Kings(603505)2023-10-16 07:32Group 1: Investor Research Overview - The investor communication was conducted via a telephone conference on October 10, 2023, with participation from over 130 institutions including major funds and securities firms [2][3]. Group 2: Production and Pricing Insights - The expected production capacity for 2024 is 400,000 to 500,000 tons from a single mine, with an additional target of 600,000 to 800,000 tons if all three production lines at Baogang Jinshi are fully operational [4]. - Recent price trends show a 20% increase in fluorite prices since late August, with current market prices ranging from 3,500 to 3,800 RMB per ton, and premium products reaching up to 4,000 RMB [5]. - The average sales cost for acid-grade fluorite powder has risen to 1,598 RMB per ton, while high-grade block ore costs approximately 701 RMB per ton [6]. Group 3: Market Dynamics - The increase in fluorite prices is attributed to both supply and demand factors, with supply constraints being more significant at present [7]. - Seasonal factors typically lead to stronger prices in the fourth quarter due to production halts in northern mines and increased demand for inventory replenishment [7]. - The long-term price increase of fluorite is driven by its non-renewable nature, regulatory pressures, and rising extraction costs [8]. Group 4: Future Production and Cost Projections - For 2023-2024, the production mix is expected to be 65-70% for fluorite powder and 30-35% for high-grade block ore [8]. - The cost of mining in Inner Mongolia is slightly lower than in Zhejiang, but the quality of the ore is also lower [9]. - Winter production is expected to remain stable due to technological improvements in heat recovery and temperature control at the mines [9].