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金川国际(02362) - 2023 - 年度财报
02362JINCHUAN INTL(02362)2024-04-29 11:05

Production and Mining Operations - In 2023, Ruashi Mine produced 31,787 tonnes of copper and 2,207 tonnes of cobalt[3]. - Kinsenda Mine produced 30,219 tonnes of copper content in concentrates in 2023, with an average reserves grade above 5%[3]. - The Musonoi Project, currently under construction, is expected to have a total mine life of 16 years[4]. - The Lubembe Project's mineral resources were upgraded from inferred to indicated category in December 2021[5]. - Chibuluma South Mine is leased out under a finance lease agreement, with a fixed rental fee plus a variable royalty fee based on copper extracted and sold[6]. - The company produced 62,006 tons of copper and 2,207 tons of cobalt in 2023, generating an annual revenue of US638.9million,withalossattributabletoshareholdersofUS638.9 million, with a loss attributable to shareholders of US11.6 million[13]. - Annual copper output increased by 4.3% compared to 2022, while cobalt output decreased sharply by 44%, resulting in a historical low of 172 tonnes sold in the first half of 2023[22]. - The company expects the Musonoi Project, with total reserves of 606,000 tonnes of copper and 174,000 tonnes of cobalt, to commence operations in late 2024 or early 2025[24]. - Cobalt production decreased by 44% from 3,961 tonnes in 2022 to 2,207 tonnes in 2023, attributed to lower ore grades and no high cobalt content foreign ore purchases[37][38]. - Copper production increased by 5% from 30,353 tonnes in 2022 to 31,787 tonnes in 2023, with 26,836 tonnes being copper cathode[36][37]. Financial Performance - The financial performance of the Group in 2023 declined compared to 2022, primarily due to a continuous drop in commodity prices for copper and cobalt[97]. - Revenue for the Group's operations in 2023 was US638.9million,a28638.9 million, a 28% decrease compared to US881.6 million in 2022[106]. - Cobalt revenue for 2023 was US39.1million,asignificantdecreaseof7639.1 million, a significant decrease of 76% compared to US160.9 million in 2022[113]. - The Group recorded a consolidated loss after income tax of US10.7millionfor2023,comparedtoaprofitofUS10.7 million for 2023, compared to a profit of US6.9 million in 2022[134]. - Loss attributable to shareholders amounted to US11.6millionfor2023,comparedtoaprofitofUS11.6 million for 2023, compared to a profit of US1.0 million in 2022, primarily due to a US29.0millionimpairmentlossofVATrecoverable[134].−TheGroup′sEBITDAisusedtoevaluatefinancialperformanceandidentifyunderlyingbusinesstrends,althoughitdoesnothaveastandardizedmeaningprescribedbyIFRS[139].−TheGroup′scashandbankbalancesdecreasedtoUS29.0 million impairment loss of VAT recoverable[134]. - The Group's EBITDA is used to evaluate financial performance and identify underlying business trends, although it does not have a standardized meaning prescribed by IFRS[139]. - The Group's cash and bank balances decreased to US85.0 million as of 31 December 2023, down from US89.7millionasof31December2022,indicatingareductioninliquidity[145].−TheGrouprecognizedanimpairmentlossoncobaltfinishedgoodsinventoryamountingtoUS89.7 million as of 31 December 2022, indicating a reduction in liquidity[145]. - The Group recognized an impairment loss on cobalt finished goods inventory amounting to US4.3 million in 2023 due to low market prices[118]. Market Conditions and Commodity Prices - Copper prices recovered to US8,476pertonnebytheendof2023,whilecobaltpricesfelltoUS8,476 per tonne by the end of 2023, while cobalt prices fell to US13.0 per pound (equivalent to US28,660pertonne),markingasignificantdeclinefromtheir2022highs[18].−TheaveragebenchmarkLMEcopperpricefor2023wasUS28,660 per tonne), marking a significant decline from their 2022 highs[18]. - The average benchmark LME copper price for 2023 was US8,483 per tonne, a 4% decrease from US8,815pertonnein2022[98].−TheaverageMBcobaltpricefor2023wasUS8,815 per tonne in 2022[98]. - The average MB cobalt price for 2023 was US15.10 per pound, representing a 50% decrease from US30.36perpoundin2022[98].−Theoutlookforcopperispromisingduetotightinventoryandstrongdemandfromenergytransition,despiteunforeseenimpactsonminesupplyinlate2023[26].−Cobaltpricesremainedlowduetooversupply,withIndonesiancobaltproductionincreasingsignificantly,butstilllaggingbehindtheDRC′sproduction[28].−Thegeopoliticaltensionsandlogisticsissueshaveimpactedtheexpectedglobaleconomicrecovery,particularlyaffectingdemandfromtraditionalend−usersectorsforcopper[21].StrategicInitiativesandFutureOutlook−Thecompanyaimstoenhanceresourcedevelopmentandacquisitioncapabilitiesthroughstrategicresourceinvestmentmergersandacquisitions[14].−Theboardplanstooptimizetheequitystructuretostimulatemarketvitalityandstrengthencostcontroltoimproveeconomicbenefits[14].−Geopoliticalconflicts,deglobalization,andtechnologicalinnovationareexpectedtobemajorchallengesin2024[15].−Thenewenergyindustry′sdevelopmentisexpectedtodrivegrowthinthecopperindustry[15].−Thecompanyiscommittedtoimprovinginvestorrelationsandmarketcapitalizationmanagement[14].−TheGroupaimstobeaworld−classmineralcorporation,focusingonstrategicplanningandstakeholdervaluecreation[158].ResourceandReserveEstimates−AsofDecember31,2023,theGroup′sMineralResourcesareestimatedtocontainapproximately4,474,000tonnesofcontainedcopperand432,000tonnesofcontainedcobalt,representinga1.830.36 per pound in 2022[98]. - The outlook for copper is promising due to tight inventory and strong demand from energy transition, despite unforeseen impacts on mine supply in late 2023[26]. - Cobalt prices remained low due to oversupply, with Indonesian cobalt production increasing significantly, but still lagging behind the DRC's production[28]. - The geopolitical tensions and logistics issues have impacted the expected global economic recovery, particularly affecting demand from traditional end-user sectors for copper[21]. Strategic Initiatives and Future Outlook - The company aims to enhance resource development and acquisition capabilities through strategic resource investment mergers and acquisitions[14]. - The board plans to optimize the equity structure to stimulate market vitality and strengthen cost control to improve economic benefits[14]. - Geopolitical conflicts, deglobalization, and technological innovation are expected to be major challenges in 2024[15]. - The new energy industry's development is expected to drive growth in the copper industry[15]. - The company is committed to improving investor relations and market capitalization management[14]. - The Group aims to be a world-class mineral corporation, focusing on strategic planning and stakeholder value creation[158]. Resource and Reserve Estimates - As of December 31, 2023, the Group's Mineral Resources are estimated to contain approximately 4,474,000 tonnes of contained copper and 432,000 tonnes of contained cobalt, representing a 1.8% decrease in copper and a 1.1% decrease in cobalt compared to December 31, 2022[72]. - The Group's Mineral Reserves as of December 31, 2023, are estimated to contain approximately 1,048,000 tonnes of contained copper and 203,000 tonnes of contained cobalt, reflecting a 7.0% decrease in copper and a 1.5% decrease in cobalt from the previous year[74]. - The total copper-cobalt resources amounted to 70.8 million tons with an average grade of 2.3% Cu and 0.6% Co, containing 1,629 kt Cu and 432 kt Co[76]. - The total copper-cobalt reserves increased from 34.7 million tons in 2022 to 33.1 million tons in 2023[78]. - The total measured resources for the Kinsenda Mine are 0.7 million tons at a grade of 4.4% Cu, containing 29 kt Cu[77]. Operational Challenges - The company faced an 8.1% drop in copper sales from 2022 due to logistical problems in the DRC and intermittent truck availability[22]. - The decline in cobalt production was attributed to the lack of high cobalt content foreign ore purchases and continuous decline in cobalt market prices[104]. - The increase in C1 cash cost was influenced by higher electricity costs and the use of more expensive diesel power due to unstable power supply[138]. - The Group faced higher production costs and delays in the sales of cobalt products, impacting overall financial results[97]. Corporate Governance and Management - The Group's relationship with its shareholders and investors is detailed on pages 112 to 120[190]. - The Group's final dividend for 2023 is recommended at HK0.2 per share, totaling approximately HK$25,004,000, consistent with the previous year[197]. - The Group's major business activities are outlined in note 39 of the consolidated financial statements[193]. - There were no significant changes in the nature of the Group's principal activities during the year[189]. - The Group's performance analysis using key financial performance indicators is included in the Management Discussion and Analysis section on pages 40 to 60[194].