Nickel has performed better than other basic metals year-to-date, but its upward momentum has gradually subsided recently. Since the beginning of the year, nickel prices have risen by about 35%, and the performance is far better than other basic metals.

We expect nickel prices to fluctuate between $17,500-$21,500 per ton in the second half of 2014, with an average price of around $18,500 per ton throughout the year.

Keep the nickel and copper production assumptions unchanged. The company's production of mineral nickel and mineral copper is expected to grow steadily as mining capacity expands, and the company's refined copper production will rise sharply after the Wuxin copper smelter is completed.

The target price of Xinxin Mining was raised to HK$1.59 and upgraded to the “Collect” investment rating.