On 8 July, 2016, Jilin Jien Nickel Industry
Co., Ltd. (Jien Nickel, stock code: 600432) still recorded rises in share price
(closed at USD1.30/share OR RMB8.63/share), marking the limit-ups in 4
consecutive days. This was mainly driven by its release of pre-proposal about
private placement on 4 July.
Source: Baidu
Jien Nickel planned to issue <=660 million shares to <=10 targets, for
<=USD616.58 million (RMB4.10 billion) in total.
Strategically, the fund is for:
-
1st phase carbonyl metal functional
materials project – USD73.84 million (RMB491 million)
-
Li-ion battery cathode materials R&D
and production base project – USD190.99 million (RMB1.27 billion)
-
Battery grade lithium carbonate project –
USD162.42 million (RMB1.08 billion)
-
Loan payments – USD180.46 million (RMB1.20
billion)
“Now we are mainly involved in the business of nickel mining/ dressing/
smelting, and related chemicals production and sales,” stated Jien Nickel,
“Recent years have been witnessing slowdown growths in demand for nonferrous
metals and continuous expansion in supply.
Overall, the market has entered
periodic downturns. This has confronted us with decreasing profits and
increasing risks. So, it is necessary for us to carry out business transformation
and upgrading and to make breakthroughs – to seize good development
opportunities and to invest in new materials and alternative energy projects.”
Specifically, the Li-ion battery cathode
materials R&D and production base project is to be started up by Jien
Nickel’s subsidiary, Jilin Yarong Technology Co., Ltd. (Yarong Technology,
52.57% of shares). Its portfolio will mainly span lithium nickel cobalt
manganate (NCM, 20,000 t/a), copper sulphate (1,310 t/a) and zinc sulphate (770
t/a).
Hopefully, it will make USD410.55 million (RMB2.73 billion, sales) and
USD38.20 million (RMB254 million, profit) annually. The corresponding financial
internal rate of return (after tax) will hit 21.77%.
Yarong Technology is mainly developing,
producing and selling nickel-metal hydride battery (Ni-MH battery) and Li-ion
battery cathode materials including spherical nickel hydroxide (2,000 t/a),
cobalt-coated nickel hydroxide (2,000 t/a), NCM (1,000 t/a) and carbonyl nickel
hydroxide (500 t/a).
The battery grade lithium carbonate project
is to be launched by Quebec Lithium Inc. (Quebec Lithium), which was acquired
by a subsidiary of Jien International Investment Ltd. The capital input this
time will enable Quebec Lithium to reconstruct and upgrade its lithium ore
mining and battery grade lithium carbonate production lines, to finally build
up a production capacity of 20,000 t/a for 99.5% battery grade lithium
carbonate.
It is predicted that the sales will reach CAD63.54 million (RMB326
million, CAD/RMB exchange rate @ 5.1307 on 1 July, 2016, sourced from the
People’s Bank of China), of which the net profit will be up to CAD27.68 million
(RMB142 million).
Quebec Lithium is running a La Corne
lithium ore plant in Quebec. However the production was suspended in Oct. 2014
due to capital deficiencies.
This article comes from China Li-ion Battery E-News 1607, CCM
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Tag: Li-ion battery