The importance of rubidium and cesium resources is highlighted for the first time in the high-level document.

SMM10 March 12: this morning, China Mineral Resources rose rapidly after the opening of trading, and as of press release, it was reported to be 21.62 yuan per share, an increase of 10.03%.

Company profile

From geological prospecting to light and rare metals. China Mineral Resources started from the geological prospecting business. after nearly three years of epitaxial mergers and acquisitions, the main business has been switched to the development and processing of light and rare metal resources dominated by cesium, rubidium and lithium. Looking to the future, the company's original geological prospecting business remains basically stable, and more increments come from the increase in the market share of cesium-rubidium products and the expansion of lithium hydroxide production capacity.

Cesium rubidium plate makes the first place in the world

In 2018, the company acquired Jiangxi Dongpeng new materials, cut into the field of cesium rubidium products processing; In 2019, it acquired Cabot Special fluid Division to realize the monopoly of global cesium mineral resources. at present, the company is the world's largest producer of cesium rubidium products, with the advantages of the world's major high-quality cesium resources (Tanco mine in Canada), two major global production bases (Winnipeg, Canada, Xinyu City, Jiangxi Province, China) and cesium methanoate recycling treatment (Aberdeen, UK and Bergen, Norway). Provide diversified and customized products and technical support for many top enterprises in many industries. The company has formed a complete whole industry chain of cesium business, covering the whole industry chain of cesium mining, processing business, cesium fine chemical industry and terminal consumer market. Through the control of resources, and then gradually increase the market share of cesium rubidium salt products to more than 80%, and have the pricing power, has recently begun to raise prices, of which cesium carbonate and cesium sulfate prices increased by 24% and 6% respectively.

Lithium plate is in the leading position of the industry and has entered Tesla's supply chain.

The company has 3000 tons of battery-grade LiF production capacity, maintaining an absolute leading position in the industry, and has entered the Tesla supply chain; 25000 tons of micro-powder lithium hydroxide project is under construction and is expected to be put into production in the second quarter of 2021, the founder has deep technical precipitation, and Ganfeng lithium industry comes from Jiangxi Lithium Plant, and has a good customer base of well-known companies such as Japanese and Korean battery companies, Tesla, Russia U1 New Energy and so on.

Industry information

Recently, the importance of rubidium and cesium resources was highlighted for the first time in high-level documents. Four ministries, including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the Ministry of Finance, issued the guidance on expanding investment in strategic emerging industries and cultivating and strengthening new growth poles, aiming at doing a solid job of "six stability" in normalizing epidemic prevention and control. we will fully implement the task of "six guarantees", expand investment in strategic emerging industries, and foster and strengthen new growth poles. In the section on new materials focusing on investment in key industries, the document proposes to "implement an action plan for the innovation and development of new materials to enhance the technical level of characteristic resources such as rare earths, vanadium and titanium, tungsten and molybdenum, lithium, rubidium and cesium, and graphite in mining, smelting and deep processing."

The Development and Reform Commission answered a reporter's question on the guidance on expanding investment in strategic emerging industries, fostering and strengthening new growth points and growth poles.

Institutional point of view

According to Caitong Nonferrous, in view of the documents recently issued by the four ministries that attach importance to cesium rubidium resources, overlaying the company's leading position in cesium resources and market will contribute to the improvement of the company's valuation, considering that the company's performance will enter the fast lane, we continue to maintain the judgment of the target price of 28.9 yuan in the previous six months.

Rubidium and cesium, as a light and rare metal, is rarely known before, and the market is relatively small, but with the development and application in new fields in recent years, the cesium-rubidium market has achieved a transition from 10 tons to 1000 tons. Due to the restriction of rubidium performance and the lack of independent minerals and other reasons, the current market application and research direction is mainly focused on cesium. At present, cesium is mainly used in drilling fluid and completion fluid of high temperature and high pressure oil well. because of its high price, it can be called "Herm è s" in drilling fluid. in addition, cesium plays an irreplaceable role and has a broad market application prospect in the fields of atomic clock, frequency standard, aerospace measurement and control, satellite navigation, medical detection, optoelectronic equipment, absorbent, optical fiber, catalyst and so on. With the progress of science and technology, the importance of cesium-rubidium resources has become increasingly prominent. The United States and Japan have taken cesium-rubidium as a strategic resource, and China has begun to pay attention to it in recent years. This document is an obvious signal. Cesium rubidium mining and smelting are already the dominant links of medium ore resources, and deep processing and application will be the focus of the next development of the company and even the industry.