Youngy Group signs spodumene concentrate sale contract of RMB124 million
2018-05-11 17:56:33 [Print]
Youngy Investment Management Group Co., Ltd. ("Youngy Group") announced on the evening of May 10 that the company's wholly-owned subsidiary, Rongda Lithium, signed a spodumene concentrate sale contract with Shandong Ruifu Lithium Industry Co., Ltd. in Guangzhou, involving an amount of approximately RMB 124 million which accounts for 44.48% of the company's audited operating revenue in 2017 and 91.69% of Rongda Lithium's audited operating revenue in 2017 (consolidated statements).
According to the announcement, the spodumene concentrate sold by Rongda Lithium under this contract was purchased from Australia at the unit price of RMB8276.25/t (cash price, Li2O 5.5%) with grade (lithium oxide content on dry basis) of no less than 5.0% and valuation benchmark grade of Li2O 5.5% on dry basis. The delivery should be made from May 10, 2018 to June 15, 2018 with the total amount of about 15,000 tons (up or down by 10%, measured in terms of water-containing gross weight). The amount involved in the contract was approximately RMB 124 million, accounting for 44.48% of the company's audited operating revenue in 2017 and 91.69% of Rongda Lithium's audited operating revenue in 2017 (consolidated statements). If the contract is successfully implemented, it will have a positive impact on the company and Rongda Lithium's business performance in 2018.
Youngy Group said that the contract was signed under the background of Rongda Lithium having not yet resumed production. Currently, the company and Rongda Lithium are still actively coordinating efforts to promote the resumption of production in mines. Once Rongda Lithium resumes production, lithium concentrate products produced by self-owned mines can meet the needs of production and operation, so the independence of the company's business will not be affected and company's main business will not rely on the counterparty to perform this contract.
According to the announcement, the spodumene concentrate sold by Rongda Lithium under this contract was purchased from Australia at the unit price of RMB8276.25/t (cash price, Li2O 5.5%) with grade (lithium oxide content on dry basis) of no less than 5.0% and valuation benchmark grade of Li2O 5.5% on dry basis. The delivery should be made from May 10, 2018 to June 15, 2018 with the total amount of about 15,000 tons (up or down by 10%, measured in terms of water-containing gross weight). The amount involved in the contract was approximately RMB 124 million, accounting for 44.48% of the company's audited operating revenue in 2017 and 91.69% of Rongda Lithium's audited operating revenue in 2017 (consolidated statements). If the contract is successfully implemented, it will have a positive impact on the company and Rongda Lithium's business performance in 2018.
Youngy Group said that the contract was signed under the background of Rongda Lithium having not yet resumed production. Currently, the company and Rongda Lithium are still actively coordinating efforts to promote the resumption of production in mines. Once Rongda Lithium resumes production, lithium concentrate products produced by self-owned mines can meet the needs of production and operation, so the independence of the company's business will not be affected and company's main business will not rely on the counterparty to perform this contract.
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