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合纵科技(300477):潜力钴矿 终至麾下

Hedong Science and Technology (300477): potential Cobalt Ore

財通證券 ·  May 11, 2020 00:00  · Researches

Event: on the evening of May 11, the company announced that it intends to use US $5000 in cash to acquire the equity of ENRC (BVI) Limited100% held by Hong Kong Maolian, a wholly-owned subsidiary of Tianjin Maolian, while Enkana Alloy smelting Co., Ltd., a subsidiary of ENRC (BVI) Limited, owns mining rights. Liu Zegang, the controlling shareholder and actual controller of the company, is the legal person and chairman of Tianjin Maolian. The company directly holds 21.33% of the shares of Tianjin Maolian, and Hong Kong Maolian is a wholly-owned subsidiary of Tianjin Maolian, so the equity transfer constitutes a related party transaction. On February 14, 2014, Hong Kong Maolian bought Eurasian Natural Resources Corporation PLC's stake in ENRC (BVI) Limited100% at a consideration of US $50 million, and now it is injected into the listed company without premium, reflecting the care of the affiliated shareholders to the listed company.

Mine cobalt reserves A share second, second only to China Molybdenum. The core asset of the underlying company is the Nkana slag heap copper and cobalt mining right located in Kitwe, Zambia, with a mineral capacity of 16.4221 million tons, including 184620 tons of copper metal, 1.12% grade, 120067 tons of cobalt metal and 0.73% grade. Calculated in terms of cobalt reserves alone, the company ranks second to A-share listed companies, second only to China Molybdenum. This acquisition is an important part of the company's strategic layout of "resource smelting + materials + precursors" of lithium materials.

The profitability of the mine is amazing, leading the company to develop rapidly. The mine has a construction capacity of 1 million tons per year, with a production capacity of 50% in the first year and 90% in the second year, with a full production capacity of 9000 gold tons of copper and 5100 gold tons of cobalt. The mine cost is relatively low, first of all, the slag heap mining cost is basically zero; secondly, the smelter is located in Zhongzan Industrial Park, which is very close to the medium color, the sulfuric acid supply is abundant and the transportation cost is low. According to the feasibility study report, it is estimated that the net profit of mine 2021, 2022, 2023 is 0.5112.21 billion yuan, respectively. If the local tax deduction is taken into account, the net profit of 2021, 2022, 2023 is 0.7, 233.2 million yuan, respectively.

At the same time, considering the demand resonance of new energy vehicles and 5G mobile phones, cobalt prices are currently at the bottom of a long period, and there is a high probability that they will rise in the future. We estimate the full production profits corresponding to different cobalt prices. The mine profits corresponding to the US $/ lb of cobalt on 20-25-30 are 4.3pm and 980,000,000 respectively. No matter which caliber of the profit data is mentioned above, it will bring a qualitative leap and improvement to the company's performance.

We believe that this mine acquisition is a "dream shining into reality" for the company, which is no less significant than the cross-border acquisition of Yacheng in Hunan Province. Maintain a "buy" rating.

Risk hint: the target of the acquisition can not be delivered smoothly; the macroeconomic decline exceeds expectations.

The translation is provided by third-party software.


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