Two-board Tibetan Mount Qomolangma issued an announcement: the Argentine Salt Lake project has not yet entered the production stage.

SMM, November 19: recently, stimulated by all kinds of good news, Mount Qomolangma in Tibet has achieved a brilliant record of two consecutive boards in two consecutive trading days on November 17 and November 18. In response to this situation, Mount Qomolangma in Tibet issued a stock abnormal fluctuation announcement on the evening of the 18th, saying that the company's current production and operation conditions are normal, and there are no major matters that should be disclosed but not disclosed.

As for the reason why Mount Qomolangma in Tibet won two consecutive boards, its recent release of an investment news is definitely due to the fact that it has won two consecutive boards. On the evening of the 16th, Mount Qomolangma in Tibet said it would sign an investment agreement with Argentina's Salta province, with a total investment of 1.7 billion US dollars to develop two salt lake projects. It is reported that according to the agreement, Mount Qomolangma of Tibet will invest about US $700 million in Argentina in 2022 to build an annual production capacity of 50, 000 tons of lithium carbonate in the Anheles Salt Lake in Salta Province. it is also planned to invest no less than US $1 billion to build an annual capacity of 5 to 100000 tons of lithium carbonate in Arizaro Salt Lake. The former is scheduled to start construction by the end of 2021 and is expected to be completed by the end of 2022.

According to the announcement of abnormal stock price fluctuations issued by Mount Qomolangma in Tibet on the 18th, the US $700 million investment came from one of the main sources of funds to be raised by the company's proposed non-public offering, and there is a risk that the subsequent offering will fail or fall short of expectations.

In addition, in the announcement of abnormal stock price fluctuations, Mount Qomolangma in Tibet mentioned that the source of funds for the company's planned investment of not less than US $1 billion in Ariza Salt Lake project has not yet been clearly planned, and financing and other related work is expected to be carried out in the future. Once the proportion of debt financing is large, it may lead to higher financial expenses and greater pressure on assets and liabilities.

In addition to the layout of lithium salt production capacity, Mount Qomolangma in Tibet will invest US $15 million to complete geological exploration of Arizaro Salt Lake in Salta Province in 2022 and obtain mining rights and environmental assessment permits ((EIA)).

It is worth mentioning that on November 17, Mount Qomolangma in Tibet made it clear that the company's above-mentioned project in Angeles Salt Lake in Salta Province is still in the early stage of development and will not be able to achieve revenue in the short term. In the announcement of abnormal stock price fluctuations issued after the close of trading on the 18th, Mount Qomolangma in Tibet once again stressed that the company's Angeles Salt Lake project has not yet entered the production stage, and that the income from lithium salt lake development depends on the future terminal price of lithium salt market. If the product price falls sharply, there may be a market risk that the investment return will not reach the expected level. At the same time, in the follow-up implementation process and after the completion of the project may face the risk of changes in macroeconomic and industry environment and other factors.

However, according to the current market situation, CITIC Construction Investment Research News predicts that with the rapid growth of the demand for power batteries for new energy vehicles, the lithium demand from 2021 to 2022 is expected to be 610000 tons and 800000 tons respectively, and the gap between supply and demand of lithium resources is 43000 tons and 57000 tons respectively. So there is no doubt that the prosperity of the lithium industry will continue in the future.

According to the spot quotation of SMM, as of November 19, the average spot price of domestic battery-grade lithium carbonate was 198500 yuan / ton, up 145500 yuan / ton from the beginning of the year, or 274.5%.

"Click to view the historical prices of SMM new energy products

In the short term, according to SMM research, the lithium carbonate market may have a supply gap of about 16% from November to December, and traders may release goods or ease the supply pressure, but the fundamentals are firm, and lithium carbonate prices are expected to continue to rise in the future. "View details

From a long-term point of view, during the round table forum session of the new energy special session of the 2021 non-ferrous metals annual meeting held by SMM, Huang Shanyan, general manager of the industry and research center of Ningbo Rongbaixin Energy Technology Co., Ltd., also said that lithium salt prices are expected to remain high in the first half of 2022. Following the restart of lithium mines in Australia and the entering of summer in South America, the speed of lithium drying in salt lakes will increase, and overseas lithium salts may enter China in the second half of next year. It forms a supplement to domestic lithium salt, so as to slightly ease the rising trend of lithium salt. "View details

By the close of trading on November 19, Mount Qomolangma in Tibet had risen 8.34% to 34.68 yuan per share, nearly sprinting for three consecutive boards. Since the beginning of the year, the share price of Mount Qomolangma in Tibet has risen by more than 237%.