GEM stated on an interactive platform in response to investor inquiries that the company has secured stable production at its Indonesian nickel resource project through multiple mechanisms. On one hand, GEM has proactively built a diversified supply chain system and signed long-term supply agreements with suppliers at relatively stable prices. The company maintains a safety stock of sulfur sufficient to meet its production plans. On the other hand, GEM continues to reduce MHP production costs through technological upgrades, economies of scale, and management improvements, thereby preserving product profit margins. The company's main products, such as MHP, nickel plates, and ternary precursors, are all priced based on open market metal prices. When upstream cost increases lead to supply tightness, higher metal prices and improved discount coefficients enable effective downstream pass-through of costs.
Written by Cora Ji, jiruyan@mysteel.com
