BATIAN(SZ:002170)2022-11-21 15:36Group 1: Company Overview - Shenzhen Batian Ecological Engineering Co., Ltd. obtained exploration rights for the Xiaogaozhai phosphate mine with an estimated exploration reserve of approximately 63 million tons [2] - The company acquired mining rights in May 2020, with an annual production capacity of 900,000 tons [2] - The main engineering structure of the mine includes two shafts with a combined depth of approximately 1,300 meters, expected to be completed by December this year and January next year [2] Group 2: Phosphate Chemical Industry - The company established a phosphate chemical industrial park in Guizhou, which includes a 270,000-ton nitric acid production capacity, the highest purity and concentration in South China [2][3] - The fertilizer production capacity includes nitric phosphate fertilizer, utilizing nitric acid decomposition [3] - The company plans to enter the new energy materials sector, with a total planned capacity of 300,000 tons for iron phosphate, divided into three phases: 50,000 tons, 100,000 tons, and 150,000 tons [3] Group 3: Investment and Production Insights - The total investment from exploration rights to mining rights was approximately 480 million yuan [3] - Current mining progress has reached the ore layer, with daily engineering ore extraction fluctuating between 200-500 tons, estimating a total of around 10,000 tons for the year [3][4] - The average grade of the ore is around 27, with the lowest at 24 and the highest at 32 [4] Group 4: Market Demand and Pricing - The national supply of phosphate ore has decreased from approximately 150 million tons to around 80 million tons annually, while downstream demand is expected to rise significantly [4][5] - The price of phosphate ore is anticipated to trend upward in the long term, driven by increasing demand, particularly for lithium iron phosphate [5] - The company aims to maintain stable supply and quality for downstream partners, addressing the variability in phosphate ore quality [5] Group 5: Future Outlook - The company expects to achieve a production capacity of 900,000 tons by the end of next year, with a significant portion of phosphate ore being self-supplied [4][6] - The anticipated profit from the phosphate iron production line is projected to be substantial, with a focus on cost savings and efficiency [6] - The company is exploring various production routes for phosphate iron to optimize economic and environmental factors [6]