Comprehensive distribution of nickel, cobalt and lithium resources Huayou cobalt is expected to make a net profit of 3.7 billion-4.2 billion in 2021

On the evening of January 11, Huayou Cobalt (603799) disclosed its 2021 performance forecast that the company expects to achieve a net profit of 3.7 billion yuan to 4.2 billion yuan belonging to shareholders of listed companies in 2021, an increase of 217.64% 260.56% over the same period last year.

Huayou Cobalt said that the company's pre-increase in performance is mainly due to the company's high-end products, industrial integration of the implementation of the business strategy has achieved outstanding results. In addition, the demand for new energy lithium battery materials continues to grow rapidly in 2021, the production and sales of the company's main products have increased, product sales prices have also been rising, and profitability has been greatly improved.

Data show that Huayou Cobalt is mainly engaged in the R & D and manufacturing of new energy lithium materials and new cobalt materials, and is an integrated industrial chain from cobalt and nickel resources development to lithium materials manufacturing. committed to the development of low-carbon environmental protection new energy lithium materials high-tech enterprises.

It is noteworthy that on December 22nd, Huayou Cobalt signed an equity acquisition agreement with Australian listed company Prospect ResourcesLtd, natural person Mr. Kingston Kajese and Tamari Trust and other interested parties. The total value of the deal is US $422 million, and upon completion of the acquisition, Huayou International Mining will hold a 100% stake in Prospect Lithium Mining and related claims under the Inter-Company loan Agreement. The company's acquisition of the stake in Zimbabwe Prospect Lithium Mining Company is an important measure to broaden the business layout, build an integrated industrial chain of lithium power and new energy materials, and enhance the self-financing capacity of lithium resources.

According to reports, Prospect Lithium Mining Company owns 100% interest in Zimbabwe Arcadia Lithium Mine. As of October 2021, the Arcadia project JORC (2012) announced by Prospect Company has a standard resource of 72.7 million tons, lithium oxide grade of 1.06%, tantalum pentoxide grade of 121ppm, lithium oxide metal content of 770000 tons (lithium carbonate equivalent of 1.9 million tons), and tantalum pentoxide metal content of 8800 tons. Among them, the reserves are 42.3 million tons, the grade of lithium oxide is 1.19%, the grade of tantalum pentoxide is 121 ppm, the amount of lithium oxide metal is 504000 tons (lithium carbonate equivalent is 1.24 million tons), and the amount of tantalum pentoxide metal is 5126 tons.

Guosheng Securities recently reported that Huayou Cobalt aims at the new energy "resources + materials integration" track, the full distribution of nickel, cobalt and lithium resources, continues to benefit from the cost reduction and efficiency brought about by the integrated development of lithium materials. The company has a total planned production capacity of 225000 tons of metal and 89700 tons of rights and interests in Indonesia. The first Huayue 60, 000-ton wet project was successfully trial-produced in December. The total planned crude cobalt production capacity reached 44200 tons, building a resource core barrier. The company has made rapid progress in the sales channels of lithium materials and the development of product technology, and has quickly become a front-line supplier of new lithium materials. At the same time, the epitaxial layout of lithium iron phosphate to achieve ternary-lithium iron phosphate double integrated Synchronize development model, high certainty of performance growth.