Chapter 0105 - The Inside Story (Asking for Votes and Collecting)
Sitting alone, Yang Peiqi began to think about the mining company he was about to buy.
According to what he learned yesterday when he chatted with Tong Haiyang, his company's annual output of iron ore is between 300,000 and 400,000 tons. Recently, he also inquired about the international price of iron ore and the cost of mining.
Judging from the situation of the three major iron ore giants, their general mining costs are only $30 to 40 US dollars, but the CIF price of imported iron ore from China is generally 150 to 170 US dollars, and the difference between them is as high as about 130 US dollars. Even after deducting the cost of ocean transportation, Yang Peiqi estimates that its profit is about $100.
In this way, the annual profit of an iron ore company with an annual output of 340,000 tons will be as high as 30 million or 40 million US dollars, which is as high as 200 million yuan when converted into Huaxia currency.
Moreover, domestic iron ore is much cheaper in terms of transportation prices, and the profit should be higher. But why does Tong Haiyang's company still lose money?
Just when Yang Peiqi was a little confused, Tong Haiyang came, and his position was still by Yang Peiqi's side.
"Brother Yang, where have you been this day? I don't seem to see you at the hotel, huh? After Tong Haiyang greeted Yang Peiqi, he asked.
Yang Peiqi smiled and said, "I have some personal matters, and after I went out to do it, I didn't go back to the hotel." ”
"Hehe, it's not going on a date with a beautiful stewardess, right?" Tong Haiyang said with a smile.
Yang Peiqi smiled wryly and said, "How is it possible, is it so easy for a beautiful flight attendant to make an appointment?" ”
"Brother Yang is also saying that over the years, I have taken a lot of flights with Shenzhen Airlines, and I really haven't seen anyone who can make an appointment with that beautiful flight attendant." Tong Haiyang nodded approvingly.
Yang Peiqi didn't want to say more on this issue, so she wisely changed the topic and said, "Brother Tong, you told me about your company's situation yesterday, and I thought about it after I came down, why do you feel that something is wrong?" ”
Tong Haiyang was stunned for a moment, and said strangely: "Are you thinking about my company's affairs?" Also found something wrong? ”
Yang Peiqi nodded, and said her doubts at the moment.
When Tong Haiyang heard this, he smiled bitterly and said, "Brother Yang, things are not what you think. Indeed, according to your calculations, my company will definitely make a lot of money, but it is a foreign iron ore, not a domestic iron ore. ”
Then, Tong Haiyang began to explain the inside story to Yang Peiqi.
It turns out that the mining cost of domestic iron ore is generally very high, and the domestic iron ore development cost is less than US$100 per ton, accounting for the majority, and it is estimated that one-third of the production costs more than US$100.
Tong Haiyang said to Yang Peiqi: "This is an estimated cost price, and in fact, the conclusion is between $100 and $110 is typical." And that's for the big mines, like a couple of smaller mines in my company, which are more expensive, generally between $120 and $130. ”
Yang Peiqi was stunned, Nima, this gap is too big, right?
Tong Haiyang naturally saw Yang Peiqi's doubts, and he explained to Yang Peiqi: "This has a lot to do with the mining conditions. Iron ore mining in Australia and Brazil is mainly open-pit mining, and the ore deposits are very rich (1-200 million tons/year per mine is relatively common), high quality (54-65%), low impurities, and ore transportation is very easy to automate on a large scale. As far as I know, the ore rail and truck transportation of Rio Tinto and BHP in Australia is now almost computer-operated. Dramatically reduce the accident rate of mining. ”
Tong Haiyang glanced at the thoughtful Yang Peiqi and continued: "The domestic ore mining and prospecting is very complicated, and now the operating platforms in many mining areas are hundreds of meters or even several kilometers underground, and the danger of artificial underground operation is also quite high, and the mined ore is only 20-30% grade, and the mined low-grade ore still needs multiple processing to meet the minimum requirements of the factory, even so, there are many associated impurities in the ore." As far as our Chinese people are so hard-working, the annual production capacity of 10 million tons in large mining areas should be regarded as very large in China, and some well-known local mining areas only have an annual output of 1 million tons/year of fine powder. From the perspective of ore cost average, the greater the cost and output, the lower the price per ton of iron ore, and our country is far behind. ”
Tong Haiyang continued: "Brother Yang, since you know something about iron ore, then you should know that the grade of our domestic iron ore is generally low, generally only 20 to 40 percent, compared with those foreign grades that are often 560 percent or even 60 percent, it is completely a scum. Therefore, many iron and steel mills are reluctant to buy our iron ore, even if some steel mills are willing to buy, the price is much lower, generally between 800 yuan and 1000 yuan, depending on the situation. Converted to US dollars, it is $130 to $160. ”
"In this way, the profit per ton of our domestic iron ore can reach 40 US dollars, which is already of extremely high grade. Some iron ore with poor grade can basically only protect the principal, or even the principal. The grade of the few small mines in my hands is not good, about 40 percent, that is, on the verge of capital preservation. Tong Haiyang explained to Yang Peiqi.
Yang Peiqi suddenly realized that if it was really according to what Tong Haiyang said, it would be normal for the company to be in debt. After all, your main products can only be capital protected, plus the company's operating costs, it is strange that there is no debt.
While the two were talking, the plane was ready to take off, Xiang Juan came over to look at Yang Peiqi and reminded him that the plane was about to take off, and Yang Peiqi ended chatting with Tong Haiyang.
However, after the plane entered the cruising state, the two men chatted again, mainly Tong Haiyang and Yang Peiqi told some inside stories about the mining industry. Because Tong Haiyang is involved in China, these situations are all domestic, and Tong Haiyang doesn't know much about foreign situations, even if he talks about something, he heard it from elsewhere.
This is also because Tong Haiyang saw that Yang Peiqi was really concerned about this aspect, so he talked to him so much. However, his meaning is obvious, that is, engaging in iron ore trade, there is no future in the development of the country, and only by going out can there be a way out.
In this regard, Yang Peiqi also agrees. According to the information he consulted, he found that the grade of domestic iron ore is really low, and it is good to be able to reach 40 percent, and it is rare to see more than 50 percent. In terms of the grade of iron ore, you are 30% different from others, how can you compete with others?
Not to mention, doing business in China, there are too many rules and regulations, if you can't satisfy some special people, then you are really difficult.
Therefore, after Yang Peiqi initially decided to enter the mining industry, he planned to open mines abroad, and he did not plan to mix in China at all. He will not consider it until one day, when he has enough strength to defy most of the obstacles in the country.
In fact, it is also beneficial for China to go abroad to open mines, after all, there are so many mineral deposits on this planet, and there is less mining. Wouldn't it be nice to leave them in the ground and leave them to future generations?
There were no accidents on this flight, and the flight was very smooth.
In a relatively pleasant atmosphere, an hour passed quickly, and Xiang Juan came over to remind Yang Peiqi that the plane was about to land at Hangcheng International Airport.