Leveraging Capital Market Fluorite Industry on the Road

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In Zhejiang Jinhua, whether it is a hotel or a government department such as the Land and Resources Bureau, most of them put a large piece of fluorite handicrafts in the bright lobby, reminding people from time to time about the special origin of Jinhua and fluorite.

The earliest fluorite mines in China were mined in the Wuyi County subordinate to Jinhua City. It takes about one hour to get to Wuyi County from Jinhua by long-distance bus today. On the roadside into the county seat, you can see a group of urban sculptures and write a book entitled "Spa Hot Springs and Fluorite Townships."

Hot springs in Wuyi were discovered in 1991. At that time, a large number of fluorite ore mined in Wuyi County was generally 200 meters deep underground, and the hot hot water continuously leaked from the stone walls. Therefore, Wuyi hot springs should be said to be a by-product of fluorite mining. Nowadays, hot springs have become Wuyi's gold signboards before being listed as fluorite, which shows the local government's view of the fluorite industry.

Nowadays, because local governments do not support the fluorite industry, the main fluorite production areas in Zhejiang have been moved from Jinhua South to Yeosu in western Lishui and Zhejiang, and there are only 2 fluorite mines in Wuyi that are still being legally mined.

Although the “township of fluorite” failed to radiate new youth during this high-cycle cycle of the fluorspar industry, the capital market has already begun to shake fluorite. Even listed companies that are covered with fluorspar slag often appear at the top of the gain list, and some listed companies’ commitment to acquire fluorite mines is even more maddening for investors.

Calm down and think, the fluorite industry does need the help of the capital market, but this kind of help is not to provide low-cost capital, not to create myths of wealth, but to let the small, scattered, chaotic fluorite industry quickly become standardized. The capital market has given the fluorite industry extensive attention. To get rid of the bad image of the past, the fluorite industry needs to seize this opportunity.

Fortunately, the fluorite industry practitioners have also realized this opportunity. Jinshi Resources Group Co., Ltd., which holds a large amount of fluorite resources, previously had an M&A scandal with a listed company. Although Zhao Jinhua, vice president of Jinshi Resources, has completely denied this possibility, the reporter noticed that Zhao Jinhua’s desk had a copy of it. Listed companies regulate governance books.

In addition to hidden clues, more entrepreneurs in the fluorite industry have clearly stated their desire for capital markets. A mine owner in Wuyi District told the reporter that he is actively contacting the major fluorspar enterprises in the industry and hopes to achieve a listing in the form of a consortium, which has been responded to by some companies.

The small size of a single company is an important bottleneck that hinders the listing of fluorspar companies. The miner once shared a stock of downstream hydrofluoric acid companies, and this HF company’s attempt to IPO has failed because of its small size. It is this HF company’s past experience that made him decide to try the joint market model.

Regardless of the form, companies in the fluorspar industry have begun to try to use the capital market to grow stronger. This is a good thing for the company itself and a good thing for the fluorite industry. It is for investors who are eagerly awaiting the true fluorite concept. More is a good thing.

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