Category: Money tips Release Date: 2006-07-09
Research Conclusions
2007 is the biggest highlight of nickel; in March 2005 the company purchased a controlling shareholder Yunnan Tin Company Yuanjiang nickel mine, and the share reform, the injection of listed companies. Yuanjiang nickel ore was originally the private sector, infrastructure is relatively weak. Into the listed company, is the use of more advanced technology in your research research platform. The first step to expand the scale of the mining of nickel concentrate; the second step to improve the electrolytic nickel process; The third step is to do nickel salt, or other products, and continuously extend the industrial chain.
The company's nickel ore is a laterite nickel ore, open-pit mining. Heap leaching process used at atmospheric pressure dressing, which is a global leader in technology. Has been made in five patents. Increased capacity of nickel mining and processing sector. 2006's nickel output and 1200-1300 tons, annual output of 2,200 tons is expected to 07. In September 2006, electrolytic nickel production line technological transformation completed and ready for trial production, production capacity is 1,000 tons of metallic nickel. Now output is 70-80 tons per month in 2007, plans to produce 700 tons of electrolytic nickel.
Company's independent innovation atmospheric heap leaching technology has been to achieve a breakthrough, at present the specific process has yet to be further improved. Is expected in 2007 first two months of operation and output of the system will be complete compliance.
The company's open pit nickel ore, nickel concentrate production is expected to cost 7-8 million / tons. Electrolytic nickel from nickel concentrate to the production costs 4 yuan / tons. Nickel concentrate produced nickel metal content was 25%, lower than the Jinchuan's 35% -40% of the metal content. Nickel concentrate pricing is based on exchange Guapai Jia, 73% or so.
Now that is still in trial production stage, which is why the cost of production is not good accounting and cost data for the first quarter of this year would be more accurate. If the current nickel price of 300,000 yuan / ton basis, we expect gross margins at 60% of mineral processing. Yuanjiang Nickel Added 3 billion in revenue for the company's gross margin 1-1.5 billion.
Large shareholders are successively injected into nickel plan: Yuanjiang nickel mine where the mining area is 22 square kilometers, while the Yuanjiang Nickel mining company has the right area is 0.24 square kilometers. At present, the YTC company is applying for the rest of Yuanjiang nickel mine mining warrants. YTC's commitment to the application will follow-up timely and nickel ore mining rights to the fair market price of the transfer or into the listed company. According to our investigations and studies, surrounded by a nickel ore mining rights in 2007 of the original maturity, YTC companies are preparing to declare the local government to obtain mining rights. Thus, nickel can be predicted that the amount of resources will continue to increase.
Blueprint for the development looming on the horizon: Yuan Jiang nickel industry's customers are currently concentrated in the Jinchuan Nickel and Jean, with the future development yuan nickel position, is not only a resource-based, but rather to the development of deep processing. Product segments at the research and planning. Currently 30% of the world's nickel ore mining at the state, 70% of laterite nickel ore mining costs are high, and therefore has not been fully exploited. The company's mineral processing technology to achieve breakthroughs in the future, it is possible to accelerate the pace of nickel mining.
View of the nickel price is expected to remain at high level in 2007: 2005 global nickel shortage of 7 million tons, the shortfall is expected in 2006 will be an increase in the 7-8 million tons. China's 2006 consumption of nickel in 20 million tons, consumption is expected to grow over the next decade more than doubled.
Currently China's largest nickel producer Jinchuan company is, the output is 10 million tons. The company plans to increase 2010 production to 15 million tonnes. To overseas development is accelerating the pace of nickel ore.
Nickel's largest stainless steel consumption growth application areas the situation is very optimistic. Global stainless steel production in 2006 nearly 14%. Among them, European stainless steel production increased by 12%, production increased by 15% in Asia, especially the Chinese market increased significantly. And the next few years There are also a new stainless steel production expansion.
LME nickel stocks are also at the current low position, which is running at a high level of nickel prices lending support.
Buy Rating: 2007 is the company's largest nickel mine highlights and growth. We are optimistic about the company's reasons are mainly the following aspects: First, Yunnan Tin Company's nickel Yuanjiang the ability to integrate the region; two dressing and smelting company's production system gradually improved; three nickel prices. Maintain Buy rating, target price 25 yuan.
