On the evening of December 1st, Huayou Cobalt (603799) disclosed the progress of the laterite nickel wet smelting project of Indonesia Huayue Co., Ltd. The announcement shows that recently, Huayue Nickel and Cobalt Co., Ltd. (hereinafter referred to as "Huayue Company") has an annual output of 60, 000 tons of nickel and 7800 tons of cobalt metal laterite nickel ore wet smelting project part of the production line has completed equipment installation and commissioning, and recently put into trial production, successfully produced the first batch of products. Tested by the company, the main performance indicators of the products are qualified.
According to reports, on October 29, 2018, the board of directors of Huayou Cobalt Industry agreed that Huaqing Nickel and Cobalt Co., Ltd., the wholly owned grandson of the company, and Qingchuang International Holdings Co., Ltd., IMIP, LONGSINCERE signed the "Indonesia Morowali laterite Nickel Mine Wet smelting Project Joint Venture Agreement". The company intends to set up a joint venture company Huayue Company with other joint ventures through Huaqing Company. Huayue Company plans to build a laterite nickel ore wet smelting project with an annual production capacity of 60, 000 tons of nickel in Indonesia's Morowali Industrial Park.
On November 8, 2019, Huayou Cobalt announced that Luoyang Molybdenum intends to acquire Woyuan holding stake through its Hong Kong wholly-owned subsidiary CMOCLIMITED, and Wo Yuan Holdings acquires Huayue Cobalt and Nickel stake held by IMIP, thus indirectly participating in Huayue Company's project.
At present, with the joint efforts of six companies, part of the production line of Huayue laterite nickel ore wet smelting project has entered the stage of commissioning and trial production. Huayou Cobalt said that the above project is an important strategic project of the company during the 14th five-year Plan period, an important strategic measure for the company to build an integrated industrial chain of new energy lithium materials, and for ensuring the future supply of nickel and cobalt resources of the company. it is of great significance to build a competitive nickel raw material manufacturing base for new energy power batteries. The successful completion and trial production of the project is in line with the company's strategic planning expectations, and is a milestone in the company's Indonesian nickel and cobalt resources development process.
China International Capital Corporation said that the Huayue project of Huayou Cobalt Industry was successfully completed and put into production, achieving a key breakthrough in the nickel plate from 0 to 1.
At the same time, China International Capital Corporation also analyzed that the potential of the integrated development model of Huayou Cobalt Industry is beginning to show, binding downstream high-quality customers for common development. First, the company's resource guarantee rate goes up to the next floor. The company now has a demand for 50, 000 tons of nickel metal corresponding to its precursor production capacity of 100000 tons. Previously, the nickel plate only had a smelting capacity of 10, 000 tons of nickel sulfate, with a resource self-sufficiency rate of 0%. The commissioning of Huayue will make the company's self-sufficiency rate of equity resources reach 68% (657% A5). Second, self-supply of resources is expected to increase the profit per ton of precursors, and it is estimated that considering the cost reduction effect brought by self-supply of cobalt and nickel raw materials, the reduction of processing process can also save part of the cost, and the profit space of Huayou precursors per ton will be expanded. The third is to sign strategic cooperation agreements with downstream customers, and the integrated competitive advantage appears. Recently, the company successively signed agreements with Rongbai and Dangsheng, agreeing to supply not less than 180000 tons of precursors to Rongbai from 2022 to 2025, and supplying precursors to Dangsheng according to its market procurement plan. at the same time, it is agreed that under the condition that Huayou provides competitive pricing methods for metal raw materials and precursor processing fees, Rongbai and Dangsheng can purchase up to 41.5 and 30-350000 tons of ternary precursors. According to the calculation of the maximum supply situation, from 2022 to 2025, Huayou locked downstream orders of 765000 tons of precursors, corresponding to an annual supply of about 190000 tons, the company's production has been sold, showing an integrated competitive advantage.
Everbright Securities latest research report analysis, Huayou cobalt nickel plate began to fall to the ground, lithium materials integration gradually formed. Huake and Huafei nickel projects are progressing smoothly and will be gradually put into production from 2022 to 2023, contributing to incremental profits.
