Tongling Nonferrous Metals Group: The Phase II expansion project of the Mirador copper mine is progressing normally as planned, with heavy-load commissioning scheduled for July

The share price of Tongling Nonferrous Metals Group Co., Ltd. rose on July 11. By the close of trading on the 11th, the stock had risen by 1.18%, closing at 3.42 yuan per share.

On the news front: An investor asked on the investor interaction platform: "What is the progress of the Mirador Phase II project?" Tongling Nonferrous Metals Group Co., Ltd. responded on the investor interaction platform on July 10 that the Mirador copper mine Phase II expansion project is progressing normally as planned, with heavy-load commissioning scheduled for July.

When asked, "Does the company produce copper-based superconducting materials?" Tongling Nonferrous Metals Group Co., Ltd. stated on the investor interaction platform on July 10 that as of now, the company has not directly engaged in copper-based superconducting material business. According to the company's "2024 Annual Report," the company is strengthening the R&D of key technologies such as the preparation of high-conductivity copper strips with composite phase reinforcement for integrated circuits.

In the evening of July 1, Tongling Nonferrous Metals Group Co., Ltd. issued an announcement stating that as of June 30, 2025, the company had repurchased 29,505,500 shares through a dedicated securities account for share repurchases via centralized bidding, accounting for 0.23% of the company's current total share capital.

On May 30, Tongling Nonferrous Metals Group Co., Ltd. responded to an investor's question on the interaction platform, stating that the main role of copper foil for lithium batteries is to serve as the current collector for the negative electrode of lithium batteries, and that solid-state batteries still use copper foil as the negative electrode current collector. The company's controlling subsidiary, Anhui Tongguan Copper Foil Group Co., Ltd., has developed various high-end lithium battery copper foil products with different specifications and strengths, such as copper foil for lithium-ion batteries with medium and high tensile strengths, and copper foil with a mesh-like three-dimensional structure, which are suitable for solid-state and semi-solid-state batteries.

On May 22, Tongling Nonferrous Metals Group Co., Ltd. stated on the investor interaction platform that the company has the capability to refine and produce rhenium metal, and specific production volumes should be based on the company's announcements.

On May 14, Tongling Nonferrous Metals Group Co., Ltd. stated on the investor interaction platform that the company's controlling subsidiary, Anhui Tongguan Copper Foil Group Co., Ltd.'s raised capital investment project, "Tongling Nonferrous Metals Group Tongguan Copper Foil's Ultra-thin Electronic Copper Foil Project for High-Precision Energy Storage (Phase II)," mainly produces PCB copper foils such as HVLP, RTF, and HTE. Its core equipment, including foil-making machines, surface treatment machines, and cathode rolls, are all imported. As of now, the project has commenced production. The designed capacity of this project is 10,000 mt of high-precision electronic copper foil per year.

At the earnings presentation on May 12, Tongling Nonferrous Metals Group Co., Ltd. stated that factors such as the declining grade of global copper mines, resource constraints, and geopolitical conflicts have gradually highlighted the scarcity of copper mines, leading to a relatively tight supply of copper concentrates. Although the discovery and development speed of new mineral sources are accelerating with technological progress and improved exploration capabilities, effectively alleviating potential supply bottlenecks, the expected increase in global copper concentrate supply is expected to be limited in the short term. Compared to the growth in copper smelting capacity, there is a significant gap in the supply of copper concentrates, leading to intensified competition among smelters, downward pressure on processing fees for imported ore, and pressure on smelter profits. The company anticipates the following future industry trends: (1) Copper demand is expected to have a long-term growth trend. Amidst the wave of future energy transformation and AI development, the copper market still holds significant growth potential. Firstly, there is the construction of data centers. The demand for large-scale data center construction has surged, with a substantial amount of copper being used in power transmission, storage, and cooling systems. Secondly, there is the renewable energy sector. Clean energy technologies are rapidly advancing, such as wind power, PV, and ESS, continuously driving up copper consumption. Finally, the rapid development of NEVs has also become an important driving force for copper demand. (2) The supply of copper concentrates is tight, with downward pressure on processing fees for imported ore. (3) The copper semis processing industry is accelerating its transformation and upgrading towards high-end manufacturing and green sustainable development.

Tongling Nonferrous Metals Group previously disclosed its Q1 2025 report, showing that in the first quarter of this year, the company achieved a total operating revenue of 35.222 billion yuan, up 7.65% YoY; and a net profit attributable to shareholders of 1.129 billion yuan, up 2.93% YoY.

The 2024 annual report of Tongling Nonferrous Metals Group shows that in 2024, the domestic economy rebounded positively, with sustained growth in consumer demand. However, the industry also faced intensified disorderly competition and expansion. The company actively responded to difficulties and challenges such as high copper price fluctuations, a decline in spot processing fees, and a shortage of power supply in Ecuador. It remained calm and implemented comprehensive measures, closely adhering to its annual goals and objectives, scientifically organizing production and operations, and carrying out activities to increase production and efficiency, achieving good results in various aspects. In 2024, the company produced 155,200 mt of copper from its own copper concentrates; 1.768 million mt of copper cathode; 415,800 mt of copper semis; 5.3596 million mt of sulphuric acid; 22.91 mt of gold; 547.67 mt of silver; 393,600 mt of iron ore concentrates; and 447,300 mt of sulphur concentrates, successfully completing its annual production tasks. New progress was made in key project construction, technological innovation, state-owned enterprise reform, and other areas, achieving the work objectives of "zero work-related deaths and zero environmental incidents". In 2024, the company achieved a total operating revenue of 145.531 billion yuan, up 5.88% YoY; and a net profit attributable to shareholders of 2.809 billion yuan, up 4.05% YoY.

In its 2024 annual report, Tongling Nonferrous Metals Group introduces itself as a large-scale producer with an entire industry chain, integrating copper mining, smelting, processing, and trading. Its main products include copper cathode, sulphuric acid, gold, silver, copper foil, and copper plate/sheet and strip. The company has profound technological accumulation, a leading industry position, and significant competitive advantages in the fields of copper mining, smelting, and copper foil processing. In 2024, the company invested approximately 76.5 million yuan in exploration funds; drilled 66,774 meters of exploration boreholes, including 30,744 meters of geological exploration boreholes; and implemented over 20 mineral exploration projects. An additional 60,000 mt of copper resource metal content at or above the inferred level was identified. By the end of 2024, the copper resource metal content reached 7.2181 million mt, including 4.56 million mt of copper resource metal content retained with a 70% stake in the Mirador copper mine, with an average copper grade of 0.49%.

Regarding its scale and technological advantages, Tongling Nonferrous Metals Group stated in its 2024 annual report: The company is a major domestic producer of copper cathode and copper foil, with profound technological accumulation in copper mining and beneficiation, copper smelting, and copper foil processing. It is one of the largest domestic producers of copper cathode, with an annual production capacity exceeding 1.7 million mt of copper cathode, and also has an annual production capacity of 80,000 mt of various high-precision electronic copper foils. The independently developed high-temperature-resistant oxygen-free copper strips and HVLP series copper foils have broken the dual monopoly of foreign technology and products. Focusing on the recovery and high-value utilization of selenium, tellurium, and other associated rare and dispersed metals in smelting, the company has successively developed 17 new products, including 6N-grade high-purity tellurium and high-purity indium.

Regarding the production plan for 2025, Tongling Nonferrous Metals Group stated in its 2024 annual report: The self-produced copper concentrates will contain 194,900 mt of copper, and 1.896 million mt of copper cathode (including a planned production of 186,000 mt of copper cathode by the branch company, Jinxin Copper Industry, with specific production arrangements subject to the actual commissioning of the integrated project of the Green and Smart Copper-Based New Material Industrial Park), 430,500 mt of copper processed materials, 19.13 mt of gold, 542 mt of silver, 5.961 million mt of sulphuric acid, 353,000 mt of iron ore concentrates (60% grade), and 305,000 mt of sulphur concentrates (35% grade).

On May 12, Huayuan Securities issued a research report, giving Tongling Nonferrous Metals Group a "buy" rating. The main reasons for the rating include: 1) A decline in copper concentrate production due to power shortages at Mirador; 2) An impact of 680 million yuan from asset impairment losses; 3) A planned 26% increase in self-produced copper in 2025. Risk warnings: Litigation risks related to the smelting net equity gold of the China Railway Construction Tongguan subsidiary; Risks of metal prices falling unexpectedly.