Workflow
金川国际(02362) - 2023 - 中期财报
02362JINCHUAN INTL(02362)2023-09-27 10:03

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 US6.5million,fullyreceivedbyJune30,2023,withadditionalmonthlyroyaltypaymentsbasedoncoppersales[34]ProductionandSalesPerformance−Ruashi′scopperproductiondecreasedby86.5 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 US1.1 million, down from US1.6millioninthesameperiod[35][36]−TheGroupproducedapproximately30,200tonnesofcopperin20231H,anincreaseof4.41.6 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 US221.0 million, compared to US234.5millionin20221H,whilecobaltsalesgeneratedalossofUS234.5 million in 2022 1H, while cobalt sales generated a loss of US1.5 million compared to a profit of US130.8millioninthepreviousyear[43]FinancialPerformance−Totalrevenuefor20231HwasUS130.8 million in the previous year [43] Financial Performance - Total revenue for 2023 1H was US91,171,000, a significant decline from US273,567,000in20221H[10]−RevenuefortheGroup′soperationsin20231HwasUS273,567,000 in 2022 1H [10] - Revenue for the Group's operations in 2023 1H was US327.1 million, a decrease of 39% from US539.4millionin20221H[46]−Grossprofitdecreasedby77539.4 million in 2022 1H [46] - Gross profit decreased by 77% from US123.4 million in 2022 1H to US28.4millionin20231H,mainlyduetofallingcopperandcobaltprices[60]−TheGrouprecordedalossafterincometaxofUS28.4 million in 2023 1H, mainly due to falling copper and cobalt prices [60] - The Group recorded a loss after income tax of US10.0 million for 2023 1H, compared to a profit of US67.1millionfor20221H[75]−ThelossattributabletoshareholdersamountedtoUS67.1 million for 2022 1H [75] - The loss attributable to shareholders amounted to US12.5 million for 2023 1H, down from a profit of US49.1millionfor20221H,primarilyduetodecliningcommoditypricesandincreasedproductioncosts[78]−TheGroup′sEBITDAforthesixmonthsendedJune30,2023,wasUS49.1 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 US40.2 million, a significant decrease from US148.5millioninthesameperiodof2022[87]−Theaveragepricerealizedpertonneofcopperdecreasedby13148.5 million in the same period of 2022 [87] - The average price realized per tonne of copper decreased by 13% from US8,638 in 2022 1H to US7,538in20231H[52]−Cobaltrevenuefor20231Hwas−US7,538 in 2023 1H [52] - Cobalt revenue for 2023 1H was -US1.5 million, significantly down from US130.8millionin20221H,primarilyduetoa58130.8 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 US155.8 million for the six months ended 30 June 2023, with significant costs in development activities amounting to US91.2million[39][40]−C1cashcostsincreasedsignificantlyfromUS91.2 million [39][40] - C1 cash costs increased significantly from US1,771 per tonne in 2022 1H to US5,116pertonnein20231H,primarilyduetoadecreaseincobaltsalesvolumeandrisingproductioncosts[83]−Processingcostsincreasedby155,116 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 US4.1 million in 2022 1H to US4.5millionin20231Hduetorisingmarketinterestratesandincreasedborrowings[61]−Interestexpensesbeforecapitalizationroseby1044.5 million in 2023 1H due to rising market interest rates and increased borrowings [61] - Interest expenses before capitalization rose by 104% from US5.4 million in 2022 1H to US11.0millionin20231H,drivenbyhighermarketinterestrates[61]MarketConditionsandOutlook−TheLMEcopperpriceroseto11.0 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 8,210pertonnebytheendofJune2023duetoweakeneddemandsentimentandmodesteconomicgrowthinChina[100]−ThebenchmarkMBcobaltpricedecreasedbyapproximately598,210 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]