Why did listed companies compete to acquire fluorite mines?

Business Club September 23 This is a battlefield without gun smoke, and the content of the competition, “Fluorite,” has been criticized as “the price of cabbage”.

However, under the expectation of national policies and fluorite resources, the price of fluorite has gradually increased, and it has triggered many crazy contenders for listed fluorite mines by listed companies.

On September 15, Wing Tai Technology (002326) issued an announcement: The company acquired a 70% stake in Hainan Xinhui Mining Co., Ltd. (hereinafter referred to as Xinhui Mining) with its own funds of RMB 98 million. Since the second half of this year, this is the third listed company to acquire a fluorite mine, but the price bubble has also emerged.

Why are so many listed companies acquiring fluorite mines at high prices overnight?

A source from the Yongtai Science and Technology Office told the reporter that the purpose of the acquisition was mainly to ensure the stable supply of raw materials for the company through the integration of upstream fluorite mines. "The company belongs to the fluorine fine chemical industry, and fluorspar is the main raw material for the fluorine chemical industry. Now that the price of fluorite has risen sharply, it will not be a bad thing for the enterprise to buy upstream minerals as soon as possible."

As the ratio of fluorite storage and production declined, the fluorite resources in countries and regions such as Europe and the United States, which are the main fluorspar consumption, were depleted. The price of fluorite began to climb all the way since the beginning of last year. The data obtained by the reporter from the China Fluorite Professional Committee showed that in October 2009, the ex-factory price of fluorite powder lump ore was about 1,000 yuan per ton. By the end of August this year, the ex-factory price had climbed to between 2,900 yuan and 3,000 yuan. Two-year gains almost doubled. "It is for this reason that the downstream fluorine chemical companies have begun to purchase minerals upstream." Galaxy Securities researcher Hu Ang told reporters.