[Click eStock] "Jisco Holdings Nears First Shipment of Nickel from Philippine Mine"

On August 20, independent research firm ValueFinder analyzed that the first shipment of nickel, a key material for cathode materials, from a Philippine mine is imminent for Jisco Holdings.

Jisco Holdings is a manufacturer of mild steel wire rods and steel products. Mild steel wire rods are widely used not only in household goods but also as materials for civil engineering and construction. However, due to the downturn in the Chinese real estate market and the deterioration of the domestic real estate sector, the company's core business profit-generating capacity has declined, leading to a perceived need for business diversification in 2022.

Subsequently, Jisco Holdings signed a share acquisition agreement with the Philippine mining development company 'EVMDC', investing approximately 30 billion KRW to acquire exclusive sales rights (25 billion KRW) and a 10% stake in the partner company (5 billion KRW). The 25 billion KRW for the exclusive sales rights was paid over two years based on milestones such as mine permit procedures and construction periods.

Lee Choongheon, a researcher at ValueFinder, stated, "The share acquisition has been completed, and all patents for the mining rights have been obtained over the past two years. Shipments are expected to begin in the third quarter of this year, resulting in the first sales."

Jisco Holdings' nickel division is conducting business on Dinagat Island, located in the northeastern part of Mindanao, Philippines. The project has several advantages: it is an open-pit mine, the ore grade is higher compared to other Southeast Asian open-pit mines, and transportation is done by sea rather than by land. In addition, this mine is the closest to China. The mining rights have been secured for a total of 60 years, and royalties are recognized on a net basis. In July of this year, a main contract was signed with China's global state-owned enterprise 'Baoli Group', making China the expected first customer for sales.

Researcher Lee added, "Although mining is one of the businesses that often faces skepticism in the market, 'Nickel Asia', which is listed on the Philippine Stock Exchange and operates a similar business in the vicinity, has been in operation for 30 years. With a market capitalization close to 1 trillion KRW, it serves as a case that can alleviate some of these concerns."

This content was produced with the assistance of AI translation services.