Boosted by the concept of extracting lithium from salt lakes, the stock price of Mount Everest (600338) in Tibet has risen frequently recently. On the evening of August 8th, Mount Everest in Tibet handed over another excellent “transcript”, and revenue and net profit increased significantly year-on-year.
Net profit in the first half of the year exceeded 400 million yuan
According to the Tibet Everest Interim Report, in the first half of 2021, the listed company achieved operating income of 994 million yuan, a year-on-year increase of 40.28%; net profit was 418 million yuan, a year-on-year increase of 248%. As of the end of the reporting period, the net assets of Mount Everest in Tibet were 2.506 billion yuan, a year-on-year increase of 19.55 percent; the asset-liability ratio was 35%, a year-on-year decrease of 11 percentage points.
According to the data, Tibet’s Mount Everest’s main business is the mining and beneficiation of non-ferrous metal mines, and the development of lithium salt lake resources through the holding company. The current main products of the listed company are lead concentrate (containing silver), zinc concentrate and copper Concentrate (including silver).
The resource reserves of the super-large non-ferrous metal deposit in Mount Everest, Tibet, has the largest single lead-zinc mine (well mining) production capacity in Asia. The main customers include Glencore and Almalyk. Large-scale international production and trading companies such as smelting companies have been important suppliers for their smelting and production subsidiaries in Central Asia for many years.
At the same time, Tibet Mount Everest is actively promoting the development of the Los Angeles (SDLA) Lithium Salt Lake Project in which Lithium Potassium is a controlling shareholder in Argentina, in the center of South America’s “Lithium Triangle” where new energy storage metal lithium resources are rich. Quality and planned production capacity are among the forefront of comparable companies (projects) in Argentina. Another Alizaro (Arizaro) lithium project controlled by the same region is the largest undeveloped salt lake in Argentina, with an existing lake area of 338 square kilometers.
Tibet’s Mount Everest stated that in the first half of 2021, the company’s main focus will be on the completion of the Tazhong Mining’s annual production and operation plan. During the reporting period, Tibet’s Mount Everest completed a mining volume of 1,148,100 tons, a ore output of 1,159,100 tons, and a processing volume of 1,372,800 tons, both of which achieved more than 40% of the annual plan, an average increase of more than 20% over last year; The total volume was 62,100 tons, including 24,200 tons of lead metal, 36,700 tons of zinc metal, 10,200 tons of copper metal, and 47.57 tons of silver concentrate, all of which achieved more than 40% of the annual plan, an increase from the same period last year. The average is around 15%.
High non-ferrous metal prices boost performance
Regarding the substantial growth in performance in 2021, Tibet Everest stated that during the reporting period, the prices of lead, zinc, and copper in the non-ferrous metal industry increased compared with the same period of the previous year, and they were in the higher price range during the industry cycle.
During the reporting period, the actual production capacity recovery progress of Tazhong Mining Co., Ltd., a wholly-owned subsidiary of Tibet Everest, and the output and sales volume of concentrate products were in line with the annual production and operation plan. The above factors have helped Tibet Everest’s net profit in the first half of 2021 increase by 248% year-on-year.
Mount Everest in Tibet said that during the period, the company’s wholly-owned subsidiary Tazhong Mining Co., Ltd. in the Republic of Tajikistan in Central Asia owned a lead-zinc polymetallic mine in production. The company registered 4 mining licenses and 3 prospecting licenses; As of the end of 2020, there are 90,885,400 tons of lead, zinc, copper, and silver resource reserves, including 2,372,100 tons of lead metal, 2,799,300 tons of zinc metal, and valuable metal elements such as copper and silver.
At present, Tazhong Mining has an annual mining (well mining) mining and processing capacity of 4 million tons, and an annual design capacity of 50,000 tons of crude lead smelting. The concentrate products are mainly sold in Central Asia.
During the reporting period, affected by factors such as economic recovery in the post-epidemic era, the market prices of non-ferrous metal products increased by nearly 20% year-on-year, and they were also in a price range with a relatively high industry cycle. Looking forward to the second half of the year, under the policy guidance of “carbon neutrality and carbon compliance”, regional fluctuations in the epidemic and the degree of containment, the country’s measures to stabilize commodity prices to reduce the burden of midstream and downstream costs, and the recovery progress of related mines and processing capacity around the world will be repeated. Under the combined effect of other factors, Mount Everest in Tibet remains optimistic about the upward and stable trend of related product prices.
It is worth noting that the salt lake lithium metal sector of Mount Everest in Tibet has recently received attention from the secondary market. The stock price of the listed company has increased by nearly 26% in the three trading days from August 4 to 6, and since the beginning of July, the The company’s share price has increased by more than 142%.
Tibet’s Everest stated that the listed company, through its holding Everest Resources (Hong Kong) Company, is implementing the expansion of the development of lithium salt products from the Angeles brine lithium mine under the name of one of the two wholly-owned subsidiaries in the Argentine Republic of South America. project. The subsidiary (Argentina Lithium Potassium Co., Ltd.) has registered salt lake mining rights with a resource reserve of 2.049 million tons of lithium carbonate equivalent, and a proven + controlled reserve of 1.637 million tons. The lithium concentration and the magnesium-to-lithium ratio have a relatively high lead. ; The company is currently implementing a plan to expand its production capacity and increase its annual capacity of 25,000 tons for the existing cooperatively developed annual production capacity of 2,500 tons of lithium carbonate equivalent lithium salt.
During the reporting period, due to clear terminal demand (currently mainly power batteries), the expansion of mid- and downstream production capacity accelerated, and there was a mismatch with the supply of lithium from upstream mines and salt lakes. The prices of major lithium salt products such as lithium carbonate and lithium hydroxide increased significantly. Large, resource-side investment expansion and integrated M&A projects have increased, reflecting a relatively consistent consensus in the industry. It is expected that in the second half of the year and the following interval, there will still be a supply gap of basic lithium salt products, and product prices will have an upward momentum.
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