Gold Molybdenum (601958): The Return of Molybdenum King

Gold Molybdenum (601958): The Return of Molybdenum King
The company has high-quality molybdenum resources and is the fourth largest molybdenum producer in the world.The company owns Jinduicheng Molybdenum Mine, and Donggou Molybdenum Mine has two molybdenum mines in production, both in terms of reserves, grade and output are world-class single molybdenum mines. The company has become the fourth largest molybdenum producer in the world; as of the end of June 19The company’s asset-liability ratio is 14%, monetary funds are 3.1 billion U.S. dollars, and interest resistance is only 500 million U.S. dollars. In the process of the price per ton continues to rise, it has the development strength of extensional mergers and acquisitions. Domestic molybdenum ore replenishment, overseas molybdenum ore replenishment or contraction. We have sorted out 103 molybdenum ore mines around the world, which are considered to be replacements for the molybdenum supply side in the next three years.Domestic small and medium molybdenum ore has gradually cleared due to factors such as the plunge of molybdenum prices and environmental safety supervision in previous years. Large-scale molybdenum ore has little growth, and the development progress of Dasuji molybdenum ore and Jide molybdenum ore under construction is still relatively slow.Large uncertainties; overseas molybdenum is mostly associated with copper mines, and large copper mines are rarely put into production. At the same time, Chuquicamata, SierraGorda, and Colahuasi in Chile will all reduce output and supply or shrink overseas molybdenum ore. Demand for stainless steel and alloy steel is stimulating. Molybdenum demand is expected to grow steadily. Benefit from the upgrading of China’s industrial structure. In recent years, domestic 杭州桑拿网 stainless steel and alloy steel production has continued to increase. Domestic stainless steel 300/400 series production has increased. Molybdenum content per ton of steel will also increase accordingly.At the same time, the output of alloy steel has also increased, and the demand for molybdenum will continue to increase, and the price of molybdenum will promote a steady upward trend. The company is given a “Buy” rating and the company is expected to achieve 0 EPS in 19-21.22/0.43/0.52 yuan / share, corresponding to the closing price of PE on August 26 is 30/15/13 times.In the past year, the company’s average PE value calculated based on the performance of the year has increased by 53 times. Benefiting from the continued growth of small prices, the company’s profitability has continued to improve. As a leader in emerging industries, considering the growth space of the company’s performance, we believe that the company’s 19The multiple PE estimate is reasonable and the corresponding reasonable value is 8.80 yuan / share, give the company a “Buy” rating. Risk reminder: environmental protection standards tend to cause severe disruption of mine production or rising costs; trade protection or changes in global economic growth affect demand; overseas copper and molybdenum-associated mines or the use of molybdenum-rich and copper-mining methods to rapidly increase supply, leading to price declines.

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