On Monday, international nickel prices soared and shares of Xinjiang Xinxin Mining (03833.HK), a producer of electrolytic nickel, rose sharply in the afternoon, rising more than 13% at one point.
As of press time, the company's share price was HK $1.89, up 12.5%, with a market capitalization of HK $1.434 billion.
On the afternoon of March 7th, London nickel futures rose by more than 20 per cent to $35000 a tonne, the highest level since 2008. It is worth mentioning that the company's share price has risen by more than 48% since February.
Xinjiang Xinxin Mining is the second largest producer of electrolytic nickel using nickel sulphide ore in China, mainly engaged in mining, mineral processing, smelting, refining and sales of nickel, copper and other non-ferrous metals. The main product is electrolytic nickel, the secondary product is cathode copper, and the by-products in the production process include cobalt, gold, silver, platinum and palladium.
Last month, Xinjiang Xinxin Mining announced its results for 2021 and expected a net profit of about 491 million yuan for the year, compared with about 179 million yuan for the previous year, an increase of about 173.88 percent.
The announcement pointed out that the main reason for the sharp increase in the group's operating results in 2021 compared with previous years is that the annual average sales prices of electrolytic nickel and copper cathode have increased by 17.73% and 47.24% respectively compared with 2020, and the sales price and sales volume of electrolytic cobalt have increased by 39.59% and 880.20% respectively over last year.
At the same time, aiming at the carding and optimization of the whole process of mining, separation and metallurgy, the grade of nickel metal in the main mining ores has increased, resulting in a decrease in production costs in 2021. In addition, according to the cash flow management, timely adjust the financing scale and financing interest rate, reduce the financial expenses, the financial expenses of the company will be reduced by 33.11 million yuan in 2021 compared with the same period last year.
Soochow futures: the conflict between Russia and Ukraine has caused supply concerns, the sharp rise in energy prices has led to the strengthening of metals, and the market is worried that Russia and nickel will be affected by sanctions, while the low inventory of nickel and the expectation of continuing to go to the warehouse will remain unchanged in terms of industrial fundamentals. industrial demand to support prices remain strong, the trend is expected to continue to hit new highs.
Financial Union: Zhou Xinyi
