Xingye Silver Tin: The Company's Antimony Metal Production in 2024 Is About 1,350 mt, and Bismuth Metal Production Is About 205 mt.

On March 13, the stock price of Xingye Silver Tin dropped slightly. As of 11:16 on March 13, it fell by 0.81%, closing at 13.55 yuan/share.

An investor asked on the investor interaction platform: What negative impact has the safety production accident on March 9 at the subsidiary Yinman caused to the company? What practical measures (not just on paper) has the company taken to enhance investor confidence in its future? Xingye Silver Tin responded on March 12 on the investor interaction platform: Currently, the beneficiation plant at Yinman Mining is operating normally. The surface ore stockpile at the mining area can supply the beneficiation plant for about two months. If the mining area cannot resume normal production in the short term, it will not significantly impact the company's production and operations, nor will it have a major adverse effect on the company's future performance. The cause of the accident is still under investigation, and the investigation team has not yet issued a report. Yinman Mining will fully cooperate with the investigation and follow-up work. At present, there is no risk of long-term production suspension in the mining area of Yinman Mining.

Recently, the continuous rise in antimony and bismuth prices has drawn market attention to related publicly listed firms. Xingye Silver Tin also addressed investor concerns about antimony and bismuth on the investor interaction platform.

Regarding the question, "What are the company's antimony reserves and production?" Xingye Silver Tin stated on March 11 on the investor interaction platform: As of year-end 2023, the antimony metal content within the mining license area of its subsidiary Yinman Mining was 184,700 mt. The company produces antimony-containing silver-lead concentrates and silver-copper concentrates, which are sold in mixed powder form. In 2024, the company's antimony metal production is expected to be approximately 1,350 mt.

When asked, "What is the company's current bismuth production? Is it 4,000 mt/year?" Xingye Silver Tin responded on March 11 on the investor interaction platform: In 2024, the company's bismuth metal production is expected to be approximately 205 mt.

Regarding the question, "When will the company's subsidiaries Yubang and Bosheng Mining resume production?" Xingye Silver Tin stated on March 11 on the investor interaction platform: As of now, Yubang Mining has fully resumed production, while Bosheng Mining is still implementing rectifications based on regulatory requirements. Once the rectifications are completed and approved by the regulatory authorities, it will resume production.

On March 10, Xingye Silver Tin announced that at 16:18 on March 9, a safety accident occurred during preparatory mining operations at the Yinman Mining project department of Henan Jinyuan Construction Co., Ltd., a contractor of its wholly-owned subsidiary Yinman Mining. The accident resulted in one fatality and no injuries. Following the accident, the company promptly reported it to the local emergency management department as required. The cause of the accident is still under investigation, and the company will fully cooperate with the investigation and follow-up work. Currently, the mining area of Yinman Mining has suspended production, while the beneficiation plant continues normal operations. Regarding the potential impact on the company, Xingye Silver Tin's announcement stated: Yinman Mining's main business includes the mining, processing, and sales of non-ferrous metals such as silver, tin, copper, lead, and zinc, with a production capacity of 1.65 million mt/year. In 2023, Yinman Mining achieved operating revenue of 2.3153 billion yuan, accounting for 62.47% of the company's total consolidated revenue, and a net profit of 843.7284 million yuan. In the first three quarters of 2024, Yinman Mining achieved operating revenue of 2.0273 billion yuan, accounting for 61.50% of the company's total consolidated revenue, and a net profit of 1.0367 billion yuan. Currently, the beneficiation plant at Yinman Mining is operating normally. The surface ore stockpile at the mining area can supply the beneficiation plant for about two months. If the mining area cannot resume normal production in the short term, it will not significantly impact the company's production and operations, nor will it have a major adverse effect on the company's future performance.

When asked, "Have the company's main mines fully resumed production?" Xingye Silver Tin stated on February 27 on the investor interaction platform: Currently, among the company's operating mines, the mining areas and beneficiation plants of Yinman Mining, Qianjinda Mining, Rongguan Mining, and Rongbang Mining have fully resumed production. The mining area of Xilin Mining has resumed production, and its beneficiation plant will resume production on March 1. Ruineng Mining has applied for resumption approval from the regulatory authorities and will resume production upon receiving approval. Yubang Mining is currently preparing for production resumption and will resume production after applying for and receiving regulatory approval.

Xingye Silver Tin previously released its 2024 annual performance forecast, projecting a net profit attributable to shareholders of 1.35 billion to 1.65 billion yuan, up 39.27%-70.22% YoY. The net profit after deducting non-recurring gains and losses is expected to increase by 32.77%-62.06% YoY.

Xingye Silver Tin stated that the reasons for the performance growth include: After the technological transformation of the beneficiation plant at its subsidiary Yinman Mining (which was suspended for technological upgrades from June 9, 2023, to July 10, 2023, to improve tin ore flotation processes), the production of main mineral products increased. During the reporting period, due to changes in the macroeconomic environment and market demand for products, the selling prices of the company's main mineral products, including tin concentrates, silver concentrates, lead concentrates, and zinc concentrates, increased compared to the same period last year.

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On March 13, the average price of SMM #1 antimony ingot rose to 169,000 yuan/mt, up 29,000 yuan/mt (20.71%) from 140,000 yuan/mt on December 31, 2024. Meanwhile, the average price of SMM refined bismuth has remained stable at a high level of 152,500 yuan/mt over the past three trading days, up 80,000 yuan/mt (110.34%) from 72,500 yuan/mt on December 31, 2024.

According to SMM's production data for antimony ingots and refined bismuth, China's antimony ingot production (including antimony ingots, crude antimony converted, antimony cathode, etc.) in 2024 decreased by 8.09% YoY, while refined bismuth production decreased by 20.76% YoY. SMM's latest February production data shows that in February 2024, China's antimony ingot production fell by approximately 7.84% MoM, and refined bismuth production dropped significantly by about 30% MoM.

Regarding antimony ingot production: According to SMM's assessment, China's antimony ingot production in February 2025 (including antimony ingots, crude antimony converted, antimony cathode, etc.) decreased by 7.84% MoM. Specifically, among the 33 surveyed companies, 18 manufacturers suspended production, an increase of 5 compared to the previous month; 12 manufacturers reduced production, a decrease of 5 compared to the previous month; and 3 manufacturers maintained stable production, unchanged from the previous month. In February, antimony production declined again after a drop in January. Many market participants believe this is normal due to the Chinese New Year in early February and the Lantern Festival, during which many companies underwent maintenance or temporarily suspended production. Additionally, the supply of raw materials remains tight due to the suspension of mining in northern regions during winter and the inability of overseas mines to enter the domestic market. Many manufacturers expect production to recover to some extent in March as the weather warms. Market participants predict that China's antimony ingot production in March 2025 is likely to rebound compared to February, with a high probability of recovery or stabilization, while the likelihood of a slight decline is relatively small.

Regarding refined bismuth production: According to SMM's assessment, China's refined bismuth production in February 2025 decreased significantly by about 30% MoM compared to January. The continuous decline in bismuth production has pushed output to a low point. However, this significant drop in February is understandable due to the long Chinese New Year holiday at the beginning of the month, during which many companies suspended operations. Additionally, tight raw material supply before and after the holiday contributed to the decline. From the production data, many companies underwent equipment maintenance before the holiday, while a few ramped up production during the holiday to prepare for post-holiday supply. As a result, a small number of companies saw increased production, but most experienced varying degrees of decline. Among the 24 surveyed companies, 2 saw significant production increases in February, while the rest experienced declines or remained stable. This led to a significant overall drop in refined bismuth production compared to the previous month. Many market participants expect production to stabilize in March as companies resume operations, with a likely rebound in refined bismuth production. However, the recovery may be limited by the continued tight supply of raw materials.