Research Summary of Huaibei Mining (600985)

1.

The company’s fourth-quarter performance: The overall stability is relatively stable. Both the clean coal and coke products have long-term association prices, so the price changes are relatively small. The changes in the fourth quarter are not significant, and they will continue to grow in the first three quarters.

  2.

Since this year, the company’s coal production has declined. Is this related to resources? The 武汉夜网论坛 decline in coal production is mainly due to insufficient input and resource replacement work, low initial expenses, and geological conditions, so some problems have arisen in the succession.

  Currently driving at a depth of 500?
800 meters deep and thin coal seams, so the mining cost is also relatively high.

  Huaibei headquarters resources still have 36?
3.7
billion tons of reserves. According to the current annual production capacity, it is expected that there will be no problems for more than 50 years.

  Output next year is expected to be essentially flat.

  3.

When will Yangzhuang and Luling mines be closed? Yangzhuang is expected to close around 2020.

There is no timetable for the closure of Luling Mine. The company considers normal production at present and will consider applying for an extension of shutdown.

  4.

How is the construction progress of the Xinhu Mine currently underway? It is initially expected to start production in 2020, but it is estimated that it will not contribute much to the official output next year.

  5,

The washing out ratio of coking coal is about 50%, and the amount of coking coal is 1000?
1100 mm.

  6.

Since the beginning of this year, the price trend and cost changes have averaged 735 yuan in the first three quarters and cost 449 yuan.

Five years of growth.

49% / 4.

07%, it has been seen that coal prices are mainly stable, and customer sales are also relatively stable, and the associated power plants still have 600?
Consumption of 700 tons.

The company Sun Sun, Xu Sun and Yang Liu are the most profitable mines. The remaining mining time is long and the cost is slightly higher.

  Costs are also increasing in this area, mainly due to the obvious increase in staff salaries.

The most time before the whole group (listed company plus controlling shareholder) 8?
90,000 people, and now more than 50,000 people.

The main ways to reduce staffing are: natural retirement; voluntary resignation when coal is high and bad; internal retirement and early retirement; coal mine entrusted business diversion.

  7
Is there a systematic reason for the total amount of the income statement to decrease this year? Is the logistics trade less? The amount of this part of the business transaction is relatively large, so the income statement income and costs have decreased, and the amount of each item has also decreased.Already.
  8.

Tao Hutu wellfield project progress progress, whether the group has other resources The company announced in April that it obtained the exploration right certificate, but there are subsequent disposals. The release of this capacity will wait until the “14th Five-Year Plan” period. The planned capacity is 8 million tons, High-quality thermal coal resources.

  The group also has resources in Fugu, Shaanxi, with reserves of 4 billion tons.

  9.

Coke business situation The company’s coke mainly corresponds to Lintong Coking 440 throughput. A total of 8 coke ovens are 6 meters and 55 holes, which is an advanced production capacity.

Instead, the output in two years is almost 380 ounces, which will not reach the full production state; if the full production of methanol is 40 microns.

  The first three quarters of coke residues without tax are close to 1,900 yuan, which is almost the same as last year, mainly due to the role of the Long Association, which stabilized the price.

The price of methanol long association is small, which has dropped a lot.

  The full cost of coke is estimated at 1600?
1700 yuan / ton, of which the purchase price of clean coal is 1300?1400 yuan / ton, the overall profit is not as good as last year.

  Lintong Coking 2 in the first half of the year.

6.6 billion net profit, is expected to have 5?
600 million pure profits.

  After the subsequent issuance of convertible bonds, there will be a comprehensive utilization project of deflation and deflation, which will improve product replacement at the existing cost.

Follow-up plans for the extension of methanol-to-carbide are only preliminary, relatively long-term.