Western Mining Co., Ltd.: There Is an Indium Metal Comprehensive Recycling Project with a Designed Capacity of 24 mt per Year, Currently in the Process Trial Production Stage.

SMM, December 23:

On December 23, Western Mining Co., Ltd.'s stock price rose. As of 13:40 on the 23rd, the stock increased by 0.88%, closing at 16.07 yuan/share.

When asked, "Does the company produce the strategic minor metal 'indium'? If so, what is the annual production?" Western Mining stated on the investor interaction platform on December 20: The company has an indium metal comprehensive recycling project with a designed capacity of 24 mt/year, currently in the process testing phase.

Western Mining recently announced that on December 17, 2024, Guotou Securities, Panjing Investment, and Kaifeng Investment conducted an on-site survey at Western Mining Co., Ltd. to understand the company's production and operations. The records are as follows:

1. What are the designed capacities of gold and silver ingots for Xikang Precious Metals?

Western Mining responded: The designed capacity for gold ingots is 6 mt, and for silver ingots, it is 430 mt.

2. What is the progress of the Phase III expansion project at Yulong Copper Mine? When is it expected to be completed? Will it bring additional output upon completion?

Western Mining responded: The Phase III project at Yulong Copper Mine is still in the preliminary procedures stage. Once completed, it will achieve a beneficiation capacity of 30 million mt/year, with copper metal production expected to reach 180,000 to 200,000 mt.

3. Has the capacity of Huogeqi Copper Mine changed? How will the capacity change after the lead-zinc system upgrade?

Western Mining responded: Copper production at Huogeqi remains stable. After the lead-zinc system upgrade, lead-zinc production will increase by 40,000 to 50,000 mt/year.

4. What is the company's copper cathode capacity?

Western Mining responded: Qinghai Copper's copper cathode capacity is 150,000 mt/year. Western Copper Semis underwent an upgrade project this year, increasing copper cathode capacity from 50,000 mt/year to 150,000 mt/year, resulting in a total copper cathode capacity of 300,000 mt/year.

5. What is the company's molybdenum production? Will there be any changes next year?

Western Mining responded: The company's molybdenum production is basically flat with the annual plan. There will be relatively small changes in molybdenum production next year.

6. What are the production and sales volumes and dividend status of Dongtai Lithium Resources this year?

Western Mining responded: Dongtai Lithium Resources maintained stable production and sales this year, distributing dividends of 270 million yuan to the company, of which 135 million yuan has been received.

7. What is the company's iron ore concentrates production this year?

Western Mining responded: The company plans to produce 1.43 million mt of iron ore concentrates this year.

8. What are the local government's requirements for the company's market value management?

Western Mining responded: Currently, there are no specific requirements. According to the CSRC's "Guidelines for the Supervision of Publicly Listed Firms No. 10—Market Value Management," the company has formulated a corresponding market value management system, which will be issued after approval by relevant company meetings.

Western Mining's previously released Q3 report showed: In Q3, the company achieved revenue of 11.748 billion yuan, up 23.02% YoY, and net profit of 1.112 billion yuan, up 60.91% YoY. For the first three quarters, the company achieved revenue of 36.725 billion yuan, up 13.93% YoY, and net profit of 2.732 billion yuan, up 24.33% YoY.

Western Mining's Q3 report stated: During the reporting period, the increase in both volume and prices of copper products enhanced the company's profitability, and asset scrap losses decreased compared to the same period last year.

Additionally, according to other reminders in Western Mining's Q3 report: The company's controlling subsidiary, Qinghai Xiyu Nonferrous Metals Co., Ltd., was renamed Qinghai Xikang Precious Metals Co., Ltd., with industrial and commercial registration changes completed on September 13. The company, together with Qinghai Xikang Information Technology Co., Ltd., Western Mining Group Co., Ltd., and Tibet Yulong Copper Co., Ltd., jointly invested in establishing a subsidiary, Xikang (Chengdu) Information Technology Co., Ltd., with industrial and commercial registration completed on September 25.

Dongxing Securities released a research report on November 13, stating: The company has stable mine operations and vertical integration advantages in the industry chain. Copper smelting capacity is gradually increasing due to technological transformation and upgrades. Multi-metal transformation projects support lead-zinc smelting capacity upgrades. The company actively integrates into the construction of a world-class salt lake industrial base, entering related fields such as magnesium extraction and lithium extraction from salt lakes through equity investments. Considering the company's strong resource expansion potential, the core Yulong Copper Mine Phase III expansion project, and the company's diversified product layout in new energy metals such as magnesium and lithium, the "recommend" rating is maintained. Risk warnings: Decline in metal prices and ore grade, risks in mining project reserves, delays in project construction progress, and reduced mine operating rates due to policy impacts.

Tianfeng Securities released a research report on November 6, giving Western Mining a "buy" rating. The main reasons for the rating include: 1) Event: On October 18, the company released its Q3 report for 2024; 2) Decline in copper prices QoQ led to a decrease in gross profit; 3) Reduction in one-time impacts led to an increase in profit QoQ; 4) As of the 2024 semi-annual report, multiple expansion projects are progressing, and the capacity of major copper mines is expected to further increase. Risk warnings: Risks of lower-than-expected project commissioning progress, metal price fluctuations, and macroeconomic volatility.