Mining Operations - Ruashi Mine increased ore mining activities by 96% in the six months ended June 30, 2019, compared to the same period in 2018[6]. - Copper production at Ruashi Mine reached 16,587 tons, up from 11,293 tons in 2018, while cobalt production was 2,611 tons, slightly up from 2,579 tons[7]. - The mining plan at Ruashi Mine has accelerated stripping rates to expedite access to identified areas of high-grade ore[6]. - The total resources at Ruashi Mine are estimated at 623,000 tons of copper and 92,000 tons of cobalt, with reserves of 190,000 tons of copper and 26,000 tons of cobalt[9]. - The Group operates three mines: Ruashi, Chibuluma South (including Chifupu Deposit), and Kinsenda, with one project at the development stage (Musonoi Project) and one exploration project (Lubembe Project)[5]. - Kinsenda Mine's copper production for the six months ended June 30, 2019, increased by 21% to 16,210t from 13,438t in the same period of 2018[15]. - Chibuluma South Mine's copper production decreased by approximately 29% to 4,100t from 5,791t in the same period of 2018[21]. - The Chibuluma South Mine, including the Chifupu deposit, has a mine life of 3.5 years with resources of 83,000 tons of copper and reserves of 12,000 tons of copper[23][24]. - The Musonoi Project has resources of 1,023,000 tons of copper and 282,000 tons of cobalt, with reserves of 590,000 tons of copper and 165,000 tons of cobalt[26]. - The Lubembe Project, an undeveloped greenfield copper exploration project, has resources of 1,718,000 tons of copper and a mining license extended until 2032[28][29]. Financial Performance - Revenue from Ruashi Mine for the six months ended June 30, 2019, was US260.2 million in 2018[7]. - Total revenue for Ruashi Mine decreased by 58% to US705.4 million, representing an 11.9% decrease from US190.5 million in 2018 to US60.1 million, with gross profit margin dropping from 22.2% in 2018 to 8.5% in 2019 due to lower copper and cobalt prices[50]. - The Group recorded a consolidated profit of US84.9 million for the same period in 2018[62]. - Profit attributable to shareholders decreased by 93% from US4.2 million in the first half of 2019[62]. - The average benchmark LME copper price fell by approximately 11% and MB cobalt prices dropped by about 59% from 2018 to 2019[62]. - The company reported a profit for the period of US7,691,000[131]. Production Costs - C1 cash costs (excluding by-product credit) for the six months ended June 30, 2019, were 189,733 in 2018, representing a reduction of approximately 33%[66]. - C1 cash cost per tonne of copper (excluding by-product credit) for the six months ended June 30, 2019, was 5,738 in 2018, showing a decrease of around 42%[66]. - The company reported direct and indirect mining costs of 185,973 in 2018, indicating a reduction of about 17%[66]. - The depreciation of mineral rights increased to 2,547 in 2018, representing an increase of approximately 237%[69]. Market Conditions - The Group's mining operations faced negative impacts from falling copper and cobalt prices during the first half of 2019, prompting an increase in production volume to mitigate these effects[35]. - The cobalt market is expected to remain challenging in the second half of 2019, with analysts predicting long-term demand growth from 125,000 tonnes in 2018 to 185,000 tonnes in 2023, driven by the electric vehicle battery sector increasing its share from 20% to 35%[88]. - China's copper concentrate imports reached an all-time high of 19.72 million tonnes in 2018, representing a 13.7% increase compared to 2017, with projected deficits of approximately 190,000 tonnes in 2019 and 250,000 tonnes in 2020 for refined copper[88]. Corporate Governance and Compliance - The Board is committed to high standards of corporate governance and has complied with all applicable code provisions during the reporting period[119]. - The Audit Committee has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2019[111]. - The Remuneration and Nomination Committee is responsible for reviewing remuneration and nomination functions for all Directors and senior management[112]. Shareholder Information - As of June 30, 2019, Jinchuan Group Co., Ltd. held a total of 7,567,325,857 shares, representing 65.48% of the total issued shares[99]. - The total number of issued shares of the company was 12,609,873,051 as of June 30, 2019[99]. - The percentage calculations for substantial shareholders were based on the total number of issued shares as of June 30, 2019[101]. Future Outlook - The Group aims to significantly reduce production costs while increasing production and sales through its strategy of "Improvement on Cobalt and Maintaining Growth on Copper"[89]. - The Group will continue to explore new business development opportunities, particularly in southern Africa, to seek synergies with existing operations[89]. - The Group anticipates a gradual recovery in cobalt prices as manufacturers and traders deplete their stock, ending the year-long downward trend[88].
金川国际(02362) - 2019 - 中期财报