Chenzhou Mining Antimony-tungsten business into a bright spot

Investment points in the first half of the company's antimony tungsten business profitability than the gold business, antimony tungsten Products "price Zisheng" for this year's performance to provide an important support.　　In the international gold price continues to rise, the amount of mineral gold and last year flat expectations, the company's gold business profitability there is room for improvement.　　It is expected that the company's 2010-2012 earnings per share of 0.44 yuan, 0.78 yuan and 0.99 yuan, to give "recommended" rating. Antimony Tungsten Products "price Zisheng" first half of the Chenzhou mining (002155) antimony tungsten business profitability at a stroke over the gold business. Among them, antimony products business profit accounted for 49%, tungsten products business profits reached 12%. The reason, on the one hand, from the metal antimony prices, tungsten prices continue to rise, is still at a historical high; on the other hand, the increase in production of antimony products, the first half of the company produced 11796 tons of antimony products, an increase of 48.32%, 5189 tons of antimony, 72.11%, antimony oxide 6566 tons , an increase of 32.97%. The combination of antimony and tungsten is the biggest feature of the company.　　2010, the company plans to produce 22100 tons of antimony products, an increase of 15.67% than 2009, and the company's antimony concentrate self-sufficiency rate will reach 100%, effectively ensuring that the product gross margin is significantly higher than the industry average level. By the beginning of the early years of production rectification, Southwest drought and the recent torrential rains in the south, and many other factors, antimony prices seem to be brewing a new round of rising prices. In addition, tungsten industry into a recovery phase.　　The "Quantity price Zisheng" of antimony and tungsten products provides an important support for the whole year's performance. Gold business still has room for improvement in the first half of the company's gold business revenue accounted for only 45.46%, compared with the same period last year, a decrease of 13.85%, the profit ratio is reduced to 35.77%. On the one hand, due to the increase in the proportion of antimony products profits, on the other hand, the amount of mineral gold decreased 7.73%.　　We think the international gold price is expected to continue to rise, as long as the company's mineral gold level and last year, the gold business profitability can be better. Earnings forecasts and ratings yesterday, the company's shares rose 7%, the third place in the non-ferrous metals sector, mainly due to the demand for replenishment. As for the recent reorganization of the company and the Jinshi mining, the company has clarified that investors should also return to rational investment. In addition, the company's largest shareholder in Hunan East Jinxin Gold Group held 241.067 million shares also lifted on August 16.　　The company, as the only listed mining company of Hunan Sasac, deserves more support and is expected to become an integrated platform of mineral resources in Hunan Province, therefore, the negative impact of the ban on stock prices is limited by the lifting of restricted shares held by major shareholders. Considering that the prices of gold, antimony and metal tungsten are at all-time highs, we expect the company to receive a "recommended" rating of 0.44 yuan, 0.78 yuan and 0.99 yuan per share in 2010-2012.