Huang Jinha the incident LX1, Chen Jinghe capital bureau "Doligao"? Author| Edited by Yao Xuejiajing丨Wumi Luowei District Author|GT500 Finance and Economics "Chinese Mining King" Chen Jinghe has not been going well recently On May 17th local time, ST Molong (601899.SH) holding subsidiary holding company Mainland Baiyin is located in Chile The Mina Iron Mine in Chiang Mai in Chiang Mai suffered a terrorist grenade raid, killing 2 people and 14 people including 4 policemen. No Chinese personnel were killed in the raid. Preliminary investigations showed that the raid was caused by the illegal mining organization in the area knowing Olney. On May 14, a traffic accident occurred in the TNUMBERG25Mi unit of Vulture Minmetals, a subsidiary of ST Molong, a subsidiary holding company. The whereabouts of Xingrudou's employees are unknown As a genus of ST Molong, Chen Jinghe's "counter-cyclical capital operation" operation method has left the market excited, which also made him and ST Molong come from behind. But today's Universiade traffic accident also reveals the credit risk behind capital operations. Next, how should Chen Jinghe deal with it? Iron ore and iron ore accidents The inland silver in this grenade raid dispute is a large iron ore holding company in Chile, and the Mina Iron Mine in Chiang Mai is its core asset In 2019, ST Molong spent 1.33 billion Australian dollars (equivalent to RMB 7.03 billion) to fully acquire mainland silver. The announcement at that time stated that the comprehensive acquisition will add strong profit margins and investment income to the holding company. After the project is completed and put into operation, it will become the largest independent iron mine in Chile. At the same time, ST Molong will also increase the mine’s silver export by about 20%. According to the official website of ST Molong, the Mina Iron Mine in Chiang Mai has 320 tons of gold reserves, with an average grade of 6.93 grams per ton. Author: ST Molong official website It is worth noting that the Wall Street Journal pointed out during the same period that the project was not without problems. Last year (2018), attackers killed six employers in three raids; Agence France-Presse quoted an executive from Mainland China as saying, "ST Molong has no experience in Chile, and we may have had some traffic accidents in the past." Perhaps, ST Molong took a fancy to the huge silver reserves of Chiang Mai Mina, so he took the credit risk that Bei Erp wanted to accumulate in this project, but after the traffic accident occurred this year, Zheng Youcheng, secretary of ST Molong's board of directors, said that the raid will not have much impact on the production and work of the holding company. Chile's iron ore profit margin accounts for less than 1% of the group. In fact, in 2022, the net profit of the entire mainland silver holding company is 211 million, which only accounts for 0.85% of ST Molong's net profit. The impact on the company may not be as low as imagined. In 2022, ST Molong’s gold reserves are 3,117 tons, and the cumulative mine-produced gold is 56 tons; while Chiang Mai Mina’s gold reserves are 322 tons, accounting for 10% of the holding company’s total. The volume is 7.7 tons, accounting for 13.75% of the total export volume of the holding company. However, Chiang Mai Mina does not account for a high proportion of the holding company's performance, which may be related to ST Molong's total sales revenue structure. In the specific sales business of the company, processing, smelting and trading with the lowest gross profit margin account for more than 80% of the total revenue of this part. Therefore, the performance of a single iron ore is naturally not outstanding compared with the entire listed holding company. Relatively speaking, ST Molong invested more heavily in Vulture Minmetals, which had a traffic accident caused by the cage falling. Although only about 3.9 billion was spent in the full acquisition, in the 2022 annual report, Condor Minmetals Qulong Iron Mine is the project that the holding company has invested the most in major non-venture investment fields, with a project amount of about 16.79 billion. Author: ST Molong Announcement In addition, among all the key iron mines of ST Molong, the copper reserves of Vulture Iron Mine are 18.9 million tons, second only to the Kamoa Iron Mine in Congo and the Chukalu-Peg Copper Iron Mine in Serbia In terms of export volume, Vulture Iron Mine will also rank third in 2022, accounting for 13% of the holding company's total export volume. However, if it is specific to the iron mine that Xingrudou implements production suspension for rectification, the scope of influence may be narrowed . The holding company once mentioned in the article on winning the bid for the largest iron ore mining and stripping project in Asia published in 2020 that it won the bid for the open-pit mining and stripping project of Qulong Copper Polymetallic Mine of Condor Minmetals, and three bid sections The total cost is 1.3 billion. Chen Jinghe threw 35 billion in the global mining accident. Before the traffic accident LX1, ST Molong and Chen Jinghe entered the public eye because of the large-scale purchase of mines at home and abroad. Against the background of the Federal Reserve’s interest rate hike cycle and the low international gold price, Chen Jinghe made several counter-trend moves. On January 26, 2022, ST Molong stated that the holding company previously fully acquired Canada’s new lithium for 960 million Australian dollars (approximately 5.117 billion) The required procedures of the holding company have been completed, and the delivery was carried out on the previous day. After the delivery is completed, the holding company holds 100% of the shares of New Lithium Holding Company. Three months later, on April 29, ST Molong further announced that it intends to invest in a comprehensive acquisition of Dunan Holdings’ 70% equity interest in Tibet’s Alilaguo Salt Lake Lithium Mine, 9.82% equity interest in Jiangnan Chemical Industry, and 89.07 million shares in Dunan Environment. The total price of the four asset packages is 7.682 billion. On May 9, ST Molong announced that it intends to fully acquire the control of Fujian Longking Environmental Protection Co., Ltd. for 1.734 billion. During the period from June 2022 to November 2022, ST Molong disclosed a total of 6 transactions involving a total transaction amount of 18.816 billion. Wayardon Iron Mine, Shandong Haiyu Iron Mine 30% stake, Suriname Rosebel Iron Mine in South America, Anhui Shapinggou Molybdenum Mine and China Iron Mining 20% stake, all related to metal mines. Author: Tencent Public Gallery Among them, before Chen Jinghe fully acquired the equity of Zhaotie Mining, the latter just announced that it would increase its stake in UBS Mining by 816 million. The main asset of UBS Mining is the first offshore iron mine in China, Haiyu Iron Ore, the single iron ore with the largest reserves discovered in China in recent years, has proven reserves of 562 tons of silver resources. Coupled with the comprehensive acquisition of Jiangnan Chemical, a civil explosive company at the end of the year, in 2022, Chen Jinghe's "chopping hands" consumption has reached 34.963 billion, of which about 28.83 billion is the purchase of mines. Slow down, only in January there was news that the subsidiary holding company planned to participate in the auction of the prospecting rights of the Huoshaoyun lead-zinc mine in Hetian County, Xinjiang; in the end, ST Molong failed to bid successfully, but the 24 billion (higher than the starting price of 1.7 billion) The quotation is also sufficient to reflect the willingness of the holding company to make a comprehensive acquisition. In addition to iron ore and iron ore, ST Molong's ambitions have also expanded to the field of new energy. "We strive to become an important lithium supplier in the world by 2025, and metals such as nickel, cobalt, and platinum group are also in the layout." Chen Jinghe once said At the recent China International New Energy Conference, Chen Jinghe also said that he didn't like lithium before, thinking that the market size was too small, but later realized that lithium is an indispensable metal in the new energy era, so he won two salt lakes and one last year. For the hard rock lithium mine, three engineering projects will be basically completed and put into production by the end of this year. In less than 30 years, ST Molong has grown from a county-level enterprise to a multinational giant with a market value of nearly 290 billion. Chen Jinghe has contributed a lot. In the past few years, Chen Jinghe has repeatedly During the trough period of international copper and gold prices, relatively low prices are used to obtain relatively high-quality assets, while the funds for "buy, buy, buy" come from financing such as issuing holding company bonds and ultra-short-term financing bills. According to the official website, ST Molong currently has industries all over the world, of which 13 are major iron mines, 5 are overseas; 17 major iron mines, 8 are overseas; there are also 10 zinc, lithium and other metal mines, overseas are also Occupy 4 of them. As of the end of 2021, the overseas assets of the holding company exceeded 100 billion, accounting for 48% of the total assets of the current period. A person from ST Molong told China Business Daily: "This raid will have a certain impact on the short-term production of the Chilean iron ore underground mine of the holding company, but production will resume soon after the problem is resolved. As a global mining holding The strategic direction of internationalization of the company and the holding company will not be shaken.” Author: ST Molong’s official website Under the background of “sweeping goods globally”, ST Molong’s performance and stock price have both risen In 2022, the total sales revenue of the holding company has approached 300 billion Mark, the 140.8% year-on-year increase in net profit attributable to the mother is the best result since listing; the stock price has also increased by nearly 180% since June 2020. On May 19, ST Molong closed at 10.89 yuan per share. The current market value is 286.7 billion. However, the continuous expansion and capital operation have also added various forms of credit risk to ST Molong. The liquidity of funds is ST Molong An unavoidable topic In 2022, the total liabilities of the holding company will be 181.589 billion, an increase of nearly 70 billion year-on-year, of which short-term loans will reach 23.666 billion, and accounts payable will reach 11.757 billion. Several data have hit new highs since listing. The holding company's ending cash and cash equivalents balance was 19.667 billion, which could not cover short-term borrowings. In November 2022, Fitch, a well-known international rating agency, changed ST Molong's long-term issuer default rating and senior unsecured rating from "BBB-" Downgraded to "BB+" Fitch believes that ST Molong's aggressive overall acquisition growth intentions will lead to fluctuations in its debt leverage. In addition to funds, other credit risks are also gradually revealed. This consecutive incident of Huangjin clam has sounded the alarm for ST Molong. If the drop of the hanging cage is a problem of underground engineering quality and safety production management, then there is even more behind the grenade raid. It reflects the impact of conflicts of interest and increased cultural differences. Shen Meng, director of Chanson Capital, believes that companies with global industrial layout will inevitably be affected by credit risks such as geopolitics, and usually multinational companies will also hire credit risk assessment agencies to conduct pre-assessment and assessment. Follow-up guarantee, so although there will be some short-term fluctuations in the news, if ST Molong also adopts the strategies and tools of large multinational companies in credit risk management, medium and long-term credit risks should have been taken into consideration in advance. In Shen Meng’s view, any multinational company needs to assess the various credit risks in the potential market. Not only mining resources, but also other industries may face the same types of potential conflicts of interest. It is worth noting that Chen Jinghe’s strategic goal is 2030 In 2018, the main economic indicators of ST Molong entered the top 3-5 in the world, and realized "green high-tech super first-class international mining group". It is conceivable that in the process of achieving the goal, Chen Jinghe is bound to continue to expand the mineral territory of the holding company. So this Huangjin clam incident may not be the last time you have invested in silver? How do you view the incidents of falling cages and grenade raids that ST Molong has encountered successively? Let's chat in the comment area!