chinese news article laterite

This is a (bad) translation of a chinese news article that talks about "red soil nickel ore" (laterite); the technical barrier of mining it; the effect of nickel price on the decision to mine laterite; and the chinese forecast for nickel price and demand.


After the company announces goes on the market half annual report, the turnover with compared to increases 89% for the first time to 732 million Yuan, the net profit with compared to increases 150% to 485 million Yuan, each stock gains 0.32 Yuan, is we whole year anticipated 62%, because the first half year nickel price greatly rises, but has in the second half year recedes, therefore the whole year looked the company achievement basically tallies anticipated. We thought the company gross profit rate will maintain 50% about at the future the level, also the resources reserves still had the certain growth potential, but the majority of advantages are good have reflected in the middle of the existing stock price. We calculate obtain each NAV are 10.9 HK dollars, after the booklet let 10% obtain item to price-mark 9.8 HK dollars, is equal to 26.6 time of 08 year PE and 16.5 time of 09 year PE, the investment rating is "the neutrality".

Because the nickel price rises suddenly, the company first half year net profit with compared to greatly increases 150%, for us whole year anticipated 62%. After the company announces goes on the market half annual report, the turnover same ratio increases 89% for the first time to 732 million Yuan, the gross profit same ratio increases 130% to 528 million Yuan, the net profit same ratio increases 150% to 485 million Yuan, each stock gains 0.32 Yuan. The company electrolysis nickel sales volume is 1,,770 tons, the electrolytic copper sales volume is 1,,517 tons, the copper fine powder is 4,,805 tons; The nickel average selling price is 4.01,337 million Yuan/tons, the copper average selling price is 61,,249 Yuan/tons. The company achievement with the main reason which greatly increases is the nickel price because the short-term supply is scarcer than, rises suddenly to 07 years first half year is the result of, whole year looked, the achievement basically tallies anticipated.

After the nickel price large adjustment, already obtained the basic surface strut, the anticipated future will maintain stably. The nickel price gets up from 07 years in May starts largely to adjust, the LME nickel price falls from the maximum 50,,000 US dollar/tons to the lowest 25,,000 US dollar/tons, now stabilizes nearby 30,,000 US dollars/ton prices positions shakes. From the demand aspect, the nickel mainly uses in the stainless steel production, along with the Asian country economical level enhancement, to the stainless steel product demand also in the escalate, we anticipated will come from Asia's strong demand to support the global nickel demand stable growth the tendency. From the supplies aspect, in the global scope is easier the curing nickel ore which mines the reserves limit, the supplies is grown with difficulty under, but the red soil nickel ore reserves is rich also stimulates the supplies remarkable growth in the nickelic price, causes the nickel price to start the accent. But the red soil nickel ore technical barrier and the production cost is higher, according to ours understanding, at present uses the red soil nickel ore the production cost approximately in 180,000 Yuan/ton levels, (contains tax) by the present domestic 270,000/ton nickel price to calculate, only the profit margin approximately in 10-15% level, considered the red soil nickel ore higher development risk, we thought present the nickel price is insufficient to stimulate red native ores large-scale mining the enthusiasm. Looked from the global supply and demand, if does not have the red native ores the creational supplies, the whole world will appear the nickel short, therefore the nickel price will fall the space to be extremely limited. After the short-term adjustment, we thought the nickel price already obtained the basic surface strut, future in 2-3 year will stabilize nearby this level. We estimated the company 07-09 year electrolysis nickel the average selling price respectively is 2.64,957 million Yuan/tons, 2.30,769 million Yuan/ton and 2.30,769 million Yuan/tons.