MMG-五矿资源(01208) - 2024 - 中期财报

Financial Performance - MMG reported a net profit after tax of $79.5 million for the first half of 2024, compared to a net loss of$ 24.9 million in the same period of 2023[22]. - Total revenue for H1 2024 was $1,918.2 million, a 1% increase from$ 1,896.2 million in H1 2023[36]. - EBITDA totaled $779.0 million, a 23% increase from the first half of 2023, supported by higher production and sales at Dugald River and Rosebery[22]. - EBITDA for H1 2024 increased by 23% to$ 779.0 million, up from $635.8 million in H1 2023[36]. - The net profit for H1 2024 was$ 79.5 million, a significant turnaround from a loss of $24.9 million in H1 2023, marking a 419% improvement[37]. - Las Bambas contributed$ 100.3 million in net profit for H1 2024, a 79% increase from $56.1 million in H1 2023[38]. - Kinsevere's revenue increased by 6% to$ 188.3 million in H1 2024, while EBITDA improved significantly to $41.4 million from a loss of$ 13.8 million[42]. Production and Sales - Las Bambas produced 126,198 tons of copper in H1 2024, a decrease of 10% compared to H1 2023, primarily due to lower ore grades from the Ferrobamba pit[24]. - Kinsevere produced 21,278 tons of copper, a 2% decrease year-over-year, attributed to mining sequence changes and reduced reliance on high-cost third-party ores[24]. - Dugald River produced 79,284 tons of zinc and 10,799 tons of lead, representing increases of 38% and 65% respectively compared to H1 2023[24]. - Total sales volume of copper decreased by 14% to 157,503 tons, while zinc sales volume increased by 29% to 92,464 tons, and lead sales volume rose by 82% to 23,961 tons compared to 2023[49]. - Revenue for Las Bambas was $1,256.0 million, down 15% from$ 1,480.4 million in 2023, attributed to decreased sales volumes of copper, gold, silver, and molybdenum[61]. - Revenue for Dugald River increased by $93.4 million (70%) to$ 226.1 million, driven by higher sales volumes of zinc and lead concentrates[80]. Costs and Expenses - Operating expenses decreased by $193.9 million (15%) to$ 1,063.2 million, mainly due to changes in inventory at Las Bambas[54]. - Depreciation and amortization expenses increased by $22.0 million (5%) to$ 467.9 million, primarily due to increased mining volumes at Kinsevere[55]. - Financial costs decreased by $12.3 million (7%) to$ 168.0 million, mainly due to a reduction in debt balance[55]. - Income tax expenses increased by $29.1 million, reflecting an increase in pre-tax profits compared to the same period last year[55]. - The company experienced a significant increase in administrative expenses, rising by$ 12.9 million (391%) to $16.2 million due to higher employee benefits and restructuring costs[54]. Development Projects - The company is focused on advancing key development projects, including the expansion of Kinsevere and the Chalcobamba project at Las Bambas[10]. - The Kinsevere expansion project is expected to produce approximately 80,000 tons of electrolytic copper and 4,000 to 6,000 tons of cobalt hydroxide once fully operational[113]. - The Chalcobamba project aims to increase production to 350,000 to 400,000 tons, enhancing local community relations and economic contributions[112]. - MMG aims to increase Khoemacau's annual copper production to 60,000 tons by 2026, with a long-term goal of 130,000 tons by 2028[114]. Financial Strategy - MMG raised$ 1,152.2 million through a rights issue, with approximately 2.8 times oversubscription, to repay existing debt and finance the Khoemacau acquisition[31]. - The rights issue on June 4, 2024, involved issuing 3,465,432,486 shares at a subscription price of HKD 2.62, representing a discount of approximately 31.41% from the last trading price[106]. - Funds from the rights issue are allocated for debt repayment, including up to $611 million for Khoemacau acquisition financing and$ 200 million for MMG South America Company Limited shareholder loans[108]. Safety and Community Engagement - The total recordable injury frequency (TRIF) for MMG was 2.44 per million hours worked, an increase from 1.97 in 2023, but showed a decreasing trend with a July TRIF of 1.70[21]. - MMG is committed to creating wealth for employees, shareholders, and local communities through constructive dialogue and business agreements with local stakeholders[14]. - Las Bambas established new agreements to optimize production and development, focusing on local community participation as suppliers[119]. Exploration and Drilling - The company reported a significant focus on underground drilling in the first half of 2024, particularly around the K North, H, Z, and P veins, as well as resource testing in the U and T veins[136]. - The company has commenced surface drilling at the South Hercules deposit, located 9 kilometers south of Rosebery, achieving significant discoveries[136]. - The company is continuing its exploration plans for zinc-lead-silver targets at Dugald River, with ongoing geological interpretation improvements based on drilling results[135]. Risks and Compliance - The group faces interest rate risk primarily through interest-bearing loans and cash investments, with current risk mainly from non-derivative financial assets and liabilities[151]. - The group is currently facing tax audits in Australia, Peru, Zambia, Laos, and the Democratic Republic of the Congo, which may impact its financial position[162]. - The group has not violated any covenants related to its loans as of June 30, 2024, ensuring sufficient liquidity management[156].