Summary of Fluorspar Industry Conference Call Industry Overview - China has become the world's largest producer and consumer of fluorspar, significantly influencing global supply and prices. However, since 2018, it has turned into a net importer, with resource consumption continuously increasing. Domestic production has risen, but downstream consumption has increased even more [1][3][4]. Key Points Production and Consumption - Current fluorspar production in China is approximately 6.5 million tons, with around 4 to 5 million tons used for producing hydrofluoric acid and about 1 million tons for aluminum fluoride and steelmaking. The total annual consumption is over 6 million tons, while global consumption is close to 7.5 million tons [4][20]. - The structure of fluorspar mining in China is predominantly small-scale, with small mines accounting for 85% and large mines only 15%. Most small mines have an annual output of 100,000 to 150,000 tons [6][7]. Regulatory Environment - Stricter safety regulations have increased the cost burden on small enterprises, giving larger companies a competitive edge in cost control. For instance, a large enterprise may spend 2 million yuan to establish a safety system, while a small enterprise may spend 1 million yuan, leading to higher unit costs for small firms [7][8]. Capacity and Utilization - Domestic large-scale enterprises can process nearly 20 million tons of raw ore, equating to an annual production capacity of over 6 million tons of fluorspar powder. However, actual utilization is around 5 million tons due to some production lines being idle [5][29]. New Capacity Projects - New capacity projects are primarily located in Xinjiang and Inner Mongolia. The Xinjiang Karqichar fluorspar mine project began operations in 2025 but has not yet produced output, with expected production starting in 2026. Inner Mongolia's upgrades mainly enhance processing capabilities without significantly increasing overall output [9][10]. By-product Mining - The by-product mining model, such as the collaboration between Inner Mongolia Jin Ebo and Baotou Steel Rare Earth, shows a cost advantage of approximately 500 yuan per ton. However, the product quality is lower, and future development is limited by tailings resources [12][13]. Market Dynamics Global Supply and Demand - The global fluorspar supply landscape includes Mongolia exporting primarily to China, Mexico supplying the U.S., and African countries supplying both China and Europe. Central Asian countries may emerge as new supply sources in the future [15][16]. - Downstream demand is mainly concentrated in the fluorochemical, aluminum fluoride, and steelmaking sectors, with overall demand remaining stable but slightly increasing. The fluorochemical sector's growth is limited by refrigerant quotas [19][20]. Price Trends - Long-term price trends indicate an upward shift, with demand growth expected to outpace supply growth in the coming years. The bottom price is projected to remain above 3,000 yuan per ton, with optimistic scenarios suggesting a peak of 4,500 yuan per ton [2][26][28]. Seasonal Price Fluctuations - Fluorspar prices typically experience seasonal fluctuations, with lower prices observed from March to July due to climatic conditions affecting production. Price increases are expected in August and September due to transportation constraints [21][22]. Future Outlook - The demand growth rate is anticipated to exceed the supply growth rate in the next few years, driven by new fluorochemical projects and the slow pace of mining rights transitioning to production [24]. - The overall trend for fluorspar prices is expected to remain upward despite seasonal volatility, supported by increasing production costs and regulatory pressures [23][26].

Group 1 - The company held its 2025 semi-annual performance briefing on September 15, 2025, via video recording and online interaction at the Shanghai Stock Exchange Roadshow Center [1][2] - Key executives, including the chairman and general manager, participated in the briefing to discuss the company's operational results and financial indicators for the first half of 2025 [2] Group 2 - The company reported progress on its Mongolia project, which began in early 2024, including the completion of pre-treatment construction and trial production of approximately 40,000 tons of fluorite ore [3] - The company anticipates that the project will enter large-scale formal production of fluorite powder by 2026 [3] Group 3 - The company noted a recent increase in fluorite and hydrofluoric acid prices, with fluorite powder prices recovering from a low of around 2,900 yuan per ton to approximately 3,400 yuan per ton [4] - The company is optimistic about the fourth-quarter prices due to seasonal production halts and strong downstream demand [4] Group 4 - The company produced 103,000 tons of anhydrous hydrofluoric acid in the first half of 2025, achieving a gross margin of 11.57%, significantly up from 0.39% in the same period last year [5][6] - The company has improved the consumption of fluorite powder in its production processes, reducing it to approximately 2.7 to 2.8 tons per ton of anhydrous hydrofluoric acid [6] Group 5 - The company has signed contracts for seven sets of loading vehicles worth approximately 11 million yuan in the first eight months of 2025, and is actively expanding its market presence [6] - The company is also advancing its research and development efforts for new technologies and products in the mining equipment sector [6] Group 6 - The company aims to enhance its resource acquisition strategy by focusing on both resource and technology development, with plans for international resource expansion and diversification into high-value minerals [7] - The company maintains a positive long-term outlook on fluorite prices, driven by stable demand in traditional sectors and growth in emerging applications [7]

Summary of Jinshi Resources Conference Call Company Overview - Jinshi Resources experienced a decline in net profit attributable to shareholders in the first half of the year, primarily due to pressures from the Jiangshan and Jiangxi projects and financial accounting details [2][4] - The Baogang integrated project performed exceptionally well, contributing significantly to profits, with earnings reaching between 230 million to 240 million yuan in the first half [2][16] Key Points Financial Performance - The Baogang project became the main profit driver, generating approximately 125 million yuan in profit [2][16] - The company’s revenue grew by over 50% year-on-year, largely attributed to the Baogang project achieving operational stability [3] Project Updates - The Baogang project produced 390,000 tons of silver stone powder at a stable cost of under 800 yuan per ton, exceeding production targets [5] - The Outer Mongolia project incurred a loss of over 17 million yuan due to exchange losses and high labor costs, with expectations to optimize operations in the second half of the year [7][8] - The Jiangxi segment reported a loss of 27 million yuan, primarily due to inventory impairment [9] Market Conditions - The company anticipates a rebound in fluorite prices in the fourth quarter, with a slight increase in August prices [4][10] - The gross margin for the hydrogen fluoride segment improved from a negligible figure last year to 11.57% this year, driven by reduced consumption and increased capacity [4][27] Operational Challenges - The mining segment's production, sales, and prices remained stable in Q2, but prices fell in July and August, leading to increased costs [6] - The company is undergoing technical upgrades to enhance mining capacity and prepare for future production scale expansion [6] Future Outlook - The company expects to process 400,000 to 500,000 tons of ore after the completion of technical upgrades in Outer Mongolia and the small town project, significantly enhancing market competitiveness [18] - The company is optimistic about future profitability as various projects come online and market conditions improve [37] Industry Insights - The domestic mining sector faces high operational costs, with costs nearly doubling in recent years due to regulatory factors [21] - The impact of new projects in Inner Mongolia and Xinjiang on fluorite prices is currently minimal, but future production increases could affect market dynamics [20] Strategic Initiatives - Jinshi Resources is focusing on optimizing light asset management and enhancing operational efficiency through talent acquisition and management improvements [28] - The company is exploring opportunities in lithium and other minerals, although current efforts remain centered on existing operations [36] Conclusion - Despite short-term profit pressures, Jinshi Resources maintains a positive revenue outlook and growth potential, with expectations for improved profitability as market conditions stabilize and projects mature [37]