Two major mining giants, big news.

Last night, Zangge Mining announced that the company's shareholders plan to transfer 24.72% of their shares to Zijin Mining Group, which may lead to a change of control.

As a result, the company's Stocks will be suspended from trading starting today, with the suspension expected to last no more than 2 trading days.

As of the close yesterday, Zangge Mining's stock price rose 6.38%, closing at 29.5 yuan/share, with a total market value of 46.62 billion yuan.

Zijin Mining opened today with a gain of over 2%, closing at 16.26 yuan/share, with a total market value of 432.2 billion yuan.

Specifically, Zangge Mining announced that its controlling shareholder Zangge Venture Capital and its concerted parties, along with the second-largest shareholder Xinsha Hongyun Investment, are planning to transfer part of their shares to Zijin Mining Group or its controlling subsidiary, with the total share transfer expected to account for 24.72% of the company's total share capital, which may involve a change in the company's control.

As of September 30, 2024, Zijin Mining Group's wholly-owned subsidiary holds 0.85% of the company's shares. If this Trade proceeds smoothly, the shareholding ratio of Zijin Mining Group and its subsidiaries may exceed 25%.

Zangge Mining stocks have been suspended from trading since the market opened on the morning of January 10, with the suspension expected to last no longer than two trading days.

Zangge Mining reminds that there is still uncertainty regarding whether this Trade can ultimately be implemented and the results of the implementation. Investors are encouraged to pay attention to subsequent announcements and be aware of investment risks.

The map of lithium resources is continuously expanding.

According to information, Zangge Mining is a company focused on the development and comprehensive utilization of mineral resources, with its main products being potassium chloride and lithium carbonate. It is the second-largest potassium chloride producer in the country and a leading enterprise in the global Lithium Extraction from Salt Lakes technology.

As a mining company, Zangge Mining's performance fluctuates with the trends in the prices of commodities such as lithium carbonate and potassium chloride.

From 2020 to 2023, Zangge Mining achieved net income of 0.229 billion yuan, 1.427 billion yuan, 5.655 billion yuan, and 3.42 billion yuan, with year-on-year changes of -25.75%, 523.6%, 296.19%, and -39.52%.

In the past two years, the price of lithium carbonate has been continuously declining, which has also had a certain impact on Zangge Mining's performance.

In the first three quarters of last year, Zangge Mining achieved a revenue of 2.324 billion yuan, a year-on-year decrease of 44.53%; the net income attributable to shareholders was 1.868 billion yuan, a year-on-year decrease of 37.08%.

Zijin Mining Group is a large mining group primarily engaged in the exploration and development of Gold, Copper, Zinc, and other base metal mineral resources, which has increased its investment in Lithium resources in recent years through acquisitions.

Since 2021, Zijin Mining has started to lay out in the Lithium resource sector and has now established 'Two Lakes and Two Mines', including the 3Q Salt Lake in Argentina, the Lagocuo Salt Lake in Tibet, the Xiangyuan Lithium polymetallic mine in Daoxian, Hunan, and the Manono Lithium mine.

As of the first half of 2024, Zijin Mining's lithium carbonate equivalent resource amount is 13.4656 million tons, and it plans to form a production capacity of 0.25-0.3 million tons of Lithium (LCE) by 2028.

However, due to delays in project approval processes and the continuous low prices of lithium carbonate, Zijin Mining has now postponed the production start dates for the 3Q project in Argentina and the Lagocuo project in Tibet to 2025.

Zijin Mining Group stated that in the future, it will actively promote the construction of the 3Q Salt Lake in Argentina, the Lago Coir Salt Lake in Tibet, and the Xiangyuan Lithium Mine in Hunan, and initiate exploration and development of the northeastern part of the Manono Lithium Mine. The completion and production of the 'Two Lakes and Two Mines' project will make the company one of the most important Lithium enterprises in the Global market.

In terms of lithium resources, Zangge Mining owns mining rights for an area of 724.35 square kilometers at the Qarhan Salt Lake in Qinghai, with an annual lithium carbonate production capacity of 0.01 million tons.

Through the acquisition of Zangge Mining, Zijin Mining Group's lithium resource map will be further expanded.