Mount Qomolangma, Tibet: half-year net profit increased by 248% compared with the same period last year. It is expected that the supply gap of lithium salt products will

Thanks to the recovery of mining capacity in Tazhong and the continued pick-up in prices of related products, 600338.SH in Tibet recovered in the first half of the year, with revenue of 994 million yuan, up 40.28% year-on-year, and net profit of 418 million yuan, up 248% from the same period last year.

The company is mainly engaged in mining and production of non-ferrous metal mines, and is implementing the project development of basic lithium salt products in salt lakes. As for the work plan for the second half of the year, a person close to the company told the Financial Associated Press: "Tazhong Mining has maintained a production capacity growth rate of more than 20% a year since its inception. This year, we will continue to do a good job in promoting the development target of 6 million tons (2 million tons) of mining production capacity. As for the lithium salt lake project, we are actively promoting the pilot test of the new technology and related examination and approval procedures for the annual 25000-ton lithium salt project, and timely update and implement the construction schedule and supporting financing plans. " It also said that according to the preliminary calculation, the capital expenditure input for the above-mentioned projects is about 2 billion yuan and 1.6 billion yuan respectively. The sources of funds are mainly raised through the retained earnings of their own operations, foreign debt or equity financing, and then match the project schedule requirements.

The company's performance recovery is mainly due to the continued pick-up in product prices. With regard to the product price trend in the second half of the year, an industry analyst told the Financial Associated Press: "due to the overseas epidemic, insufficient imports of lead, zinc and copper concentrates superimposed positive demand from various industries downstream, resulting in a continuous pick-up in product prices in the first half of the year. The instability of overseas epidemics is still increasing in the second half of the year, and the impact of supply and demand and finance will continue to exist, so the upward trend should still be positive. "

According to the London Metal Exchange, LME lead rose from 1987.62 points to 2266.18 points in the first half of the year, up 14.01% from 2575.44 points to 2966.83 points, or 15.2% from 7776.39 points to 9342.37 points, or 16.76%. Since then, the rally has stabilized, reaching 2278 points, 2987 points and 9467 points, respectively.

But with the second outbreak of the epidemic, will Tazhong mining production be affected again? The person close to the company said that after 300000 doses of domestic Kexing vaccine were delivered by the company's chartered plane in late June, the company applied for coordination to achieve full coverage for all Tarim employees and residents in the Tazhong mining area. At present, the on-site management team and staff have more experience in responding to the normalization of the epidemic, and will fully rely on the support of the parent company and the local government, and make use of the good market environment to ensure the completion of the 2021 target.

It is worth noting that the company's salt lake lithium metal plate recently gained secondary market attention, rising nearly 26% in the three trading days from August 4 to 6, while the company's share price has risen more than 142% since the beginning of July and 217.49% in the first half of the year. Due to the clear terminal demand (currently mainly power batteries), accelerated capacity expansion in the middle and lower reaches, and a staggered period with lithium supply in upstream mines and salt lakes, the prices of major lithium products such as lithium carbonate and lithium hydroxide have increased significantly. It is expected that in the second half of the year and a range after that, there will still be a supply gap for basic lithium products, and product prices will have upward momentum. " The person close to the company added.