Core Viewpoint - Dazhong Mining plans to invest 1 billion yuan in a lithium battery project, aiming to establish a second growth curve amid declining revenues from its traditional iron ore business, although the lithium project has yet to generate any revenue since its inception in 2022 [2][8]. Investment Project Overview - On June 18, Dazhong Mining announced a 1 billion yuan investment to build a "3000 tons per year lithium battery new materials project" in Linwu County [4]. - The project will be constructed in three phases: - Phase 1 focuses on research and development, expected to complete by 2025 [7]. - Phase 2 plans to establish a production line with an annual capacity of 1000 tons, starting construction in April 2026 and aiming for completion by the end of 2027 [7]. - Phase 3 aims for a production line with an annual capacity of 2000 tons, with construction starting in June 2027 and completion by the end of 2028 [7]. - Dazhong Mining currently holds 3.24 million tons of lithium carbonate equivalent in Linwu County, establishing a complete industrial chain for lithium mining and processing [7]. Financial Performance - In 2024, Dazhong Mining's total revenue was 3.843 billion yuan, a decrease of 4.01% compared to 2023 [11]. - The company's net profit for 2024 was 751 million yuan, down 34.17% year-on-year [12]. - The main products, iron concentrate and pellets, contributed over 90% of the company's revenue, with iron concentrate sales dropping by 22.04% and pellets increasing by 95.64% [11][12]. Market Conditions - The iron ore market is experiencing a downturn, with the Platts iron ore price index averaging 109.5 USD/ton in 2024, a decline of 8.7% year-on-year [11]. - The supply of iron ore is expected to enter a new growth cycle in 2025, while demand is projected to decline, leading to a continued softening of iron ore prices [14]. Lithium Market Challenges - Despite significant investments in lithium mining, the projects have not yet contributed to revenue, and the long construction cycle combined with falling lithium prices poses uncertainties for future returns [16]. - Lithium carbonate prices have shown volatility, with spot prices peaking at 81,680 yuan/ton in January 2024 and dropping below 60,000 yuan/ton by the end of May [16].

Core Viewpoint - Daming Mining has successfully transformed its operations into a smart mining model through the extensive application of digital and intelligent technologies, significantly enhancing safety and efficiency in mining operations [1][2][4]. Group 1: Technological Advancements - Daming Mining has implemented unmanned operations in drilling and transportation processes, reducing the risk to personnel and improving safety [2][3]. - The company has developed a comprehensive intelligent mining capability that includes geological modeling, intelligent scheduling, and remote control, marking a shift from traditional labor-intensive methods to a more precise operational model [2][3]. - The introduction of AI algorithms into the mining operation system has created a multi-dimensional intelligent protection system, enhancing safety monitoring and data analysis capabilities [4][5]. Group 2: Future Plans and Goals - By 2025, Daming Mining aims to achieve unmanned operations in hoisting and loading machinery, as well as fully automated processes in new selection plants [3]. - The company plans to realize full-process automation in mining operations and unmanned management of underground production positions by the end of 2026 [3]. - Daming Mining is focused on continuous innovation and optimization of management systems to ensure safer, more efficient, and smarter mining operations [5]. Group 3: Collaboration and Talent Development - Daming Mining has established information technology companies in Wuhan and Nanjing to cultivate talent for smart mining construction [5]. - The company collaborates with several universities to create joint laboratories for intelligent mining, achieving breakthroughs in remote control and sensor monitoring [5].