SMM: recently, according to Shenghe Resources Investor Relations activity record table, it is proposed to increase rare earth metal production capacity from the current 12000 tons / year to more than 20000 tons / year. In the future, with the commissioning of Lianyungang zirconium-titanium mineral processing project, the raw material processing capacity of zirconium-titanium seashore placer will be increased to 2 million tons / year, and the output of monazite is expected to increase greatly. The details are as follows:

1. What is the impact of the 8.18 flood in Leshan on the company?

The insurance company will pay for the direct loss caused by the flood to a certain extent. at present, the claim is being settled, and Sunshine Insurance has paid 10 million yuan in advance to Leshan Sheng and the claim. The indirect loss caused by the flood is the impact on Leshan and production. At present, the company promotes all kinds of work in line with the principle of "two mistakes, two promotion". As the damage determination and claim settlement work of the insurance company has not yet been completed, Leshan Shenghe has not yet been able to fully resume production, and the repair and reconstruction of some production facilities also involve government examination and approval for the record, which are all under way.

2. What is the progress of the company's listing in the United States in Mount pass?

Leshan Shenghe, a subsidiary of the company, subscribed 110.98 shares of MPMO for $110.98 in 2017, accounting for 9.99% of MPMO. In addition, Singapore International Trade holds 89.88 warrants issued by MPMO, which together account for 16.7% of MPMO and FortressValueAcquisitionCorp., a company listed on the New York Stock Exchange. And other relevant parties signed the "merger Agreement and Plan", MPMO intends to make a total price of about US $719 million, based on which the equity value of the company will reach about US $120 million. In cooperation with the Mountain pass Mine team, the company has an annual output of more than 30,000 tons of REO, and has become the largest rare earth mine outside China. All the products are sold to the domestic processing, and the raw material guarantee capacity of the company has been greatly improved.

3. How is the Greenland project going?

In 2016, Leshan Sheng and subscribed for 125 million additional common shares issued by Greenland, an Australian listed company, at A $0.037 per share, which currently accounts for 10.5% of the shares, making it the single largest shareholder. Greenland shares are currently around A $0.26. At the same time, at the level of the Kovane Bay project, Shenghe Resources can choose to invest no more than 60% of the shares. Greenland's announcement can be followed about the progress of Greenland's project.

4. How is the company's zirconium and titanium plate this year?

This year, due to the epidemic, raw materials have been affected to a certain extent, production and sales have declined significantly, while zirconium product prices have continued to fall this year, affecting the performance of zirconium and titanium plate. At present, the company is carrying out the optimization of business layout, business capacity and business structure, and plans to transfer Fujian Wensheng and Fangchenggang Wensheng on a relatively small scale. Focus on efforts and resources to develop Hainan Haituo Mining Industry located in Hainan Free Trade Port and the "annual processing 1.5 million tons zirconium-titanium mineral processing project" located in Lianyungang, carrying out large-scale and intensive production and operation.

5. What is the company's 3-5 year development strategy?

The company's development strategy is "rare earth business as the core, taking into account the three rare resources, adhere to two kinds of domestic and foreign resources, two markets, to achieve the coordinated extension of the upstream and downstream of the industrial chain". It is expected that in the next 3-5 years, the company will consolidate the current rare earth resources of 40-50,000 tons per year of REO/, and at the same time achieve further growth of rare earth resources through the zirconium and titanium business plate and with the help of overseas resources projects. The company will also actively look for high-quality downstream projects and invest at the right time.

6. Has the mine managed by the company expired?

The mines in Dechang have been under trusteeship all the time. Mining enterprises and geological mining are wholly owned subsidiaries of Sichuan Geology and Mining Company. The Geology and Mining Company is the sixth largest shareholder of Shenghe Resources and works closely with the company. At present, the mine has an annual output of about 10, 000 tons of rare earth concentrate, and the company pays an annual custody fee of 20 million yuan, and the excess income belongs to the company.

7. What is the future growth point of the company?

The company will give full play to the advantages of rare earth resources, in-depth optimization and development of downstream processing links. At present, the rare earth metal processing project is being expanded, and it is proposed to increase the rare earth metal production capacity from the current 12000 tons / year to more than 20000 tons / year. In the future, with the commissioning of Lianyungang zirconium-titanium mineral processing project, the raw material processing capacity of zirconium-titanium seashore placer will be increased to 2 million tons / year, and the output of monazite is expected to increase greatly.

Sponsored by SMM, Dongguan Magnetic Materials Industry Association, Ganzhou rare Earth Industry Association jointly sponsored the 2020 China rare Earth permanent Magnet Industry Market Application Development Forum will be held in Ganzhou, Jiangxi Province on October 15-16, when industry experts, business leaders, industry elites, investment circles and other people will gather together to explore the development trend of the rare earth industry and explore potential business opportunities in the industry. SMM sincerely invites you to join us for innovation and resplendence!

"Click to learn more and sign up online

Please fill in your personal information on the last page and the meeting staff will contact you later!

Scan the QR code and apply to join the SMM rare earth industry exchange group