Listed Companies Expand Upstream Industry Chain

"Who owns?

Dingli stock (600614, stock bar) acquired 51% stake in Jinhu Hao mineral company; 17, Zijin Mining acquired 60% shares of the company in Kyrgyzstan, the company has the right to mining and production of gold on the left bank; on the same day, the China aluminum industry's 10 billion additional issuance was approved, and some fund-raising was extended to the upstream; on the 18 day, Hubei, Yihua (000422 shares) increased its investment in Huarui mining, expanding the scale of the company's phosphate rock; on the same day, the big shareholder agreement of Xingfa group (600141 shares) was pfered to all the shares of Hubei phosphating group. In August 9th, Dayuan shares (600146, stock bar) acquired 52% stake in Xinjiang Shifeng Gold Mining Co., Ltd., 16 days.

"No

Since the launch of QE2 last year, the price of resource goods has risen all the way. Now QE3 is still on the road, but it has brought too much imagination to the market.

As of August 17th, the spot price of domestic aluminum was 17800 yuan / ton, up 16% compared with the same period last year. The copper spot price was 67290/ tonnes, up 17% compared with the same period last year; the spot price of London gold was 1790 US dollars / ounce, up 46% over the same period last year; the spot price of London Silver was 40.3 US dollars / ounce, up 119% over the same period last year; and the price of rare earth has increased 5-8 times since the beginning of the year; phosphate ore has increased 28% a year; the import price of potash fertilizer has increased by 17% in the first half.

From the earnings report, the Red Star Development (600367, stock bar) with a barium salt, strontium salt and manganese ore grew by 945% year-on-year, and the net profit of Baotou Steel (600111 shares) increased by 458% compared with the same period last year. The tungsten industry in Xiamen (600549, stock bar) grew by 139%, and the East tantalum industry (000962, stock bar), which participated in holding shares or holding domestic and African mines, increased by 629%, and shares in Xinjiang's potash company's Guonong share (600251 shares) were forecast to increase by more than 400%.

In fact,

The recent emphasis on resources has also given many hints to listed companies.

For rare earths, from the abolition of export tax rebates, part of the ban on foreign investment, restrictions on output to speed up mergers and acquisitions, the intensity of regulation and control has been continuously strengthened and the frequency has been increasing.

Prior to this, the mining association also announced the "12th Five-Year development plan" of the chemical industry, and clearly set up a resource reserve mechanism for phosphate ore producing areas, so as to raise the minimum mining scale and access threshold for new mines.

"The state will consider environmental protection and sustainable utilization, which is conducive to the industry's leading companies."

Analysts believe that upstream barriers to entry and concentration will be higher and higher, and the position of listed companies with resource and pricing power will also increase.

But insiders remind that for the listed companies, attention should be paid to the reserves, taste, scarcity, mining cost, mining difficulty, exploration, geopolitics, prospecting rights and so on.

For investors, it depends on whether the company's announcement is true, whether it can ultimately take resources, and whether the company has a professional background.