Summary of Jinshi Resources Conference Call Company Overview - **Company**: Jinshi Resources - **Industry**: Fluorspar Mining and Processing Key Points Operational Performance - The Baotou project is performing well, producing 390,000 tons of fluorspar in the first half of the year, with costs controlled under 800 RMB/ton, and an annual production target of 700,000 tons is expected to be met [2][3] - The Incubation Hall project saw a year-on-year production increase, with unit costs decreasing and gross margin improving [2] - The Snowflake Integrated project generated a net profit of 115 million RMB in the first half, a 94% increase year-on-year, becoming a significant profit driver for the company [2][4] - The Xiangzheng mining area faced losses due to technical upgrades, leading to external ore procurement [5] Financial Performance - The company reported a loss of 17 million RMB in the Xiangzheng mining area, down from a profit of over 20 million RMB in the same period last year [5] - The Mongolian mining project is not yet profitable, with a loss of 17 million RMB in the first half, primarily due to foreign exchange losses and labor costs [6] - The Jiangshan and Jiangxi projects incurred losses of 27 million RMB, with hopes for inventory sales to provide returns [6] Market Trends - Fluorspar prices stabilized and began to rise in August, with expectations for further increases in September due to the traditional peak season [7] - The development of phosphorite fluorine extraction technology may impact traditional fluorspar demand, but Jinshi Resources plans to optimize product structure and enhance value-added offerings to mitigate this risk [8][9] Cost and Production Insights - The cost data for five-water hydrofluoric acid is sensitive and not disclosed in detail, but profitability has been achieved this year, with significant cost reductions noted in July [10] - The production cost for fluorspar is currently between 700 and 800 RMB, with expectations for future cost reductions depending on tailings grade changes [11] - The gross margin for hydrofluoric acid is approximately 11%, with potential for improvement through refined management and in-house production of sulfuric acid to reduce raw material costs [12] Future Outlook - The company anticipates that the Xiangzheng technical upgrades and expansion will be completed by Q4, potentially doubling production capacity [18][19] - The Mongolian processing plant is expected to be operational by the end of October, with projections for production of around 100,000 tons of concentrate next year [22] - The silver jewelry market is currently weak, but a rebound in demand is expected as the peak season begins in September [23] Additional Considerations - The company is exploring other mineral types and business directions, although no concrete plans have been announced yet [21] - The current product pricing is not yet at breakeven, requiring prices to reach approximately 2,500 RMB/ton for a secure margin [17]