Financial Performance - The company reported total revenue of $3,606.4 million for 2023, a decrease of 11.9% compared to $4,094.7 million in 2022[2]. - Net profit for 2023 was $381.4 million, down 1.0% from the restated $385.1 million in 2022[2]. - Profit attributable to owners of the company increased by 4.2% to $277.6 million in 2023, compared to the restated $266.3 million in 2022[2]. - Basic earnings per share for 2023 were approximately 7.43 cents, up from 7.12 cents in 2022, representing an increase of about 4.4%[2]. - The total profit for the year was $381,443 thousand, slightly up from $385,139 thousand in 2022, showing a marginal increase of about 0.6%[35]. - The gross profit for 2023 was $877.5 million, an increase of 8.7% from $807.2 million in 2022, with a gross margin rising from 19.7% in 2022 to 24.3% in 2023[130]. - Profit attributable to the owners of the company increased by 4.2% to $277.6 million in 2023 from the restated $266.3 million in 2022, with profit margin rising from 6.5% to 7.7%[137]. Dividends - The board proposed a final dividend of 2.9702 cents per share for 2023[3]. - The company declared a final dividend of $105,474,000 for 2023, compared to $142,850,000 for 2022, reflecting a decrease of 26.1%[53]. - The company plans to pay a proposed final dividend of $111,057,000 for the year ending December 31, 2023, subject to shareholder approval[53]. - The board proposed a final dividend of $0.029702 per share for the year ending December 31, 2023, compared to $0.038205 per share for the previous year[163]. Cash Flow and Investments - Cash generated from operating activities was $589.3 million, a decrease from $782.5 million in 2022[12]. - Cash used in investing activities amounted to $(224.1) million, compared to $(75.7) million in 2022[12]. - Net cash inflow from operating activities decreased by 24.7% to $589.3 million in 2023 from $782.5 million in 2022, mainly due to an increase in inventory and a decrease in accounts payable[138]. - Net cash outflow from investing activities increased by $148.4 million to $224.1 million in 2023 from $75.7 million in 2022, primarily due to increased investment in the Luanshya open-pit mining project[140]. - Total capital expenditures increased by $12.1 million to $136.9 million in 2023 from $124.8 million in 2022, mainly due to investments in the Luanshya open-pit mining project[147]. Assets and Liabilities - Total assets decreased to $3,819.5 million in 2023 from $4,022.7 million in 2022[9]. - The total liabilities decreased to $1,332,910 thousand in 2023 from $1,679,075 thousand in 2022, a reduction of about 20.5%[39]. - The company’s cash and cash equivalents at year-end were $492.4 million, down from $732.9 million at the beginning of the year[12]. - The total amount of trade receivables increased by $9.0 million to $417.6 million as of December 31, 2023, compared to $408.6 million as of December 31, 2022, mainly due to increased sales revenue[143]. - The total inventory increased by $41.2 million to $861.3 million as of December 31, 2023, from $820.1 million as of December 31, 2022, primarily due to an increase in raw materials and spare parts[144]. Production and Operations - The company produced 285,733 tons of copper and anode copper in 2023, a decrease of 10.5% year-on-year[66]. - The production of sulfuric acid decreased by 5.4% to 955,360 tons in 2023[66]. - The company faced a supply disruption of 80,814 dry tons of raw materials from KML, impacting production plans significantly[99]. - The total production of crude and anode copper for the group in 2023 was 285,733 tons, a decrease of 10.5% from 319,398 tons in 2022[108]. - The total production of cathode copper for the group was 142,423 tons, a slight increase of 1.2% year-on-year[108]. Taxation - The total income tax expense for 2023 was $177,177,000, compared to $167,367,000 in 2022, an increase of 5.0%[48]. - The effective tax rate for the Kambishi copper smelting operation was 26.6% in 2023, up from 23.3% in 2022[51]. - The income tax expense for 2023 was $177.2 million, an increase of $9.8 million from the restated $167.4 million in 2022, driven by a rise in total profits[136]. Challenges and Future Outlook - The company faced challenges in 2023, including social unrest and supply chain issues in Southern Africa, impacting production costs and operations[160]. - The global copper supply is expected to remain tight in 2024 due to geopolitical factors and natural disasters, which may push copper prices higher[161]. - The company plans to focus on high-quality development and compliance in 2024, while advancing production expansion projects[161]. Compliance and Governance - The company’s auditor issued an unqualified opinion on the financial statements for the years ended December 31, 2023, and 2022[15]. - The audit committee has reviewed the financial statements for the year ended December 31, 2023, ensuring compliance with applicable accounting standards and regulations[176]. - The board confirmed that all directors complied with the securities trading code during the year ending December 31, 2023[168].

Financial Performance - In the first half of 2023, China Nonferrous Mining Corporation Limited achieved revenue of $1,843.8 million, a decrease of 16.5% year-on-year[20]. - The net profit attributable to the company's owners for the first half of 2023 was $185.7 million, down 5.6% compared to the previous year[20]. - The group's revenue for the first half of 2023 was $1,843.8 million, a decrease of 16.5% compared to the same period last year[22]. - Profit attributable to the company's owners was $185.7 million, down 5.6% year-on-year, primarily due to a decline in copper and anode copper sales and fluctuations in international copper prices[22]. - The company's gross profit for the first half of 2023 was $521.4 million, a slight decrease of 1.8% from $531.0 million in the first half of 2022[71]. - The gross profit margin improved from 24.1% in the first half of 2022 to 28.3% in the first half of 2023[71]. - The company's financing costs increased by 37.1% to $19.2 million, compared to $14.0 million in the same period of 2022[73]. - Cash generated from operating activities increased by $187.0 million to $463.9 million in the first half of 2023, compared to $276.9 million in the same period last year[78]. - The net loss from other income and expenses was $14.2 million, compared to a loss of $3.3 million in the first half of 2022, mainly due to a decrease in fair value gains on financial instruments[75]. - The total profit and comprehensive income for the period increased by $140,000 for the six months ended June 30, 2023, compared to $608,000 for the same period in 2022[161]. Production and Operations - The production of crude copper and anode copper in the first half of 2023 was 144,833 tons, a decrease of 12.2% year-on-year[20]. - The production of cathode copper was 71,648 tons, reflecting a slight decrease of 0.4% year-on-year[20]. - Cobalt hydroxide production was 745 tons, down 11.8% year-on-year[20]. - Sulfuric acid production totaled 487,670 tons, a decrease of 6.7% year-on-year[20]. - Liquid sulfur dioxide production saw a significant decline of 51.7%, totaling 6,591 tons[20]. - The company processed 46,347 tons of copper products, marking a 26.6% increase year-on-year[20]. - The main operating company, China Nonferrous Africa Mining, produced anode copper of 41,226 tons, an increase of 45.4% year-on-year, due to reduced maintenance downtime in the previous year[26]. - The Luanshya operation produced cathode copper of 21,927 tons, a slight decrease of 0.9%, while anode copper production fell by 28.0% to 4,218 tons due to lower ore grades[27]. - The Chambishi Smelter produced 106,598 tons of copper (including 48,651 tons of processed copper), a decrease of 15.9%, primarily due to supply disruptions from a key supplier[28]. - The Lualaba Smelter achieved a 10.9% increase in copper production to 83,006 tons, while sulfuric acid production rose by 14.8% to 188,489 tons[32]. Investments and Capital Expenditure - Total exploration, development, and mining expenses for the six months ended June 30, 2023, amounted to $175.98 million[42]. - The company plans to invest a total of $20.25 million in the anode furnace refining system technology upgrade project, which successfully ignited on August 31, 2023[51]. - The optimization upgrade project for the flue gas desulfurization system at the Luallaba copper smelter has a planned investment of $0.98 million[54]. - The cobalt system pressure leaching and flash drying technology upgrade project has a planned total investment of $1.41 million, with completion expected by September 30, 2023[58]. - The total capital expenditure for the first half of 2023 was $45.957 million, an increase of $11.6 million from $34.436 million in the same period of 2022, driven by increased investments in the Luanshya and Kambishi copper smelting projects[88]. Cash Flow and Financial Position - As of June 30, 2023, the company had cash and cash equivalents of $902.7 million, an increase of $169.8 million from $732.9 million at the end of 2022[82]. - The net cash used in investing activities rose to $172.8 million, up from $14.2 million in the first half of 2022, primarily due to increased investments in property, plant, and equipment[79]. - As of June 30, 2023, the company had a net cash position of approximately $547.1 million, compared to $239.6 million on December 31, 2022, indicating no net debt[99]. - The company’s bank and other borrowings as of June 30, 2023, totaled $482.9 million, with $228.9 million due within one year[86][87]. - The company reported a total of 3,179.26 meters of surface drilling completed for resource exploration at the Luansha project[44]. Market Environment and Risks - The external operating environment is expected to remain complex and challenging in the second half of 2023, with potential fluctuations in copper prices due to weak demand[13]. - The company faces market risks primarily related to commodity price fluctuations, foreign exchange risks, and interest rate risks, with strategies in place to mitigate these risks[91][92][93][94]. - Factors such as grid investment, real estate recovery, and the transformation of the new energy sector are expected to support copper prices in the near future[124]. Corporate Governance and Compliance - The company has implemented various financial policies to enhance internal controls and protect investor interests, including budget management and inventory management systems[89]. - The group has strengthened its internal control system and compliance reporting during the reporting period[110]. - The company continues to enhance corporate governance practices to maintain investor trust[110]. Employee and Community Engagement - The total employee cost for the six months ending June 30, 2023, was approximately $58.6 million, down from $65.5 million for the same period in 2022[113]. - The group employed a total of 8,807 employees as of June 30, 2023, with 886 being Chinese employees and 7,921 local employees from Zambia and the Democratic Republic of the Congo[113]. - The group actively participates in local community development, contributing to municipal construction and vocational education in the first half of 2023[121]. Environmental and Safety Commitment - The company is committed to environmental protection, focusing on energy conservation and pollution monitoring[120]. - The group emphasizes a "safety first" approach, maintaining stable safety production conditions in the first half of 2023[118]. - The group has established emergency rescue teams and medical stations at each mine and factory to ensure employee safety[118].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section provides a concise overview of the company's key financial performance indicators for the period Key Financial Indicators | Indicator | H1 2023 | H1 2022 (Restated) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,843.8 USD million | 2,206.9 USD million | -16.5% | | Net Profit | 264.0 USD million | 294.0 USD million | -10.2% | | Profit attributable to owners of the Company | 185.7 USD million | 196.7 USD million | -5.6% | | Basic earnings per share | 4.97 US cents | 5.26 US cents | -5.5% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[2](index=2&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's revenues, expenses, and overall profitability for the interim period Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item | For the six months ended June 30, 2023 (USD thousand) | For the six months ended June 30, 2022 (USD thousand, Restated) | | :--- | :--- | :--- | | Revenue | 1,843,778 | 2,206,948 | | Cost of sales | (1,322,394) | (1,675,972) | | **Gross profit** | **521,384** | **530,976** | | Profit before tax | 381,819 | 431,521 | | **Profit for the period** | **263,963** | **293,966** | | Profit attributable to owners of the Company | 185,701 | 196,679 | | Basic earnings per share (US cents) | 4.97 | 5.26 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement details the company's assets, liabilities, and equity at the end of the reporting period Interim Condensed Consolidated Statement of Financial Position | Item | June 30, 2023 (USD thousand) | December 31, 2022 (USD thousand, Restated) | | :--- | :--- | :--- | | **Total assets** | **4,087,203** | **4,022,659** | | Non-current assets | 1,719,648 | 1,776,581 | | Current assets | 2,367,555 | 2,246,078 | | **Total liabilities** | **1,594,130** | **1,679,075** | | Non-current liabilities | 478,628 | 555,262 | | Current liabilities | 1,115,502 | 1,123,813 | | **Total equity** | **2,493,073** | **2,343,584** | [Interim Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement outlines the cash inflows and outflows from operating, investing, and financing activities Interim Condensed Consolidated Statement of Cash Flows | Item | For the six months ended June 30, 2023 (USD thousand) | For the six months ended June 30, 2022 (USD thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 463,915 | 276,858 | | Net cash used in investing activities | (172,808) | (14,189) | | Net cash used in financing activities | (120,407) | (61,264) | | **Net increase in cash and cash equivalents** | **170,700** | **201,405** | | Cash and cash equivalents at end of period | 902,653 | 808,151 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) [Accounting Policies and Changes in Disclosures](index=8&type=section&id=2.%20Accounting%20Policies%20and%20Changes%20in%20Disclosures) This section explains the accounting principles applied and any significant changes in disclosure practices - Adoption of HKAS 12 (Amendments) narrowed the scope of initial recognition exemption, requiring recognition of deferred tax assets and liabilities for temporary differences arising from transactions like leases and decommissioning liabilities[11](index=11&type=chunk) - This accounting policy change resulted in an increase of **USD 0.76 million** to total equity as of January 1, 2022, and an increase of **USD 0.06 million** to profit and total comprehensive income for the first half of 2022[13](index=13&type=chunk)[15](index=15&type=chunk) [Segment Information](index=12&type=section&id=3.%20Segment%20Information) This section provides a breakdown of the Group's performance across its distinct business segments Segment Performance (H1 2023) | Segment (H1 2023) | External Sales Revenue (USD thousand) | Segment Profit (USD thousand) | | :--- | :--- | :--- | | Hydrometallurgy | 580,247 | 158,373 | | Smelting | 1,263,531 | 117,100 | | **Total** | **1,843,778** | **275,473** | Segment Performance (H1 2022) | Segment (H1 2022) | External Sales Revenue (USD thousand) | Segment Profit (USD thousand) | | :--- | :--- | :--- | | Hydrometallurgy | 680,999 | 172,840 | | Smelting | 1,525,949 | 136,760 | | **Total** | **2,206,948** | **309,600** | [Revenue](index=15&type=section&id=4.%20Revenue) This section details the sources of the Group's revenue by product/service and geographical market Revenue by Product/Service (H1 2023) | Product/Service (H1 2023) | Revenue (USD thousand) | | :--- | :--- | | Blister copper and anode copper | 1,111,628 | | Cathode copper | 570,350 | | Sulphuric acid | 114,764 | | Others | 47,036 | Revenue by Geographical Market (H1 2023) | Geographical Market (H1 2023) | Revenue (USD thousand) | | :--- | :--- | | Mainland China | 1,159,666 | | Hong Kong | 255,298 | | Switzerland | 289,533 | | Others | 139,281 | [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) [Overview and Business Review](index=24&type=section&id=Overview%20and%20Business%20Review) This section provides a high-level review of the Group's operational performance and key business developments - The primary reasons for the Group's performance decline were decreased sales volume of blister copper and anode copper and fluctuations in international copper prices[38](index=38&type=chunk) Production Volume by Product (H1 2023) | Product | H1 2023 Production Volume (tonnes) | YoY Change (%) | | :--- | :--- | :--- | | Blister copper and anode copper | 144,833 | (12.2) | | Cathode copper | 71,648 | (0.4) | | Cobalt hydroxide containing cobalt | 745 | (11.8) | | Sulphuric acid | 487,670 | (6.7) | | Liquid sulfur dioxide | 6,591 | (51.7) | | Copper product processing services | 46,347 | 26.6 | [Financial Review](index=30&type=section&id=Financial%20Review) This section offers a detailed analysis of the Group's financial performance, liquidity, and capital [Operating Results](index=30&type=section&id=Operating%20Results) This subsection analyzes the factors influencing the Group's revenue, costs, and profitability - The 16.5% decrease in revenue was primarily due to lower sales volume and average selling price of blister copper and anode copper[59](index=59&type=chunk) - The 21.1% decrease in cost of sales was mainly due to lower sales volume of blister copper and anode copper, and a decline in raw material costs for purchased copper concentrate and oxidized ore in line with international copper price fluctuations[61](index=61&type=chunk) - Gross margin increased from **24.1% to 28.3%**, primarily due to lower raw material costs for purchased copper concentrate and oxidized ore[62](index=62&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses the Group's cash flow, working capital, and funding sources - Net cash generated from operating activities was **USD 464 million**, a year-on-year increase of **USD 187 million**, primarily due to decreased copper concentrate purchases during the reporting period[67](index=67&type=chunk) - Net cash used in investing activities was **USD 173 million**, a year-on-year increase of **USD 159 million**, mainly due to investments in property, plant, and equipment and increased fixed deposits[68](index=68&type=chunk) - Inventories decreased to **USD 679 million** at period-end, a reduction of **USD 141 million** from the beginning of the year, primarily due to a decrease in raw material inventory[71](index=71&type=chunk) [Capital Expenditure](index=35&type=section&id=Capital%20Expenditure) This subsection outlines the Group's investments in property, plant, and equipment during the period Capital Expenditure by Entity (H1) | Item | H1 2023 (USD thousand) | H1 2022 (USD thousand) | | :--- | :--- | :--- | | CNMC Africa Mining | 16,068 | 22,217 | | CNMC Luanshya Copper Mines | 13,560 | 877 | | Chambishi Copper Smelter | 7,505 | 2,048 | | Others | 8,824 | 9,294 | | **Total** | **45,957** | **34,436** | [Market Risk Disclosure](index=36&type=section&id=Market%20Risk%20Disclosure) This section identifies and explains the Group's exposure to various market risks and mitigation strategies - Commodity Price Risk: Primarily from fluctuations in copper market prices, controlled through copper futures trading contracts and provisional pricing agreements[73](index=73&type=chunk) - Foreign Exchange Risk: Primarily from exchange rate fluctuations of Zambian Kwacha, Congolese Franc, and RMB, hedged by locking contract and settlement currencies and accelerating tax refunds[74](index=74&type=chunk) - Interest Rate Risk: Primarily from financial assets and liabilities with floating interest rates, with no current interest rate hedging policy[75](index=75&type=chunk) [Outlook](index=37&type=section&id=Outlook) This section provides management's perspective on future market conditions and the Group's strategic priorities - Management assesses that, absent widespread demand recession or systemic risk events globally, the downside for copper prices is limited, with volatile upward movement likely to be the norm for the foreseeable future[77](index=77&type=chunk) - Second-half strategic focus: continue stable production and profit, prioritize safety, environmental protection, compliant operations, sustainable development, and advance reforms to ensure completion of full-year production and operation tasks[77](index=77&type=chunk) [Other Information](index=38&type=section&id=Other%20Information) [Company Information and Shareholding Structure](index=38&type=section&id=Company%20Information%20and%20Shareholding%20Structure) This section provides details on the company's registration, ultimate ownership, and major shareholders - The Company's ultimate controlling shareholder is China Nonferrous Metal Mining (Group) Co., Ltd. ('CNMC Group'), wholly owned by SASAC[78](index=78&type=chunk) Major Shareholders | Major Shareholder | Capacity/Nature of Interest | Shareholding Percentage | | :--- | :--- | :--- | | CNMC Mining Development | Registered Owner | 69.54% | | CNMC Group | Interest in Controlled Corporation | 69.54% | [Corporate Governance](index=40&type=section&id=Corporate%20Governance) This section describes the company's adherence to corporate governance principles and practices - The Company has established an Audit Committee, comprising one non-executive Director and two independent non-executive Directors, which has reviewed these interim results[85](index=85&type=chunk) - The Company has adopted a Model Code for Securities Transactions by Directors, and all Directors complied with it during the reporting period[86](index=86&type=chunk)

Financial Performance - In 2022, the company achieved a total copper production of 520,000 tons, representing a year-on-year increase of 2.8%[6]. - The company reported a total revenue of $4.095 billion in 2022, maintaining stability compared to the previous year[6]. - Net profit for 2022 was $382 million, with a profit attributable to shareholders of $264 million, reflecting a 26% decrease year-on-year[6]. - The revenue from copper and anode copper decreased by 9.3% to $2,622.7 million in 2022, primarily due to a decline in international copper prices and sales volume[18]. - The revenue from cathode copper increased by 21.0% to $1,155.3 million in 2022, driven by a growth in sales volume[18]. - The revenue from sulfuric acid rose by 60.7% to $212.1 million in 2022, mainly due to an increase in unit selling price[18]. - The total sales cost for 2022 was $3,287.5 million, a 10.9% increase from $2,965.6 million in 2021, attributed to higher production costs for copper products[21]. - The gross profit for 2022 was $807.2 million, a decrease of 25.6% from $1,085.0 million in 2021, with a gross margin of 19.7%[22]. - The gross margin for copper and anode copper dropped from 18.2% in 2021 to 5.9% in 2022, primarily due to rising production costs[22]. - The profit attributable to the owners of the company decreased by 26.2% from $357.1 million in 2021 to $263.7 million in 2022, with profit margin dropping from 8.8% to 6.4%[29]. - Net cash inflow from operating activities increased by 45.9% to $782.5 million in 2022, compared to $536.4 million in 2021, primarily due to a decrease in inventory and accounts receivable[31]. - Total cash and cash equivalents increased by $156.2 million to $762.9 million as of December 31, 2022, from $606.7 million at the end of 2021[34]. Production and Operations - The company produced 1,673 tons of cobalt hydroxide and approximately 1.01 million tons of sulfuric acid in 2022[6]. - The company produced 319,398 tons of copper and cathode copper in 2022, a decrease of 1.6% year-on-year, while cobalt hydroxide production increased by 177.9% to 1,673 tons[52]. - The company faced a power supply shortage, which impacted the production of cathode copper, which decreased by 8.9% to 24,605 tons[87]. - The company conducted extensive exploration activities, completing 392 drill holes with a total depth of 28,020.41 meters[94]. - The total production of sulfuric acid decreased by 12.0% to 283,972 tons due to maintenance work conducted from July to August 2022[88]. Strategic Initiatives - The company plans to enhance production, control costs, and strengthen management to drive high-quality development[8]. - The company aims to expand its copper and cobalt resource reserves through exploration and acquisitions[8]. - The company is focusing on expanding its cobalt metal development business, indicating a strategic shift towards diversifying its product offerings[51]. - The company has implemented a sales strategy combining long and short positions to mitigate commodity price risks, particularly in copper[47]. - The company is actively exploring market expansion opportunities while maintaining stable production and management practices[50]. Governance and Management - The company is committed to improving corporate governance and investor relations to achieve breakthroughs in equity financing and resource acquisitions[8]. - The board consists of 1 executive director, 1 non-executive director, and 3 independent non-executive directors, with independent directors making up 60% of the board[129][133]. - The company has established a governance framework that promotes transparency, accountability, and stakeholder interests[130]. - The company has committed to regular reviews of its governance practices to enhance shareholder value[132]. - The company appointed Yang He as the chairman and executive director on October 13, 2022, following the resignation of Zhang Jinjun as chairman and CEO on August 4, 2022[136]. Risk Management - The company has established a risk management and internal control system, which is reviewed annually by the audit committee[144]. - The company has a structured risk management framework that identifies and manages risks rather than eliminating them entirely[166]. - The audit committee continuously monitors the company's risk management and internal control systems, ensuring their adequacy and effectiveness[167]. - The company emphasizes the importance of a strong risk management culture across all levels of the organization[170]. - The company recognizes the importance of understanding its current risk exposure and changes in risk conditions to inform its risk management policies[181]. Investor Relations - The company emphasizes investor relations, maintaining proactive communication with investors and providing timely updates on industry conditions and business developments[190]. - The company organized a total of 40 investor communication activities during the year, including annual and interim earnings presentations, 28 one-on-one roadshows, and 10 group roadshows, covering over 100 brokerage and institutional investors[191]. - The company received the Best Shareholder Relations Award at the 6th China Excellent IR 2022-2023[185]. - The company published 49 announcements on its website and 8 news articles on its WeChat public account in 2022, enhancing information dissemination[193]. Sustainability and ESG - The company emphasizes the importance of a comprehensive sustainable development management framework, integrating ESG matters into governance and daily operations[200]. - The board of directors is responsible for establishing the ESG strategy and ensuring the accuracy and completeness of the report's content[198]. - The company has established a compliance committee to oversee ESG responsibilities and ensure regular reviews of ESG goal progress[200]. - The company aims to improve public awareness of its operations through close communication with professional media and investment institutions[193].

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，並表明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。 China Nonferrous Mining Corporation Limited 中 國 有 色 礦 業 有 限 公 司 （根據公司條例於香港註冊成立的有限公司） （股份代號：01258） 截至2022年12月31日止年度全年業績公佈 本集團財務摘要 2022年，本集團生產系統繼續保持了高負荷運行，主要產品產量同比增長，實 現收益4,094.7百萬美元，較2021年的4,050.6百萬美元增加1.1%。 2022年，本集團實現淨利潤382.1百萬美元，較2021年的515.4百萬美元減少 25.9%。 2022年，本集團實現本公司擁有人分佔利潤263.7百萬美元，較2021年的357.1百 萬美元減少26.2%。 2022年，本公司擁有人分佔之每股基本盈利約為7.05美仙（折算約為0.55港元）， 較2021年的約9.78美仙（折算約為0.76港元）減少約2.73美仙（折算約為0.21港元）。 ...

Financial Performance - In the first half of 2022, the company achieved revenue of $2,206.9 million, an increase of 4.6% year-on-year[14]. - The net profit attributable to shareholders for the first half of 2022 was $196.2 million, a decrease of 17.7% year-on-year[14]. - The group's revenue for the first half of 2022 was $2,206.9 million, an increase of 4.6% year-on-year, while profit attributable to owners decreased by 17.7% to $196.2 million due to production declines and copper price volatility[18]. - The sales revenue from cathode copper was $639.9 million, a 36.7% increase from $468.2 million in the same period of 2021, driven by increased sales volume and average price[37]. - The gross profit for the first half of 2022 was $531.0 million, a decrease of 14.2% from $618.6 million in the same period of 2021, with a gross margin decline from 29.3% to 24.1%[40]. - The total profit for the six months ended June 30, 2022, was $293,358 thousand, reflecting a decrease from $348,220 thousand in the same period of 2021, a decline of 15.8%[93][94]. Production and Operations - The company produced 201,644 tons of crude copper and anode copper, a decrease of 4.3% year-on-year[15]. - The production of cathode copper reached 71,932 tons, an increase of 22.8% year-on-year[15]. - The production of cobalt hydroxide was 845 tons, a significant increase of 682.4% year-on-year[15]. - The group processed 36,602 tons of copper products, marking a 90.6% increase year-on-year, indicating strong demand for processing services[27]. - The production of sulfuric acid was 522,409 tons, a slight decrease of 0.6% compared to the previous year[27]. - The group achieved a production of 14,710 tons of cathode copper at the newly operational Kambove mine, contributing to overall output[26]. Financial Position - As of June 30, 2022, the group had cash and cash equivalents of $808.2 million, an increase of $201.5 million from $606.7 million as of December 31, 2021[46]. - The total inventory as of June 30, 2022, was $858.8 million, an increase of $10.5 million from $848.3 million as of December 31, 2021, primarily due to an increase in finished goods inventory[47]. - The debt ratio as of June 30, 2022, was 1.8%, significantly down from 16.9% as of December 31, 2021[56]. - Total assets as of June 30, 2022, increased to $4,328,049 thousand from $4,163,984 thousand at the end of 2021, reflecting a growth of 3.9%[84]. - Total liabilities rose to $2,037,655 thousand as of June 30, 2022, compared to $1,992,100 thousand at the end of 2021, marking an increase of 2.3%[84]. Market and Economic Outlook - The international copper price is expected to stabilize in the second half of the year, supported by strong demand from the power and new energy sectors[11]. - The International Copper Study Group (ICSG) forecasts a 4.3% increase in global refined copper production for 2022, with supply growth outpacing demand growth, leading to a decline in copper prices[69]. Corporate Governance and Social Responsibility - The board of directors has committed to maintaining high standards of corporate governance, ensuring effective oversight of legal cases, related transactions, and internal control risks[62]. - The group actively participates in community development and social responsibility initiatives, contributing to local economic growth through job creation and tax revenue[68]. - The group has implemented advanced environmental management practices to enhance resource recycling and pollution control[67]. Employee and Management Information - The group employed a total of 8,874 employees as of June 30, 2022, with 905 from China and 7,969 from Zambia and the Democratic Republic of Congo[63]. - Total employee costs for the six months ended June 30, 2022, were approximately $65.5 million, compared to $54.8 million for the same period in 2021, reflecting a year-over-year increase of 19.8%[63]. - Total compensation for directors and key management personnel was $499 thousand for the six months ended June 30, 2022, down from $632 thousand in the same period of 2021, representing a decrease of approximately 21%[147]. Investment and Capital Expenditure - The total capital expenditure for the first half of 2022 was $34.4 million, a decrease of $87.0 million from $121.4 million in the same period of 2021[49]. - The group has no significant investments or acquisitions during the six months ended June 30, 2022, and no plans for major investments or capital asset purchases[55]. Risk Management - The group faces market risks primarily from commodity price fluctuations, particularly copper, and has entered into futures contracts to mitigate these risks[51]. - The group operates in Zambia and the Democratic Republic of Congo, exposing it to foreign exchange risks, which it manages through hedging activities[52].

Financial Performance - In 2021, the company achieved a total revenue of $4,050.6 million, representing a 56.0% increase compared to 2020[15]. - The net profit for 2021 was $515.4 million, a significant increase of 161.7% year-on-year[13]. - The gross profit for 2021 was $1,085.0 million, up 72.4% from $629.4 million in 2020, with a gross margin increase from 24.2% to 26.8%[22]. - The company reported a net profit attributable to shareholders of $357.1 million in 2021, a 185.7% increase from $125.0 million in 2020, with a profit margin of 8.8%[26]. - Copper and anode copper revenue grew by 62.2% from $1,781.8 million in 2020 to $2,890.6 million in 2021, driven by rising international copper prices and increased sales volume[19]. - The company achieved a revenue of $4,050.6 million in 2021, an increase of 56.0% compared to the previous year[43]. Production and Sales - Total sales of copper and anode copper reached 333,499 tons, up 15.6% from the previous year[13]. - The production of cobalt hydroxide surged by 215.2%, totaling 602 tons in 2021[15]. - The company sold 765,565 tons of sulfuric acid, marking a 43.4% increase year-on-year[13]. - The production of cathode copper increased by 7.3%, reaching 124,327 tons in 2021[15]. - The total production of copper and anode copper reached 324,501 tons, a growth of 26.2% year-on-year, while cathode copper production increased by 7.3% to 124,327 tons[44]. - The total production of copper anodes reached 66,005 tons, representing a year-on-year increase of 64.3%[72]. Cash Flow and Investments - The net cash inflow from operating activities for 2021 was $536.4 million, an increase of 11.2% from $482.5 million in 2020, primarily due to increased profits year-on-year[29]. - The net cash outflow from investing activities for 2021 was $204.4 million, slightly reduced from $210.3 million in 2020, indicating stability in investment spending[29]. - The company plans to invest $238 million in the Kambove mining project, which is expected to lay a solid foundation for future business development[43]. - The total exploration, development, and mining expenses for the year ended December 31, 2021, amounted to approximately $405.32 million[80]. Governance and Compliance - The company aims to enhance its governance and compliance risk management systems[14]. - The company is committed to compliance and operational excellence, as evidenced by the roles of its senior management in overseeing these areas[100][101]. - The company has adopted a strict code of conduct for securities trading, ensuring compliance with regulatory standards[105]. - The audit committee is responsible for monitoring the financial reporting process and the internal control and risk management systems of the group[122]. - The company has established a unified business financial management system across its subsidiaries to enhance data sharing and oversight[150]. Risk Management - The company has implemented a risk management system that integrates risk control into daily operations, continuously improving its risk management capabilities[157]. - The company emphasizes the importance of internal audits and compliance, conducting a special evaluation of its risk management and internal control systems[155]. - The company has established a comprehensive internal control management manual covering organizational structure, development strategy, human resources, social responsibility, and corporate culture[150]. - The company has mechanisms in place for reporting and addressing fraud and compliance issues, ensuring transparency and accountability[150]. Market Outlook and Strategy - The company expects stable copper prices due to a balanced supply-demand situation in the global market[14]. - The global supply-demand balance for commodities is expected to remain tight, providing strong support for commodity prices[87]. - The company plans to expand its market presence in Africa, targeting a 30% increase in resource development projects by 2023[108]. - A strategic acquisition of a local mining firm is in progress, expected to enhance resource capabilities and add $100 million in annual revenue[108]. Human Resources - The total employee cost for the year ended December 31, 2021, was approximately $130.1 million, an increase from $113.7 million in 2020[86]. - The company employed a total of 8,756 employees as of December 31, 2021, compared to 8,352 employees as of December 31, 2020[86]. - The company has established a compliance officer and legal department to ensure adherence to local laws in Zambia and the Democratic Republic of the Congo[191]. Environmental, Social, and Governance (ESG) - The company follows the Hong Kong Stock Exchange's guidelines for ESG reporting, ensuring compliance with mandatory disclosure requirements[169]. - The company is committed to integrating the United Nations Sustainable Development Goals into its sustainable development management processes[184]. - The company adheres to sustainable practices by recycling wastewater and treating sewage to reduce pollution[186]. - The company has implemented internal policies to protect employee rights and ensure equal employment opportunities, including signing agreements with multiple unions[187]. Corporate Structure and Leadership - The company has appointed Liu Jingwei as an independent non-executive director and chairman of the audit committee, with extensive experience in finance and accounting[96]. - The senior management team includes Zhang Jinjun as chairman and president, with over 32 years of experience in the metal industry[100]. - The board of directors includes members with significant experience in various sectors, ensuring a diverse and knowledgeable leadership team[96][97].

Financial Performance - In the first half of 2021, the company achieved revenue of $2,109.6 million, representing a year-on-year increase of 123.8%[16] - The profit attributable to the owners of the company for the first half of 2021 was $238.5 million, a significant year-on-year increase of 914.9%[16] - The total revenue for the first half of 2021 was $2,109.6 million, an increase of 123.8% compared to the same period last year, with profit attributable to owners rising by 914.9% to $238.5 million[22] - The company's gross profit for the first half of 2021 was $618.6 million, a 216.3% increase from $195.6 million in the same period of 2020, with a gross margin rising from 20.7% to 29.3%[43] - The company reported a net cash inflow from operating activities of $369.7 million for the first half of 2021, a significant increase from $69.7 million in the same period of 2020, driven by higher copper prices and sales volume[47] - The company reported a profit and total comprehensive income of $238,543 thousand for the six months ended June 30, 2021, compared to $23,466 thousand for the same period in 2020, indicating a substantial increase of approximately 911.5%[89] - The basic and diluted earnings per share for the period were 6.70 cents, a significant increase from 0.67 cents in the prior year, representing a growth of approximately 900%[86] Production and Capacity - In the first half of 2021, the production of copper anodes and cathodes reached 172,515 tons and 58,570 tons, respectively, representing year-on-year increases of 79.7% and 7.7%[22] - The production of cobalt hydroxide reached 108 tons, marking a year-on-year increase of 12.5%[22] - Sulfuric acid production totaled 525,500 tons, reflecting a year-on-year increase of 59.0%[22] - Liquid sulfur dioxide production increased significantly by 152.0% to 11,977 tons in the first half of 2021[22] - The company processed 19,204 tons of copper products, which is a year-on-year increase of 21.5%[22] - The Kambove Southeast ore body produced 37,091 tons of anode copper, a substantial year-on-year increase of 215.3%[24] - The Luanshya copper smelting project produced 60,066 tons of copper, a remarkable year-on-year increase of 216.5%[28] Investments and Development - The company plans to enhance its copper and cobalt resource development efforts, focusing on high-quality growth[14] - The company aims to strengthen its overseas resource layout and development capabilities, leveraging its international talent[14] - The Kambishi main mine's hydrometallurgical copper project has a planned total investment of $238 million, with 88% of the stripping volume completed as of June 30, 2021[34] - The project is expected to produce 28,000 tons of cathode copper and 978 tons of cobalt hydroxide annually[34] - The company has completed 85% of the tailings treatment system and cobalt precipitation system[34] - The company is actively expanding its cobalt business, with several projects planned to produce cobalt products in the near future[23] Financial Position - As of June 30, 2021, the group had cash and bank balances of $841.2 million, an increase of $343.4 million from $497.8 million on December 31, 2020[49] - Trade receivables measured at amortized cost were $22.1 million, while those measured at fair value were $691.3 million, totaling $713.4 million, up $465.0 million from $248.4 million on December 31, 2020, primarily due to increased copper sales and rising international copper prices[49] - Inventory as of June 30, 2021, was $606.9 million, a decrease of $64.5 million from $671.4 million on December 31, 2020, mainly due to reduced raw material inventory[50] - Total trade payables amounted to $662.3 million, an increase of $237.4 million from $424.9 million on December 31, 2020, driven by increased copper concentrate procurement and rising copper prices[50] - The debt ratio as of June 30, 2021, was 12.8%, a significant decrease from 50.4% on December 31, 2020, calculated based on net debt divided by total equity attributable to shareholders[58] Corporate Governance and Compliance - The group is committed to corporate governance, enhancing internal control systems, and ensuring compliance with relevant regulations[68] - The company has established an audit committee to oversee financial reporting and internal controls, ensuring compliance with applicable accounting standards and regulations[81] - The board believes that the current governance structure, despite deviations from certain codes, is appropriate and will continue to be reviewed for necessary adjustments[68] Market and Risk Management - The group is exposed to market risks including commodity price risk, foreign exchange risk, and interest rate risk, with strategies in place to mitigate these risks[54][55][56] - The company plans to leverage the growing demand for copper and cobalt driven by the renewable energy sector, aligning with the "dual carbon" strategy for long-term development prospects[76] Employee and Operational Insights - As of June 30, 2021, the group employed a total of 8,553 employees, with 880 in China and 7,673 in Zambia and the Democratic Republic of Congo[69] - The total employee cost for the six months ended June 30, 2021, was approximately $54.75 million, compared to $54.4 million for the same period in 2020[69] - The group reported a stable safety production situation in the first half of 2021, with ongoing investments in safety and environmental protection facilities[72] Shareholder and Capital Management - Major shareholder China Nonferrous Mining Development holds 2,600,000,000 shares, representing 69.54% ownership[64] - The company plans to use the net proceeds for project construction, mineral resource acquisitions, and to supplement working capital[61] - The net proceeds from the placement amount to $126,886,000, with $36,000,000 already utilized for project construction and development[62]

Financial Performance - In the first half of 2020, the company achieved revenue of $942.8 million, a decrease of 9.9% year-on-year[13]. - The company reported a profit attributable to shareholders of $23.5 million, a significant decrease of 69.2% year-on-year[13]. - The company reported revenues of $942.8 million for the first half of 2020, down 9.9% from $1,046.3 million in the same period last year[20]. - The profit attributable to the company's owners was $23.5 million, a significant decrease of 69.2% compared to the previous year, primarily due to falling international copper prices and increased foreign exchange losses[20]. - The company achieved a gross profit of $195.6 million in the first half of 2020, a decrease of 14.6% from $229.0 million in the same period of 2019, with a gross margin decline from 21.9% to 20.7%[47]. - The net profit for the period was $44,523 thousand, compared to $121,097 thousand in the prior year, representing a decline of 63.2%[101]. - The company reported a profit and total comprehensive income of $23,466,000 for the six months ended June 30, 2020, significantly lower than $76,315,000 for the same period in 2019[104]. - The company reported a foreign exchange loss of $41,417 thousand for the six months ended June 30, 2020, compared to a loss of $7,512 thousand in the same period of 2019[123]. Production and Operations - The total production of copper and anode copper reached 111,833 tons, while cathode copper production was 54,381 tons, and sulfuric acid production was 330,407 tons[10]. - The company produced 54,381 tons of cathode copper in the first half of 2020, an increase of 10.4% year-on-year[21]. - The company’s sulfuric acid production reached 330,407 tons, a decrease of 6.9% compared to the same period last year[21]. - The production of copper from the Kambove project during the trial production phase was 3,994 tons in the first half of 2020[22]. - The production of copper and anode copper for the six months ended June 30, 2020, was 111,833 tons, a decrease of 10.3% compared to 124,680 tons in the same period of 2019[31]. - The company did not produce any copper concentrate during the six months ended June 30, 2020, representing a 100% decrease from 21,569 tons in the same period of 2019[31]. Investment and Projects - The company has invested $5,046 million in the Huaxin Hydrometallurgy project, which is part of a total planned investment of $52.4 million[17]. - The Lualaba Copper Smelting project commenced production on May 1, 2020, with a designed annual processing capacity of 400,000 tons of copper concentrate[17]. - The company is progressing with the construction of the Kambove project, with a total planned investment of $238 million, and has completed 20% of the stripping volume[17]. - The company invested a total of $8.32 billion in the Kambishi Southeast ore body project, which has an annual design capacity of 3.3 million tons of ore and is expected to produce approximately 58,900 tons of copper concentrate annually[38]. - The Luapula pyrometallurgical project, with a total investment of $470 million, has a design capacity to process 400,000 tons of copper concentrate annually, producing 118,000 tons of copper and 240,000 tons of sulfuric acid[39]. Market and Sales - Sales revenue from copper and anode copper was $614.5 million, down 14.4% from $717.5 million in the first half of 2019, attributed to lower international copper prices[44]. - The company’s cathode copper sales revenue was $270.9 million, slightly down by 0.7% from $272.7 million in the first half of 2019, reflecting a combination of lower prices and increased sales volume[44]. - The company’s revenue from the Chinese market was $199,569,000 for the six months ended June 30, 2020, compared to $367,024,000 for the same period in 2019[113]. - The group reported sales of copper and copper products to related parties totaling $316.27 million for copper anodes and $194.74 million for cathodes in the first half of 2020, compared to $272.7 million and $174.6 million respectively in the same period of 2019[156]. Financial Position - As of June 30, 2020, the company had cash and bank balances of $579.3 million, an increase of $98.1 million from $481.2 million as of December 31, 2019[55]. - The total assets as of June 30, 2020, increased to $3,619,505 thousand from $3,315,531 thousand as of December 31, 2019, marking a growth of 9.2%[102]. - Total liabilities increased to $2,099,595 thousand from $1,779,455 thousand, representing a rise of 18%[103]. - The company’s debt ratio was 76.1%, an increase from 69.7% as of December 31, 2019[66]. - The total capital expenditure for the first half of 2020 was $100.4 million, a decrease of $130.9 million from $231.3 million in the first half of 2019, mainly due to the trial and commercial production of certain facilities[60]. Corporate Governance and Social Responsibility - The company has established a robust internal control system to enhance corporate governance during the reporting period[79]. - The company has a commitment to corporate social responsibility, focusing on employee welfare and a non-discriminatory work environment[84]. - The company actively participated in local community development, contributing to municipal construction and vocational education, receiving high praise from local governments and residents[87]. - The company emphasizes environmental protection and sustainable resource utilization while adhering to governance standards and improving employee conditions[11]. - The company achieved a significant milestone in environmental protection by implementing a circular water usage system for mining and industrial processes[86]. Challenges and Future Outlook - The decline in performance was primarily due to the drop in international copper prices and significant currency fluctuations in Zambia and the Democratic Republic of the Congo[10]. - The company experienced a significant impact on its financial performance due to the COVID-19 pandemic, including a decline in copper prices and project delays[107]. - Despite the COVID-19 pandemic, the company's operations in Zambia and the Democratic Republic of Congo continued to develop steadily, with a positive long-term outlook for copper and cobalt products[88]. - The company plans to increase investment in geological exploration and development, seeking suitable acquisition targets in resource-rich areas to expand its resource base[88].