The stock price has risen by more than 33% in three days! Under the outbreak of Lithium extraction in Salt Lake, Jiuwo Hi-Tech said that the business accounted for a relatively small proportion of revenue.

SMM July 6: today, the lithium battery plate continued to be active, and the performance of salt lake lithium extraction concept stocks was also very eye-catching. Tibet's mining industry rose by the daily limit at one time, while Jiuwo Hi-Tech, which benefited from salt lake lithium extraction, also scored an eye-catching result of rising more than 16% in intraday trading today.

It is worth mentioning that on July 5, that is, yesterday, when the lithium plate set off a large-scale rise and stop, Kuwo Hi-Tech once reached 38.38 yuan per share in intraday trading, setting its new high since 2017, with a particularly strong performance.

Against the backdrop of a two-day stock price increase of more than 30 per cent, Kouo Tech issued an announcement of abnormal share price volatility on the evening of July 5, explaining that after self-examination, the company did not violate the fair disclosure of information.

In addition, in view of the salt lake lithium extraction technology and business that investors are very concerned about, Jiuwo Hi-Tech also gave a detailed answer. As early as 2018, Jiuwu Hi-Tech signed the purchase contract with Minmetals Salt Lake Co., Ltd. for a complete set of magnesium-lithium separation equipment for the 10,000-ton lithium carbonate project, with a total investment of about 270 million. In recent years, the company has also signed several other small-scale orders for lithium extraction from salt lakes.

But even though salt lake lithium extraction is one of the businesses of Jiuwu Hi-Tech, according to the company's previously released results in 2020 and the first quarter of 2021, the company's salt lake lithium extraction business accounted for only 0.91% of total revenue in 2020, rising to 12.86% in the first quarter of 2021.

As for the relatively high proportion of lithium extraction from salt lakes in the first quarter, it was mainly because there was more revenue from small-scale salt lake lithium extraction projects at that time, so the proportion of "lithium extraction from salt lakes" business in the first quarter did not constitute the forecast for the whole year. Moreover, Jiuwo Hi-Tech said frankly that although the company is actively following up the relevant progress of its salt lake lithium extraction project at home and abroad, however, it is uncertain whether the business can obtain orders for industrial application projects in the future and have a practical impact on the company's business throughout the year.

But even so, today's opening was driven by the lithium battery plate, and by the end of the day, Jiuwo Hi-Tech still rose as much as 11.05% to 36.49 yuan per share. In just three trading days, the share price rose by more than 33%.

There is no doubt that under the expectation of high prosperity of cobalt, lithium and other metal plates, the price of lithium concentrate is still high, and lithium extraction from salt lake has the characteristics of low energy consumption and low cost compared with ore extraction lithium salt. there is a lot of room for development in the future.

Everbright Securities has said that it continues to be bullish on the new metal material plate in an all-round way. The high price of lithium concentrate is still good for enterprises with high self-sufficiency rate of lithium resources. The construction of a world-class salt lake industrial base in Qinghai continues to receive attention, and domestic independent and controllable salt lake resources are of great strategic significance.

Northeast Securities also said that the demand is high and the supply is flat, and the supply and demand of lithium and cobalt continue to tighten. On the demand side, new energy vehicles have ushered in a golden period of policy-driven and market-driven superposition, the industrial trend is accelerating, energy storage lithium electricity is on the eve of the outbreak, and the demand for 3C cobalt is growing steadily; on the supply side, the overall increment of salt lakes in overseas mines is limited, and the concentration is further enhanced, while the domestic supply is expanding steadily.

As of July 6, the average price of spodumene concentrate CIF in China was $735 / tonne, up 76 per cent from the start of the year, according to SMM historical spot prices.

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