Summary of Key Points from the Conference Call Company Overview - **Company**: 金诚信 (Jincheng Mining) - **Industry**: Copper and Phosphate Mining Core Insights and Arguments - **Global Copper Supply and Demand**: The global copper supply is tight, significantly impacted by the suspension of production at the Kamoa-Kakula copper mine in the Democratic Republic of Congo, with both Shanghai and London copper inventories at historical lows. The U.S. may impose additional tariffs on copper, which could increase U.S. copper inventories and create risks of warehouse squeezes in London [2][4][10]. - **Copper Price Outlook**: There is an optimistic outlook for copper prices due to tight supply and favorable macroeconomic conditions, with expectations of significant price increases in the future [2][4][10]. - **Mining Services Business**: The mining services segment is expected to slow down in 2024 due to power supply issues in Africa and the transition of the Lubanbi mine to a resource development project. However, after securing large contracts, growth is anticipated to rebound starting in 2026 [2][6][15]. - **Resource Development Growth**: The resource development business is rapidly expanding, with current effective capacity of 50,000 tons from three operating mines, projected to increase to over 180,000 tons by 2029, leading the industry in growth [2][7][14]. - **Phosphate Business Development**: The phosphate business is steadily developing, with current capacity of 300,000 tons expected to increase by 500,000 tons by 2027, with net profit contributions rising from 100 million to 250 million RMB [2][8][18]. Financial Projections - **Net Profit Estimates**: Based on a copper price assumption of $9,300 per ton, the company expects a net profit of approximately 2.2 billion RMB this year, increasing to 3.5 billion RMB by 2027. The current PE ratio is 13, projected to drop to 8.5 by 2027, indicating potential for rapid valuation recovery [2][9][19]. - **Profit Sensitivity to Copper Prices**: For every $1,000 increase in copper prices, the company's net profit is expected to increase by 350 million to 400 million RMB, indicating significant profit elasticity [3][10][19]. Additional Important Insights - **Market Performance of Copper Stocks**: Recent performance of major copper stocks in the A-share market has been relatively flat, but there has been a positive reaction following recent copper price increases [5][6]. - **Major Projects and Contracts**: The company has secured several large contracts, including a nearly $1 billion contract with the Kamoa-Kakula copper mine, which supports stable business development and mitigates excessive competition in the industry [12][13]. - **Future Growth Expectations**: Despite anticipated slowdowns in 2024 due to external factors, the market remains optimistic about the company's future growth, with expectations of a return to over 10% growth starting in 2026 [15][20]. Conclusion - **Long-term Growth Potential**: The company is positioned for strong long-term growth through continuous resource acquisitions and expansion, with a target of achieving over 200,000 tons of annual production capacity by around 2030 [20].

Core Viewpoint - The non-ferrous metal sector has experienced significant stock price increases, particularly with North Copper rising over 7%, driven by market dynamics and external factors [1] Group 1: Stock Performance - North Copper's stock increased by over 7% during the trading session [1] - Other companies such as Jingyi Co., Zijin Mining, Western Mining, Jincheng Mining, Electric Alloy, Zhongfu Industrial, Tianshan Aluminum, and Baiyin Nonferrous also saw price increases [1] Group 2: Market Dynamics - A report from Wukuang Securities highlighted renewed discussions around U.S. copper tariffs, alongside low LME (London Metal Exchange) inventory levels leading to warehouse congestion [1] - The LME copper prices have broken through their previous trading range and are showing a strong upward trend [1] Group 3: Future Outlook - The market is advised to monitor the results and implementation timeline of the Section 232 investigation, as copper prices are expected to rise ahead of any potential tariff imposition [1]

Summary of Key Points Core Viewpoint - The announcement provides an update on the conversion status of the "Jincheng Convertible Bonds" and outlines the changes in share capital due to the conversion process. Group 1: Convertible Bond Issuance Overview - The company issued 1 million convertible bonds with a total value of 100 million yuan on December 23, 2020, with a face value of 100 yuan each [2] - The bonds were listed on the Shanghai Stock Exchange on January 14, 2021, under the name "Jincheng Convertible Bonds" and code "113615" [2] - The conversion period for the bonds is from June 29, 2021, to December 22, 2026 [2] Group 2: Conversion Status - As of June 30, 2025, a total of 504,043,000 yuan of "Jincheng Convertible Bonds" has been converted into company shares, resulting in 40,369,456 shares, which is 6.9196% of the total shares before conversion [1][3] - The amount of "Jincheng Convertible Bonds" that has not been converted as of June 30, 2025, is 495,957,000 yuan, accounting for 49.5957% of the total issued convertible bonds [1][3] Group 3: Share Capital Changes - The total number of shares before the conversion on March 31, 2025, was 623,776,176, which increased to 623,777,888 shares after the conversion of 1,712 shares [5]

| 证券代码：603979 | 证券简称：金诚信 | 公告编号：2025-059 | | --- | --- | --- | | 转债代码：113615 | 转债简称：金诚转债 | | 2025 年第二季度可转债转股结果暨股份变动公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 累计转股情况：截至 2025 年 6 月 30 日，累计共有 504,043,000 元"金 诚转债"转换为公司股票，累计因转股形成的股份数量为 40,369,456 股，占"金 诚转债"转股前公司已发行股份总额的 6.9196%。 未转股可转债情况：截至 2025 年 6 月 30 日，尚未转股的"金诚转债" 金额为 495,957,000 元，占可转债发行总额的 49.5957%。 本季度转股情况：自 2025 年 4 月 1 日至 2025 年 6 月 30 日期间，"金 诚转债"转股金额为 21,000 元，因转股形成的股份数量为 1,712 股，占"金诚 转债"转股前公司已发行股份总额的 0.0003%。 一、可转债 ...

Summary of Conference Call Notes Company and Industry Overview - The conference call discusses **Jincheng Mining** and the **copper mining industry**. - Global copper supply is tightening, with a decline in major copper mine production in Q1 2025, leading to a potential increase in copper prices due to reduced output from the Kamor copper mine [2][3]. Key Points and Arguments Copper Production and Growth - Jincheng Mining's copper production is expected to grow rapidly, reaching **48,700 tons in 2024** and **79,000 tons in 2025**, representing a **62% year-on-year increase** [2][3]. - The company has a long-term copper production capacity plan exceeding **150,000 tons**, with key growth projects including the second phase of the Longxi copper mine and the Colombia project [2][4]. Financial Performance - The company's resource business is projected to generate **3.2 billion yuan in revenue in 2024**, a **400% increase year-on-year**, with a gross profit of nearly **1.4 billion yuan** [2][10]. - The company maintains a healthy financial position with a **debt-to-asset ratio of 47%**, below the industry average, and a significant **89% increase in operating cash flow** [2][12][13]. Challenges and Future Outlook - The mining service business faces short-term challenges due to project restructuring and power issues in the Democratic Republic of Congo and Zambia, but is expected to return to over **10% growth by 2026** [2][5]. - The company anticipates net profits of **2.17 billion yuan, 2.47 billion yuan, and 3.25 billion yuan** for 2025, 2026, and 2027, respectively, with profit growth expected to exceed **15%** [2][39]. Market Dynamics - The global copper supply-demand structure is expected to remain tight in 2025, influenced by factors such as the Federal Reserve's dovish signals and a decline in domestic spot TC prices [3]. - The average grade of global copper ore has decreased from **0.8% in 2004 to 0.42% in 2022**, prompting mining companies to seek larger-scale mining operations [15]. Additional Important Information Mining Technology and Strategy - The company utilizes the **caving mining technique**, which is effective for low-grade, large ore bodies, and has proven successful in various projects [16]. - Jincheng Mining has accumulated extensive experience in mining service operations, managing **35 large mining projects** domestically and internationally [8][17]. Resource Development and Acquisitions - The company has made significant acquisitions, including the **Dibulushi copper mine** and the **Longxi copper mine**, enhancing its resource base [21][26]. - The Longxi copper mine is expected to reach an annual production capacity of **100,000 tons** after the completion of its second phase [30]. Future Production and Profitability - The company projects stable annual production of **300,000 tons of phosphate rock** and increasing copper production, with expectations of achieving **79,000 tons in 2025** [38][39]. - The profitability of the resource segment is expected to contribute significantly to the overall net profit, with projections indicating a **20% contribution** from the resource business [22].

Group 1 - The copper concept sector increased by 1.95%, ranking 6th among concept sectors, with 58 stocks rising, including Northern Copper, which hit the daily limit, and Jin Chengxin, Jiangxi Copper, and Jintian Co., which rose by 6.70%, 6.12%, and 6.05% respectively [1][2] - The main capital inflow into the copper concept sector was 281 million yuan, with 35 stocks receiving net inflows, and 5 stocks seeing inflows exceeding 50 million yuan, led by Northern Copper with a net inflow of 244 million yuan [2][3] - The net inflow ratios for Northern Copper, Xiyu Co., and ST Shengtun were 19.90%, 15.00%, and 11.19% respectively, indicating strong investor interest in these stocks [3] Group 2 - The top gainers in the copper concept sector included Northern Copper, which rose by 10.03%, and Xiyu Co., which increased by 5.95%, while the top losers included Huamao Co., which fell by 7.56% [3][6] - The trading volume and turnover rates for the leading stocks in the copper sector showed significant activity, with Northern Copper having a turnover rate of 6.86% and Xiyu Co. at 4.85% [3][4] - The overall performance of the copper concept sector reflects a positive sentiment among investors, as evidenced by the substantial net inflows and the number of stocks experiencing gains [2][5]

Group 1 - The non-ferrous metal sector showed strong performance, with electrical alloy hitting the 20% limit up, and stocks like Northern Copper, Zhongfu Industry, and Jinchengxin all rising over 5% [1] - Major companies such as Luoyang Molybdenum, Jiangxi Copper, and Shenhuo Co. also experienced significant stock price increases [1] - Goldman Sachs predicts that copper prices will peak at approximately $10,050 per ton by August 2025, driven by tightening supply outside the U.S. [2] Group 2 - The global copper market is facing a structural imbalance in supply and demand, with processing fees for copper concentrate declining and some smelters reducing output due to cost pressures [3] - The demand for copper is being supported by the transition to renewable energy and digitalization, with a surge in data center construction expected to significantly increase copper consumption [3] - Supply-side tensions are unlikely to ease in the short term, with traditional copper-producing countries like Chile and Peru facing rising production costs and slower-than-expected new capacity additions [3] Group 3 - There has been a noticeable shift in trade flows, with commodity traders rerouting copper originally destined for Asia to the U.S., leading to supply shortages in non-U.S. regions [3] - The London Metal Exchange's inventory has significantly decreased, with available stocks dropping to historical lows [3] - The recycled copper market is also under pressure, as price fluctuations affect the collection of scrap copper, leading to a temporary contraction in recycled copper supply [3] Group 4 - Companies like Luoyang Molybdenum and Jiangxi Copper are well-positioned to benefit from rising copper prices due to their advantages in capacity release and cost control [3] - Companies in niche sectors, such as electrical alloys, are also experiencing growth opportunities [3] - The technical outlook shows that Shanghai copper futures have stabilized above 80,000 yuan, reflecting market concerns over short-term supply tightness [3]

Group 1 - The company, Jincheng Mining Management Co., Ltd., has announced the results of the follow-up credit rating for its convertible bonds, confirming a long-term credit rating of AA for the company and the same rating for the "Jincheng Convertible Bonds" with a stable outlook [1][2] - The previous credit rating results were also AA for both the company and the convertible bonds, indicating no change in the creditworthiness assessment [2] - The credit rating was conducted by the credit rating agency, United Credit Rating Co., Ltd., based on a comprehensive analysis of the company's operational and financial conditions [2]

证券代码：603979 证券简称：金诚信 公告编号：2025-058 转债代码：113615 转债简称：金诚转债 金诚信矿业管理股份有限公司 关于公开发行可转换公司债券 2025 年跟踪评级结果 的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： 2025 年 6 月 24 日 上述跟踪评级报告详见上海证券交易所网站（http://www.sse.com.cn/）。 特此公告。 前次评级结果：公司主体长期信用等级为 AA，"金诚转债"的信用等级 为 AA，评级展望为稳定。 本次评级结果：公司主体长期信用等级为 AA，"金诚转债"的信用等级 为 AA，评级展望为稳定。 本次评级结果较前次没有变化。 金诚信矿业管理股份有限公司董事会 根据《上市公司证券发行管理办法》等相关规定，金诚信矿业管理股份有限 公司（以下简称"公司"）委托信用评级机构联合资信评估股份有限公司（以下 简称"联合资信"）对公司主体长期信用状况及2020年12月23日发行的可转换 公司债券（转债简称"金诚转债"）进行了跟踪信用评级。 公司 ...

联合资信评估股份有限公司通过对金诚信矿业管理股份有限公 司及其相关债券的信用状况进行综合分析和评估，确定维持金诚信 矿业管理股份有限公司主体长期信用等级为 AA，维持"金诚转债" 的信用等级为 AA，评级展望为稳定。 特此公告 联合〔2025〕5244 号 金诚信矿业管理股份有限公司 公开发行可转换公司债券 2025 年跟踪评级报告 | 은 깨 | 尽 贡 | 首 成 | 服 | 限告 | | --- | --- | --- | --- | --- | | | | | | | www.lhratings.com 四、本次跟踪评级结果自本报告出具之日起至相应债券到期兑付日有 效；根据跟踪评级的结论，在有效期内评级结果有可能发生变化。联合资信 保留对评级结果予以调整、更新、终止与撤销的权利。 五、本报告所含评级结论和相关分析不构成任何投资或财务建议，并且 不应当被视为购买、出售或持有任何金融产品的推荐意见或保证。 联合资信评估股份有限公司 评级总监： 二〇二五年六月二十四日 声 明 一、本报告是联合资信基于评级方法和评级程序得出的截至发表之日的 独立意见陈述，未受任何机构或个人影响。评级结论及相关分析为联合资信 ...