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Benefiting from a periodic recovery in the lithium industry, Sinomine Resource recorded a significant recovery in net profit attributable to shareholders of the parent company in the first half of 2026, with its lithium salt business once again becoming a major pillar of profitability. Meanwhile, a number of the Group’s key overseas projects in Zimbabwe, Zambia, and other countries are advancing rapidly, making its transition from a lithium- and cesium-focused business to an international diversified metals and mining group increasingly clear.
Addressing market concerns over cyclical fluctuations in the lithium industry and differing valuations in the capital market, Wang Pingwei recently told a reporter from China Securities Journal that Sinomine Resource would remain committed to its strategy of “strengthening core businesses, expanding globally, and pursuing multi-engine growth.” By leveraging its resource endowment, cost control, and global operating capabilities, the company aims to build resilience across industry cycles, steadily advance the coordinated development of lithium, copper, and rare strategic metals, and consistently translate resource advantages into industrial strengths and long-term value.
Having experienced multiple rounds of price fluctuations, the lithium industry is approaching a critical stage of supply-and-demand rebalancing. Against a backdrop of increasingly normal cyclical volatility, many investors are asking how companies can stabilize their operating foundations and strengthen earnings resilience.
“Lithium is a key resource for the new energy industry, and the long-term trend of demand growth remains unchanged. In the short term, however, prices are affected by factors such as the pace of capacity expansion, inventory changes, and market expectations. This degree of price volatility is an inherent feature of the resource sector,” Wang Pingwei told the reporter candidly.
In Wang’s view, the industry is entering a new phase in which greater emphasis is being placed on supply quality and industrial efficiency. Competition is increasingly centered on resource endowment, cost control, technological capabilities, and global operational expertise.
To mitigate the impact of cyclical fluctuations, Sinomine Resource continues to strengthen its integrated operating model combining “owned mines + lithium salt processing.” Wang explained that Bikita Mine is improving resource recovery rates and concentrate output through process upgrades, including pre-concentration waste rejection and intelligent sorting. Meanwhile, the Group’s 100,000-tonne-per-year lithium sulfate project in Zimbabwe has obtained environmental impact assessment approval and entered full-scale construction. Once operational, the project will enable on-site processing of mined resources, reducing cross-border logistics costs.
“We will not base our business decisions on short-term movements in lithium prices. Instead, we will continue to refine coordination across the entire value chain, increase the self-sufficiency of our own resources, and consolidate our low-cost competitive advantage,” Wang emphasized. Supported by stable raw material supplies and a continuously optimized customer portfolio, the company is confident in maintaining steady operations amid industry fluctuations.
China Securities Journal noted that institutional investors have consistently focused on progress in several projects funded by the company’s private placement, including the lithium sulfate project in Zimbabwe, the Kitumba copper mine in Zambia, and the expansion of cesium and rubidium production capacity in Jiangxi. Investors have also paid close attention to the company’s industrial synergies and medium- to long-term development plans.
“A multi-metal strategy is not simply about adding more product categories. It is about leveraging the complementary cycles of different metals to build a more resilient business portfolio,” Wang explained.
He noted that lithium currently forms the foundation of the company’s industrial operations, while copper is a key second growth engine that the company is developing from the ground up. Strategic metals such as cesium and rubidium, germanium and gallium, and tantalum and niobium provide differentiated competitive advantages due to their scarcity and high added value.
Under its development plan, Sinomine Resource aims to achieve annual lithium production capacity from its own mines equivalent to at least 100,000 tonnes of lithium carbonate equivalent (LCE) within the next two years, alongside annual copper production capacity of at least 50,000 tonnes. Within five years, the company aims to increase annual lithium production capacity from its own mines to at least 150,000 tonnes LCE and annual copper production capacity to at least 100,000 tonnes.
These targets are intended to progressively establish a growth model driven by multiple engines spanning new energy metals, bulk metals, and rare strategic metals.
As the company enters a peak period of capital expenditure, another key concern for the market is how mining companies can balance project investment, cash flow security, and shareholder returns. Investors are also seeking to understand how the company will strengthen capital market confidence amid a potential divergence between recovering financial performance and short-term share price movements.
“Mining is inherently capital-intensive. The temporary characteristics of our operating cash flow primarily reflect factors such as the concentrated construction of major projects and dynamic inventory management. Overall, our financial position and asset-liability structure remain sound,” Wang explained.
In capital allocation, Sinomine Resource follows the principle of prioritizing projects with clear strategic value. Major expenditures are concentrated on core projects that strengthen resource security and extend the industrial value chain. At the same time, the company seeks to balance its pace of expansion with financial security through lean operations, inventory optimization, improved capital turnover, and diversified financing channels in both domestic and international markets.
Addressing differing market valuations of the company, Wang stated candidly: “In the short term, the company’s share price is influenced by multiple factors, including the macroeconomic environment, industry sentiment, and capital market preferences. We place greater importance on building the company’s long-term intrinsic value.”
He outlined several measures aimed at strengthening capital market confidence: steadily advancing capacity construction and improving integration across the value chain; continuously enhancing earnings quality; ensuring transparent and timely information disclosure and investor communication; providing reasonable returns to shareholders; and continuously improving corporate governance and ESG practices.
“We remain committed to a long-term approach. Through prudent operations and transparent communication, we hope to help the market better understand the company’s strategy and value, achieving shared growth for the business and its shareholders,” Wang concluded.
