Sinomine(SZ:002738) China Post Securities·2024-12-10 02:25Investment Rating - The investment rating for the company is "Buy" and is maintained [11]. Core Views - The company has demonstrated excellent cost control in lithium carbonate production and is expected to benefit from small metal export controls [13]. - The acquisition of the Bikita mine has significantly increased lithium resources, showcasing the company's strong geological exploration capabilities [14]. - The company is expanding into copper through the acquisition of the Kitumba copper mine and Tsumeb smelter, enhancing its resource advantages [13][16]. Summary by Sections Company Overview - The company was established in 1999 and went public in 2014. It has expanded its operations through acquisitions, including the Bikita mine in Zimbabwe and the Kitumba copper mine in Zambia [13][26]. Lithium Carbonate - The company has successfully completed the construction of a 200,000 tons/year lithium spodumene project and a 35,000 tons/year high-purity lithium salt project, enhancing its production capacity [13][39]. - The lithium resource at the Bikita mine has increased from 29.41 million tons to 113.35 million tons, with lithium carbonate equivalent rising from 850,000 tons to 2.885 million tons [14][36]. Small Metals - The company has a strong market position in cesium and rubidium salts, with a historical high gross margin of 72.37% in H1 2024, despite a decline in revenue [15][53]. - The acquisition of the Tsumeb smelter provides access to valuable germanium resources, with the company expected to produce approximately 30 tons of germanium annually [16][58]. Copper Segment - The Kitumba copper mine has a resource estimate of 27.9 million tons, with a copper metal content of 614,000 tons, indicating significant potential for future exploration and production [16][18]. Financial Forecasts - Revenue projections for 2024-2026 are estimated at 4.374 billion, 4.429 billion, and 4.533 billion yuan, respectively, with a corresponding net profit forecast of 629.89 million, 987.61 million, and 1.22584 billion yuan [18][19].