The positive reaction of the capital market to the news of changes in the pricing of copper in the stock exchange

According to Mining News Pro -Although managed more efficiently, it also increased the contribution of this metal to non-oil export earnings, but the fact is that in some cases, sometimes inappropriate government decisions about this strategic metal have negatively affected export statistics as well. One of these historic decisions, with its large stockbrokers being exported, is domestic sales of $ 4200 on a dollar basis, because domestic sales, at half the export price, have increased the incentive to register false claims on the domestic market for this strategic metal. Even if the destination of this commodity is exported, it will be unwarranted, and certainly affecting the export markets, some of which are due to the lack of familiarity with some of the most common international exporters and the supply at market rates below the market price, which could undermine the reputation of the company Will be in international space.

The implications of this decision, which was implemented in May this year, have reached a peak and have had a lot of criticism in the economic circles, where the rumor of ending sales with stock exchange rates triggers positive developments and index growth on Monday, August 29 This year, the stock market showed that the capital market grew from the precious metal prices. Capital market acceptance of thermometer independence is these days of the market, a market that thirst for transparency in the vague economic days, and is looking forward to better decisions to eliminate rents and intermediaries of markets and transparent fringes of the economic situation. Behrouz Rahmati, director of affairs of affairs, investment and assemblies of the National Iranian Copper Industry Co., emphasizes the need to pay more attention to important issues such as good management and knowledge and transparency of officials and capital market players in the current economic space of the country to our questions about the status of the transactions of this metal On the stock exchange, as well as stock status and export, the company responded. Read the full story of this conversation:

What consequences did the copper company have on the 4200 Toman price tag?

Exact pricing in clear trading spaces such as bonds, other than rents, has no other achievement. Perhaps pricing itself was made at a time when it was adopted and implemented, which was concerned about the excessive growth of prices, but with the gap between prices in the market and stock exchanges as far as the difference Had found 130% of the opinion that anyone who bought the copper products in the stock exchange, in various formats, even scrapped it to domestic markets, or sometimes to neighboring countries, at rates much lower than The rate of international markets.

On the one hand, because the government did not carefully monitor this chain, sometimes copper from the consumer and the actual producer of downstream industries did not come at such prices. In fact, although one of the main goals and reasons for the government to communicate the abovementioned rate was to support the domestic downstream industry, it was difficult to provide part of the actual domestic producers` real needs due to false claims. It is worth noting that there are a lot of producers in this field, but only copper company, as the first company that started the sale of Tehran Metals with the launch of its 8mm copper wire, started to act as the leader of the supply of goods on the stock exchange, one hundred percent of its products In the stock market of Iran, and some of the other producers of similar products because they belong to the private sector, while they provide 100% of the raw materials from the National Iranian Copper Company, do not comply with full sale in the exchange or the division They offer a little through the stock exchange. Hence, unilateral sales were not only beneficial for the middle and consumer producers, but also for intermediaries or “producers of views” for various commodities on the stock exchange.

Even because we are initially committed to supplying the internal market and then exporting surplus on domestic demand, it has also caused false demand in the market and has exacerbated our export opportunities. There are many exchanges with the Ministry of Education, Imidr and the organization The Stock Exchange was marketed to highlight the impact of this wrong decision and the loss of the interests of investors and copper shareholders, especially the 50 million stockholders of equity equity, which is largely considered a low-income segment of the community. Fortunately, this year`s decision seems to be the final decision. And will be executed.

Is there a change in the price of copper on the stock exchange or the terms of the offer?

 
No, we have not yet announced how the new pricing formula has been announced on the stock exchange, but what we are sure is that the pricing is wrong so far has been certain that we are going to make fundamental changes this week or with the exchange rate of the secondary market The government will insist on supplying at 4200 tomans and a ceiling, which is better than the previous one, and the market is gradually gaining ground. Even the seams of this news in the capital market led to an increase in the capital market index and about 155 million shares were traded on Monday, August 29th, after which other non-ferrous metals as well as steel became positive.

There is always concern that there will be a rise in price liberalization, what kind of guarantee is there to organize?

 
At present, the difference between stock prices and market prices is causing false claims, but the fact is that over the past 10 years, the amount of copper production has been more than domestic demand and about half of the products have been exported, so the time concerns are the reality of the color. There is a shortage of crops that is of no concern and concern about the National Iranian Copper Company.
We plan to produce more than 200,000 tons of cathode copper this year, which is already ahead of the production forecasting program, and even the possibility of creating a new record for the production of cathode copper in the country at the end of this year is conceivable, while the amount Real domestic demand is estimated at about 50% of the country`s actual economic conditions and about 100,000 tonnes.
The continuation of this trend is indicative of the interests of the National Copper Industry Company, which has about 40,000 shareholder wisdoms and about 50,000 shareholder equity shares, principally affiliated to justice, who are low-income members of the community, and indeed the principle of a decision that is in line with the interests of the people And especially the vulnerable stratum of the country.

The company`s four-month financial statements showed growth, with sales of $ 4200 a dollar?

 
Based on the actions taken by the company and the positive performance of the company, this profit is derived from lowering production costs and the cost of production and rising global prices and, if sold at free prices, this profit in EPS will have an exponential effect.
Last year we produced 160,000 tons of cathode copper, which will produce about 220,000 tons of copper cathode in the program this year, which was the result of the actual financial performance of the company.

What stages of the company`s development plans and what are the positive actions you are talking about?

 
Several projects have been planned in line with the long-term vision and development of the copper industry in the country. Managerial changes have taken place at the National Iranian Copper Industry Company in the last three months, during which several meetings were held in this area. The company`s move seems to be on the downside, and in the area of development, this trend is definitely being evaluated positively.

Similarly, with a 30% increase in the company`s share capital from Sudan, where its request is sent to the Stock Exchange and is also posted on the KALAL site, it finances several company projects and funds its development projects mainly in the mining sector. Which will have the most added value in the copper production chain.

In this regard, the company`s top priority is to develop and set up projects, mining and processing areas to produce copper concentrate with a profit margin of about 80 percent of the total profit available in the full chain of production from mining to refining. In the next stage, the development of refinery and refinery, which, of course, has a lower profit margin than the concentrate (about 20%), of course, it is profitable and will create a 100% blessing for the country`s copper industry, The need for sustainable and balanced development of the complete production chain will be prioritized.

It seems that the development review that is undergoing a major transformation for the third time will soon be defined as a sustainable and balanced development plan to achieve the 1404 vision. By implementing these plans, there will be a significant increase in copper production from concentrate (copper content) and copper cathode production.

Last year, 160,000 tons of cathode copper was produced, which is projected to increase to 220,000 tons this year, and after complete set-up of sulfuric acid factories in the Sarcheshmeh copper complex and Khatunabad copper smelter, over the next year, capacity Production of 300 to 350 thousand tons of cathode copper will be operational and the upward trend of production growth will increase significantly over the next few years.

Meanwhile, with the opening of sulfuric acid projects, the environmental performance of the National Iranian Copper Industry Company will also improve and improve. Because these projects are in the process of being developed and developing with the goals of environmental and economic co-operation.

According to the established plan, these projects will be gradually operational in the second half of this year. Of course, in the process of setting up projects, there may be unforeseen delays or unpredictable events that are also natural in the world.

Therefore, even if there is a slight delay in launching these projects, the company`s development plans will not change, and by launching them, there will be significant steps towards issues related to the improvement of environmental conditions and the control of possible pollutants in the region.

Last year, we also enjoyed the technology of the day in the world called the Melting Light (Flash) technology that will increase our products.

How does the flash melting effect reduce the cost and increase production?

 
The copper melting technology used in the Sarcheshme copper plant until the last year was a flame or reflection method known as Reverb Melting Technology in the country. This technology is more than 100 years old and is the oldest copper smelting technology in the world that has been abandoned in most parts of the world in the last few decades.

The National Iranian Copper Industries Company has also been working to replace old copper smelting processes with modern and up-to-date technologies to improve the quality of manufactured products, increase the efficiency of melting operations and reduce waste, reduce product costs, and especially improve environmental conditions by replacing the process. Old Rebur Melt with the New Flash Smelting Technology, which has been on the agenda for the company since the mid-1980s and eventually launched last year.

Undoubtedly, the technology of flash melting is one of the most modern technologies in the world, especially for capacities of about 300 thousand tons and more, and will definitely have a huge impact on reducing the cost of copper production.

In the area of energy consumption, generally, the new flash melt technology, compared with the old melting technology of the river, can reduce energy consumption by as much as 10 times. In the field of human resources, more than double the number of manpower needed for the melting process.

In terms of reducing water consumption, saving more than 4 times, taking into account the country`s water scarcity and the need to use technologies that consume less water. In the area of fossil fuel consumption, such as gasoline, mazut and natural gas, considerable savings will be made and will not actually be comparable to the old riverbank process.

In sum, given OPEX costs per ton of copper concentrate in the rioble process in the world, similar to the old rivers` melting furnaces in the Sarcheshmeh copper complex, it is estimated to be about $ 150 to $ 200 per tonne of concentrate consumed, for a flash technology with a capacity of about 300 thousand tons per year, about $ 50 per tonne and for capacities of about 400 thousand tons per year, the cost of melting (Treatment Cost) can be reduced even to about $ 30 per tonne.

On the other hand, the availability of these furnaces to the reburning furnaces is more than 86 percent compared with about 58 percent of the flame melting furnaces. Also, excellent environmental compatibility, including other undeniable benefits of this generation of The new technology is that the percentage of adsorption of sulfur in this technology is generally more than 95%, which shows a significant difference with the percentage of uptake of sulfur by about 25% of the melting furnace.

Also, the concentration of SO2 gas in the exhaust gases of the melting furnaces is about 20%, which is about 2% for the river grill furnaces. It is important from this point that it is easy to remove the exhaust gases from the melting furnaces into sulfuric acid commercially and subsequently converted to chemical fertilizers or other downstream industries. As a summary, if the melting cost for the Old Rebound Melting Furnace (TC) is about $ 200 a ton, for a flash-melting furnace in a similar condition, this would be about $ 40, which would have a significant impact on the drop in the finished product cost of the company. Had Without a complete set-up of the Sarcheshmeh Copper Melt Flash Furnace, with a capacity of around 300,000 tonnes, we will see a significant drop in the price and increased EPS.

How do you assess the status of copper in global markets?

At the moment, copper on the London Metal Exchange is priced at $ 6,000, while it`s priced at around $ 7,000 for around 8 consecutive months, but unfortunately, the currency dispute and the tariffs between the US, China and the European Union are affecting growth. China`s economic downturn and falling metal prices in the global market, but now prices have stabilized relative and the level of $ 6,000 is well-deserved. The quality of Iranian concentrate and cathode products is one of the best in the world. The cathode produced by the copper company is always welcomed by consumers in the world, especially Western European companies. One of the largest mineral companies, as well as the trader of the world, who own many copper production lines around the world, has always stated that European companies, when choosing cathode brand, insist on buying the brand of the national Iranian copper company in comparison with its brand This company is mainly due to a higher grade than the standard cathode production of the National Iranian Copper Industry Company. The world`s standard copper grade is around 99.990% based on the Standard Grade A of the London Stock Exchange (LME), but the quality of the copper products produced by the National Iranian Copper Industries Company is 99.998%, which is 8,000% better than the global standard, which is the same as the improvement of quality in the production of many The downstream industries are very important and key. Also, in the field of production of copper concentrate, we are one of the few copper mines in the world that we produce concentrates that are known as “ultra clean” concentrates in the international markets, which means that they do not contain toxic or toxic elements such as arsenic and …. At the expense of the nation and the nation, the product that is bought in the world with premium European and American premiums will be given to the dealers and they will sell them at below prices to the world markets, which both reduce the country`s credit and bring losses to the shareholders of the company. The National Iranian Copper Industry will be.

Given the sanctions, there is no problem in international sales and exports?

 No It can safely be said that sanctions, despite domestic and international traffic, are far less burdensome than previous rounds of sanctions, because in the previous sanctions, unfortunately, some kind of global consensus was created and, finally, we saw UN resolutions and … and, in those circumstances, copper World markets were issued, although at a relatively short period of time there was a problem with sales and warehouse inventories, but at the same time, we created ways to circumvent the sanctions and made about $ 1 billion worth of exports, so in the current situation, Exit to European countries There is no consensus on the unilateral boycott of Iran by other countries, we are not alone in US sanctions, and even the United States continues to affect other countries, including from recent times, its persistent and misguided policies. There are also sanctions imposed on the countries of Russia and Turkey, there are many export markets ahead of us and exports can be continued. Last year, the value of copper exports reached more than $ 1.2 billion, which is projected to remain this year. Although the chances of reaching this figure will be attained in the wake of the change in government policy in the domestic market and the government will stop as soon as the 4200-tawani rate and recognize the official and free market rates. In the absence of the state`s attention to this, definitely false claims can significantly affect the achievement of these numbers.

What advice do you have for shareholders and investors in the capital market?

 
I believe this year, despite the sanctions, we will have a good year in the capital market. Although the space and the indicator are positive, shareholders and investors should be more well-informed and more knowledge-driven in the market. Because, despite the systematic and non-systematic risks that this year is likely to have in both the international and domestic environment, the capital market trend will see more fluctuations and volatility, and it would be better to avoid hasty decisions based on rumors and not necessarily on the basis of technical analyzes And fundamentally, taking into account the market risks, to sell and sell. It is hoped that the authorities and stakeholders in the marketplace will continue to work alongside good-tact, knowledge-based, and cleaner economies of the country this year, which is the only triumph for the only way out of the crises that whenever the country`s atmosphere is turbulent and damages the country`s economy. Has entered abundance. Iran has so much potential in various fields, including oil, gas, petrochemicals, and especially in the very important, extraordinary and neglected mineral areas. If more attention is paid to these three sides, one can rely only on the internal capacity and obtaining minimal technical assistance from friends. The real international has saved the country from every crisis and led to a safe and peaceful coast that will bring unforgiving blessings for the people of the country and the holy system of the Islamic Republic.