At stake: resource exploration breakthrough lead and zinc basis to lay the future development potential
Shares at the announcement, the company, a subsidiary of xin mining recently in prospecting work progress on the basis of the Mongolian aobao zinc mine, the mining right within the scope of the accumulative total amount 465.
49, 30000 tons of zinc metal quantity.
Resource exploration progress, zinc enhance intrinsic value company determined the basis metal extraction solution and overseas project contracting business, the development strategy of two-wheel driven and the selecting of smelting lead and zinc resources has always been a company metal extraction solution is the most important in the business sector.
According to the company's 2015 annual report disclosure, as of the end of December 2015, the company has white tone Noel lead-zinc mine and Mongolia figure wood, katyn aobao lead-zinc mine two big lead and zinc resources base, and control of lead and zinc metal reserves of 2. 33 million tons, about 1 bauxite.
600 million tons, lead and zinc ore processing about 1. 4 million tons, annual output of lead and zinc concentrate of about 100000 tons of metal, zinc smelting capacity of 210000 tons.
The company implemented basis of zinc metal quantity to 49.
80000 tons, make its lead and zinc deposits rose 21% to 2. 83 million tons, which will improve the occupancy of company resources and resource supply capacity, inspire company mine inner development potential, lead and zinc in the future further expansion and sustainable development for the company laid a good foundation.
Zinc supply cash to promote zinc prices rebound, metal extraction solution business recovery performance for the company to provide flexible for overseas large zinc mine resource depletion pits and zinc prices plunged reversed transmission zinc production shutdown, but emerging zinc mine mass production cycle and after 2018, the recent output gap cannot be effectively make up for the new capacity, resulting in zinc concentrate supply side will have a material contraction in 2016.
And growth projects such as infrastructure that zinc downstream demand growth is still present, it indicates the refined zinc smelting and will not reduce demand for zinc concentrate.
The supply side and demand side, the zinc concentrate - 2016
The supply of 800000 tons of gap.
Import zinc concentrate processing fee of $160 from the beginning of the year/dry metric ton, down to the present 100 dollars/dry metric ton, confirm the shortages of the zinc concentrate.
In zinc concentrate supply gap, under the support of the LME zinc prices from $1444 / ton rose to the current low in early 2262 dollars/tons, rise up to 56.
And as in the first half of the smelter accumulation of the consumption of zinc concentrate inventory, before the second half of the year because of the lack of raw material of zinc concentrate shortages will be conductive to the shortage of refined zinc, zinc superposition nine October the arrival of the downstream consumption season, this will lead to the acceleration of zinc prices upward.
zinc prices rebound of sudden huge profits, lead and zinc selecting plate will make the company profitability.
In addition, in purchasing and black under the policy to caress, rare earth price recovery period, it will also make the company re plate performance improvement.
Company metal extraction solution bottoming out of the business, will provide flexibility for the overall performance of the company.