| 截至月份: | 2025年8月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 鐵江現貨有限公司 | | | 呈交日期: | 2025年9月1日 | | | I. 法定/註冊股本變動 | 不適用 | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01029 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,277,948,588 | | 0 | | 1,277,948,588 | | 增加 / 減少 ( ...

Group 1 - The company reported a revenue of $123 million for the six months ending June 30, 2025, representing a year-on-year increase of 9.3% [1] - The loss attributable to shareholders was $102 million, a significant increase of 670.2% year-on-year [1] - Adjusted basic loss was $2.98 million, which is a decrease of 72.5% year-on-year [1] Group 2 - Nikolai Levitskii, Chairman of the company, described the period as both a transformation and a challenging phase, highlighting significant operational improvements despite external market pressures [1] - The successful mining operations at the Sutara mine have greatly transformed the company, marking a watershed moment due to improved ore quality that allowed for increased production at K&S [1] - External factors such as falling iron ore prices and the appreciation of the ruble have negatively impacted financial performance, offsetting sales growth [1] - The company has recognized a non-cash impairment charge on the book value of K&S primarily due to the impact of the ruble appreciation [1] - The company remains focused on improving operational efficiency, maintaining financial flexibility and liquidity, and preparing to benefit from market recovery [2]

Core Viewpoint - The company reported an increase in revenue to $122.8 million for the six months ending June 30, 2025, despite a 13.9% decline in the Platts 65% iron content index price, attributed to a 26.9% increase in sales volume [1][2] Financial Performance - Revenue increased to $122.8 million, driven by a 26.9% rise in sales volume [1] - Adjusted EBITDA (excluding non-recurring items and foreign exchange) was $6.7 million, a significant improvement from a negative $1.7 million in the previous year [1] - Adjusted basic loss was $3 million, compared to a loss of $10.8 million in the previous year [1] - K&S asset impairment expense was $120.2 million, attributed to the appreciation of the ruble and expectations of future cost increases [1] - Shareholders' loss amounted to $102 million, compared to a loss of $13.2 million in the previous year [1] Operational Insights - The company experienced significant operational improvements, particularly at the Sutara mine, which enhanced ore quality and increased production [2] - Despite operational advancements and increased sales, financial performance was negatively impacted by external market conditions, including falling iron ore prices and the strengthening ruble [2] - The company remains focused on improving operational efficiency, maintaining financial flexibility, and preparing for potential market recovery [2]

Core Viewpoint - The company reported a revenue of $123 million for the six months ending June 30, 2025, reflecting a year-on-year increase of 9.3%, but faced a significant loss attributable to shareholders of $102 million, which is a 670.2% increase compared to the previous year [1] Financial Performance - Revenue for the period was $123 million, up 9.3% year-on-year [1] - Loss attributable to shareholders reached $102 million, a substantial increase of 670.2% year-on-year [1] - Adjusted basic loss was $2.98 million, showing a decrease of 72.5% year-on-year [1] Operational Insights - The chairman highlighted that the period was both a transformative and challenging time for the company [1] - Significant operational improvements were noted, particularly from the successful mining operations at the Sutara mine, which enhanced ore quality and allowed for increased production at K&S [1] - Despite operational advancements and increased sales, financial performance was adversely affected by external market conditions, including falling iron ore prices and the appreciation of the ruble [1] Market Conditions - External factors, such as declining iron ore prices and the strengthening ruble, largely offset the sales growth achieved by the company [1] - The company recorded a non-cash impairment charge related to the book value of K&S, primarily due to the impact of the ruble's appreciation [1] Future Outlook - The company remains focused on improving operational efficiency, maintaining financial flexibility and liquidity, and preparing to benefit from a market recovery [2] - Confidence in the company's assets, team, and ability to create value persists despite the challenges anticipated in 2025 [2]

[2025 Interim Results Overview](index=1&type=section&id=2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Group's H1 2025 performance saw revenue growth driven by increased sales, despite a significant net loss due to asset impairment and external market challenges [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's revenue increased by 9.3% to US$122.8 million in H1 2025, primarily due to a 26.9% rise in sales volume despite falling iron ore prices; however, shareholder loss expanded to US$102.0 million due to a US$120.2 million impairment of K&S assets from ruble appreciation and other non-recurring items Financial Performance Summary | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122.8 | 112.3 | 9.3% | | Non-HKFRS Adjusted EBITDA | 6.7 | -1.7 | -485.6% | | K&S Asset Impairment Charge | 120.2 | - | N/A | | Loss Attributable to Shareholders | 102.0 | 13.2 | 670.2% | | Cash and Deposits | 29.9 (Period-end) | 60.7 (Dec 31, 2024) | -50.8% | - Sales volume increased by **26.9%**, partially offsetting the **13.9% decline** in the Platts 65% Fe index price[6](index=6&type=chunk) - Cash cost per tonne decreased to **US$77.4** (down **20.5%** YoY), primarily due to improved Sutara ore quality, lower stripping ratio, and enhanced iron ore recovery[6](index=6&type=chunk) [Operational Highlights](index=1&type=section&id=%E7%87%9F%E9%81%8B%E6%91%98%E8%A6%81) Despite challenging external market conditions, including falling iron ore prices and ruble appreciation, the Group's operational performance significantly improved, driven by the successful commissioning of the Sutara mine, which boosted production and sales volumes and reduced cash costs through higher quality ore and technical enhancements Production and Sales Volume | Indicator | H1 2025 (Thousand tonnes) | H1 2024 (Thousand tonnes) | Change (%) | | :--- | :--- | :--- | :--- | | Production Volume | 1,423 | 1,132 | 25.7% | | Sales Volume | 1,419 | 1,119 | 26.9% | - The successful mining operations at the Sutara mine brought a significant change, with a notable improvement in ore quality, enabling K&S to increase production[5](index=5&type=chunk) - External market conditions, including falling iron ore prices and ruble appreciation, offset some benefits from increased sales volume and led to a non-cash impairment charge for K&S assets[5](index=5&type=chunk) [Consolidated Performance Overview](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The Group achieved significant increases in iron concentrate production and sales volumes in H1 2025, yet reported a substantial net loss primarily due to asset impairment [Key Operating Data](index=2&type=section&id=%E4%B8%BB%E8%A6%81%E7%87%9F%E9%81%8B%E6%95%B8%E6%93%9A) In H1 2025, iron concentrate production and sales volumes significantly increased to **1,422,870 tonnes** and **1,419,367 tonnes**, respectively; despite a **13.9% drop** in the Platts 65% Fe iron ore average price, cash cost per tonne (including delivery to customers) decreased by **20.5%** to **US$77.4** Key Operating Metrics | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Iron Concentrate Production & Sales Volume (tonnes) | | | | | - Production Volume | 1,422,870 | 1,132,201 | 25.7% | | - Sales Volume | 1,419,367 | 1,118,750 | 26.9% | | Realized Selling Price (USD/tonne) | | | | | - Based on wet metric tonne | 86.5 | 100.0 | (13.5%) | | - Based on dry metric tonne | 93.2 | 107.5 | (13.3%) | | Platts 65% Fe Iron Ore Average Price | 112.5 | 130.7 | (13.9%) | | Cash Cost (USD/tonne) | | | | | - Excluding delivery to customers (wet metric tonne) | 59.9 | 81.9 | (26.9%) | | - Including delivery to customers (wet metric tonne) | 77.4 | 97.4 | (20.5%) | [Consolidated Income Statement](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8%EF%BC%88%E5%8D%83%E7%BE%8E%E5%85%83%EF%BC%89) The Group's revenue increased by **9.3%** to **US$122,798 thousand** in H1 2025; however, due to a **US$126,882 thousand** impairment loss on K&S assets, loss attributable to owners of the Company significantly expanded to **US$101,968 thousand**, a **670.2% increase** from the prior year Consolidated Income Statement Summary | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122,798 | 112,329 | 9.3% | | Mine Operating Expenses and Service Costs Before Depreciation | (110,391) | (109,308) | 1.0% | | Adjusted EBITDA – Excluding Non-Recurring Items and FX | 6,691 | (1,735) | (485.6%) | | Impairment Loss | (126,882) | – | N/A | | Loss Attributable to Owners of the Company | (101,968) | (13,239) | 670.2% | - Depreciation expenses significantly increased by **58.7%** to **US$8,956 thousand**, reflecting higher production volumes[7](index=7&type=chunk) - Net finance costs decreased by **32.0%** to **US$2,225 thousand**, primarily due to the voluntary early repayment of MIC loans[7](index=7&type=chunk) [Use of Non-HKFRS Measures](index=3&type=section&id=%E4%BD%BF%E7%94%A8%E9%9D%9E%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E8%A8%88%E9%87%8F) The Group's adjusted EBITDA and underlying loss showed improvement in H1 2025, reflecting better operational performance despite external market headwinds and non-recurring items [Adjusted EBITDA – Excluding Non-Recurring Items and Foreign Exchange](index=3&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4EBITDA%EF%BC%8D%E4%B8%8D%E5%8C%85%E6%8B%AC%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%A4%96%E5%8C%AF) The Group recorded a positive adjusted EBITDA of **US$6.7 million** in H1 2025, a significant improvement from **negative US$1.7 million** in the prior year, driven by increased production and sales volumes and reduced production costs, which effectively offset the adverse impacts of weak iron ore prices and ruble appreciation Adjusted EBITDA Reconciliation | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss Before Tax (as reported) | (103,478) | (13,054) | | Impairment Loss | 126,882 | – | | Reversal of Accrued Amounts and EPC Contract-Related Payables | (29,883) | – | | Net Foreign Exchange and Derivative Fair Value Changes | 1,989 | 336 | | Depreciation | 8,956 | 5,645 | | Net Finance Costs | 2,225 | 3,273 | | **Adjusted EBITDA** | **6,691** | **(1,735)** | - Significant increase in production and sales volumes: iron concentrate output of **1,422,870 tonnes** (up **25.7%** YoY) and sales of **1,419,367 tonnes** (up **26.9%** YoY)[10](index=10&type=chunk) - Decreased production costs: cash cost per tonne fell by **20.5%** to **US$77.4**, mainly due to improved Sutara ore quality, lower stripping ratio, and enhanced iron ore recovery[11](index=11&type=chunk) [Adjusted Underlying Performance – Excluding Non-Recurring Items and Foreign Exchange](index=4&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E5%9F%BA%E6%9C%AC%E6%A5%AD%E7%B8%BE%EF%BC%8D%E4%B8%8D%E5%8C%85%E6%8B%AC%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%A4%96%E5%8C%AF) The Group reported an adjusted underlying loss of **US$3.0 million** in H1 2025, an improvement from **US$10.8 million** in the prior year, primarily due to enhanced adjusted EBITDA and the exclusion of non-recurring items such as K&S asset impairment, EPC contract settlement gains, and foreign exchange movements Adjusted Underlying Loss Reconciliation | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (as reported) | (101,968) | (13,239) | | Impairment Loss | 126,882 | – | | Reversal of Accrued Amounts and EPC Contract-Related Payables | (29,883) | – | | Net Foreign Exchange and Derivative Fair Value Changes | 1,989 | 336 | | **Adjusted Underlying Loss** | **(2,980)** | **(10,838)** | - K&S mine impairment loss of **US$120.2 million**, primarily due to increased US dollar-denominated expected operating costs resulting from ruble appreciation[12](index=12&type=chunk) - One-off gain of **US$29.9 million** from the reversal of accrued amounts following the amicable resolution of EPC contract disputes[12](index=12&type=chunk) [Revenue and Cost Analysis](index=5&type=section&id=%E6%94%B6%E7%9B%8A%E8%88%87%E6%88%90%E6%9C%AC%E5%88%86%E6%9E%90) Revenue increased due to higher sales volumes from the Sutara mine, while per-tonne cash costs decreased, though external factors like ruble appreciation and tax hikes exerted cost pressure [Iron Concentrate Production, Sales Volume, and Revenue](index=5&type=section&id=%E9%89%84%E7%B2%BE%E7%A4%A6%E7%94%A2%E9%8A%B7%E9%87%8F%E8%88%87%E6%94%B6%E7%9B%8A) In H1 2025, the Group's iron concentrate production and sales volumes significantly increased to **1,422,870 tonnes** (up **25.7%** YoY) and **1,419,367 tonnes** (up **26.9%** YoY), respectively, driven by improved ore quality and operational efficiency from the Sutara mine's commissioning; despite falling iron ore prices, robust sales volume growth boosted total revenue by **9.3%** to **US$122.8 million** - The Sutara mine, operational since July 2024, provides higher quality ore mined at a lower stripping ratio, significantly boosting K&S production and sales volumes and operational efficiency[14](index=14&type=chunk) - In H1 2025, Sutara mine's output accounted for approximately **88%** of total output, with average plant capacity utilization increasing from **72%** in H1 2024 to **90%**[16](index=16&type=chunk) Revenue Performance | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Platts 65% Fe Iron Ore Average Price (USD/tonne) | 112.5 | 130.7 | -13.9% | | K&S Revenue (Million USD) | 122.8 | 112.3 | 9.3% | [Mine Operating Expenses and Service Costs](index=7&type=section&id=%E7%A4%A6%E5%A0%B4%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF%E5%8F%8A%E6%9C%8D%E5%8B%99%E6%88%90%E6%9C%AC) Net cash cost per tonne decreased by **20.5%** to **US$77.4** during the period, primarily due to improved ore quality and a lower stripping ratio from Sutara mine operations, leading to a **47.8% reduction** in mining costs; however, Russian inflation, ruble appreciation, and increased mineral extraction tax rates exerted cost pressure Cash Cost Components (per wet metric tonne) | Cost Component | H1 2025 (USD/tonne) | H1 2024 (USD/tonne) | Change (%) | | :--- | :--- | :--- | :--- | | Mining | 23.9 | 45.8 | -47.8% | | Production Fixed Costs, Mine Management & Related Costs | 14.7 | 11.9 | 23.5% | | Mineral Extraction Tax | 8.1 | 3.8 | 113.2% | | Temporary Export Tax | – | 6.5 | -100.0% | | **Net Cash Cost (Including Delivery to Customers)** | **77.4** | **97.4** | **-20.5%** | - Ruble appreciation (87 rubles per US dollar, down **4.4%** YoY) intensified cost inflation pressure, negatively impacting operating margins[29](index=29&type=chunk) - Increased mineral extraction tax rates in 2025 led to a **113.2% rise** in mineral extraction tax[29](index=29&type=chunk) [Financial Performance Details](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%A9%B3%E6%83%85) The Group experienced increased administrative expenses and depreciation, reduced net finance costs, and a significant impairment loss, leading to a substantial net loss for the period [General and Administrative Expenses Before Depreciation](index=9&type=section&id=%E6%8A%98%E8%88%8A%E5%89%8D%E4%B8%80%E8%88%AC%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses before depreciation increased by **10.2%** to **US$5.6 million** during the period, primarily due to rising staff costs and administrative expenses driven by inflation General and Administrative Expenses | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | General and Administrative Expenses Before Depreciation | 5.6 | 5.1 | 10.2% | [Depreciation](index=9&type=section&id=%E6%8A%98%E8%88%8A) Depreciation expenses significantly increased by **58.7%** to **US$9.0 million** during the period, consistent with the substantial increase in production volume, as the economic benefits of some fixed assets are consumed in line with production levels Depreciation Expenses | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation Expenses | 9.0 | 5.6 | 58.7% | [Net Finance Costs](index=9&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC%E6%B7%A8%E9%A1%8D) Net finance costs decreased by **32.0%** to **US$2.2 million**, primarily due to the voluntary early repayment of **US$12.0 million** in MIC loan principal, alongside scheduled repayments of **US$4.8 million** Net Finance Costs | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 2.2 | 3.3 | -32.0% | - MIC agreed to extend the principal installment repayment deadline, originally due on June 20, 2025, to October 20, 2025[36](index=36&type=chunk) [Impairment Loss](index=9&type=section&id=%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of **US$120.2 million** related to the K&S mine was recorded during the period, primarily due to increased projected operating costs from ruble appreciation; additionally, Bolshoi Seym exploration and evaluation assets were fully impaired by **US$6.7 million** due to license issues Impairment Loss Breakdown | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | | :--- | :--- | :--- | | K&S Mine Impairment Loss | 120.2 | – | | Bolshoi Seym Asset Impairment | 6.7 | – | [Loss Attributable to Owners of the Company](index=9&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%8B%A5%E6%9C%89%E4%BA%BA%E6%87%89%E5%8D%A0%E8%99%A7%E6%90%8D) The Group recorded a loss of **US$102.0 million** in H1 2025, a significant increase from **US$13.2 million** in the prior year, primarily due to a **US$126.9 million** impairment loss, partially offset by a **US$29.9 million** gain from the reversal of EPC contract-related amounts Loss Attributable to Owners of the Company | Indicator | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 102.0 | 13.2 | 670.2% | [Cash Flow and Financial Resources](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) Operating cash flow was positive, but significant loan repayments and capital expenditures led to a net decrease in cash and deposits, while total borrowings decreased and a share consolidation was implemented [Cash Flow Statement](index=10&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash generated from operating activities was **US$86 thousand** during the period, primarily due to increased sales volume and reduced cash costs; however, net cash and cash equivalents decreased by **US$30.852 million** due to significantly higher loan repayments and capital expenditures for Sutara mine development Cash Flow Summary | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 86 | (1,168) | N/A | | Loan Repayments | (16,809) | (4,457) | 277.1% | | Capital Expenditures | (12,376) | (9,459) | 30.8% | | Cash and Bank Balances at Period-End | 29,882 | 39,362 | -24.1% | - Loan repayments increased by **277.1%**, primarily due to the voluntary early repayment of **US$12.0 million** in MIC loan principal[43](index=43&type=chunk) - Capital expenditures increased by **30.8%**, mainly for the development of the Sutara mine[43](index=43&type=chunk) [Liquidity, Financial and Capital Resources](index=10&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and deposits decreased to **US$29.9 million**, primarily due to MIC loan repayments and Sutara mine capital expenditures; total borrowings decreased, and the gearing ratio fell to **13.3%**, with the company having implemented a share consolidation and continuing to monitor exchange rate fluctuation risks - As of June 30, 2025, cash and deposits decreased to **US$29.9 million** (December 31, 2024: **US$60.7 million**)[45](index=45&type=chunk) Financial Resources Summary | Indicator | June 30, 2025 (Million USD) | Dec 31, 2024 (Million USD) | | :--- | :--- | :--- | | Total Liabilities to MIC | 28.1 | 44.9 | | Gearing Ratio | 13.3% | 14.2% | - Share consolidation became effective on June 27, 2025, merging every ten issued shares into one ordinary share[44](index=44&type=chunk) - The Group had no currency hedging positions as of June 30, 2025, but will consider entering into foreign exchange hedging contracts under favorable conditions[53](index=53&type=chunk) [Exploration, Development and Mining Production Activities](index=11&type=section&id=%E5%8B%98%E6%8E%A2%E3%80%81%E9%96%8B%E7%99%BC%E5%8F%8A%E6%8E%A1%E7%A4%A6%E7%94%A2%E7%94%A2%E6%B4%BB%E5%8B%95) Development and mining production activities generated **US$122.7 million** during the period, with K&S development accounting for **US$122.1 million**; capital expenditures increased to **US$12.4 million**, primarily for Sutara mine development and the purchase of property, plant, and equipment Development and Mining Production Activities | Project | H1 2025 (Million USD) | H1 2024 (Million USD) | | :--- | :--- | :--- | | K&S Development (Operating Expenses) | 109.8 | 108.9 | | K&S Development (Capital Expenditures) | 12.3 | 9.4 | | **Total** | **122.7** | **118.3** | - No significant exploration activities occurred during the period, with focus remaining on K&S mine development and production[46](index=46&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group's employee count increased to **1,616**; total staff costs rose to **US$23.3 million**, primarily due to the strengthening ruble exchange rate and labor shortages driving up labor costs Employee Statistics and Costs | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Number of Employees | 1,616 | 1,579 | | Total Staff Costs (Million USD) | 23.3 | 17.4 | [Chairman's Report](index=14&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) The Chairman highlights Sutara mine's strategic success in boosting operational performance, while acknowledging external market challenges and outlining future efficiency and cost control initiatives [Strategic Progress](index=14&type=section&id=%E7%AD%96%E7%95%A5%E6%80%A7%E9%80%B2%E5%B1%95) The successful commissioning of the Sutara mine marks a strategic turning point for the Group, addressing the limitations of declining grades at the Kimkan mine and significantly enhancing K&S's production and sales volumes and competitive position, validating the company's capability to execute complex mining projects - The Sutara mine provides higher quality ore, leading to **25.7%** and **26.9%** growth in K&S production and sales volumes, respectively[57](index=57&type=chunk) - Sutara's commissioning lays the groundwork for future expansion, including the deployment of the company's own mining fleet in H2 2025[58](index=58&type=chunk) [Financial Performance Overview](index=14&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%A6%82%E8%A7%88) Despite significant operational advancements, external market conditions, including a **13.9% decline** in iron ore prices and substantial ruble appreciation, adversely impacted financial performance, limiting revenue growth to **9.3%** and resulting in a modest improvement in adjusted EBITDA to **US$6.7 million** - Falling iron ore prices were primarily due to weakened demand from China's real estate crisis, market oversupply, and adverse macroeconomic factors[60](index=60&type=chunk) - Significant ruble strengthening led to a substantial increase in US dollar-equivalent operating costs, particularly in Q2 2025[60](index=60&type=chunk) [Non-Recurring Items and Underlying Performance](index=15&type=section&id=%E9%9D%9E%E7%B6%93%E5%B8%B8%E6%80%A7%E9%A0%85%E7%9B%AE%E5%8F%8A%E5%9F%BA%E6%9C%AC%E6%A5%AD%E7%B8%BE) A net loss of **US$102.0 million** was recorded during the period, but after excluding non-cash non-recurring items, including a **US$29.9 million** EPC contractor settlement gain, a **US$120.2 million** K&S asset impairment, and a **US$6.7 million** Bolshoi Seym provision, the underlying loss was **US$3.0 million**, an improvement from the prior year Non-Recurring Items | Non-Recurring Item | Amount (Million USD) | | :--- | :--- | | Engineering, Procurement, and Construction Contractor Settlement Gain | 29.9 | | K&S Asset Impairment Provision | 120.2 | | Bolshoi Seym Provision | 6.7 | - The adjusted underlying loss of **US$3.0 million** more accurately reflects the Group's operational performance and cash-generating capability[62](index=62&type=chunk) [Operational Enhancements](index=15&type=section&id=%E7%87%9F%E9%81%8B%E6%8F%90%E5%8D%87) The Group continues to seek operational efficiency improvements, planning to construct a crushing and screening plant at Sutara to reduce transportation costs by approximately **20%** and strategically transitioning mining operations to in-house management for enhanced control and cost-effectiveness - A crushing and screening plant will be constructed at the Sutara mine, expected to reduce transportation volume and costs by approximately **20%**[64](index=64&type=chunk) - Plans are underway to transition mining operations to in-house management by acquiring owned mining equipment, aiming to enhance operational control and cost-effectiveness[64](index=64&type=chunk) [Addressing Market Challenges and Future Outlook](index=16&type=section&id=%E6%87%89%E5%B0%8D%E5%B8%82%E5%A0%B4%E6%8C%91%E6%88%B0%E5%8F%8A%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) Facing uncertain iron ore market demand, oversupply, and cost pressures from ruble appreciation, the Group will continue to focus on enhancing operational efficiency, maintaining financial flexibility and liquidity, and preparing for market recovery, with Sutara's quality improvements expected to yield more significant benefits - The iron ore market faces weakened demand from China's real estate sector, market oversupply, and the ongoing impact of ruble appreciation on the cost base[65](index=65&type=chunk) - Future strategic focus is on controlling controllable factors: enhancing operational efficiency, maintaining financial flexibility and liquidity, and preparing to capitalize on market recovery[65](index=65&type=chunk) [Interim Financial Report](index=17&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A) The interim financial report details a significant loss for the period, primarily driven by impairment losses, alongside a substantial decrease in total assets and equity [Condensed Consolidated Statement of Profit or Loss](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The Group's revenue for H1 2025 was **US$122,798 thousand**, but due to an impairment loss of **US$126,882 thousand**, the loss for the period expanded to **US$101,976 thousand**, with loss attributable to owners of the Company being **US$101,968 thousand** Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 122,798 | 112,329 | | Operating Expenses (Excluding Depreciation) | (115,977) | (114,375) | | Impairment Loss | (126,882) | – | | Other Income, Gains and Losses | 28,016 | (1,248) | | Loss for the Period | (101,976) | (13,226) | | Loss Attributable to Owners of the Company | (101,968) | (13,239) | | Basic Loss Per Share (US cents) | (7.98) | (1.53) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=18&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The loss for the period was **US$101,976 thousand**, which, combined with other comprehensive income of **US$1,097 thousand** (primarily from exchange differences on translating foreign operations), resulted in a total comprehensive expense for the period of **US$100,879 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss for the Period | (101,976) | (13,226) | | Exchange Differences on Translating Foreign Operations | 1,097 | 294 | | Other Comprehensive Income for the Period, Net of Tax | 1,097 | 1,389 | | Total Comprehensive Expense for the Period | (100,879) | (11,837) | [Condensed Consolidated Statement of Financial Position](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets significantly decreased to **US$277,241 thousand** from **US$445,835 thousand** on December 31, 2024, with non-current assets primarily reduced by impairment of property, plant, and equipment; equity attributable to owners of the Company decreased to **US$215,076 thousand** Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Total Non-Current Assets | 154,362 | 290,657 | | Total Current Assets | 122,879 | 155,178 | | Total Assets | 277,241 | 445,835 | | Equity Attributable to Owners of the Company | 215,076 | 316,144 | | Total Liabilities | 62,731 | 130,446 | - Property, plant and equipment decreased from **US$269,871 thousand** to **US$136,414 thousand**, primarily due to impairment losses[71](index=71&type=chunk) - Total current liabilities decreased from **US$98,003 thousand** to **US$53,332 thousand**, mainly due to reductions in trade and other payables and borrowings[72](index=72&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, equity attributable to owners of the Company decreased from **US$316,144 thousand** at the beginning of the period to **US$215,076 thousand**, primarily due to a loss for the period of **US$101,968 thousand** Condensed Consolidated Statement of Changes in Equity | Indicator | Jan 1, 2025 (Thousand USD) | June 30, 2025 (Thousand USD) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 316,144 | 215,076 | | Loss for the Period | – | (101,968) | | Other Comprehensive Income | – | 900 | | Total Comprehensive Income/(Expense) for the Period | – | (101,068) | [Condensed Consolidated Statement of Cash Flows](index=22&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net cash used in operating activities was **US$92 thousand** during the period; net cash used in investing activities was **US$12,737 thousand**, primarily for the purchase of property, plant, and equipment and exploration and evaluation assets; net cash used in financing activities was **US$18,760 thousand**, mainly for loan repayments, resulting in a net decrease in cash and cash equivalents of **US$31,589 thousand** for the period Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (92) | (1,395) | | Net Cash Used in Investing Activities | (12,737) | (8,608) | | Net Cash Used in Financing Activities | (18,760) | (6,485) | | Net Decrease in Cash and Cash Equivalents for the Period | (31,589) | (16,488) | | Cash and Cash Equivalents at Period-End | 29,149 | 38,890 | - Expenditure on the purchase of property, plant and equipment and exploration and evaluation assets was **US$12,376 thousand**, an increase from the prior year[75](index=75&type=chunk) - Loan repayments of **US$16,809 thousand** were significantly higher than **US$4,457 thousand** in the prior year[75](index=75&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=23&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) These notes detail the basis of financial statement preparation, impact of new accounting standards, revenue breakdown, segment performance, operating expenses, impairment, and other financial disclosures [Basis of Preparation](index=23&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules; the company continuously assesses the impact of UK, EU, and US sanctions, currently deeming no significant direct impact, but supply chain disruption risks require close monitoring - The Group's major suppliers and customers are located in Mainland China and Russia[77](index=77&type=chunk) - Current assessment indicates no significant direct impact of sanctions on the Group or its operations, but supply chain disruption risks could affect K&S operations and Sutara mine development[77](index=77&type=chunk) [New and Revised HKFRS Accounting Standards](index=24&type=section&id=%E6%96%B0%E8%A8%82%E5%8F%8A%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%88%99%E6%9C%83%E8%A8%88%E6%BA%96%E5%88%99) The Group first applied the amendments to HKAS 21 'Lack of Exchangeability' from January 1, 2025, without changes to accounting policies or retrospective adjustments; HKFRS 18, effective January 1, 2027, will significantly impact financial statement presentation - HKFRS 18 will introduce significant changes, including profit or loss statement structure, disclosure of management-defined performance measures, and aggregation and disaggregation requirements[79](index=79&type=chunk) [Revenue](index=24&type=section&id=%E6%94%B6%E7%9B%8A) The Group's primary revenue source is the sale of iron concentrate from the K&S mine; total revenue for H1 2025 was **US$122,798 thousand**, with **US$118,673 thousand** from Chinese customers and **US$77 thousand** from engineering services Revenue by Geographical Market | Geographical Market | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | People's Republic of China | 118,673 | 107,914 | | Russia | 4,125 | 4,415 | | **Total Revenue from External Customers** | **122,798** | **112,329** | - The vast majority of revenue (**US$122,721 thousand**) is derived from products transferred at a point in time (iron concentrate sales)[82](index=82&type=chunk) [Segment Information](index=25&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The operating mines segment (K&S) generated **US$122,721 thousand** in revenue during the period but incurred a segment loss of **US$116,198 thousand** due to impairment losses; mines under development, engineering, and other segments contributed insignificantly to total revenue and all recorded losses Segment Performance | Segment | H1 2025 Revenue (Thousand USD) | H1 2025 Segment Loss (Thousand USD) | | :--- | :--- | :--- | | Operating Mines | 122,721 | (116,198) | | Mines Under Development | – | (6,714) | | Engineering | 77 | (444) | | Other | – | (10) | | **Total** | **122,798** | **(123,366)** | [Operating Expenses (Including Depreciation)](index=26&type=section&id=%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF%EF%BC%88%E5%8C%85%E6%8B%AC%E6%8A%98%E8%88%8A%EF%BC%89) Total operating expenses (including depreciation) for the period were **US$124,933 thousand**, an increase from the prior year, with significant changes observed in subcontracted mining costs, transportation and freight costs, staff costs, and mineral extraction tax Operating Expenses Breakdown | Operating Expense Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Subcontracted Mining Costs and Engineering Services | 35,192 | 37,076 | | Transportation and Freight Costs | 24,657 | 17,163 | | Staff Costs (Mine Operations) | 19,202 | 14,044 | | Mineral Extraction Tax | 11,513 | 4,266 | | Depreciation (Mine Operations) | 8,891 | 5,533 | | Temporary Export Tax | – | 7,267 | | **Total** | **124,933** | **120,020** | - Mineral extraction tax significantly increased by **US$11,513 thousand**, while temporary export tax decreased to zero due to policy changes[84](index=84&type=chunk) [Impairment Loss](index=27&type=section&id=%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D) An impairment loss of **US$120.2 million** was recognized for the K&S project during the period, primarily due to increased cost base from ruble appreciation, Russian inflation, and higher mineral extraction tax rates; additionally, Bolshoi Seym exploration and evaluation assets were fully impaired by **US$6.651 million** due to license revocation - K&S project impairment loss is primarily based on value-in-use calculations, with key assumptions including future cash flows, mine life, iron ore prices, production costs, and discount rates[85](index=85&type=chunk) Key Assumptions for Impairment Calculation | Key Assumption | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Average Annual Production Volume (Thousand wet tonnes) | 2,979 | 2,977 | | Platts 65% Fe Iron Ore Price (USD/dry tonne) | H2 2025: 104.3 | 2025: 112.6 | | Russian Ruble Exchange Rate (per US dollar) | H2 2025: 89 | 2025: 103 | | Nominal Pre-Tax Discount Rate | 12.39% | 13.31% | - The decrease in discount rate was mainly due to lower risk-free rates and a reduction in deleveraged beta for peers, partially offset by increased country risk premiums for Russia and China[87](index=87&type=chunk) [Other Income, Gains and Losses](index=30&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) Net other income, gains, and losses for the period amounted to **US$28,016 thousand**, primarily comprising a **US$29,883 thousand** gain from the reversal of accrued amounts and EPC contract-related payables, offsetting a net foreign exchange loss of **US$1,989 thousand** Other Income, Gains and Losses | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Loss/(Gain) on Disposal of Property, Plant and Equipment | (455) | 11 | | Net Foreign Exchange Loss | (1,989) | (935) | | Reversal of Accrued Amounts and EPC Contract-Related Payables | 29,883 | – | | **Total** | **28,016** | **(1,248)** | [Finance Costs](index=30&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs for the period were **US$2,444 thousand**, a decrease from **US$4,115 thousand** in the prior year, primarily due to reduced interest expenses on borrowings Finance Costs Breakdown | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Interest Expense on Borrowings | 2,307 | 3,918 | | Interest Expense on Lease Liabilities | 4 | 2 | | Discount Reversal on Environmental Provisions | 133 | 195 | | **Total** | **2,444** | **4,115** | [Income Tax Credit/(Expense)](index=31&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%E3%83%BB%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) An income tax credit of **US$1,502 thousand** was recorded during the period, primarily related to an increase in deferred tax; the Russian corporate tax rate increased from **20%** to **25%**, but the K&S project still benefits from preferential tax rates Income Tax Credit/(Expense) | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Current Income Tax (Russian Corporate Tax) | 30 | (227) | | Deferred Tax | 1,472 | 55 | | **Total** | **1,502** | **(172)** | - The K&S project was exempt from Russian corporate tax from 2017-2021, then taxed at a reduced rate of **10%** for the subsequent five years, before increasing to **25%**[91](index=91&type=chunk) [Loss Per Share](index=32&type=section&id=%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic and diluted loss per share attributable to owners of the Company was **7.98 US cents**, a significant increase from **1.53 US cents** in the prior year, primarily reflecting the expanded loss for the period; the weighted average number of shares has been adjusted for the rights issue and share consolidation Loss Per Share | Indicator | H1 2025 (US cents) | H1 2024 (US cents) | | :--- | :--- | :--- | | Basic Loss Per Share | (7.98) | (1.53) | | Diluted Loss Per Share | (7.98) | (1.53) | - Share consolidation became effective on June 27, 2025, merging every ten issued ordinary shares into one ordinary share[94](index=94&type=chunk) [Trade and Other Receivables](index=33&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other receivables amounted to **US$43,098 thousand**, a decrease from **US$46,869 thousand** on December 31, 2024; trade receivables are primarily measured at fair value through profit or loss Trade and Other Receivables | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade Receivables | 22,797 | 30,681 | | Recoverable VAT | 12,540 | 10,195 | | Prepayments to Suppliers | 7,221 | 5,354 | | **Total** | **43,098** | **46,869** | Aging Analysis of Trade Receivables | Trade Receivables Aging | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Less than one month | 12,299 | 21,141 | | One to three months | 18,382 | 9,539 | | Over three months to six months | 1 | 1 | | Over six months | – | – | | **Total** | **22,797** | **30,681** | [Trade and Other Payables](index=34&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade and other payables significantly decreased to **US$28,119 thousand** from **US$78,510 thousand** on December 31, 2024, primarily due to the derecognition of related construction costs payable and accrued amounts following the resolution of disputes with EPC contractors Trade and Other Payables | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade Payables | 11,422 | 12,108 | | Customer Advances | 557 | 7,040 | | Construction Costs Payable | – | 22,694 | | Accrued Amounts and Other Payables | 16,059 | 36,528 | | **Total** | **28,119** | **78,510** | - Disputes with EPC contractors have been fully resolved, leading to the derecognition of **US$22.7 million** in construction costs payable and **US$23.7 million** in other accrued costs[102](index=102&type=chunk) [Borrowings](index=35&type=section&id=%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total borrowings significantly decreased to **US$28,425 thousand** from **US$44,754 thousand** on December 31, 2024, primarily due to the voluntary early repayment of MIC loans; MIC has agreed to extend the repayment deadline for certain installments Borrowings | Item | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Other Loans | 28,425 | 44,754 | | **Total Borrowings** | **28,425** | **44,754** | - Borrowings are secured by property, plant and equipment, 100% equity interest in LLC KS GOK, and rights to certain bank accounts[106](index=106&type=chunk) - MIC has terminated the net debt/EBITDA ratio and debt service coverage ratio covenant requirements for Q2 and Q4 2024, and Q2 2025[109](index=109&type=chunk) - MIC agreed to extend the repayment deadline for the installment originally due on June 20, 2025, to October 20, 2025[110](index=110&type=chunk) [Share Capital](index=38&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's share capital was **US$1,350,734 thousand**; a share consolidation, effective June 27, 2025, merged every ten issued ordinary shares into one, reducing the number of issued shares Share Capital Movement | Indicator | Number of Shares (Thousand shares) | Amount (Thousand USD) | | :--- | :--- | :--- | | Dec 31, 2024 and Jan 1, 2025 | 12,779,485,885 | 1,350,734 | | Share Consolidation | (11,501,537,297) | – | | **June 30, 2025** | **1,277,948,588** | **1,350,734** | - A rights issue completed on December 13, 2024, raised net proceeds of approximately **US$46.3 million** and issued **4,259,828,628** rights shares[113](index=113&type=chunk) [Related Party Disclosures](index=39&type=section&id=%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E6%8A%AB%E9%9C%B2) MIC Invest LLC ceased to be a principal shareholder of the Company from February 22, 2024; total key management personnel remuneration for the period was **US$2,582 thousand**, an increase from the prior year Key Management Personnel Remuneration | Item | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Key Management Personnel Remuneration | 2,582 | 2,296 | | - Short-term Benefits | 2,253 | 1,983 | | - Post-employment Benefits | 329 | 313 | [Events After the Reporting Period](index=39&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) On July 28, 2025, the Group agreed to dispose of its **46% equity interest** in Heilongjiang Jianlong Vanadium Co., Ltd. (a joint venture) for RMB **32.2 million** (approximately **US$4.5 million**); upon completion, the Group will no longer hold any equity interest in the joint venture - Following the disposal of the joint venture equity, the Group will no longer own the steel slag reprocessing plant project[117](index=117&type=chunk) [Project Review](index=40&type=section&id=%E9%A0%85%E7%9B%AE%E5%9B%9E%E9%A1%A7) The K&S project, driven by Sutara, showed strong operational improvements and extended mine life, while other projects are being reviewed or disposed of, with ongoing assessment of sanctions' impact [K&S Project](index=40&type=section&id=K%26S%E9%A0%85%E7%9B%AE) Driven by the Sutara mine, the K&S project demonstrated strong operational performance in H1 2025, with commercial concentrate production growing by **25.7%** and capacity utilization significantly increasing to **90%**; Sutara's high-quality ore reduced mining costs and extended mine life, with plans to acquire owned mining equipment for enhanced efficiency K&S Project Overview | Indicator | Data | | :--- | :--- | | Capacity | 3.2 Million tonnes/year (iron concentrate) | | Ore Processing Capacity | 10 Million tonnes/year | | Distance to China Border | 240 km | | Total Resources | 557 Million tonnes | | Total Reserves | 313 Million tonnes | | Mine Life | 30 years+ | | Iron Grade (Concentrate) | 65% | - Commercial concentrate production in H1 2025 was **1,422,870 tonnes**, a **25.7% increase** YoY[122](index=122&type=chunk) - Capacity utilization increased from **72%** in H1 2024 to **90%** in H1 2025[122](index=122&type=chunk) - Sutara mine's high-quality ore and reduced stripping ratio led to a **20.5% decrease** in total unit cash cost per wet tonne to **US$77.4**[127](index=127&type=chunk)[130](index=130&type=chunk) - K&S plans to purchase and lease its own mining equipment by the end of 2025 to replace some existing mining contractors[128](index=128&type=chunk) [Garinskoye Project](index=42&type=section&id=Garinskoye%E9%A0%85%E7%9B%AE) The Garinskoye project, a **99.6%** owned advanced exploration project, holds potential for low-cost DSO (Direct Shipping Ore) operations and conversion into a large open-pit mine; the company is reviewing options to advance the project, including railway connection construction or DSO operation Garinskoye Project Overview | Indicator | Data | | :--- | :--- | | Iron Grade | 68% | | Iron Capacity | 4.6 Million tonnes/year | | Total Resources | 260 Million tonnes | | Total Reserves | 26 Million tonnes | | Mine Life | 20 years+ | - The DSO option could achieve an annual production of **1.9 million tonnes** with a **55%** Fe concentrate grade and an **8-year** mine life, with an option to add a wet magnetic separation stage to produce **68%** high-grade 'super concentrate'[135](index=135&type=chunk) [Other Projects](index=43&type=section&id=%E5%85%B6%E4%BB%96%E9%A0%85%E7%9B%AE) The Group's other projects include a steel slag reprocessing plant (with **46%** equity sold after the reporting period) and Giproruda, a mining consulting firm; the steel slag reprocessing plant did not significantly contribute to performance Other Projects Summary | Project | Product/Service | Location | Equity | | :--- | :--- | :--- | :--- | | Steel Slag Reprocessing Plant | Vanadium Pentoxide | Heilongjiang, China | 46% (Agreed to dispose) | | Giproruda | Mining Technology Research | St. Petersburg, Russia | 70% | - The Group has agreed to dispose of its **46%** equity interest in the steel slag reprocessing plant, and upon completion, will no longer hold any equity[137](index=137&type=chunk) [Impact of Sanctions on Russia](index=43&type=section&id=%E5%B0%8D%E4%BF%84%E7%BE%85%E6%96%AF%E5%88%B6%E8%A3%81%E7%9A%84%E5%BD%B1%E9%9F%BF) The Company continuously assesses the potential impact of UK, EU, and US sanctions; current assessment indicates no significant direct impact on the Group or its operations, but geopolitical developments could lead to supply chain disruptions affecting K&S operations and Sutara mine development - The Group's operations and business in Russia and other regions continue as usual[139](index=139&type=chunk) - Supply chain disruption risks could affect K&S operations, mining equipment procurement, and Sutara mine development[139](index=139&type=chunk) [Corporate Governance and Other Information](index=44&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) The Company maintains strong corporate governance, with no significant listed securities transactions, contingent liabilities, or material investments/disposals during the period [Purchase, Sale or Redemption of the Company's Listed Securities](index=44&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during H1 2025 [Contingent Liabilities](index=44&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities [Material Investments and Acquisitions/Disposals](index=44&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E6%94%B6%E8%B3%BC%E5%87%BA%E5%94%AE) The Group had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period; apart from Sutara mine development, there are no other significant investment or capital asset plans for H2 2025 as of the reporting date [Corporate Governance](index=44&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Company's management and Board are committed to maintaining good corporate governance and have complied with the code provisions of Appendix C1 of the Listing Rules; the Audit Committee has reviewed and discussed the unaudited interim results for the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[146](index=146&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the period[147](index=147&type=chunk) [Publication of Interim Results and Interim Report](index=45&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company; the Company will provide shareholders with the interim report for the six months ended June 30, 2025, in due course

Group 1 - The company is expected to report a loss attributable to shareholders of approximately $90 million to $110 million for the six months ending June 30, 2025, a significant increase from a loss of about $13.2 million in the same period last year [2] - The increase in loss is primarily due to a potential impairment loss provision of approximately $120 million related to the K&S mine, which is attributed to the appreciation of the Russian ruble leading to increased operating costs in US dollar terms [2] - Any impairment charges are classified as non-cash and non-recurring items, meaning they will not directly impact the group's cash flow [2]

Core Viewpoint - The company expects to incur a significant increase in losses for the six months ending June 30, 2025, compared to the same period in 2024, primarily due to asset impairment related to the K&S mine [1] Financial Performance - The anticipated loss attributable to shareholders for the six months ending June 30, 2025, is projected to be between approximately $90 million and $110 million, compared to a loss of about $13.2 million for the same period in 2024 [1] - The increase in losses is mainly attributed to a potential asset impairment provision of approximately $120 million for the K&S mine, which was not present in the previous period [1] Operational Factors - The need for the impairment provision is primarily due to the appreciation of the Russian ruble, which has led to an increase in operating costs when measured in US dollars [1] - Any impairment charges or reversals are classified as non-cash and non-recurring, indicating that they will not have a direct impact on the company's cash flow [1]

Core Viewpoint - The company anticipates a significant increase in losses for the six months ending June 30, 2025, compared to the same period in 2024, primarily due to asset impairment provisions related to the K&S mine [1] Financial Performance - The expected loss attributable to shareholders for the six months ending June 30, 2025, is projected to be between $90 million and $110 million, compared to a loss of approximately $13.2 million for the same period in 2024 [1] - The increase in losses is mainly attributed to a potential asset impairment provision of about $120 million for the K&S mine, which was not present in the previous period [1] Operational Factors - The need for the asset impairment provision is primarily due to the appreciation of the Russian ruble, which has led to an increase in operating costs when measured in US dollars [1] - Shareholders are advised that any impairment charges or reversals are non-cash and non-recurring in nature, meaning they will not have a direct impact on the company's cash flow [1]

Core Viewpoint - The company expects a significant increase in losses for the six months ending June 30, 2025, with estimated losses between approximately $90 million and $110 million, compared to a loss of about $13.2 million for the same period ending June 30, 2024 [1] Group 1: Financial Performance - The anticipated increase in losses is primarily due to the need for an asset impairment provision of approximately $120 million related to the K&S mine, which was not required for the period ending June 30, 2024 [1] - The increase in operating costs, measured in USD, is attributed to the appreciation of the Russian Ruble [1] Group 2: Cash Flow Impact - Any impairment charges or reversals are classified as non-cash and non-recurring, indicating that they will not have a direct impact on the company's cash flow [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。本 公 告 下 文 所 載 的 資 料 僅 供 參 考，並 不 構 成 收 購、購 買 或 認 購 本 公 司 股 份 的 邀 請 或 要 約。 承董事會命 鐵江現貨有限公司 首席執行官 Denis Cherednichenko 中 華 人 民 共 和 國，香 港 2025年8月21日（星 期 四） 於本公告日期，執行董事為Denis Cherednichenko先生。主席及非執行董事為Nikolai Levitskii先生。獨立非執行董事為Dmitry Dobryak先生、Natalia Ozhegina女士、Alexey Romanenko先生及Vitaly Sheremet先 生。 鐵江現貨有限公司 （於 香 港 註 冊 成 立 的 有 限 公 司） （股 份 代 號：1029） 盈利警告 2025年8月21日（星 期 四）：本 公 告 由 鐵 ...