On June 17, 2021, the "Face-to-Face Exchange With Institutional Investors" jointly organized by the Hebei Association of Listed Companies and the "About Research" Company was held at the CBD International Center, No. 16 Yong'an Dongli, Chaoyang District, Beijing. The company participated in this exchange activity, introduced the basic situation of the company, and made corresponding answers to the questions that investors are concerned about, the main questions and replies are as follows: 1. What is the new development direction outside the copper mining business?
The company will continue to look for mineral resource projects that meet its own characteristics, seek capital market opportunities, seize the opportunity to achieve mergers and acquisitions, expand the scale of the company's industrial development, and enhance the company's sustainable profitability. At the same time, the company will strive to solve the problem of competition with the controlling shareholders, and promote the injection of iron ore resources after meeting the conditions. 2. Will iron ore production decline from previous expectations, and then will there be a change in the planning of the next few years?
In early December of last year, the company proposed a sales plan of 12 million tons based on the situation at that time. However, with the intermittent outbreak of the epidemic in South Africa, the production and operation of the South African National Railway Company (Transnet) have been greatly affected, and the company's railway traffic improvement measures cannot be implemented, so the company has made the company's 2021 sales plan clear in the annual report to guarantee 10 million tons and compete for 12 million tons. The company's current motor transport is going well, and if the epidemic in South Africa does not worsen further, the company is still confident of completing the sales target of 10 million tons.
3. What is the production status of copper ore?
The company's copper mine is underground, and the production operation is closely related to the level of epidemic prevention and control, and last year, because of the serious epidemic, the copper sector suffered serious losses. Since the beginning of this year, with the decline in the level of epidemic prevention and control, the optimization of production organization, the rise in copper prices and other superimposed factors, the company's copper sector has gradually achieved profitability.
4. Will the shareholder reduction problem get better?
At present, only the shareholders holding more than 5% of the shares are Tianwu Import and Export during the period of the reduction plan. The reason for the reduction is because Tianwu Group is currently in a state of being taken over, and Tianwu Import and Export Company has difficulty in capital turnover and cannot complete the repurchase of pledged shares in accordance with the agreement, resulting in the compulsory disposal of some of the pledged shares held by it. The remaining shareholders' previous reductions were also due to similar funding problems or redemptions due to asset management plan products. 5. Has the situation of iron ore in South Africa improved compared with the first quarter?
In the first quarter of this year, the epidemic in South Africa rebounded seriously after the Christmas holiday, and at the same time, tropical storm Eloise hit South Africa, the port infrastructure was seriously damaged, and the railways along the way were also affected. Since entering the second quarter, the company's traffic volume is gradually recovering, in June, the South African Railways carried out a planned 2-week overhaul of the railway, and after the completion of the overhaul, it is expected to reach the monthly planned level in the second half of the year. 6. Is the foreign freight rate rising seriously?
Affected by the rise in global maritime prices, the company's sea freight has increased significantly, at the same time, the new road transportation costs are higher than the railway transportation price of more than 20 US dollars / ton, on the whole, the company's logistics costs have increased. 7. What is the impact of exchange rates on profits? Are costs rising?
The Company's subsidiaries are located in South Africa, and fixed fees are denominated in South African rand, and exchange rate changes do not affect the costs of the South African Company. Reflected in the company's statements, since the current exchange rate fluctuation direction of the rand and the renminbi against the US dollar is basically the same, it has little impact on the company on the cost side.
8. Is there room for improvement in the company's railway capacity?
The biggest problem constraining the company at present is capacity, the main problem is the poor infrastructure facilities in South Africa. From 2013 to the present, the company has always been committed to the increase of iron ore sales, from the initial more than 2 million tons to more than 8 million tons before the epidemic, showing a year-on-year improvement. The railway improvement involves the overall arrangement of the South African state, and the company has proposed to the South African Railway Company to increase the number of concession stations, start abandoned stations, etc., and actively cooperate with the relevant plans to increase the railway capacity. However, due to the impact of the epidemic in South Africa, some measures cannot be implemented at present.
9. Is the motor transport company contractual? Is there a way to motivate? The company has always been committed to the increase in iron ore sales, and the biggest initiative is the addition of new road transport. PMC uses two ports, one is the Port of Maputo in Mozambique, about 450 km from PMC, and the other is the Port of Richards Bay in South Africa, about 720 km from the company. Road transport passes through local communities and is more difficult, so the company adopts an outsourcing method, priced by quantity, and coordinated by the local transport company. From the perspective of incentives, because of the charge-as-you-go, more luck and more gains, there are incentive conditions in the contract itself, and there is no further incentive.
Attached: Event Information Form
Categories of investor relations activities
□ Target-Specific Research Analyst Meetings □ Media Interviews Performance Briefings □ Press Conferences Roadshow Events □ On-site Visits Conference Calls Other (Investors" Face-to-Face Activities)
The name of the participating unit and the name of the person
Haoze Zhiyuan (Beijing) Investment Management Co., Ltd. Song Jiaojiao Beijing Jinggang Weiye Investment Co., Ltd. Kong Zhiqiang Hangzhou Turing Asset Management Co., Ltd. Zhou Xiangnian Beijing Qingchuang Bole Investment Co., Ltd. Yu Baiwen Huarong Securities Co., Ltd. Wang Wen Beijing Huaixin Investment Fund Management Co., Ltd. Xie Jiapeng Chinese Life Asset Management Co., Ltd. Liu Honggang Beijing Tianmu Investment Management Co., Ltd. Zhang Xingqiao Dongxing Securities Co., Ltd. Ren Xiao Beijing Zhonghe Dafang Investment Management Co., Ltd. Jin ping Beijing Dawn Investment Management Co., Ltd Liang Xiaosong Cinda Securities Co., Ltd. Cheng Yuanyuan Jinmanhui (Beijing) Investment Management Co., Ltd. Li Taihui Shanghai Panjing Investment Management Center (Limited Partnership) Zhang Qi Haokun Shengfa Private Equity Fund Management Co., Ltd. Liu Qingcheng Kunlun Tianxia (Beijing) Investment Management Co., Ltd. Zhang Tianyu Yunneng Zhongchuang Investment Management (Tianjin) Co., Ltd. Zhang Bin Guoxin Securities Co., Ltd. Li Hanchen Guoxin Securities Co., Ltd. Li Li Shenwan Hongyuan Research Cha Hao Beijing Mingsheng Caizhi Investment Management Co., Ltd. Tang Longfei Guangfa Securities Co., Ltd Liu Yu
Time
June 17, 2021 15:00-17:00
place
About the research conference room on the 16th floor of cbd international center, No. 16 Yong'an Dongli, Chaoyang District, Beijing
The name of the receptionist of the listed company
Secretary of the Board of Directors Zhao Qingsong Securities Affairs Representative Zheng Zengyan
List of attachments (if any)
not
date
June 17, 2021
(This article was completed by the Securities Times e company writing robot "Kuaishou Xiaoe".) ）