Production and Sales - For the period ended June 30, 2024, copper production at Ruashi Mine was 13,334 tons, while cobalt production was 681 tons, representing a decrease of 7.1% and 50.2% respectively compared to 2023[7]. - Ruashi Mine's overall copper production decreased by 8% from 14,357 tonnes in 2023 1H to 13,334 tonnes in 2024 1H, with copper cathode production at 11,130 tonnes, down 15% from 13,145 tonnes[8]. - Cobalt production dropped by 50% from 1,364 tonnes in 2023 1H to 681 tonnes in 2024 1H, attributed to lower ore feed grade and declining market prices[10]. - Kinsenda Mine produced 15,244 tonnes of copper in 2024 1H, down from 15,843 tonnes in 2023 1H[12]. - Copper production decreased by 5% to approximately 28,578 tonnes in 2024 1H from approximately 30,200 tonnes in 2023 1H, with Ruashi Mine's production down 7% to approximately 13,334 tonnes[31]. - Copper sales volume decreased to 26,222 tonnes in 2024 1H from 29,324 tonnes in 2023 1H, while cobalt sales volume increased to 991 tonnes from 172 tonnes[38]. Revenue and Financial Performance - Total revenue for the period was US$106,024,000, an increase of 16.3% from US$91,171,000 in 2023[7]. - The Group's revenue for 2024 1H was US$283.0 million, a decrease of 14% from US$327.1 million in 2023 1H[35]. - Revenue from copper sales was US$261,981,000, down from US$320,973,000 in 2023, indicating a decrease of about 18.3%[182]. - Revenue from cobalt sales was US$17,252,000, slightly down from US$17,513,000 in 2023, reflecting a decrease of approximately 1.5%[182]. - The Group's copper revenue from mining operations decreased by 5% to US$209.1 million in 2024 1H from US$221.0 million in 2023 1H[39]. - Gross profit increased by 52% from US$28.4 million in 2023 1H to US$43.0 million in 2024 1H, driven by higher copper revenue and lower production costs[49]. Costs and Expenses - Total expenses for exploration, development, and mining activities amounted to US$135.458 million for the period ended June 30, 2024[25]. - Cost of sales for mining operations decreased by 7% from US$177.9 million in 2023 1H to US$166.1 million in 2024 1H, primarily due to a 24% drop in processing costs and the absence of impairment loss[44]. - Selling and distribution costs rose by 5% from US$13.9 million in 2023 1H to US$14.6 million in 2024 1H, attributed to increased cobalt sales volume and higher transportation unit costs[58]. - The trading division recorded a turnover of US$60.3 million in 2024 1H, a 44% decrease from US$107.6 million in 2023 1H, due to a more focused selection of mineral sources[33]. Market Conditions and Future Outlook - The management is optimistic about future market conditions and aims to expand its operational footprint in the DRC[5]. - The company anticipates a rise in copper prices in the late third and fourth quarters of 2024 due to increased infrastructure spending in China[85]. - Global economic uncertainties are expected to continue affecting copper and cobalt markets, making operations challenging in the near future[89]. - The company aims to enhance quality and efficiency while reducing production costs to improve profitability under unfavorable market conditions[91]. Projects and Developments - The Group operates two mines, Ruashi and Kinsenda, and has one project at an advanced development stage (Musonoi Project) and one advanced exploration project (Lubembe Project)[5]. - The Musonoi Project has a mine life of 16 years with resources of 1,085 kt Cu and 363 kt Co, and reserves of 606 kt Cu and 174 kt Co as of December 31, 2023[17]. - The underground project at Musonoi is advancing as scheduled, with major works including a main decline ramp and a multi-purpose vertical shaft[17]. - The construction of the processing plant has been completed and is currently in the trial operation stage[18]. Shareholder Information and Corporate Governance - As of June 30, 2024, Jinchuan Group Co., Ltd. holds a total of 7,593,009,857 shares, representing 66.25% of the issued shares of the company[98]. - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the same period in 2023[82]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2024[150]. - The Audit Committee, consisting of four independent non-executive Directors, reviewed the unaudited interim financial statements for the six months ended June 30, 2024[147]. Cash Flow and Financial Position - The net cash from operating activities for the six months ended June 30, 2024, was US$46,978,000, a significant improvement compared to a net cash used of US$17,153,000 in the same period of 2023[171]. - Cash and cash equivalents at June 30, 2024, were US$62,182,000, down from US$103,376,000 at the end of June 30, 2023[171]. - The company experienced a net increase in cash and cash equivalents of US$16,341,000 during the first half of 2024[171]. - Total assets as of June 30, 2024, were US$2.296 billion, an increase from US$2.170 billion as of December 31, 2023[196]. Debt and Financing - Total bank borrowings and overdrafts increased to US$336 million as of June 30, 2024, from US$278.5 million as of December 31, 2023[74]. - The principal of Musonoi Project loans increased by US$93.4 million in 2024 1H, partially offset by repayments from cash flow generated by Kinsenda Mine[50]. - The company has a term loan facility of US$350,000,000 for the development of the Musonoi Project, with a repayment period of 10 years from the first utilization date[101]. Share Option and Incentive Schemes - The previous share option scheme was terminated on June 26, 2024, with no options granted or exercised during its term[111]. - A new Share Incentive Scheme was approved and adopted on June 26, 2024, which is the only existing share incentive scheme of the Company[126]. - The maximum entitlement for each participant under the Share Option Scheme is limited to 1% of the total number of shares in issue within any 12-month period unless approved by shareholders[116].

Financial Performance - The company reported revenue of $283,032 thousand for the six months ended June 30, 2024, a decrease of 13.6% compared to $327,112 thousand for the same period in 2023[2] - Gross profit for the six months ended June 30, 2024, was $43,046 thousand, compared to $28,389 thousand in the same period of 2023, representing a significant increase[2] - The net profit for the period was $12,784 thousand, compared to a loss of $10,038 thousand in the same period of 2023, indicating a turnaround in performance[4] - Basic earnings per share for the six months ended June 30, 2024, was $0.07, compared to a loss of $0.10 per share in the same period of 2023[4] - The group reported a pre-tax profit of $19,295 thousand for the six months ended June 30, 2024, compared to a pre-tax loss of $6,409 thousand for the same period in 2023[15] - The company reported a consolidated profit after tax of $12.8 million in the first half of 2024, compared to a loss of $10.0 million in the same period of 2023[58] - Shareholders' profit for the first half of 2024 was $9.2 million, a turnaround from a loss of $12.5 million in the first half of 2023, attributed to rising copper prices and reduced production costs[59] Revenue and Sales - Revenue for the six months ended June 30, 2024, was $283,032 thousand, a decrease of 13.5% compared to $327,112 thousand for the same period in 2023[12] - Copper sales amounted to $261,981 thousand, down from $320,973 thousand, representing a decline of 18.3% year-over-year[12] - Cobalt sales were $17,252 thousand, slightly down from $17,513 thousand, indicating a decrease of 1.5%[12] - Revenue from copper sales in the first half of 2024 was $209.1 million, down from $221.0 million in the first half of 2023[36] - The trading division recorded a revenue of $60.3 million in the first half of 2024, a significant decrease of 44% from $107.6 million in the first half of 2023[38] - Revenue from mining operations in the first half of 2024 was $283.0 million, a decrease of 14% from $327.1 million in the first half of 2023[40] Production and Operations - The company produced approximately 28,578 tons of copper and 681 tons of cobalt in the first half of 2024, compared to 30,200 tons of copper and 1,364 tons of cobalt in the first half of 2023[36] - Copper production in the first half of 2024 was approximately 28,578 tons, a decrease of 5% compared to about 30,200 tons in the first half of 2023[37] - Cobalt production decreased by 50% from approximately 1,364 tons in the first half of 2023 to about 681 tons in the first half of 2024, due to lower feed grades and declining cobalt prices[37] - The Kinsenda mine's copper production in the first half of 2024 was approximately 15,244 tons, a decrease of 4% from about 15,843 tons in the first half of 2023[37] - The company has adjusted its production plan to reduce cobalt output and decided to suspend cobalt production in late May 2024 to allocate more resources to copper production[37] Financial Position - Total assets as of June 30, 2024, amounted to $1,980,457 thousand, an increase from $1,899,771 thousand as of December 31, 2023[5] - Current liabilities increased to $309,156 thousand as of June 30, 2024, compared to $253,268 thousand as of December 31, 2023[6] - Non-current liabilities stood at $827,685 thousand as of June 30, 2024, up from $767,346 thousand as of December 31, 2023[6] - The company’s cash and cash equivalents increased to $80,980 thousand as of June 30, 2024, compared to $61,381 thousand as of December 31, 2023[5] - The company’s total liabilities increased to USD 202,252,000 as of June 30, 2024, from USD 177,325,000 as of December 31, 2023[27] - Total bank borrowings and overdrafts increased to $336.0 million as of June 30, 2024, up from $278.5 million as of December 31, 2023[66] - The company's asset-to-liability ratio rose to 38.4% as of June 30, 2024, compared to 32.4% as of December 31, 2023, due to increased loans from affiliates and bank borrowings[67] Costs and Expenses - Total sales costs for the first half of 2024 were $226.4 million, down from $285.6 million in the first half of 2023[46] - The sales cost of the mining business decreased by 7% to $166.1 million in the first half of 2024, compared to $177.9 million in the same period of 2023, primarily due to a 24% reduction in smelting costs[47] - Net financial costs rose by 67% to $7.6 million in the first half of 2024, compared to $4.5 million in the same period of 2023, due to rising market interest rates and increased bank borrowings[50] - The total interest expense (before capitalization) increased by 72% to $18.9 million in the first half of 2024, up from $11.0 million in the same period of 2023, due to increased borrowings and rising market interest rates[50] - Administrative expenses remained relatively stable at $3.2 million in the first half of 2024, compared to $3.0 million in the same period of 2023[57] Market Outlook and Strategy - The company plans to continue its focus on mining operations and trading of mineral products, aiming for market expansion and potential new product development[8] - The group anticipates that copper prices will rise in the third and fourth quarters due to infrastructure projects in China[74] - The company projects a revenue growth of 10% for the next fiscal year, driven by increased production capacity and market expansion efforts[90] - The company is exploring market expansion opportunities in Africa, targeting a 25% increase in market share within the next two years[90] - A strategic acquisition of a local mining company is in progress, which is anticipated to enhance resource availability and operational efficiency[89] Dividends and Shareholder Returns - The company reported a total dividend amount of approximately HKD 25,004,000 (equivalent to about USD 3,206,000) for the year ending December 31, 2023, with a proposed final dividend of HKD 0.2 per share[21] - The company has not declared any dividends for the six months ending June 30, 2024[21] - The board has resolved not to declare any interim dividend for the six months ending June 30, 2024, consistent with the previous period ending June 30, 2023, which also had no interim dividend[79] - The board has approved a dividend payout of $0.02 per share, reflecting a commitment to returning value to shareholders amidst growth initiatives[90] Employee and Operational Changes - The group has 1,676 long-term employees and 3,948 contractor employees as of June 30, 2024, compared to 1,744 and 3,738 respectively as of December 31, 2023, indicating a reduction in long-term employees by approximately 3.9% and an increase in contractor employees by approximately 5.6%[78]

Investment Rating - The report assigns a positive investment rating to Jinchuan International, highlighting its potential for growth in the copper and cobalt mining sector [2]. Core Insights - Jinchuan International is positioned as a flagship platform for Jinchuan Group to develop overseas mineral resources, with significant resource advantages and a strong operational foundation [2][7]. - The company has experienced significant revenue fluctuations from 2019 to 2023, primarily driven by the volatility in copper and cobalt prices, with mining revenue increasing from $368 million to $649 million between 2019 and 2022 [2][11]. - The Musonoi project is expected to be a major growth driver, with anticipated production of 38,000 tons of copper and 7,800 tons of cobalt upon commencement [2][27]. Company Overview - Jinchuan International is a Hong Kong-listed company under Jinchuan Group, focusing on non-ferrous metal mining and trading, particularly copper, cobalt, and nickel [7][8]. - The company operates several mines, including Ruashi and Kinsenda, and is developing the Musonoi project, which has higher grades of copper and cobalt compared to existing operations [2][27]. Financial Analysis - The company’s revenue for 2023 is projected at $639 million, with a significant decline of 27.55% compared to 2022, primarily due to lower copper and cobalt prices [11][12]. - The report forecasts revenues of $747 million, $1.189 billion, and $1.422 billion for 2024, 2025, and 2026, respectively, with corresponding net profits of $74.82 million, $187.74 million, and $262.21 million [2][4]. - The C1 cash cost for copper in 2023 is estimated at $4,705 per ton, reflecting a slight increase from the previous year due to declining cobalt by-product prices [19]. Resource and Production Insights - Jinchuan International has substantial mineral resources, with the Musonoi project expected to contribute significantly to future production, boasting higher grades than existing mines [27][28]. - The Kinsenda mine is noted for its high-grade copper deposits, with production increasing by 4% in 2023, while the Ruashi mine faced challenges due to lower ore grades and power supply issues [25][22]. - The company’s total copper resources are projected at 1,090.93 thousand tons, with significant reserves across its operational and development projects [10][9].

Production and Mining Operations - In 2023, Ruashi Mine produced 31,787 tonnes of copper and 2,207 tonnes of cobalt[3]. - Kinsenda Mine produced 30,219 tonnes of copper content in concentrates in 2023, with an average reserves grade above 5%[3]. - The Musonoi Project, currently under construction, is expected to have a total mine life of 16 years[4]. - The Lubembe Project's mineral resources were upgraded from inferred to indicated category in December 2021[5]. - Chibuluma South Mine is leased out under a finance lease agreement, with a fixed rental fee plus a variable royalty fee based on copper extracted and sold[6]. - The company produced 62,006 tons of copper and 2,207 tons of cobalt in 2023, generating an annual revenue of US$638.9 million, with a loss attributable to shareholders of US$11.6 million[13]. - Annual copper output increased by 4.3% compared to 2022, while cobalt output decreased sharply by 44%, resulting in a historical low of 172 tonnes sold in the first half of 2023[22]. - The company expects the Musonoi Project, with total reserves of 606,000 tonnes of copper and 174,000 tonnes of cobalt, to commence operations in late 2024 or early 2025[24]. - Cobalt production decreased by 44% from 3,961 tonnes in 2022 to 2,207 tonnes in 2023, attributed to lower ore grades and no high cobalt content foreign ore purchases[37][38]. - Copper production increased by 5% from 30,353 tonnes in 2022 to 31,787 tonnes in 2023, with 26,836 tonnes being copper cathode[36][37]. Financial Performance - The financial performance of the Group in 2023 declined compared to 2022, primarily due to a continuous drop in commodity prices for copper and cobalt[97]. - Revenue for the Group's operations in 2023 was US$638.9 million, a 28% decrease compared to US$881.6 million in 2022[106]. - Cobalt revenue for 2023 was US$39.1 million, a significant decrease of 76% compared to US$160.9 million in 2022[113]. - The Group recorded a consolidated loss after income tax of US$10.7 million for 2023, compared to a profit of US$6.9 million in 2022[134]. - Loss attributable to shareholders amounted to US$11.6 million for 2023, compared to a profit of US$1.0 million in 2022, primarily due to a US$29.0 million impairment loss of VAT recoverable[134]. - The Group's EBITDA is used to evaluate financial performance and identify underlying business trends, although it does not have a standardized meaning prescribed by IFRS[139]. - The Group's cash and bank balances decreased to US$85.0 million as of 31 December 2023, down from US$89.7 million as of 31 December 2022, indicating a reduction in liquidity[145]. - The Group recognized an impairment loss on cobalt finished goods inventory amounting to US$4.3 million in 2023 due to low market prices[118]. Market Conditions and Commodity Prices - Copper prices recovered to US$8,476 per tonne by the end of 2023, while cobalt prices fell to US$13.0 per pound (equivalent to US$28,660 per tonne), marking a significant decline from their 2022 highs[18]. - The average benchmark LME copper price for 2023 was US$8,483 per tonne, a 4% decrease from US$8,815 per tonne in 2022[98]. - The average MB cobalt price for 2023 was US$15.10 per pound, representing a 50% decrease from US$30.36 per pound in 2022[98]. - The outlook for copper is promising due to tight inventory and strong demand from energy transition, despite unforeseen impacts on mine supply in late 2023[26]. - Cobalt prices remained low due to oversupply, with Indonesian cobalt production increasing significantly, but still lagging behind the DRC's production[28]. - The geopolitical tensions and logistics issues have impacted the expected global economic recovery, particularly affecting demand from traditional end-user sectors for copper[21]. Strategic Initiatives and Future Outlook - The company aims to enhance resource development and acquisition capabilities through strategic resource investment mergers and acquisitions[14]. - The board plans to optimize the equity structure to stimulate market vitality and strengthen cost control to improve economic benefits[14]. - Geopolitical conflicts, deglobalization, and technological innovation are expected to be major challenges in 2024[15]. - The new energy industry's development is expected to drive growth in the copper industry[15]. - The company is committed to improving investor relations and market capitalization management[14]. - The Group aims to be a world-class mineral corporation, focusing on strategic planning and stakeholder value creation[158]. Resource and Reserve Estimates - As of December 31, 2023, the Group's Mineral Resources are estimated to contain approximately 4,474,000 tonnes of contained copper and 432,000 tonnes of contained cobalt, representing a 1.8% decrease in copper and a 1.1% decrease in cobalt compared to December 31, 2022[72]. - The Group's Mineral Reserves as of December 31, 2023, are estimated to contain approximately 1,048,000 tonnes of contained copper and 203,000 tonnes of contained cobalt, reflecting a 7.0% decrease in copper and a 1.5% decrease in cobalt from the previous year[74]. - The total copper-cobalt resources amounted to 70.8 million tons with an average grade of 2.3% Cu and 0.6% Co, containing 1,629 kt Cu and 432 kt Co[76]. - The total copper-cobalt reserves increased from 34.7 million tons in 2022 to 33.1 million tons in 2023[78]. - The total measured resources for the Kinsenda Mine are 0.7 million tons at a grade of 4.4% Cu, containing 29 kt Cu[77]. Operational Challenges - The company faced an 8.1% drop in copper sales from 2022 due to logistical problems in the DRC and intermittent truck availability[22]. - The decline in cobalt production was attributed to the lack of high cobalt content foreign ore purchases and continuous decline in cobalt market prices[104]. - The increase in C1 cash cost was influenced by higher electricity costs and the use of more expensive diesel power due to unstable power supply[138]. - The Group faced higher production costs and delays in the sales of cobalt products, impacting overall financial results[97]. Corporate Governance and Management - The Group's relationship with its shareholders and investors is detailed on pages 112 to 120[190]. - The Group's final dividend for 2023 is recommended at HK$0.2 per share, totaling approximately HK$25,004,000, consistent with the previous year[197]. - The Group's major business activities are outlined in note 39 of the consolidated financial statements[193]. - There were no significant changes in the nature of the Group's principal activities during the year[189]. - The Group's performance analysis using key financial performance indicators is included in the Management Discussion and Analysis section on pages 40 to 60[194].

Financial Performance - For the year ended December 31, 2023, the company reported total revenue of $638,857,000, a decrease of 27.5% from $881,598,000 in 2022[2] - The gross profit for 2023 was $70,746,000, compared to $68,485,000 in 2022, reflecting a slight increase of 1.8%[2] - The company recorded a loss before tax of $27,024,000 for 2023, a significant decline from a profit of $61,130,000 in the previous year[2] - The net loss attributable to owners of the company for 2023 was $11,558,000, compared to a profit of $1,028,000 in 2022[4] - Total comprehensive loss for the year was $11,852,000, compared to a comprehensive income of $7,953,000 in 2022[5] - The company reported a basic and diluted loss per share of $0.09 for 2023, compared to earnings of $0.01 per share in 2022[5] - The company’s total equity decreased to $1,149,768,000 in 2023 from $1,166,090,000 in 2022, a decline of 1.4%[7] - The company recorded a pre-tax profit of $27,024,000 for the year ended December 31, 2023, compared to $61,130,000 in 2022, indicating a decrease of about 55.8%[14] - The total finance costs for 2023 were $30,309,000, significantly higher than $14,563,000 in 2022, reflecting an increase of approximately 107.5%[17] - The effective tax rate for the year was approximately 37.7%, with significant contributions from corporate taxes in the Democratic Republic of Congo and Zambia[20] Revenue Breakdown - For the year ended December 31, 2023, total segment revenue was $652,774,000, a decrease from $992,709,000 in 2022, reflecting a decline of approximately 34.2%[14] - The mining segment generated revenue of $479,047,000, down from $724,980,000 in the previous year, representing a decrease of about 33.9%[14] - The trading of mineral and metal products segment reported revenue of $173,727,000, a decline from $267,729,000, which is a decrease of approximately 35.1%[14] - Revenue from copper sales in 2023 was $435.3 million, down from $487.9 million in 2022, and cobalt sales generated $39.1 million, down from $160.9 million[33] - The trading division recorded revenue of $164.4 million in 2023, a 29% decrease from $232.8 million in 2022, due to lower trade volumes and commodity prices[40] Production and Sales - The company produced approximately 62,006 tons of copper in 2023, up from 59,440 tons in 2022, while cobalt production decreased to 2,207 tons from 3,961 tons[33] - Copper production in 2023 was approximately 62,006 tons, a 4% increase from 59,440 tons in 2022, with Ruashi mine contributing 31,787 tons, up 5% from 30,353 tons[34] - Cobalt production decreased by 44% to approximately 2,207 tons in 2023 from about 3,961 tons in 2022, primarily due to the absence of high-cobalt ore purchases[34] - Copper sales volume was 59,516 tons in 2023, down 8% from 64,739 tons in 2022, while cobalt sales volume dropped 53% to 2,114 tons from 4,496 tons[38] Costs and Expenses - The cost of sales for mining operations was $374.1 million in 2023, a 27% reduction from $513.4 million in 2022, mainly due to decreased ore procurement costs[42] - The total sales and distribution costs decreased by 15% from $36.3 million in 2022 to $31.1 million in 2023, mainly due to a decline in cobalt sales from the Ruashi mine offset by increased copper sales from the Kinsenda mine[52] - Administrative expenses decreased by 26% from $10.4 million in 2022 to $7.7 million in 2023 due to effective cost control measures[53] - C1 cash costs increased by 2% from $4,634 per ton in 2022 to $4,705 per ton in 2023, driven by reduced cobalt revenues and increased production costs[57] Assets and Liabilities - Non-current assets increased to $1,899,771,000 in 2023 from $1,717,385,000 in 2022, marking an increase of 10.6%[6] - Current liabilities decreased slightly to $253,268,000 in 2023 from $266,340,000 in 2022[6] - The company's total assets less current liabilities amounted to $1,917,114,000, up from $1,763,188,000 in 2022, indicating a growth of 8.7%[6] - Total bank borrowings and overdrafts increased to $278.5 million as of December 31, 2023, from $197.8 million in 2022[61] - The company's debt-to-equity ratio rose to 32.4% as of December 31, 2023, compared to 18.9% in 2022, due to increased borrowings[62] Market Conditions - In 2023, the average copper price was $8,483 per ton, a 4% decrease from $8,815 per ton in 2022[32] - Cobalt prices fell by 50% in 2023, averaging $15.10 per pound compared to $30.36 per pound in 2022[32] - The copper price showed resilience in 2023, starting at $8,530 per ton and ending at $8,479 per ton despite macroeconomic challenges[67] - Cobalt prices have dropped approximately 67% from $39.75 per pound in April 2022 to $13 per pound by December 2023, influenced by increased supply from the Democratic Republic of Congo and Indonesia[69] Future Outlook and Strategy - The company aims to maintain strict monitoring of outstanding receivables to minimize credit risk[26] - The company is investing in the Lubembe project, with an estimated budget of $15 million allocated for development in the upcoming year[81] - Future guidance estimates a revenue increase of 25% for the next fiscal year, driven by higher copper prices and increased production capacity[82] - The company is exploring potential acquisitions to enhance its market position, focusing on companies with complementary mining operations[82] - New technology initiatives are underway to improve mining efficiency, with an expected reduction in operational costs by 10%[82] - The board of directors remains committed to sustainable practices, aiming for a 50% reduction in carbon emissions by 2025[82] Shareholder Returns - The company proposed a final dividend of HKD 0.2 per share for the year ended December 31, 2023, totaling approximately $3,206,000, unchanged from the previous year[21][24] - The board proposed a dividend of HK$0.2 per share for 2023, totaling approximately HK$25,004,000, consistent with the previous year's dividend[73] Governance and Compliance - The company has adopted corporate governance principles and complied with applicable rules, with a noted exception regarding the attendance of the chairman at the annual general meeting[77] - No purchases, sales, or redemptions of the company's listed securities were made during the fiscal year ending December 31, 2023[78]

Mining Operations - The Group operates two mines: Ruashi Mine and Kinsenda Mine, with one project in development (Musonoi Project) and one advanced exploration project (Lubembe Project) [8] - The ownership structure of Ruashi Mine is 75% by Jinchuan Group International and 25% by Gécamines SA [8] - The Group's mining operations also include a mine leased out under a finance lease agreement, Chibuluma South Mine [8] - The Group is focused on expanding its mining operations and exploring new projects to enhance resource availability [8] - The Musonoi Project, located north of Kolwezi, has resources of 1,085kt Cu and 363kt Co, with a mine life of 16 years according to the June 2023 feasibility study [26] - The Musonoi Project is currently under construction and has reserves of 606kt Cu and 174kt Co [26] - The mineral resources at the Dilala Syncline are SAMREC Code compliant, with a strike length of 600m to 700m and high-grade mineralization starting at 50m to 100m below the surface [27] - The construction of the main decline ramp was completed in March 2023, totaling over 5,000m of construction work [28] - The dewatering pump station at 140m level has been completed and is currently in the testing phase, while construction at 400m level has commenced [29] - The integrated maintenance workshop construction has started and is expected to be completed by the end of 2023 [31] - The total lease payment for the Chibuluma South Mine is US$6.5 million, fully received by June 30, 2023, with additional monthly royalty payments based on copper sales [34] Production and Sales Performance - Ruashi's copper production decreased by 8% from 15,554 tonnes in 2022 1H to 14,357 tonnes in 2023 1H due to unstable power supply and lower ore feed grade [11] - Cobalt production fell by 48% from 2,603 tonnes in 2022 1H to 1,364 tonnes in 2023 1H, attributed to reduced foreign ore purchases and lower recovery rates [11] - Kinsenda Mine produced 15,843 tonnes of copper content in concentrate in 2023 1H, a 20% increase compared to 13,235 tonnes in 2022 1H, driven by an 18% higher ore feed grade [22] - The total ore mined in 2023 1H was 805,136 tonnes, a 28% decrease from 1,114,113 tonnes in 2022 1H [13] - The Group produced 1,666 tonnes of payable copper in 2023 1H, a decrease of 9.6% from 1,843 tonnes in 2022 1H, and recorded royalty income of US$1.1 million, down from US$1.6 million in the same period [35][36] - The Group produced approximately 30,200 tonnes of copper in 2023 1H, an increase of 4.4% from approximately 28,789 tonnes in 2022 1H, while cobalt production decreased to approximately 1,364 tonnes from 2,603 tonnes [43] - Revenue from copper sales in 2023 1H was US$221.0 million, compared to US$234.5 million in 2022 1H, while cobalt sales generated a loss of US$1.5 million compared to a profit of US$130.8 million in the previous year [43] Financial Performance - Total revenue for 2023 1H was US$91,171,000, a significant decline from US$273,567,000 in 2022 1H [10] - Revenue for the Group's operations in 2023 1H was US$327.1 million, a decrease of 39% from US$539.4 million in 2022 1H [46] - Gross profit decreased by 77% from US$123.4 million in 2022 1H to US$28.4 million in 2023 1H, mainly due to falling copper and cobalt prices [60] - The Group recorded a loss after income tax of US$10.0 million for 2023 1H, compared to a profit of US$67.1 million for 2022 1H [75] - The loss attributable to shareholders amounted to US$12.5 million for 2023 1H, down from a profit of US$49.1 million for 2022 1H, primarily due to declining commodity prices and increased production costs [78] - The Group's EBITDA for the six months ended June 30, 2023, was US$40.2 million, a significant decrease from US$148.5 million in the same period of 2022 [87] - The average price realized per tonne of copper decreased by 13% from US$8,638 in 2022 1H to US$7,538 in 2023 1H [52] - Cobalt revenue for 2023 1H was -US$1.5 million, significantly down from US$130.8 million in 2022 1H, primarily due to a 58% decrease in average cobalt prices [54] Costs and Expenses - The Group's mining activities incurred total expenses of US$155.8 million for the six months ended 30 June 2023, with significant costs in development activities amounting to US$91.2 million [39][40] - C1 cash costs increased significantly from US$1,771 per tonne in 2022 1H to US$5,116 per tonne in 2023 1H, primarily due to a decrease in cobalt sales volume and rising production costs [83] - Processing costs increased by 15% in 2023 1H, primarily due to higher electricity costs and increased reagent consumption [58] - Finance costs increased by 11% from US$4.1 million in 2022 1H to US$4.5 million in 2023 1H due to rising market interest rates and increased borrowings [61] - Interest expenses before capitalization rose by 104% from US$5.4 million in 2022 1H to US$11.0 million in 2023 1H, driven by higher market interest rates [61] Market Conditions and Outlook - The LME copper price rose to $9,340 per tonne in early 2023 but dropped to $8,210 per tonne by the end of June 2023 due to weakened demand sentiment and modest economic growth in China [100] - The benchmark MB cobalt price decreased by approximately 59% from $39.75 per pound at the end of April 2022 to $14.25 per pound at the end of June 2023 [104] - The decline in cobalt price was attributed to weak global demand and increased supplies from Indonesia, which has emerged as the world's second-largest cobalt producer [105] - Long-term copper demand is expected to reach approximately 53 million tonnes annually by 2050 to achieve carbon neutrality, more than double the current level [104] - Global cobalt demand is expected to more than double by 2030, reaching approximately 388,000 tonnes, driven by the growth of the EV sector and recovery in the aviation industry [109] Corporate Governance and Shareholder Information - The Company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023 [153] - The Company has established a Remuneration and Nomination Committee to review remuneration and nomination functions for all Directors and senior management [148] - The Board expresses gratitude to shareholders, community, and business partners for their support [156] - The Group has not declared any interim dividend for the six months ended June 30, 2023, consistent with the same period in 2022 [100] - The total number of issued shares of the company as of June 30, 2023, was 12,502,082,051 shares [118]

Share Incentive Plan - The total number of performance shares that may be issued under the share incentive plan is limited to 10% of the total issued shares as of the adoption date, amounting to 435,075,305 performance shares[4] - As of the date of the 2022 annual report, the number of shares available for issuance under the share incentive plan is 435,075,305, which represents approximately 3.48% of the total issued shares[4] - The share incentive plan has a remaining validity period of approximately two years and one month from the date of the 2022 annual report[7]

Financial Performance - The company reported revenue of $327,112 thousand for the six months ended June 30, 2023, a decrease of 39.4% compared to $539,423 thousand in the same period of 2022[2] - Gross profit for the same period was $28,389 thousand, down 77.0% from $123,419 thousand year-on-year[2] - The company incurred a loss of $10,038 thousand for the six months ended June 30, 2023, compared to a profit of $67,090 thousand in the prior year, representing a significant decline[2] - Basic loss per share for the period was $(0.10), compared to earnings of $0.39 per share in the same period last year[4] - The company reported a pre-tax loss of $(6,409,000) for the six months ended June 30, 2023, compared to a profit of $101,139,000 for the same period in 2022[17] - The group recorded a net loss of $10.0 million after tax in the first half of 2023, compared to a profit of $67.1 million in the same period of 2022[52] - Shareholders' attributable loss was $12.5 million in the first half of 2023, compared to a profit of $49.1 million in the first half of 2022, primarily due to declining commodity prices and inventory impairment losses[52] - EBITDA for H1 2023 was $40.2 million, a decrease of 72.9% compared to $148.5 million in H1 2022[57] Assets and Liabilities - Total assets as of June 30, 2023, amounted to $1,780,111 thousand, an increase from $1,717,385 thousand as of December 31, 2022[5] - Current liabilities increased to $324,739 thousand from $266,340 thousand at the end of 2022, indicating a rise in short-term financial obligations[5] - The company's net asset value decreased to $1,152,145 thousand as of June 30, 2023, down from $1,166,090 thousand at the end of the previous year[6] - Total bank borrowings and overdrafts increased to $266.1 million as of June 30, 2023, up from $197.8 million at the end of 2022[59] - The debt-to-equity ratio rose to 25.1% as of June 30, 2023, compared to 18.9% at the end of 2022, driven by increased borrowings[60] Revenue Breakdown - Copper sales contributed $320,973,000, down from $380,523,000, while cobalt sales dropped significantly from $185,149,000 to $17,513,000[11] - The mining segment generated $220,477,000 in revenue, while the trading of mineral and metal products brought in $100,496,000[14] - The trading segment generated revenue of $107.6 million in the first half of 2023, a decrease of 38% from $174.1 million in the first half of 2022[39] Production and Costs - Cobalt production decreased by 48% to approximately 1,364 tons in the first half of 2023, compared to about 2,603 tons in the first half of 2022[33] - The group’s mining business sales cost for the first half of 2023 was $177.9 million, a decrease of 14% from $207.0 million in the first half of 2022[41] - The cost of ore procurement dropped significantly from $65.2 million in the first half of 2022 to $1.3 million in the first half of 2023 due to reduced external ore purchases[41] - Smelting costs increased by 15% in the first half of 2023, primarily due to rising electricity costs and increased use of diesel power[41] - C1 cash cost increased significantly from $1,771 per ton in H1 2022 to $5,116 per ton in H1 2023, primarily due to a substantial decrease in cobalt sales and rising production costs[55] Market Conditions - In the first half of 2023, the average copper price was $8,704 per ton, down 11% from $9,756 per ton in the first half of 2022[31] - The copper price fluctuated, starting at $9,340 per ton in early 2023 and dropping to $8,210 per ton by the end of June 2023 due to weakened demand and economic uncertainties[65] - Cobalt prices have dropped approximately 59%, from $39.75 per pound ($87,634 per ton) in April 2022 to $14.25 per pound ($31,416 per ton) by June 2023, driven by weak global demand and increased supply from Indonesia[67] Strategic Focus and Future Outlook - The company continues to focus on its core mining and trading operations, with no specific new product or market expansion strategies disclosed in the report[7] - The company is focused on the development of the Musonoi copper-cobalt project in the Democratic Republic of Congo, with construction progressing well in the first half of 2023[69] - Future outlook includes potential new projects such as the Lubembe project, which is expected to enhance copper production capacity[79] - The company aims to maintain a strong financial position while pursuing growth opportunities in the mining sector[80] Corporate Governance and Compliance - The company is committed to high standards of corporate governance and has adhered to all applicable codes during the reporting period[72] - The board of directors emphasized the importance of adhering to corporate governance standards as outlined in the listing rules[77]

Production and Mining Operations - Ruashi Mine produced 30,353 tonnes of copper and 3,961 tonnes of cobalt in 2022[5]. - Kinsenda Mine produced 29,087 tonnes of copper content in concentrates in 2022, with an average reserves grade of 5.8%[6]. - Musonoi Project is an underground mine under construction with a total mine life of 19 years, expected to produce copper cathode and cobalt hydroxide[8]. - The average grade of Kinsenda Mine positions it among the world's highest grade copper deposits[6]. - The Musonoi copper-cobalt project contains total reserves of 606kt of copper and 174kt of cobalt, enhancing the Group's production capacity and leading status in cobalt production[70]. - Copper production at Ruashi Mine decreased by 8% from 33,063 tonnes in 2021 to 30,353 tonnes in 2022, while cobalt production increased by 17% from 3,379 tonnes to 3,961 tonnes[97][100]. - Kinsenda Mine produced 29,087 tonnes of copper in 2022, a 3% increase from 28,197 tonnes in 2021, with an overall recovery rate of 94.29%, up 1% from 93.8% in 2021[123]. - The total ore mined in 2022 was 2,480,135 tonnes, representing a 21% increase compared to 2,054,098 tonnes in 2021[99]. Financial Performance - In 2022, Jinchuan Group International Resources Co. Ltd produced 59,440 tonnes of copper and 3,961 tonnes of cobalt, achieving a revenue of US$881.6 million, representing a year-on-year increase of 5.97%[37]. - The profit attributable to shareholders for the year was US$1.03 million[37]. - Revenue from copper sales in 2022 was $288,524,000, while cobalt sales generated $160,910,000, leading to a total revenue of $449,434,000[102]. - Overall revenue in 2022 increased by 24% compared to 2021, with copper revenue rising by 13% and cobalt revenue increasing by 51%[108]. - The average realised copper price for 2022 was US$8,208 per tonne, which is 10% lower than the US$9,135 per tonne in 2021[106]. - The average realised cobalt price for 2022 was US$35,790 per tonne, a 12% decrease from US$40,738 per tonne in 2021, influenced by a 44% drop in benchmark cobalt price[107]. Project Development and Construction - The Musonoi Project's mining engineering was completed ahead of schedule, with concentration engineering progressing smoothly[37]. - Jinchuan Group plans to accelerate the construction progress of the Musonoi Project and initiate trial mining operations on schedule[42]. - The construction of the main decline ramp for the Musonoi Project was completed in March 2023, with over 5,000 meters of construction work finished[139]. - The construction of the dewatering pump station at 140mL was completed and is currently in the testing phase, while construction at 400mL has commenced[144]. - The construction contract for the concentrator at the Musonoi Project was awarded in 2022, with civil works progressing as planned[146]. - The Musonoi Project's deep processing project construction is scheduled to commence in 2023, with contracts currently under evaluation[146]. Market Conditions and Strategic Focus - The company is focused on optimizing processing circuits and copper recoveries in its projects[10]. - The company has a strategic focus on high-grade copper-cobalt deposits in the DRC[8]. - The Group is actively pursuing merger and acquisition opportunities in southern Africa to seek synergies with existing operations[73]. - Looking ahead to 2023, the recovery of the PRC's economy is expected to provide more flexibility for Hong Kong stocks amid easing overseas inflation and liquidity[43]. - The company anticipates that the Hong Kong stock market may rebound as global funds increase their allocation to it[43]. Resource Management and Sustainability - The company aims to strengthen investor relationship management and maintain market capitalization while optimizing shareholder structure and enhancing market liquidity[42]. - Jinchuan Group will focus on resource sustainability and the acquisition of new resource projects to support its growth strategy[42]. - The Group's Mineral Resources were estimated to contain approximately 4,557,000 tonnes of contained copper and 437,000 tonnes of contained cobalt, representing a 1.9% decrease in copper and a 1.6% decrease in cobalt compared to December 31, 2021[177][182]. - As of December 31, 2022, the Group's Mineral Reserves were estimated to contain approximately 1,126,000 tonnes of contained copper and 206,000 tonnes of contained cobalt, representing a 1% increase in copper and a 4% increase in cobalt compared to December 31, 2021[189]. Challenges and Risks - The Group recorded a profit in 2022 despite a significant drop in copper and cobalt prices, which fell by 20% and 19% respectively in Q2 2022[49][53]. - The Group's production was not interrupted by COVID-19, but logistics and delivery were heavily impacted, particularly in the first half of 2022[54][56]. - Global copper market remains tight with low LME copper inventory levels and supply disruptions in major producing countries like Chile and Peru[62][64]. - The decrease in Kinsenda Mine's copper resources was attributed to mining depletion during the year[180]. - The increase in copper and cobalt reserves at Ruashi Mine was partially offset by mining depletion during the year[195].

Financial Performance - The company's revenue for the year ended December 31, 2022, was $881.6 million, an increase of 6% from $831.9 million in 2021[2] - The cost of sales increased significantly to $746.2 million from $531.1 million, resulting in a gross profit of $135.4 million[2] - The profit before tax from continuing operations was $61.1 million, compared to $278.7 million in the previous year, indicating a substantial decline[2] - The net profit from continuing operations for the year was $6.9 million, down from $162.4 million in 2021, reflecting a decrease of approximately 96%[3] - Total comprehensive income for the year was $8.0 million, compared to $162.3 million in the previous year[4] - Basic earnings per share from continuing operations were $0.01, down from $0.96 in the previous year, reflecting the overall decline in profitability[7] - Total revenue from continuing operations was $992,709,000 in 2022, up from $797,078,000 in 2021, marking a growth of 24.5%[14] - The adjusted revenue after temporary pricing adjustments was $881,598,000 for 2022, compared to $831,899,000 in 2021, reflecting a 6% increase[17] - The company reported a pre-tax profit from continuing operations of $61,130,000 for the year 2022, a decrease from $278,736,000 in 2021[18] - The company recorded a consolidated profit of $6,900,000 for the year ended December 31, 2022, a decrease from $162,400,000 in 2021[68] Assets and Liabilities - Non-current assets increased to $1.72 billion from $1.51 billion, primarily due to investments in property, plant, and equipment[8] - Current liabilities decreased significantly to $312.1 million from $529.4 million, improving the company's liquidity position[8] - The company's total assets less current liabilities stood at $1.76 billion, up from $1.66 billion in the previous year[8] - The net asset value decreased slightly to $1.17 billion from $1.18 billion, indicating a stable equity position despite the decline in profits[9] - The total interest expenses for bank loans increased to $9,980,000 in 2022 from $8,030,000 in 2021, reflecting a rise of approximately 24%[23] - The deferred tax liabilities for 2022 were $37,090,000, a decrease from $54,107,000 in 2021, reflecting a reduction of approximately 31.5%[25] - The group's trade payables increased significantly to $102.8 million in 2022 from $39.6 million in 2021[12] - The total bank borrowings and overdrafts as of December 31, 2022, were $197.8 million, compared to $249.7 million in 2021, showing a reduction in debt levels[75] Revenue Sources - Revenue from copper sales reached $696,224,000 and cobalt sales reached $296,485,000 for the year 2022, compared to $637,288,000 and $159,790,000 in 2021, representing increases of 9.3% and 85.4% respectively[13] - The mining segment generated $724,980,000 in revenue, while the metal trading segment contributed $267,729,000, leading to a total segment revenue of $992,709,000[17] - The trading division recorded a revenue of $232.8 million in 2022, up from $211.3 million in 2021[45] - The group sold 64,739 tons of copper in 2022, compared to 57,001 tons in 2021, generating revenue of $487.9 million[43] - The group’s cobalt sales revenue was $160.9 million in 2022, compared to $106.6 million in 2021[43] Production and Costs - Copper production in 2022 was 59,440 tons, a decrease of 3% from 61,260 tons in 2021, while cobalt production increased by 17% to 3,961 tons[43][44] - The average copper price reached a historical high of $10,730 per ton in March 2022, followed by a 35% decline to $7,000 per ton by July 2022[42] - The average realized copper price fell by 16% to $7,537 per ton, and the average realized cobalt price decreased by 12% to $35,790 per ton in 2022[50] - The company's total sales cost increased by 63% to $746.2 million in 2022, driven by higher mining and refining costs[51] - The gross profit decreased by 73% to $68.5 million in 2022 due to rising sales costs and increased mining rights fees[54] - For the year ended December 31, 2022, the direct and indirect mining costs amounted to $441.967 million, an increase from $305.571 million in 2021[71] - The C1 cash cost per ton of copper increased to $4,634 in 2022 from $2,611 in 2021, reflecting a significant rise in operational costs[71] Market Conditions and Future Outlook - The company plans to continue evaluating the market conditions and pricing for copper, with a long-term price estimate of $8,300 per ton for 2022, up from $7,100 per ton in 2021[20] - Copper prices have dropped by one-third from a high of $10,730 per ton in March 2022 to $7,000 per ton in July 2022, the lowest since November 2020[81] - Global copper supply has been affected by government interventions and labor issues, with LME copper inventories remaining low[82] - The long-term demand for copper is expected to double to 53 million tons annually by 2050 to achieve carbon neutrality[83] - Cobalt prices have decreased by approximately 61% from $39.0 per pound at the end of March 2022 to $15.15 per pound by the end of February 2023[84] - Analysts predict cobalt demand will continue to grow at a compound annual growth rate of 7% until 2030[85] - The group continues to monitor market volatility to ensure preparedness for any market changes[85] Corporate Governance and Strategic Initiatives - The company has ceased its trading operations in China as of December 31, 2021, and these results are classified as discontinued operations[15] - The company applied the International Financial Reporting Standards revisions for the first time this year, which did not have a significant impact on the financial statements[12] - The audit committee has reviewed the group's accounting principles and internal controls for the fiscal year ending December 31, 2022[89] - The group has adopted corporate governance principles in compliance with applicable regulations for the fiscal year ending December 31, 2022[92] - The group is focused on becoming a world-class mining enterprise, with strategic planning supported by its board and ongoing projects[86] Shareholder Returns - The company proposed a final dividend of HKD 0.2 per share for the year ending December 31, 2022, totaling approximately $3,206,000, consistent with the previous year's dividend[30] - The board proposed a final dividend of HKD 0.2 per share for 2022, totaling approximately HKD 25,004,000, consistent with the previous year's dividend[88] - The group repurchased and canceled a total of 107,791,000 shares for approximately $10.61 million during the year[38] - The group repurchased a total of 107,791,000 shares at a total cost of approximately HKD 82,767,650 during the fiscal year ending December 31, 2022[93] Employee and Operational Insights - The group has 1,598 long-term employees and 4,050 contractors as of December 31, 2022, compared to 1,575 and 2,741 respectively in 2021, indicating a significant increase in contractor workforce[87] - The total employee costs, including salaries and other benefits, rose to $54,085,000 in 2022 from $52,319,000 in 2021, marking an increase of about 3.4%[24] Sustainability and Innovation - The company is committed to sustainability, with plans to invest 10% of profits into renewable energy initiatives[99] - The company aims to reduce production costs by 15% through technological advancements in mining processes[97] - A new partnership with a leading technology firm is set to improve data analytics capabilities, enhancing decision-making[98] - The Lubembe project is expected to contribute an additional 50,000 tons of copper annually once operational[99]