Workflow
金川国际(02362) - 2024 - 中期财报
02362JINCHUAN INTL(02362)2024-09-26 08:47

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 US106,024,000,anincreaseof16.3106,024,000, an increase of 16.3% from US91,171,000 in 2023[7]. - The Group's revenue for 2024 1H was US283.0million,adecreaseof14283.0 million, a decrease of 14% from US327.1 million in 2023 1H[35]. - Revenue from copper sales was US261,981,000,downfromUS261,981,000, down from US320,973,000 in 2023, indicating a decrease of about 18.3%[182]. - Revenue from cobalt sales was US17,252,000,slightlydownfromUS17,252,000, slightly down from US17,513,000 in 2023, reflecting a decrease of approximately 1.5%[182]. - The Group's copper revenue from mining operations decreased by 5% to US209.1millionin20241HfromUS209.1 million in 2024 1H from US221.0 million in 2023 1H[39]. - Gross profit increased by 52% from US28.4millionin20231HtoUS28.4 million in 2023 1H to US43.0 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 US135.458millionfortheperiodendedJune30,2024[25].−Costofsalesforminingoperationsdecreasedby7135.458 million for the period ended June 30, 2024[25]. - Cost of sales for mining operations decreased by 7% from US177.9 million in 2023 1H to US166.1millionin20241H,primarilyduetoa24166.1 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 US13.9 million in 2023 1H to US14.6millionin20241H,attributedtoincreasedcobaltsalesvolumeandhighertransportationunitcosts[58].−ThetradingdivisionrecordedaturnoverofUS14.6 million in 2024 1H, attributed to increased cobalt sales volume and higher transportation unit costs[58]. - The trading division recorded a turnover of US60.3 million in 2024 1H, a 44% decrease from US107.6millionin20231H,duetoamorefocusedselectionofmineralsources[33].MarketConditionsandFutureOutlook−ThemanagementisoptimisticaboutfuturemarketconditionsandaimstoexpanditsoperationalfootprintintheDRC[5].−Thecompanyanticipatesariseincopperpricesinthelatethirdandfourthquartersof2024duetoincreasedinfrastructurespendinginChina[85].−Globaleconomicuncertaintiesareexpectedtocontinueaffectingcopperandcobaltmarkets,makingoperationschallenginginthenearfuture[89].−Thecompanyaimstoenhancequalityandefficiencywhilereducingproductioncoststoimproveprofitabilityunderunfavorablemarketconditions[91].ProjectsandDevelopments−TheGroupoperatestwomines,RuashiandKinsenda,andhasoneprojectatanadvanceddevelopmentstage(MusonoiProject)andoneadvancedexplorationproject(LubembeProject)[5].−TheMusonoiProjecthasaminelifeof16yearswithresourcesof1,085ktCuand363ktCo,andreservesof606ktCuand174ktCoasofDecember31,2023[17].−TheundergroundprojectatMusonoiisadvancingasscheduled,withmajorworksincludingamaindeclinerampandamulti−purposeverticalshaft[17].−Theconstructionoftheprocessingplanthasbeencompletedandiscurrentlyinthetrialoperationstage[18].ShareholderInformationandCorporateGovernance−AsofJune30,2024,JinchuanGroupCo.,Ltd.holdsatotalof7,593,009,857shares,representing66.25107.6 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 US46,978,000, a significant improvement compared to a net cash used of US17,153,000inthesameperiodof2023[171].−CashandcashequivalentsatJune30,2024,wereUS17,153,000 in the same period of 2023[171]. - Cash and cash equivalents at June 30, 2024, were US62,182,000, down from US103,376,000attheendofJune30,2023[171].−ThecompanyexperiencedanetincreaseincashandcashequivalentsofUS103,376,000 at the end of June 30, 2023[171]. - The company experienced a net increase in cash and cash equivalents of US16,341,000 during the first half of 2024[171]. - Total assets as of June 30, 2024, were US2.296billion,anincreasefromUS2.296 billion, an increase from US2.170 billion as of December 31, 2023[196]. Debt and Financing - Total bank borrowings and overdrafts increased to US336millionasofJune30,2024,fromUS336 million as of June 30, 2024, from US278.5 million as of December 31, 2023[74]. - The principal of Musonoi Project loans increased by US93.4millionin20241H,partiallyoffsetbyrepaymentsfromcashflowgeneratedbyKinsendaMine[50].−ThecompanyhasatermloanfacilityofUS93.4 million in 2024 1H, partially offset by repayments from cash flow generated by Kinsenda Mine[50]. - The company has a term loan facility of US350,000,000 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].