Core Viewpoint - The non-ferrous metal industry is experiencing positive performance forecasts from listed companies, driven by increasing demand in emerging sectors such as new energy and high-end manufacturing, which is expected to enhance the overall valuation of the sector [1][2]. Group 1: Company Performance - Nine A-share listed companies in the non-ferrous metal industry have reported optimistic performance forecasts for the first half of 2025, including China Northern Rare Earth Group High-Tech Co., Ltd. and Zhejiang Huayou Cobalt Co., Ltd. [1] - China Northern Rare Earth expects a net profit attributable to shareholders of 0.9 billion to 0.96 billion yuan, representing a year-on-year increase of 1882.54% to 2014.71% [2]. - Huayou Cobalt anticipates a net profit of 2.6 billion to 2.8 billion yuan, reflecting a year-on-year growth of 55.62% to 67.59% [2]. Group 2: Industry Trends - The non-ferrous metal sector is shifting from a cyclical to a growth-oriented phase, with companies benefiting from the demand in green sectors such as electric vehicles and wind power [1][3]. - The overall performance of upstream resource companies is strong, with a notable increase in orders and a positive outlook on rare earth prices due to market activity and supportive policies [2][3]. Group 3: Technological Development - Technology-driven companies are showing high-quality development, with improvements in product quality and market competitiveness, although their profitability has not been as pronounced as that of resource companies [4]. - Anhui Chuangjiang Technology New Materials Co., Ltd. expects a net profit of 0.24 billion to 0.29 billion yuan, benefiting from technological upgrades in semiconductor materials [4].

Group 1: Company Performance and Financials - The company achieved a net profit of approximately 245 million CNY in 2024, representing a year-on-year growth of 39.16% [6] - In 2024, the company produced 228 tons of silver, with 158.82 tons from Yinman Mining and 46.07 tons from Qianjinda [10] - The company aims to optimize its operational strategies to enhance profitability and increase market value [4] Group 2: Future Plans and Projects - The company is actively advancing the Yinman Phase II and Yubang Mining expansion projects, with a production capacity target of 8.25 million tons per year [15] - The completion of the Yinman Phase II project is expected to take 1-2 years [5] - The company plans to maintain a focus on silver and tin resources while moderately investing in copper and gold [8] Group 3: Market and Investor Relations - The company has not yet engaged in hedging transactions despite the rapid increase in silver prices [2] - There are no current plans for stock buybacks using loans, although the company is open to future considerations [5] - The company is committed to enhancing communication with shareholders and the capital market to improve market activity and brand image [4] Group 4: Strategic Partnerships and Collaborations - The company is exploring potential collaborations with top-tier global mining service companies to improve construction speed and safety [3] - The company has signed a strategic cooperation framework agreement with China Railway Tunnel Bureau for future TBM excavation operations [2]

Core Viewpoint - Cangge Mining (000408.SZ) expects a net profit attributable to shareholders for the first half of 2025 to be between 1.75 billion and 1.9 billion yuan, representing a year-on-year increase of 34.93% to 46.49% [1] Financial Performance - The growth in net profit is primarily attributed to the strong performance of its associate company, Tibet Julong Copper Co., Ltd., which is expected to contribute approximately 1.265 billion yuan in investment income, an increase of about 48.08% compared to the same period last year [1]

Market Overview - The market showed strong performance this week, with the Shanghai Composite Index surpassing 3500 points, recording three consecutive weekly gains. The Shanghai Composite Index rose by 1.09%, the Shenzhen Component Index increased by 1.78%, the ChiNext Index gained 2.36%, the STAR 50 Index rose by 0.98%, and the Beijing Stock Exchange 50 Index increased by 0.41% [1][3][5]. Economic Indicators - In June, the Consumer Price Index (CPI) turned from a decline to an increase, rising by 0.1% year-on-year, while the Producer Price Index (PPI) saw an expanded decline. The core CPI reached a 14-month high of 0.7% [2][9][10]. - The CPI's increase was driven by a significant recovery in industrial consumer goods prices, with international commodity prices contributing to increases in gold and platinum jewelry prices by 39.2% and 15.9%, respectively [9][10]. - The PPI's year-on-year decline expanded by 0.3 percentage points compared to the previous month, influenced by seasonal price decreases in raw materials and energy [9][10]. Policy Developments - The State Council issued 19 measures to stabilize employment, and the National Development and Reform Commission allocated an additional 10 billion yuan for employment support projects, which are expected to benefit 310,000 key groups [10][12]. - The government emphasized the need for industry self-discipline to prevent excessive competition, particularly in sectors like photovoltaic, steel, and cement [10][12]. International Trade and Monetary Policy - The U.S. has imposed tariffs on imports from multiple countries, with rates ranging from 25% to 50%, which may continue to pressure global trade growth expectations [12][13]. - The Federal Reserve is experiencing a divergence in opinions regarding interest rate policies, influenced by the potential impact of tariffs on inflation [12][13]. Sector Recommendations - The report suggests focusing on sectors such as banking, public utilities, construction decoration, non-ferrous metals, and technology, media, and telecommunications (TMT) for potential investment opportunities [14].

Group 1 - The company expects a significant increase in net profit for the first half of 2025, projecting a range of CNY 173 million to CNY 229 million, which represents an increase of CNY 63.79 million to CNY 119.79 million compared to the same period last year, equating to a year-on-year growth of 58.40% to 109.68% [1][2] - The projected net profit attributable to shareholders after deducting non-recurring gains and losses is estimated to be between CNY 159 million and CNY 212 million, indicating an increase compared to the previous year's figure [2] - The increase in profit is attributed to a combination of rising sales volumes and higher metal market prices, along with non-recurring gains from government subsidies totaling CNY 18.55 million [3] Group 2 - The previous year's net profit attributable to shareholders was CNY 109.21 million, with a total profit of CNY 195.45 million [2] - The company emphasizes that there are no significant uncertainties affecting the accuracy of the performance forecast [3]

Summary of Luoyang Molybdenum Co. Conference Call Industry Overview - The U.S. has imposed a 25% tariff on copper, exceeding market expectations, with limited impact on demand and supply but affecting global logistics [2][4] - If Chile receives exemptions or tariffs are implemented in phases, copper prices may rebound, presenting buying opportunities during price dips [2][4] Company Performance - Luoyang Molybdenum has become the largest cobalt producer globally, with a projected 38% of global production in 2024 and 50% from the Democratic Republic of Congo [2][5] - The company’s tungsten inventory was sold out by Q2, potentially impacting Q3 profits, but H1 profits have already matched the previous year's total [2][5] - Copper production growth is leading among global copper mining companies, with an expected annual compound growth rate of approximately 9% over the next five years, primarily driven by TFM mine expansion and KFM project contributions [2][6][11] Project Developments - The KFM project has exceeded expectations, with annual production capacity increased to over 200,000 tons, benefiting from shared infrastructure with TFM [2][9] - The company acquired an Ecuadorian gold mine with reserves of 638 tons, expected to produce 11.6 tons of gold annually starting in 2028, with a design life exceeding 20 years [2][10] Future Projections - Luoyang Molybdenum aims to expand copper production capacity to 800,000 to 1,000,000 tons by 2028, with significant contributions from TFM and KFM projects [2][6][11] - The company’s copper production forecast is conservative, with potential for further increases if copper prices rise to favorable levels [2][7] Financial Sensitivity - A rise of 5,000 RMB/ton in copper prices could increase profits by approximately 1.3 billion RMB, while a 30,000 RMB/ton increase in cobalt prices could add 600-700 million RMB to net profits [3][12] - The company's profit center is estimated at around 15.6 billion RMB under baseline assumptions [3][12] Resource Comparison - As of 2023, Luoyang Molybdenum has a resource volume of 27 million tons, significantly lower than leading global companies like Codelco and BHP, but comparable to some large mining firms [2][8]

Group 1 - The controlling shareholder, Inner Mongolia Xingye Gold Smelting Group Co., Ltd., has signed a share transfer agreement with Tianjin Xinye Investment Partnership (Limited Partnership) to transfer 121,920,400 shares, representing 6.87% of the total share capital of the company [1] - The Shenzhen Stock Exchange has completed the compliance review of the share transfer application materials submitted by both parties and issued a confirmation letter for the share transfer [2] - After the completion of the share transfer, the controlling shareholder will still hold 363,320,020 shares, accounting for 20.46% of the total share capital, while Tianjin Xinye will become the second-largest shareholder with 121,920,400 shares [2] Group 2 - The share transfer does not violate any relevant laws and regulations, and it will not lead to changes in the controlling shareholder or actual controller of the company [2] - The transfer will not harm the interests of the company or minority shareholders, nor will it adversely affect the normal operation and management of the company [2]

Group 1 - The pollution incident in the Shen Shui River, Jiangxi, is attributed to illegal wastewater discharge by Jiangxi Hongshan Copper Industry Co., Ltd, which is currently under investigation by law enforcement [1][2] - The river exhibited visible pollution, with yellow-brown water and sediment, prompting local residents to link the issue to a copper mining company [1] - The local environmental authority has initiated measures to address the pollution, including the construction of irrigation water channels and the provision of tap water to affected villagers [1] Group 2 - Jiangxi Hongshan Copper Industry Co., Ltd was established in 2005 and primarily engages in the non-ferrous metal mining and selection industry [2] - The provincial government has emphasized the need for stricter enforcement of environmental regulations and accountability for companies that engage in illegal discharges [2] - The governor highlighted the importance of corporate responsibility in environmental protection and the necessity for timely rectification of similar issues [2]

Report Summary Industry Investment Rating No investment rating for the industry is provided in the report. Core Views - **Copper**: Copper prices stabilized and rebounded today with a continuous decline in open interest. The domestic macro - atmosphere improved, but the announcement of a 50% import tariff on copper by Trump put pressure on copper prices. The market may worry about the closure of the US import window and a potential decline in non - US copper demand. Technically, there is strong support at the June price center [5]. - **Aluminum**: Aluminum prices increased with open interest last night and the main contract price fluctuated narrowly around 20,700 yuan today. The domestic macro - atmosphere improved, and the rise in the black and production - cut sectors was beneficial to aluminum prices. On July 10th, the electrolytic aluminum inventory decreased by 10,000 tons to 455,000 tons. With improved domestic macro - expectations, downstream industries' willingness to replenish inventory increased. Technically, attention should be paid to the pressure at the June high, and the price is expected to remain strong [6]. - **Nickel**: Nickel prices increased with open interest in the afternoon and the main contract price stood above 121,000 yuan. The domestic macro - atmosphere improved. Upstream mines were stable, downstream expectations improved, stainless steel strengthened, and downstream demand might improve, supporting nickel prices. Technically, the price stood above 120,000 yuan again and is expected to remain strong driven by the macro - environment [7]. Industry Dynamics - **Copper**: Trump announced on July 9th that a 50% tariff on all imported copper to the US would be imposed starting from August 1st. In Q2 2025, the I, II, and III phase concentrators of Kamoa - Kakula processed 3.62 million tons of ore, producing 112,000 tons of copper, a year - on - year increase of 11%. In the first half of 2025, it produced 245,000 tons of copper [9]. - **Aluminum**: The Shanghai Futures Exchange listed the first recycled metal variety, cast aluminum alloy futures and options, on June 10th. As of July 9th, after 22 trading days, the cast aluminum alloy futures had a cumulative trading volume of 205,700 lots, with a post - market open interest of 10,200 lots, equivalent to 102,000 tons of spot, accounting for about 27% of the domestic monthly consumption of cast aluminum alloy. The cast aluminum alloy options had a cumulative trading volume of 41,500 lots and a post - market open interest of 6,000 lots [9]. - **Nickel**: On July 10th, the mainstream reference contract for refined nickel in the Shanghai market was the SHFE nickel 2508 contract. The mainstream premium of Jinchuan electrolytic nickel was + 2050 yuan/ton at a price of 121,740 yuan/ton; that of Russian nickel was + 550 yuan/ton at 120,240 yuan/ton; that of Norwegian nickel was + 2750 yuan/ton at 122,440 yuan/ton; and that of nickel beans was - 900 yuan/ton at 118,790 yuan/ton [9]. Related Charts - **Copper**: Charts include copper basis, copper monthly spread, domestic visible inventory of electrolytic copper, overseas copper exchange inventory, LME copper cancelled warrant ratio, and SHFE warrant inventory [10][12][13] - **Aluminum**: Charts cover aluminum basis, aluminum monthly spread, domestic social inventory of electrolytic aluminum, overseas exchange inventory of electrolytic aluminum, alumina trend, and alumina inventory [24][26][28] - **Nickel**: Charts involve nickel basis, nickel monthly spread, LME inventory, SHFE inventory, LME nickel trend, and nickel ore port inventory [35][37][39]

Core Viewpoint - The article emphasizes the need for a comprehensive approach to address heavy metal pollution while promoting the high-quality development of the non-ferrous metal industry in Guangxi, China [1][3]. Group 1: Industry Development - Guangxi is rich in mineral resources and is recognized as the "hometown of non-ferrous metals" in China, with the industry evolving from small-scale to a more concentrated and higher-level development [2]. - The non-ferrous metal industry has made significant contributions to the regional economic development, but it has also led to serious heavy metal pollution issues that need to be addressed [2][3]. Group 2: Environmental Protection Measures - The government is committed to addressing heavy metal pollution as a critical aspect of Guangxi's high-quality development, implementing a systematic approach that includes "investigation, assessment, remediation, prevention, management" [3]. - There will be a crackdown on illegal mining and heavy metal pollution, with a focus on closing down small, scattered, and disorganized enterprises to optimize the industry layout [3][4]. Group 3: Strategic Initiatives - The strategy includes enhancing cooperation with ASEAN countries in the mining sector, integrating resources from research, enterprises, and supply chains to combat heavy metal pollution effectively [4]. - The government aims to balance political and natural ecological considerations, emphasizing practical actions and innovation to achieve sustainable development in the non-ferrous metal industry [4].