Kings(SH:603505)2024-11-18 09:43Group 1: Investor Relations Activities - The company conducted offline investor research and participated in broker strategy meetings from November 1 to 15, 2024 [1] - Notable participants included representatives from Yin Hua Fund, Pacific Securities, and Jia Shi Fund [1][2] Group 2: Production Goals and Inventory - The company aims to achieve a production target of 1.5 million tons of fluorite within five years, including contributions from the Baogang project and the Mongolia project [3] - The Baogang project currently has a production capacity of 700,000 to 800,000 tons, while the single mine capacity is estimated at 400,000 to 500,000 tons [3] - The company has limited fluorite inventory in the southern region, with 140,000 tons sold externally and the remainder used internally [3] Group 3: Pricing and Market Dynamics - Fluorite prices in southern China are generally higher by 100-300 RMB/ton compared to northern regions, influenced by product quality and market demand [3] - As of November, the price for high-quality fluorite powder is around 3,700-3,800 RMB/ton, while anhydrous hydrofluoric acid is priced at approximately 10,500 RMB/ton, reflecting an increase from October [11] Group 4: Technical Insights - The company employs flotation technology for mineral separation, with challenges in processing fine materials [5] - Approximately 30%-40% of the output consists of high-grade fluorite blocks, while 60%-70% is acid-grade fluorite powder [8] - The gross margin for fluorite powder from the Baogang project is around 50%, calculated from the entire flotation process [8] Group 5: Industry Overview - The fluorite industry is experiencing a supply reduction due to the depletion of small mines and stricter safety and environmental regulations [9][10] - The company's integrated project in Baotou helps mitigate the supply shortage in the fluorite market [10]