“Industry+Finance”, actively participated in the fixed increase subscription of Longsheng Co., Ltd. The company takes “industry+finance” as the driving force and establishes a development model of an industrial investment platform with integration capabilities as the core advantage. While stabilizing mining production, we are continuously speeding up deployment in the fields of trade and financial investment. The company actively participated in the fixed increase subscription for Longsheng shares. The subscription amount reached 750 million yuan. After the fixed increase is completed, the company will hold 8.02% of the shares in Longsheng shares. Longsheng Co., Ltd. has good profitability. After a fixed increase, it will enter the field of metamaterials to carry out R&D and industrialization projects, and there is broad scope for future development. The major asset restructuring matter of Pengxin Resources was reviewed and approved by the Securities Regulatory Commission's M&A and Reorganization Committee. The company plans to issue about 201 million shares at a price of 845 yuan/share and purchase 49.82% of Pengxin Mining Investment's shares at a transaction price of 1.7 billion yuan. At the same time, it raised 1.7 billion yuan of supporting capital at a price of 845 yuan/share. The supporting capital raised will be invested in the cathode copper and cobalt hydroxide projects of Pengxin Mining Investment, and additional working capital. Join hands with Gerald Metals to expand business models. In the future, the company will establish a joint venture with Gerrard Metals and increase the capital of Gerrard Group. In January 2016, the company signed an agreement with Gerrard Metals, agreeing that Gerrard Metals will invest 30,000 tons of copper and 7,000 tons of cobalt for the next 10 years to Pengxin Mining every year. The cooperation between the two sides will expand the company's business model from “own ore development, smelting and sales” to “own ore development, smelting and sales plus outsourced ore smelting and sales”. Strengthen the cathode copper project and expand the company's business scale. The company plans to build a new 20,000 tons/year cathode copper production project in the Xitulu copper mine in the Democratic Republic of the Congo (DRC). The total investment of the project is 144.702,400 million US dollars, including: construction investment of 121,4454 million US dollars and working capital of 23.257 million US dollars. The construction period is 1 year, and the service period is 10 years. The final product of the project is cathode copper, and the by-product is cobalt hydroxide. It is estimated that the average annual net profit of the project after delivery will be 16.5068 million US dollars, and the financial internal rate of return on investment income after tax will be 15.39%. Lay out cobalt projects to develop the resources of gold and cobalt mines in the Congo. The company plans to build a cobalt hydroxide production line with a volume of 7,000 tons/year of cobalt metal in two phases. The construction of the project was invested US$5024.80 million. The final product of the project is cobalt hydroxide, and the by-product is cathode copper. The average annual net profit of the project after delivery was 172.16,600 million US dollars, and the financial internal rate of return on investment income after tax was 22.32%. Earnings forecasts and ratings. The company takes “industry+finance” as the driving force and establishes a development model of an industrial investment platform with integration capabilities as the core advantage. Benefiting from the sharp rise in copper prices, the profitability of the company's mining copper business in '17 is expected to improve markedly, and the fixed increase in Longsheng shares will also enhance the company's profitability in the future. Assuming that the company's planned increase is completed in 2017, and considering the company's new share capital after the fixed increase, the company's 2016-18 EPS is expected to be 0.07 yuan/share, 0.13 yuan/share, and 0.17 yuan/share. Taking into account the valuation of the copper and cobalt industry, it was given 80 times PE in 2017, with a target price of 10.4 yuan, and a rating to increase holdings. Uncertainty analysis. Fluctuations in copper and cobalt prices affect project profitability.