DEEP RESEARCH · LX INTERNATIONAL
LX International acquires Indonesia's AKP nickel mine
A review of LX International's nickel-resource investment as the stock returns to the price range where dividend appeal first mattered to me.
0. Bottom line first
LX International acquired a 60% stake and management control in Indonesia's AKP mine for KRW 133 billion. Nickel prices are weak enough that some mines are suspending production, but AKP's location, infrastructure, and resource base are the key points to examine.
I am recording this because the stock has returned to the price range where I invested for its dividend appeal, so I plan to review it again.
Related article: Yonhap News - LX International acquires an Indonesian mine with nickel reserves equivalent to 7 million EVs.
1. Core facts on the AKP mine
Official fact: The AKP mine is a nickel mine near the Morowali Industrial Park on Sulawesi Island, Indonesia. Its area is 2,000 hectares, about seven times Yeouido's 290 hectares.
| Item | Content |
|---|---|
| Acquired stake | 60% |
| Acquisition price | KRW 133 billion |
| Location | Near Morowali Industrial Park, Sulawesi, Indonesia |
| Area | 2,000 hectares, about 7x Yeouido |
| Resource volume | 51.4 million tons |
| Mineable volume | 36 million tons |
The source also notes that nearby nickel smelting complexes and infrastructure such as haul roads, stockyards, and ports make the location attractive.
2. The other side: weak nickel prices
Weak nickel prices are a real operating risk. The source includes an article saying a Western Australian nickel mine invested in by POSCO suspended production because of price declines.
Reference article: The Guru - POSCO-invested Western Australian nickel mine suspends production amid price decline.
Interpretation: Nickel is in a zone where the long-term EV battery demand thesis is colliding with near-term price pressure. AKP is therefore not a simple good-news item; the question is whether the asset can endure the cycle.
3. Meritz research and prior investment context
The source also includes the Meritz Securities rechargeable-battery and petrochemical research channel: Meritz Securities Research Telegram channel.
The previous investment context continues in this post: 2019-2024 resource-utilization analysis of LX International, POSCO International, and Samsung C&T.
Sources
- Naver Blog source: https://m.blog.naver.com/PostView.naver?blogId=star_of_self&logNo=223780655503
- Yonhap News: https://www.yna.co.kr/view/AKR20240116108000003
- Meritz Securities Research: https://t.me/meritz_research
- The Guru: https://www.theguru.co.kr/mobile/article.html?no=65244
- Prior investment context: https://m.blog.naver.com/star_of_self/223754412458