibet Mining issued its 2021 performance forecast. According to its announcement, the company expects to make a net profit of 110 million yuan to 165 million yuan in 2021, compared with a loss of 48.5167 million yuan in the same period last year.

As for the reasons for the changes in the company's performance, Tibet Mining said that during the reporting period, the company firmly grasped the rising trend of the lithium salt market, increased sales of products (lithium salt products, chromite), and increased gross profit significantly. In addition, the company strictly controls various expenses and takes measures to reduce costs and increase efficiency, which also greatly reduces costs and expenses.

According to the recent investor activity record table released by Tibet Mining, in terms of capacity planning, the company's original solar pond plan for the first phase of Zabuye Salt Lake will continue to increase production capacity as far as possible (grade 50-70% lithium concentrate); the EPC+0 contract for the second phase of 12000 tons of lithium carbonate has entered preliminary preparatory work and is expected to start construction in April 2022 and put into production in September 2023. In addition, the company has also signed a 100-ton lithium hydroxide pilot test contract with Jiuwu Hi-Tech. After the pilot test is successful, the following consideration will be given to the construction of a 10,000-ton lithium hydroxide project.

Tibet Mining mentioned that both Baowu of China and the government of the autonomous region actively support the development of salt lakes in Tibet's mining industry. It is worth mentioning that yesterday, investors asked about the reasons for the suspension of production of Nercuo Salt Lake, the company admitted that the salt lake was stopped because of poor efficiency, but its main mineral output is boron-magnesium ore, not lithium ore as most people think.

In addition, with regard to the impact on the output of lithium carbonate caused by the freezing of salt lakes in winter, Tibet Mining said that due to the particularity of Zabuye Salt Lake, winter is the best season for brine production, and the salinity of salt lake brine is relatively high. therefore, the company's Zabuye Salt Lake will not freeze.

Under the stimulation of the recent record high prices of battery-grade lithium carbonate, the Tibetan mining industry with lithium carbonate products is inevitably asked about the capacity of battery-grade lithium carbonate. On January 24, Tibet Mining responded to investor inquiries that the 10,000-ton battery-grade lithium carbonate project that the company put into production in 2023 included 9600 tons of battery-grade lithium carbonate capacity per year, with a total investment of about 2.1 billion yuan.

According to the spot price of SMM, as of January 27th, the average spot price of domestic battery-grade lithium carbonate has risen to 36.4 per ton, up as much as 30.94 per cent from the beginning of the year.

"Click to view the spot historical price of SMM new energy products.

Of course, this is not the end, SMM believes that after the festival, the supply of lithium carbonate market will pick up slightly as lithium salt enterprises gradually return to work. On the other hand, the 3C digital market on the demand side tends to be stable, and in terms of power, with the continuous increment of the new energy vehicle market, the demand for ternary and iron lithium batteries and materials will continue to rise, and the lithium carbonate gap is still there, and it is expected that the transaction price will exceed 400000 yuan / ton after the festival. "View details

It is reported that the proven lithium reserve of Zabuye Salt Lake is 1.841 million tons. The concentration of lithium in its brine is second only to that of Atacama Salt Lake in Chile, and its lithium grade ranks second in the world. It has the characteristics of the world's unique natural lithium carbonate solid resources, high lithium, poor magnesium, and rich lithium carbonate. The brine has approached or reached the saturation point of lithium carbonate, and is easy to form different forms of natural lithium carbonate deposits. Therefore, it has better resources than similar salt lakes in the world.

The current lithium concentrate products of Tibet Mining are sold directly, and the sales pricing is calculated on the basis of the 15-day average price of industrial grade lithium carbonate of Shanghai non-ferrous metal net.