金川国际(02362) - 2020 - 中期财报

Production and Operations - The Ruashi Mine's copper and cobalt production volumes for the first half of 2020 were slightly higher compared to the same period in 2019, attributed to increased mining activities and higher throughput rates[11]. - Ruashi Mine focused on maximizing throughput and plant utilization to compensate for a shortage of foreign ore purchases starting in April 2020, as a cash preservation measure during COVID-19[11]. - The mine continued to increase stripping rates of waste and ore in the first half of 2020 to substitute foreign ore and prepare for the rainy season[11]. - The company operates two mines (Ruashi and Kinsenda), one mine in care and maintenance (Chibuluma South), one project at development stage (Musonoi), and one exploration project (Lubembe)[6]. - The company aims to enhance operational efficiency and maintain production levels despite external challenges[11]. - The management is focused on strategic initiatives to expand market presence and optimize resource utilization[11]. - The company is actively monitoring market conditions to adjust its operational strategies accordingly[11]. - Future outlook includes potential exploration and development of additional resources to support long-term growth[11]. Financial Performance - Revenue for Ruashi Mine increased by 34% to US$146.2 million in 2020 1H, compared to US$109.1 million in 2019 1H, driven by higher cobalt prices and volumes sold[16]. - The Group's revenue for the six months ended June 30, 2020, was US$347.5 million, a decrease of 51$705.4 million for the same period in 2019[42]. - The company reported a loss for the period of $24.832 million, compared to a profit of$7.691 million in the previous year, marking a significant shift in performance[156]. - Total comprehensive expense for the period was $25.352 million, compared to a comprehensive income of$7.659 million in 2019, reflecting a change of approximately 431.5%[156]. - Basic loss per share was $0.22, compared to earnings of$0.03 per share in the same period of 2019[156]. - The Group recorded a consolidated loss of US$24.8 million for 2020 1H, compared to a profit of US$7.7 million in 2019 1H[67]. - Loss attributable to shareholders was US$28.3 million in 2020 1H, a turnaround from a profit of US$4.2 million in 2019 1H, driven by falling copper prices and impairment losses[67]. Production Metrics - Copper production for the six months ended June 30, 2020, was reported at 16,823 tons, a 1% increase from 16,587 tons in 2019[15]. - Cobalt production for the same period was 2,635 tons, slightly higher than 2,611 tons in 2019, with a recovery rate improvement from 63.88% to 69.31%[15][16]. - Kinsenda Mine produced 14,219 tons of copper content in concentrate, a 12% decrease from 16,210 tons in 2019 1H, primarily due to lower ore grade[18][20]. - Copper production increased by 6% in 2020 1H, totaling 39,006 tons compared to 36,897 tons in 2019 1H[2]. - The selling of 4,453 tons of crown pillar material positively impacted Chibuluma's production, which reached 7,964 tons in 2020 1H, compared to 4,100 tons in 2019 1H[3]. Market Conditions - The average copper market price during 2020 1H was US$5,490 per ton, which is 11$34,605 per ton, down 5% from 2019 1H, reflecting a decline in aerospace demand[16]. - Copper prices rebounded to US$6,300/ton after the US-China Phase 1 trade deal in January 2020, but fell to a low of US$4,618/ton in March 2020 due to COVID-19 disruptions[97]. - By the end of June 2020, LME copper price recovered to US$6,038/ton, marking the highest point since January 2020, and reached a two-year high of US$6,667/ton on August 19, 2020[97][99]. - The cobalt market is expected to remain challenging in the second half of 2020, with the Group monitoring market fluctuations closely[102]. Cost Management - The average realized copper price for Ruashi in 2020 1H was US$5,287 per ton, down 8.3$5,764 per ton in 2019 1H[16]. - C1 cash costs (including by-product credit) per tonne of copper decreased to US$2,614 in 2020 from US$3,105 in 2019, indicating improved cost efficiency[74]. - Cost of mining operations increased by 14% to US$175.9 million in 2020 1H, driven by higher mining activities[50]. - Processing costs increased by 6$18.9 million in 2019 1H to US$11.9 million in 2020 1H, primarily due to reduced clearing and transportation costs[59]. Capital Expenditure - Capital expenditure for Ruashi Mine in 2020 1H was US$3.4 million, including US$1.8 million for waste stripping[16]. - Kinsenda's capital expenditure for the same period was US$6.3 million, mainly for underground development[19][22]. - Significant capital expenditures during the first half of 2020 amounted to US$20.0 million for property, plant, and equipment, compared to US$19.0 million in the same period of 2019[88]. Strategic Initiatives - The Group aims to become a world-class mineral corporation by seeking investment opportunities while complying with regional regulations[106]. - The strategy focuses on "Improvement on Cobalt and Maintaining Growth on Copper" to enhance production efficiency and reduce costs, aiming for better profitability[110]. - The company is committed to continuously improving quality, efficiency, and production levels while reducing production costs[110]. Employee and Governance - The company has 1,757 permanent employees and 3,057 contractor employees as of June 30, 2020, showing a slight decrease in permanent staff from 1,761 at the end of 2019, while contractor employees increased from 2,778[108][111]. - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[109][112]. - The Audit Committee is composed of one non-executive director and three independent non-executive directors, ensuring relevant expertise in accounting and financial management[143]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2020[147].