Mining consolidation picks up pace; consolidation in the mineral resources industry is starting to accelerate.
Release time:
2015-06-24
Source:
China Securities Journal
Wind Statistics show that in the second half of last year, the companies undergoing private placements and restructuring were... 85 Home, this year 1 Moon 1 Date to 6 Moon 22 Have it today 208 Home, according to wind By industry classification, there are nearly 60 Sub-sectors such as non-metallic and metallic materials, paper products, department stores, hypermarkets and supermarkets, electronic equipment and instruments, rail transport, and road transport.
Wind Statistics show that as of... 6 Moon 22 Today, the latest case of private placement and restructuring in the Shanghai and Shenzhen stock markets involves Luoping Zinc & Electricity, which plans to raise no more than approximately RMB [amount not specified] through a non-public offering of shares. 89483.10 10,000 yuan, to be invested in the following project: acquisition of Hongtai Mining. 100% Equity, technical upgrade project for the comprehensive recovery system of zinc slag, and supplementary working capital.
This is the second mineral resource acquisition so far this year, and it is also... 6 The second mineral resource acquisition since the month. 6 Moon 3 Ri Zhong Run Resources announced its intention to raise a total amount of funds not exceeding. 283.68 100 million yuan—the net proceeds from the fundraising, after deducting issuance expenses, will all be used to acquire Iron Ore International (Mongolia) Co., Ltd., Ming Sheng Co., Ltd., and Mongolia Xin Lalegaote Iron Ore Co., Ltd. each. 100% Equity investment, repayment of the target company’s loans, expansion of the mining and beneficiation project, and replenishment of working capital—through these measures, the company has entered the overseas iron ore resource extraction industry.
In the past year, there have been relatively few cases involving the injection of mineral resources; last year... 11 Only Shandong Gold has received an asset injection from its controlling shareholder into the Guilai Zhuang company. 70.65% Equity and the like. Additionally, three companies—Chihong Zinc & Germanium, Wuchang Fish, and Guitang Shares—have been taken over through reverse mergers, with their assets respectively injected into Rongda Mining. 49% Equity, Qianjin Mining 100% Equity, Yunliu Mining 100% Equity, etc.
Analysts at Gaohua Securities pointed out that, against the backdrop of weak demand and poor profitability, consolidation in the mining industry is expected to accelerate starting from the second half of the year. At that time, companies with weaker fundamentals may begin to face pressure on their liquidity. Meanwhile, rising environmental pressures will also lead to the faster closure of marginal production capacity, which, however, will help improve the industry’s supply-and-demand outlook.