Today, the average price of lithium carbonate fell below 500000 yuan to continue to decline! Rongjie's net profit soared by more than 224% last year compared with the same period last year [SMM Express]

SMM, April 13: Rongjie shares released its performance in 2021, KuaiBao, the company achieved a cumulative operating income of 921 million yuan in 2021, an increase of 136.09% over the same period last year; the net profit belonging to shareholders of listed companies was 68.2894 million yuan, an increase of 224.49% over the same period last year.

As for the reasons for the changes in the company's performance, Rongjie shares said that during the reporting period, due to the continuous improvement of the prosperity of the new energy industry, the prices of upstream materials in the lithium battery industry increased significantly, and the demand for lithium materials and lithium equipment also increased significantly, which had a positive impact on the company's lithium mining business, lithium salt processing and smelting business, and lithium equipment manufacturing business.

According to the research information released at the end of February, the company currently has the overall mining rights of vein 134in the Kangding methyl card spodumene mining area, with certified reserves of 28.995 million tons. As of December 31, 2020, the amount of ore used has been 1.368 million tons, and the reserve of mine resources is 27.923 million tons. The average grade of the company's lithium ore is 1.42%. About 5-6 tons of raw ore can be selected from 1 ton of 6% lithium concentrate, and it takes about 8-9 tons of 6% lithium concentrate to produce 1 ton of lithium salt.

With regard to the progress of the environmental assessment of the 2.5 million tons / year lithium ore cleaning project that Rongjie shares are most concerned about, Rongjie shares said that due to the impact of the overall planning of the Kang-Qing industrial concentration zone in Ganzi Prefecture, the company has not yet formally declared the environmental impact assessment of the 2.5 million tons / year lithium ore cleaning project. The environmental impact assessment report on the overall plan of Kang-Yi industrial concentration zone has been pre-examined by experts, and the opinions of the expert pre-examination meeting are being implemented.

In addition, Rongjie shares also said that the local government of the project attaches great importance to and supports the construction of the company's Yuanyang Dam 2.5 million t / a lithium ore selection project, which has been included in the work report of the Party Committee and the Green Modern Industrial Development Plan of the 14th five-year Plan of Ganzi Prefecture, and the land for the project with mature conditions has been implemented as early as 2020.

The approval of environmental impact assessment for the overall planning of Kang-Yi industrial concentration zone is one of the prerequisites for the environmental assessment declaration of the company's project. after the approval of environmental assessment for the overall planning of Kang-Yi industrial concentration zone, the company will promptly declare the 2.5 million tons / year lithium ore selection project to the environmental protection department.

Referring to the production capacity of lithium concentrate in 2021, Rongjie said that lithium production in 2021 was superimposed by the unified shutdown and the impact of the epidemic before the central supervision inspection, resulting in a reduction in effective production time. Lithium production in 2021 is expected to be lower than that in 2020, and lithium concentrate decreased last year compared with the same period last year. In addition, Rongjie also said that before the commissioning of the 2.5 million t / a concentrator, the company's production capacity was all existing, and the lithium concentrate capacity at full production was about 70,000 to 80,000 tons per year, depending on the actual production time. It is estimated that the effective production time in 2022 will be higher than that of last year, and the output of lithium concentrate will increase compared with the same period in 2021.

According to the feasibility study report, after the 2.5 million t / a concentrator is put into operation, the annual output of lithium concentrate is expected to be about 470000 tons, equivalent to about 60, 000 tons of lithium carbonate equivalent. The company's existing battery-grade lithium carbonate production capacity of 3000 tons / year, lithium hydroxide 1800 tons / year. At present, the first phase of the 20,000 ton / year lithium salt project is under trial production, and this year's goal is to reach the output and quality standards. However, it will take some time for the project to reach full production from the trial production stage, and the specific output depends on the actual production situation.

Referring to the trend of lithium salt prices in the future, Rongjie said that generally speaking, from the perspective of the supply and demand of downstream lithium battery manufacturers and terminal new energy vehicles, the new energy lithium industry will still have a high degree of prosperity.

According to the spot price of SMM, recently, the average spot price of battery-grade lithium carbonate has fallen one after another, officially falling below the 500000 yuan / ton mark yesterday, and still not reducing its downward trend today, falling again by 2000 yuan / ton to 496000 yuan / ton, recording the fourth consecutive trading day of decline.

"Click to view the spot market of SMM new energy products.

From a fundamental point of view, according to SMM's previous research, the lithium carbonate market is currently in a situation of increasing supply and decreasing demand. On the supply side, the overall supply continues to rise as the maintenance of lithium salt manufacturers ends and the additional production capacity continues to climb and add salt lake increments. However, the demand side of the four major cathode materials this month due to a reduction in orders, demand has declined, and the upstream and downstream games began to loose, on the one hand, downstream resistance to high-price lithium, on the other hand, head smelting enterprises also began to ship at low prices, some small and medium-sized lithium salt plants followed. Therefore, on the whole, the price of lithium carbonate may decline slightly in the future. "View details

At present, many lithium salt manufacturers are continuing to expand the production capacity of lithium salts such as lithium carbonate. Jinyuan shares said at the 2021 performance presentation meeting that the project process would be changed from the previous "2000 tons / year production capacity at the end of May this year" to "strive to achieve the first ton of product output in May this year", but the full production capacity of 8000 to 10000 tons will remain unchanged by the end of this year, and the company expects to reach full production by 2023. Chairman Xu Gang said the company plans to produce 2000 tons of lithium carbonate in 2022.