Group 1 - Copper stocks collectively opened higher, with notable increases: Luoyang Molybdenum up 8.54% to HKD 13.6, Jiangxi Copper up 8.47% to HKD 26.9, China Nonferrous Mining up 7.44% to HKD 13, Minmetals Resources up 6.27% to HKD 6.1, and Zijin Mining up 3.91% to HKD 30.8 [1][1][1] - International copper prices surged significantly, with the London Metal Exchange three-month copper price rising by 3.2% to USD 10,297.50 per ton, marking the largest intraday increase since April 10 [1][1][1] Group 2 - A fatal landslide incident at Freeport McMoRan's Grasberg mine in Indonesia, the world's second-largest copper mine, has led to a production halt, with recovery to pre-accident production levels expected no earlier than 2027 [1][1][1] - Freeport anticipates a 35% decrease in copper and gold production for 2026 compared to previous forecasts due to the incident [1][1][1] Group 3 - Citic Futures maintains a bullish outlook on copper prices, citing positive macroeconomic expectations following the Federal Reserve's September meeting and frequent disruptions in copper supply, particularly the significant impact of the Grasberg mine's suspension [1][1][1]

Group 1 - Copper stocks collectively opened higher, with notable increases: Luoyang Molybdenum up 8.54% to HKD 13.6, Jiangxi Copper up 8.47% to HKD 26.9, China Nonferrous Mining up 7.44% to HKD 13, Minmetals Resources up 6.27% to HKD 6.1, and Zijin Mining up 3.91% to HKD 30.8 [1][1][1] - International copper prices surged significantly, with the London Metal Exchange three-month copper price rising by 3.2% to USD 10,297.50 per ton, marking the largest intraday increase since April 10 [1][1][1] Group 2 - The Grasberg mine, operated by Freeport McMoRan in Indonesia, experienced a fatal landslide, leading to a production halt at the world's second-largest copper mine. Freeport anticipates that it may take until 2027 to restore production levels to pre-accident standards, with a projected 35% decrease in copper-gold output for 2026 compared to previous expectations [1][1][1] - Citic Futures maintains a bullish outlook on copper prices, citing positive macroeconomic expectations following the Federal Reserve's September meeting and frequent disruptions in copper supply, particularly the significant impact of the Grasberg mine's suspension [1][1][1]

(Incorporated in Hong Kong with limited liability under the Companies Ordinance) ( 根據公司條例於香港註冊成立的有限公司 ) (Stock Code 股份代號: 01258) N O T I F I C AT I O N L E T T E R 通 知 信 函 Dear non-registered holder(s) (Note 1) , China Nonferrous Mining Corporation Limited 中 國 有 色 礦 業 有 限 公 司 China Nonferrous Mining Corporation Limited (the "Company") – Notice of Publication of 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and ...

China Nonferrous Mining Corporation Limited 中 國 有 色 礦 業 有 限 公 司 (Incorporated in Hong Kong with limited liability under the Companies Ordinance) ( 根據公司條例於香港註冊成立的有限公司 ) (Stock Code 股份代號: 01258) N O T I F I C AT I O N L E T T E R Dear registered shareholder(s), China Nonferrous Mining Corporation Limited (the "Company") – Notice of Publication of 2025 Interim Report (the "Current Corporate Communications") The Current Corporate Communications of the Company have been published in English and Chinese languages ...

I. [Company Information](index=2&type=section&id=I.%20Company%20Information) This section provides basic company information, including registered office, principal places of business, website, stock code, and recent changes in board members [Basic Company Information](index=3&type=section&id=Basic%20Company%20Information) This section provides fundamental details such as the company's registered office, principal places of business, website, stock code, and recent changes in board members - The company's registered office is in Hong Kong, with principal places of business in Zambia and the Democratic Republic of Congo[4](index=4&type=chunk) - Stock code is **01258**[4](index=4&type=chunk) - Mr. Xiao Bo was appointed Executive Director and Chairman from March 27, 2025, while Mr. Yang He resigned as Chairman on the same day[4](index=4&type=chunk) - Mr. Sun Yufeng was appointed Independent Non-executive Director on March 21, 2025, with Mr. Qiu Dingfan resigning on the same day[4](index=4&type=chunk) [Board Committees and Professional Service Providers](index=4&type=section&id=Board%20Committees%20and%20Professional%20Service%20Providers) This section details the composition and changes in chairpersons for the Audit, Nomination, Remuneration, and Compliance Committees, along with information on joint company secretaries, legal advisors, auditors, and the Hong Kong share registrar - The Audit Committee Chairman is Mr. Gao Guangfu, Nomination Committee Chairman is Mr. Sun Yufeng (appointed March 21, 2025), Remuneration Committee Chairman is Mr. Guan Huanfei, and Compliance Committee Chairman is Mr. Xiao Bo (effective March 27, 2025)[6](index=6&type=chunk) - Joint Company Secretaries are Mr. Chu Chiu Yeung and Ms. Wong Man Yee[6](index=6&type=chunk) - Auditor is **KPMG**[7](index=7&type=chunk) II. [Chairman's Statement](index=5&type=section&id=II.%20Chairman's%20Statement) Chairman Mr. Xiao Bo reviews the Group's strong operating performance in H1 2025 amidst a complex external environment, highlighting high-quality development, technological innovation, and M&A breakthroughs, while anticipating severe challenges in H2 and affirming commitment to capacity expansion and new project construction - In H1 2025, the Group achieved a total profit of **$533 million**, a **23.1% year-on-year increase**, and net profit attributable to owners of **$263 million**, a **20.2% year-on-year increase**[13](index=13&type=chunk) - Self-owned mines produced **85,200 tonnes of copper**, a **7.2% year-on-year increase**, with all major mining enterprises achieving production growth[13](index=13&type=chunk) - Successfully acquired a partial equity stake in the Benkala Copper Mine in Kazakhstan, expanding the resource footprint to Central Asia[13](index=13&type=chunk) - H2 faces multiple challenges including Western economic uncertainty, geopolitical tensions, trade protectionism, suspension of operations at Chambishi Southeast Orebody, and declining pyrometallurgical processing fees[15](index=15&type=chunk) - Will advance construction of CNMC Luanshya New Mine and Chambishi MSESA project, strive to achieve controlling interest in Kazakhstan Benkala project within the year, and accelerate the establishment of captive power plants to alleviate power shortages[15](index=15&type=chunk) III. [Performance Highlights](index=8&type=section&id=III.%20Performance%20Highlights) In H1 2025, China Nonferrous Mining Corporation Limited's revenue decreased by 12.9% year-on-year, but profit attributable to owners increased by 20.2%, with varied product output showing a decline in blister and anode copper but significant growth in cathode copper and tolling services H1 2025 Operating Performance Overview | Indicator | H1 2025 (Million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | | Revenue | 1,751.5 | (12.9) | | Profit Attributable to Owners | 263.3 | 20.2 | H1 2025 Key Product Output Changes | Product | H1 2025 (Tonnes) | Year-on-Year Increase/(Decrease) (%) | | :--- | :--- | :--- | | Blister and Anode Copper | 111,283 | (30.4) | | Cathode Copper | 72,192 | 15.6 | | Cobalt in Cobalt Hydroxide | 481 | 1.7 | | Sulfuric Acid | 538,433 | (1.9) | | Liquid Sulfur Dioxide | 1,466 | (85.5) | | Copper Product Processing Services | 102,708 | 152.9 | - Self-owned mines produced **42,053 tonnes of blister and anode copper** and **43,153 tonnes of cathode copper**, totaling **85,206 tonnes**, a year-on-year increase[38](index=38&type=chunk) IV. [Management Discussion and Analysis](index=9&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the Group's H1 2025 operating and financial performance, detailing subsidiary production, exploration progress, project developments, financial data, liquidity, capital expenditure, market risks, asset pledges, contingent liabilities, and post-balance sheet events - H1 2025 revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[62](index=62&type=chunk) - Gross profit was **$570.3 million**, an **11.4% year-on-year increase**; gross margin increased from **25.5% in H1 2024 to 32.6% in H1 2025**, mainly due to a reduced proportion of lower-margin blister and anode copper production and an increased proportion of higher-margin tolling services[65](index=65&type=chunk) - Profit attributable to owners was **$263.3 million**, a **20.2% year-on-year increase**[73](index=73&type=chunk) - Net cash generated from operating activities was **$525.9 million**, an increase of **$112.8 million** year-on-year, primarily due to increased net profit[74](index=74&type=chunk) - Net cash used in investing activities was **$151.2 million**, a shift from a net inflow of **$26.8 million** in the prior period, mainly due to a year-on-year decrease in transfers from time deposits to current accounts and funds placed with CNMC Treasury Management (Hong Kong) Limited[75](index=75&type=chunk) - Net cash used in financing activities was **$42.1 million**, a shift from a net inflow of **$94.9 million** in the prior period, mainly due to proceeds from share issuance in the prior period and no new external borrowings in the current period[76](index=76&type=chunk) - Total capital expenditure was **$108.4 million**, an increase of **$62.4 million** year-on-year, primarily due to increased capital expenditure at Chambishi Southeast Mine, CNMC Luanshya New Mine Project, Baluba Open Pit Mine, and Chambishi Mining[83](index=83&type=chunk) [Overview](index=10&type=section&id=Overview) In H1 2025, the Group's operating performance improved year-on-year, driven by rising international copper prices, increased production and sales of self-owned blister and anode copper, and growth in cathode copper output - During the reporting period, revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**[23](index=23&type=chunk) - Profit attributable to owners was **$263.3 million**, a **20.2% year-on-year increase**[23](index=23&type=chunk) [Business Review](index=10&type=section&id=Business%20Review) The Group, a vertically integrated copper producer, operates copper-cobalt mining, beneficiation, smelting, and sales in Zambia and DRC, with H1 seeing a decline in blister and anode copper output but significant growth in cathode copper and tolling services, alongside ongoing exploration and infrastructure development - The Group primarily engages in copper and cobalt mining, beneficiation, hydrometallurgy, pyrometallurgy, and sales in Zambia and the Democratic Republic of Congo[24](index=24&type=chunk) H1 2025 Key Product Output and Year-on-Year Changes | Product | H1 2025 (Tonnes) | H1 2024 (Tonnes) | Year-on-Year Increase/(Decrease) (%) | | :--- | :--- | :--- | :--- | | Blister and Anode Copper | 111,283 | 159,971 | (30.4) | | Cathode Copper | 72,192 | 62,450 | 15.6 | | Cobalt in Cobalt Hydroxide | 481 | 473 | 1.7 | | Sulfuric Acid | 538,433 | 548,699 | (1.9) | | Liquid Sulfur Dioxide | 1,466 | 10,115 | (85.5) | | Copper Product Processing Services | 102,708 | 40,615 | 152.9 | - Total copper output from self-owned mines was **85,206 tonnes**, a year-on-year increase[38](index=38&type=chunk) [Production Overview](index=11&type=section&id=Production%20Overview) Subsidiary production varied: CNMC Mining Africa's anode copper output grew 21.0%; CNMC Luanshya saw increases in both cathode and anode copper; Chambishi Copper Smelter's blister and anode copper rose 4.9% with significant tolling contributions; Chambishi Wet Process Smelter's output sharply declined due to shutdown for repairs; CNMC Huaxin Mabende and CNMC Huaxin Wet Process saw substantial growth in cathode copper and cobalt hydroxide due to improved power supply; Luanshya Copper Smelter's blister copper increased 12.1% but liquid sulfur dioxide dropped sharply due to export restrictions; Chambishi Mining's cathode copper grew 3.6% but cobalt hydroxide decreased due to policy adjustments - CNMC Mining Africa's anode copper output was **38,743 tonnes**, a **21.0% year-on-year increase**, mainly due to continuous production in H1[26](index=26&type=chunk) - Chambishi Wet Process Smelter's cathode copper output was **755 tonnes**, a **73.3% year-on-year decrease**, primarily due to temporary shutdown for full-scale repair measures[30](index=30&type=chunk) - CNMC Huaxin Mabende's cathode copper output was **15,603 tonnes**, an **85.0% year-on-year increase**; CNMC Huaxin Wet Process's cathode copper output was **12,973 tonnes**, a **25.8% year-on-year increase**, and cobalt in cobalt hydroxide output was **221 tonnes**, a **194.7% year-on-year increase**, mainly benefiting from the commissioning of generators and photovoltaics, improving power supply[32](index=32&type=chunk) - Luanshya Copper Smelter's blister copper output was **73,451 tonnes**, a **12.1% year-on-year increase**, mainly due to normal production and sufficient raw material supply; liquid sulfur dioxide output was **1,466 tonnes**, an **85.5% year-on-year decrease**, primarily due to DRC's restrictions on cobalt product exports[33](index=33&type=chunk) - Chambishi Mining's cathode copper output was **19,181 tonnes**, a **3.6% year-on-year increase**; cobalt in cobalt hydroxide output was **260 tonnes**, a **34.7% year-on-year decrease**, due to adjustments in cobalt production mode to cope with export restrictions[34](index=34&type=chunk) [The Group's Exploration, Development and Mining Expenses](index=14&type=section&id=The%20Group's%20Exploration,%20Development%20and%20Mining%20Expenses) In H1 2025, the Group invested $6.35 million in exploration activities, $72.23 million in development activities, and $203.80 million in mining activities (excluding beneficiation) H1 2025 Exploration, Development and Mining Expenses (Million USD) | Activity Type | Amount (Million USD) | | :--- | :--- | | Exploration Activities | 6.35 | | Development Activities (including mine construction) | 72.23 | | Mining Activities (excluding beneficiation) | 203.80 | [Mineral Exploration, Mining Development and Ore Mining Activities](index=16&type=section&id=Mineral%20Exploration,%20Mining%20Development%20and%20Ore%20Mining%20Activities) Group subsidiaries continue mineral exploration, with CNMC Mining Africa and CNMC Luanshya completing extensive drilling and tunneling; in mining development, CNMC Luanshya New Mine project's dewatering progresses well, while Chambishi Mining's MSESA and West Orebody development projects are in preliminary study phases - CNMC Mining Africa completed **13,676.8 meters** of underground exploration drilling and **3,974.2 meters** of surface exploration drilling[43](index=43&type=chunk) - CNMC Luanshya New Mine project has an estimated total investment of **$513.0 million**, with **$23.6 million** invested in H1, cumulative dewatering of **68.09 million cubic meters**, completing **74%** of total dewatering[44](index=44&type=chunk) - Chambishi Mining's MSESA Orebody Development Phase I project has a planned total investment of **$22.0 million**, and West Orebody Development Phase I project has a planned total investment of **$85.8 million**, both for beneficiation and metallurgical test research and feasibility study report preparation[45](index=45&type=chunk) [Infrastructure Projects, Subcontracting Arrangements and Equipment Purchases](index=17&type=section&id=Infrastructure%20Projects,%20Subcontracting%20Arrangements%20and%20Equipment%20Purchases) During the reporting period, the Group signed new contracts totaling $106.5 million, with capital commitments of $71.7 million, primarily for equipment procurement and engineering construction, and no subcontracting arrangements occurred - New contracts totaled **$106.5 million**, with related capital commitments of **$71.7 million**[47](index=47&type=chunk) - Major contracts include CNMC Mining Africa's trackless equipment procurement, CNMC Huaxin Mabende's diesel generator set procurement, CNMC Luanshya New Mine engineering construction, and CNMC Mining Africa Southeast Orebody TBM project general contracting framework agreement[49](index=49&type=chunk) [Progress of Projects Under Construction](index=17&type=section&id=Progress%20of%20Projects%20Under%20Construction) Multiple projects are advancing: CNMC Mining Africa's Southeast Orebody TBM project may be delayed due to geological issues, and main and auxiliary shaft curtain grouting for water control is suspended due to shaft wall damage; the main west concentrator renovation project progresses smoothly. Chambishi Copper Smelter's slag beneficiation expansion, oxygen production system, and environmental treatment projects are all progressing. CNMC Luanshya New Mine's dewatering is on schedule. Luanshya Copper Smelter's slag flotation project is operational, and diesel power station expansion is nearing completion. Chambishi Mining's West Orebody, MSESA Orebody resource development, and wet plant optimization projects are in preliminary work and construction - CNMC Mining Africa Southeast Orebody TBM construction project encountered adverse geological bodies, potentially leading to route adjustments and a completion delay until **Q2 2029**[48](index=48&type=chunk) - CNMC Mining Africa's main and auxiliary shaft curtain grouting for water control was suspended due to shaft wall damage[51](index=51&type=chunk) - Chambishi Copper Smelter's slag beneficiation expansion, VPSA oxygen production system, and smelter flue gas environmental treatment projects all made progress, with **millions of USD** paid in H1[52](index=52&type=chunk) - CNMC Luanshya New Mine project's dewatering work is progressing smoothly, with cumulative dewatering accounting for **74%** of the total water volume[53](index=53&type=chunk) - Luanshya Copper Smelter's slag flotation project was completed and commissioned in **January 2025**; the slag slow cooling yard expansion and supporting plant project is expected to be delivered for production by **November 30, 2025**[54](index=54&type=chunk) - Chambishi Mining's wet plant overall optimization and tailings system expansion and renovation project commenced construction in **December 2024**, with completion expected by **December 30, 2025**[57](index=57&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) This section analyzes the Group's H1 2025 financial performance, noting a decline in total revenue but significant improvements in gross profit and margin, and increased profit attributable to owners. Liquidity saw a substantial increase in operating cash flow but a shift to net outflows from investing and financing activities. Capital expenditure rose significantly, mainly for mine and smelter expansion and new projects - H1 2025 revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[62](index=62&type=chunk) - Gross profit was **$570.3 million**, an **11.4% year-on-year increase**; gross margin increased from **25.5% in H1 2024 to 32.6% in H1 2025**, mainly due to a reduced proportion of lower-margin blister and anode copper production and an increased proportion of higher-margin tolling services[65](index=65&type=chunk) - Profit attributable to owners was **$263.3 million**, a **20.2% year-on-year increase**[73](index=73&type=chunk) - Net cash generated from operating activities was **$525.9 million**, an increase of **$112.8 million** year-on-year, primarily due to increased net profit[74](index=74&type=chunk) - Net cash used in investing activities was **$151.2 million**, a shift from a net inflow of **$26.8 million** in the prior period, mainly due to a year-on-year decrease in transfers from time deposits to current accounts and funds placed with CNMC Treasury Management (Hong Kong) Limited[75](index=75&type=chunk) - Net cash used in financing activities was **$42.1 million**, a shift from a net inflow of **$94.9 million** in the prior period, mainly due to proceeds from share issuance in the prior period and no new external borrowings in the current period[76](index=76&type=chunk) - Total capital expenditure was **$108.4 million**, an increase of **$62.4 million** year-on-year, primarily due to increased capital expenditure at Chambishi Southeast Mine, CNMC Luanshya New Mine Project, Baluba Open Pit Mine, and Chambishi Mining[83](index=83&type=chunk) [Operating Results](index=21&type=section&id=Operating%20Results_Financial) This section outlines the Group's sales volume, average selling price, revenue, and percentage contribution to total revenue for key products and services, indicating a decreased revenue contribution from blister and anode copper but an increased contribution from cathode copper and copper product processing services H1 2025 Product and Service Sales Data | Product/Service | Sales Volume (Tonnes) | Average Selling Price (USD/Tonne) | Revenue (Thousand USD) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Blister and Anode Copper | 109,308 | 8,776 | 959,277 | 54.8 | | Cathode Copper | 70,525 | 8,673 | 611,635 | 34.9 | | Sulfuric Acid | 387,982 | 225 | 87,259 | 5.0 | | Liquid Sulfur Dioxide | 990 | 686 | 680 | 0.1 | | Cobalt in Cobalt Hydroxide | – | – | – | – | | Copper Product Processing Services | 102,479 | 904 | 92,682 | 5.2 | | **Total** | **671,284** | | **1,751,533** | **100.0** | [Revenue](index=22&type=section&id=Revenue_Financial) Total revenue in H1 2025 decreased by 12.9% year-on-year, mainly due to reduced sales of self-produced blister and anode copper to mitigate VAT refund and exchange rate risks, partially offset by increased cathode copper sales, rising international copper prices, and higher average selling prices for sulfuric acid - Total revenue was **$1,751.5 million**, a **12.9% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[62](index=62&type=chunk) - Revenue from blister and anode copper sales decreased by **29.5% to $959.3 million**, due to reduced self-production and sales to control capital occupation and exchange rate risks[62](index=62&type=chunk) - Revenue from cathode copper sales increased by **18.3% to $611.6 million**, mainly influenced by increased production and sales volume and rising international copper prices[62](index=62&type=chunk) - Revenue from sulfuric acid sales increased by **4.7% to $87.3 million**, primarily due to an increase in average selling price[62](index=62&type=chunk) [Cost of Sales](index=22&type=section&id=Cost%20of%20Sales) In H1 2025, cost of sales decreased by 21.1% year-on-year to $1,181.3 million, primarily reflecting a decline in sales volume of self-produced copper products, with a significant reduction in blister and anode copper cost of sales, while cathode copper cost of sales increased due to higher sales volume - Cost of sales was **$1,181.3 million**, a **21.1% year-on-year decrease**, primarily due to increased processing of blister and anode copper for external entities and decreased sales of self-produced copper products[64](index=64&type=chunk) - Cost of sales for blister and anode copper decreased by **32.2% to $778.5 million**[64](index=64&type=chunk) - Cost of sales for cathode copper increased by **17.2% to $331.4 million**, primarily due to a year-on-year increase in sales volume[64](index=64&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=Gross%20Profit%20and%20Gross%20Margin) In H1 2025, gross profit increased by 11.4% to $570.3 million, and the gross margin improved from 25.5% to 32.6%, primarily due to a reduced proportion of lower-margin blister and anode copper business and an increased proportion of higher-margin tolling services - Gross profit was **$570.3 million**, an **11.4% year-on-year increase**[65](index=65&type=chunk) - Gross margin increased from **25.5% in H1 2024 to 32.6% in H1 2025**[65](index=65&type=chunk) - The improvement in gross margin was primarily attributable to a reduced proportion of lower-margin blister and anode copper production business and an increased proportion of higher-margin tolling services[65](index=65&type=chunk) [Distribution and Selling Expenses](index=23&type=section&id=Distribution%20and%20Selling%20Expenses) In H1 2025, distribution and selling expenses were $4.5 million, an increase of $1.0 million compared to the same period last year - Distribution and selling expenses were **$4.5 million**, a year-on-year increase of **$1.0 million**[66](index=66&type=chunk) [Administrative Expenses](index=23&type=section&id=Administrative%20Expenses) In H1 2025, administrative expenses were $96.1 million, an increase of $12.5 million compared to the same period last year, primarily due to the temporary shutdown and full-scale repair measures at Chambishi Wet Process Smelter - Administrative expenses were **$96.1 million**, a year-on-year increase of **$12.5 million**[67](index=67&type=chunk) - The increase was primarily due to the temporary shutdown and full-scale repair measures at Chambishi Wet Process Smelter[67](index=67&type=chunk) [Finance Costs](index=24&type=section&id=Finance%20Costs) In H1 2025, finance costs were $1.2 million, a significant decrease of $5.1 million compared to the same period last year, primarily due to a substantial reduction in external borrowings - Finance costs were **$1.2 million**, a year-on-year decrease of **$5.1 million**[70](index=70&type=chunk) - The decrease was primarily due to a significant year-on-year reduction in external borrowings[70](index=70&type=chunk) [Other Gains and Losses](index=24&type=section&id=Other%20Gains%20and%20Losses) In H1 2025, net other gains and losses amounted to a gain of $48.7 million, an increase of $45.3 million compared to the same period last year, primarily due to increased foreign exchange gains from the appreciation of the Zambian Kwacha against the US Dollar - Net other gains and losses amounted to a gain of **$48.7 million**, a year-on-year increase of **$45.3 million**[71](index=71&type=chunk) - The increase was primarily due to the appreciation of the Zambian Kwacha against the US Dollar, leading to a year-on-year increase in foreign exchange gains[71](index=71&type=chunk) [Income Tax Expense](index=24&type=section&id=Income%20Tax%20Expense) In H1 2025, income tax expense was $161.2 million, an increase of $32.0 million compared to the same period last year, primarily due to increased profit before tax - Income tax expense was **$161.2 million**, a year-on-year increase of **$32.0 million**[72](index=72&type=chunk) - The increase was primarily due to increased profit before tax[72](index=72&type=chunk) [Profit Attributable to Owners of the Company](index=24&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) In H1 2025, profit attributable to owners of the company was $263.3 million, an increase of $44.2 million compared to the same period last year, reflecting an improvement in overall financial performance - Profit attributable to owners of the company was **$263.3 million**, a year-on-year increase of **$44.2 million**[73](index=73&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The Group saw a significant increase in net cash inflow from operating activities, but investing and financing activities shifted to net outflows. Bank balances and cash grew substantially, while trade receivables and payables also increased - Net cash generated from operating activities was **$525.9 million**, a year-on-year increase of **$112.8 million**[74](index=74&type=chunk) - Net cash used in investing activities was **$151.2 million**, a shift from a net inflow in the prior period, primarily due to a year-on-year decrease in transfers from time deposits to current accounts and funds placed with CNMC Treasury Management (Hong Kong) Limited[75](index=75&type=chunk) - Net cash used in financing activities was **$42.1 million**, a shift from a net inflow in the prior period, primarily due to proceeds from share issuance in the prior period and no new external borrowings in the current period[76](index=76&type=chunk) - As at June 30, 2025, bank balances and cash were **$1,353.4 million**, an increase of **$334.7 million** from December 31, 2024[77](index=77&type=chunk) - Total trade receivables were **$344.9 million**, an increase of **$88.3 million** from December 31, 2024, primarily due to increased receivables from copper product sales[78](index=78&type=chunk) - Total trade payables were **$489.3 million**, an increase of **$48.8 million** from December 31, 2024, primarily due to a year-on-year increase in payables for auxiliary materials and spare parts[80](index=80&type=chunk) [Capital Expenditure](index=26&type=section&id=Capital%20Expenditure) Total capital expenditure in H1 2025 was $108.4 million, a significant increase of $62.4 million compared to the same period last year, primarily for mining and beneficiation facilities at Chambishi Southeast Mine, CNMC Luanshya New Mine Project, Baluba Open Pit Mine, and Chambishi Mining H1 2025 Capital Expenditure Details (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | CNMC Mining Africa's Chambishi Southeast Mine Mining and Beneficiation Facilities | 23,687 | 6,264 | | CNMC Luanshya New Mine Project | 24,426 | 8,036 | | CNMC Luanshya Baluba Open Pit Mine | 13,042 | – | | Chambishi Mining's Mining and Beneficiation Facilities | 11,229 | 3,839 | | **Total** | **108,352** | **46,009** | [Financial Policies](index=26&type=section&id=Financial%20Policies) The Group has established various financial policies to standardize internal controls, safeguard assets, protect investor interests, and enhance operational management in compliance with Hong Kong Listing Rules - Financial policies such as the 'Financial Budget Management System', 'Cash Management System', 'Inventory Management System', 'Fixed Asset Management System', and 'Financial Information Disclosure Management System' have been formulated[84](index=84&type=chunk) - The policy objectives are to standardize internal controls, safeguard assets, protect investor interests, and comply with Hong Kong laws, regulations, and Listing Rules[84](index=84&type=chunk) [Market Risk Disclosure](index=27&type=section&id=Market%20Risk%20Disclosure) The Group faces commodity price risk (primarily copper price fluctuations), foreign exchange risk (Zambian Kwacha, Congolese Franc, and RMB against USD), and interest rate risk. The company hedges some risks through futures trading, provisional pricing contracts, and locking settlement currencies, but currently has no interest rate hedging policy - Major market risks include commodity price risk (copper), foreign exchange risk (Zambian Kwacha, Congolese Franc, and RMB), and interest rate risk[85](index=85&type=chunk) - Commodity price risk is controlled through copper futures trading contracts and provisional pricing contracts[86](index=86&type=chunk) - Foreign exchange hedging activities are conducted by locking contract and settlement currencies and accelerating tax refunds[87](index=87&type=chunk) - Currently, there is no interest rate hedging policy, but significant interest rate risks will be considered for hedging[88](index=88&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) Employee remuneration is determined by job nature, experience, and contribution, with performance bonuses. Other benefits include insurance, medical care, education subsidies, and training programs. The company has no share scheme - Employee remuneration is determined by job nature, experience, and contribution, with performance-based bonuses[89](index=89&type=chunk) - Insurance, medical benefits, education subsidies, and training programs are provided[89](index=89&type=chunk) - The Company has no share scheme[89](index=89&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Plans for Future Material Investments or Purchases of Capital Assets](index=27&type=section&id=Significant%20Investments%20Held,%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures,%20and%20Plans%20for%20Future%20Material%20Investments%20or%20Purchases%20of%20Capital%20Assets) As of June 30, 2025, the Group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, or joint ventures. There are also no plans for significant investments or purchases of capital assets within the next year - For the six months ended June 30, 2025, the Group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, or joint ventures[90](index=90&type=chunk) - As at June 30, 2025, the Group had no plans for future material investments or purchases of capital assets, and no anticipated financing for such plans within the next year[90](index=90&type=chunk) [Pledge of Assets](index=28&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain property, plant, and equipment of the Group were pledged for self-guarantee of environmental funds, and restricted bank balances were primarily used for environmental fund guarantees and letter of credit issuance - Assets with a net book value of **$8,932,000** in property, plant and equipment were pledged for self-guarantee of environmental funds[92](index=92&type=chunk) - Restricted bank balances amounted to **$6,354,000**, primarily used for environmental fund guarantees and letter of credit issuance[92](index=92&type=chunk) [Gearing Ratio](index=28&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group recorded a net cash position of approximately $1,349.9 million, an increase from the end of 2024, and is therefore not considered to have any net debt - As at June 30, 2025, the Group recorded a net cash position of approximately **$1,349.9 million** (December 31, 2024: **$997.0 million**)[93](index=93&type=chunk) - The Group is not considered to have any net debt[93](index=93&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) Details of significant contingent liabilities are provided in Note 21 to the interim financial report - Details of significant contingent liabilities are set out in Note 21 to the interim financial report[94](index=94&type=chunk) [No Material Changes](index=28&type=section&id=No%20Material%20Changes) Except as disclosed in this interim results report, no material changes affecting the company's performance required disclosure under the Listing Rules occurred during H1 2025 - Except as disclosed in this interim results report, no material changes affecting the Company's performance required disclosure under paragraphs 32 and 40(2) of Appendix D2 to the Listing Rules occurred during the period from January 1, 2025, to June 30, 2025[95](index=95&type=chunk) [Material Events After Reporting Period](index=28&type=section&id=Material%20Events%20After%20Reporting%20Period) As of the date of this interim results report, no material events significantly affecting the Group occurred after the reporting period, except for the temporary suspension of operations at CNMC Mining Africa's Southeast Orebody - As of the date of this interim results report, no material events significantly affecting the Group occurred after the reporting period, except for the temporary suspension of operations at CNMC Mining Africa's Southeast Orebody[96](index=96&type=chunk) V. [Use of Proceeds from Placing of New Shares Under General Mandate](index=28&type=section&id=V.%20Use%20of%20Proceeds%20from%20Placing%20of%20New%20Shares%20Under%20General%20Mandate) In April 2024, the company completed the placing and subscription of 163 million new shares, raising net proceeds of $124.08 million, primarily for project construction, potential mineral resource acquisitions, and working capital, with $112.321 million remaining unutilized as of June 30, 2025 - In **April 2024**, the placing and subscription of **163,000,000 new shares** was completed, with net proceeds of **$124,080 thousand**[100](index=100&type=chunk) - Proceeds are planned for increasing copper concentrate production capacity at mines in Luanshya, Chambishi, and other locations, potential mineral resource acquisitions, and supplementing general working capital[99](index=99&type=chunk) Use of Placing Proceeds (As at June 30, 2025) | Planned Use | Amount Used (Thousand USD) | Actual Use | Amount Unused (Thousand USD) | Planned Usage Time | | :--- | :--- | :--- | :--- | :--- | | Project construction work to increase copper concentrate production capacity mainly at mines in Luanshya, Chambishi, and other locations | 6,759 | Used for Chambishi project construction work | | | | Acquisition of potential mineral resources | 5,000 | Used for acquisition of SM MINERALS shares | 112,321 | Before December 31, 2027 | | Supplementing the Group's general working capital | – | – | | | VI. [Share Capital and Shareholding Structure](index=29&type=section&id=VI.%20Share%20Capital%20and%20Shareholding%20Structure) As of June 30, 2025, the company had 3,902,036,000 ordinary shares issued, with CNMC Mining Development and China Nonferrous Metal Mining Group holding 66.63% each, and this section also lists entities holding 10% or more equity in key Group member companies - As at June 30, 2025, the Company had **3,902,036,000 ordinary shares** in issue[103](index=103&type=chunk) Major Shareholders' Shareholding (As at June 30, 2025) | Major Shareholder | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | CNMC Mining Development | Registered Holder | 2,600,000,000 | 66.63% | | China Nonferrous Metal Mining Group | Interest in Controlled Corporation | 2,600,000,000 | 66.63% | - CNMC Mining Development is a wholly-owned subsidiary of China Nonferrous Metal Mining Group[104](index=104&type=chunk) - Several Group member companies have non-controlling shareholders holding **10% or more equity**, such as CNMC Mining Africa and CNMC Luanshya with partial equity held by ZCCM-IH, and Chambishi Copper Smelter with **40% equity** held by Yunnan Copper Group Co., Ltd[105](index=105&type=chunk) [Number of Shares](index=30&type=section&id=Number%20of%20Shares) As of June 30, 2025, the total number of ordinary shares issued by the company was 3,902,036,000 - As at June 30, 2025, the Company had **3,902,036,000 ordinary shares** in issue[103](index=103&type=chunk) [Shareholding Structure](index=30&type=section&id=Shareholding%20Structure) Major shareholders CNMC Mining Development and China Nonferrous Metal Mining Group each hold 66.63% of the company's shares. Additionally, several Group subsidiaries have other entities holding 10% or more equity Interests and Short Positions of Major Shareholders and Other Persons in Shares and Underlying Shares (As at June 30, 2025) | Major Shareholder | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | CNMC Mining Development | Registered Holder | 2,600,000,000 | 66.63% | | China Nonferrous Metal Mining Group | Interest in Controlled Corporation | 2,600,000,000 | 66.63% | Entities Holding 10% or More Equity in Group Member Companies (As at June 30, 2025) | Group Member Company | Entity Holding 10% or More Interest (excluding Group Member Companies) | Equity Percentage | | :--- | :--- | :--- | | CNMC Mining Africa | Zambia Consolidated Copper Mines Investments Holdings Plc | 15% | | CNMC Luanshya | ZCCM-IH | 20% | | Chambishi Copper Smelter | Yunnan Copper Group Co., Ltd | 40% | | Chambishi Wet Process Smelter | Hong Kong China-Africa Mining Investment Co., Ltd | 30% | | Chambishi Mining | La Generale des Carrieres et des Mines SA | 40% | VII. [Corporate Governance](index=31&type=section&id=VII.%20Corporate%20Governance) The Group is committed to maintaining high standards of corporate governance, continuously improving its internal control system, with the Board and its committees diligently performing their duties in compliance with the Corporate Governance Code in Appendix C1 of the Listing Rules - The Group is committed to achieving and maintaining high standards of corporate governance, believing it is crucial for ensuring the Company's integrity in business and maintaining investor confidence[108](index=108&type=chunk) - During the reporting period, the Group further improved its internal control system and effectively monitored key areas such as legal cases, connected transactions, internal control risks, and inside information through monthly compliance reports[108](index=108&type=chunk) - The Company's Board of Directors and its committees perform their duties in accordance with the law, operate in a standardized manner, and comply with the code provisions set out in Appendix C1 of the Listing Rules[108](index=108&type=chunk)[109](index=109&type=chunk) VIII. [Human Resources](index=32&type=section&id=VIII.%20Human%20Resources) As of June 30, 2025, the Group employed a total of 8,492 employees, comprising 908 Chinese employees and 7,584 local employees, with total employee costs for H1 increasing to approximately $57.6 million compared to the prior year - As at June 30, 2025, the Group employed a total of **8,492 employees**, comprising **908 Chinese employees** and **7,584 local employees** in Zambia and the Democratic Republic of Congo[110](index=110&type=chunk) - The Group's total employee costs for the six months ended June 30, 2025, were approximately **$57.6 million** (six months ended June 30, 2024: **$52.3 million**)[110](index=110&type=chunk) IX. [Corporate Social Responsibility](index=33&type=section&id=IX.%20Corporate%20Social%20Responsibility) The Group adheres to its mission of "developing the enterprise, rewarding shareholders, employees, and society," actively fulfilling social responsibilities in working environment, health and safety, environmental protection, and community engagement. During the reporting period, a tailings dam incident occurred at Chambishi Wet Process Smelter and a safety accident at CNMC Mining Africa's Southeast Orebody - The Group upholds a 'people-oriented' management philosophy, advocates for equitable and standardized employment policies, and provides a market-competitive remuneration system and a high-quality growth environment[113](index=113&type=chunk) - Strictly adheres to safety production and labor protection regulations, upholding the 'safety first, prevention paramount' principle, but in **June 2025**, a safety accident occurred at Chambishi Southeast Orebody, resulting in the death of a subcontractor employee, and the mine has been temporarily suspended for investigation[114](index=114&type=chunk) - Aims to build an environmentally friendly enterprise, actively implementing energy saving and emission reduction, strengthening pollution monitoring, and promoting the construction of an environmental management system[115](index=115&type=chunk) - In **February 2025**, Chambishi Wet Process Smelter in Zambia experienced a tailings dam incident, leading to a suspension of operations, with environmental remediation and independent cost assessment currently underway[115](index=115&type=chunk) - Actively participates in municipal construction, vocational education, and community environmental improvement in its operating locations, contributing to local economic and social development[116](index=116&type=chunk) X. [Outlook](index=35&type=section&id=X.%20Outlook) Looking ahead, the Group anticipates facing multiple adverse factors including slow global economic recovery, trade frictions, geopolitical conflicts, low smelting processing fees, and the suspension of operations at Chambishi Southeast Orebody. Nevertheless, management is confident in achieving the annual steady growth target by stabilizing production, ensuring profitability, prioritizing safety and environmental protection, operating compliantly, and advancing reforms under the Board's leadership - H1 2025 faced multiple adverse factors including increased external environmental uncertainty, significant fluctuations in international copper prices, volatile situation in the Democratic Republic of Congo, power shortages, and smelting processing fees falling to historical lows[118](index=118&type=chunk) - The Company strengthened investor relations in the capital market, maintained a high dividend payout ratio, and opened a new chapter of development through the acquisition of the Benkala Copper Mine in Kazakhstan[118](index=118&type=chunk) - It is anticipated that a full global economic recovery will take time in H2, trade frictions and geopolitical conflicts may exacerbate commodity price volatility; country risks in Central and Southern Africa may intensify; smelting processing fees may be difficult to improve in the short term; and the temporary suspension of Chambishi Southeast Orebody will affect full-year self-produced copper output[118](index=118&type=chunk) - From a supply-demand fundamental perspective, copper mine supply remains tight, demand for copper in power grids, new energy, and other sectors is expected to remain resilient, and international copper prices are likely to remain high[119](index=119&type=chunk) - Management will continue to stabilize production and ensure profitability, highly prioritize safety, environmental protection, compliant operations, and sustainable development, accelerate the implementation of various reforms, ensure the completion of annual production and operation targets, and achieve the overall goal of steady growth in **2025**[119](index=119&type=chunk) XI. [Other Information](index=36&type=section&id=XI.%20Other%20Information) This section provides the company's basic registration details, parent and ultimate controlling company information, and confirms its principal business. The Board does not recommend an interim dividend. It also discloses directors' and chief executives' interests, the Audit Committee's review, and confirms compliance with the Model Code for Securities Transactions by Directors, with no purchases, redemptions, or sales of listed securities during the reporting period - The Company was incorporated in Hong Kong on **July 18, 2011**; its parent company is CNMC Mining Development Co., Ltd., and its ultimate controlling company is China Nonferrous Metal Mining Group Co., Ltd. (wholly owned by the State-owned Assets Supervision and Administration Commission of the State Council)[121](index=121&type=chunk) - The Company primarily engages in investment holding, while its subsidiaries mainly engage in copper-cobalt metal exploration, mining, beneficiation, hydrometallurgy, pyrometallurgy, sales of cathode copper, blister and anode copper, cobalt hydroxide, sulfuric acid, and liquid sulfur dioxide, as well as providing copper product tolling services[121](index=121&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[122](index=122&type=chunk) - As at June 30, 2025, no director or chief executive had any interests or short positions in the shares, underlying shares, and debentures of the Company or its associated corporations that were required to be disclosed[123](index=123&type=chunk) - The Audit Committee has reviewed the interim financial results for the six months ended June 30, 2025, and is of the opinion that they comply with applicable accounting standards, Listing Rules, and statutory requirements[128](index=128&type=chunk) - 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, and all directors have complied with the said code during the reporting period[129](index=129&type=chunk) - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[130](index=130&type=chunk) XII. [Interim Financial Report](index=38&type=section&id=XII.%20Interim%20Financial%20Report) This section contains the independently reviewed condensed consolidated financial statements and their notes, providing detailed financial data for the Group's H1 2025, including profit or loss, financial position, changes in equity, and cash flows. The notes explain the basis of preparation, accounting policy changes, revenue and segment reporting, various expenses, liquidity, capital expenditure, related party transactions, and contingent liabilities [Independent Review Report](index=38&type=section&id=Independent%20Review%20Report) KPMG has reviewed this interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and noted no material non-compliance with Hong Kong Accounting Standard 34 - KPMG has reviewed this interim financial report[132](index=132&type=chunk) - A review is substantially less in scope than an audit, and therefore no audit opinion is expressed[133](index=133&type=chunk) - Based on the review, nothing has come to the reviewer's attention that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[134](index=134&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement shows the Group's H1 2025 revenue of $1,751.5 million, gross profit of $570.3 million, operating profit of $533.7 million, total profit and comprehensive income for the period of $371.3 million, and profit attributable to owners of $263.3 million. Basic and diluted earnings per share were 6.75 US cents H1 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (Thousand USD) | Indicator | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 1,751,533 | 2,009,768 | | Cost of sales | (1,181,266) | (1,497,808) | | Gross profit | 570,267 | 511,960 | | Operating profit | 533,730 | 438,661 | | Profit before tax | 532,505 | 432,408 | | Income tax expense | (161,179) | (129,180) | | Total profit and comprehensive income for the period | 371,326 | 303,228 | | Profit attributable to owners of the Company | 263,328 | 219,109 | | Basic and diluted earnings per share (US cents per share) | 6.75 | 5.75 | [Condensed Consolidated Statement of Financial Position](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were $4,681.1 million, total equity was $3,233.0 million, and total liabilities were $1,448.1 million. Both non-current and current assets increased, with a significant rise in cash and cash equivalents June 30, 2025 Condensed Consolidated Statement of Financial Position Summary (Thousand USD) | Indicator | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Non-current assets | 1,830,346 | 1,781,719 | | Current assets | 2,850,764 | 2,372,688 | | **Total assets** | **4,681,110** | **4,154,407** | | Total equity attributable to owners of the Company | 2,345,026 | 2,249,068 | | Non-controlling interests | 888,022 | 780,024 | | **Total equity** | **3,233,048** | **3,029,092** | | Non-current liabilities | 272,429 | 264,446 | | Current liabilities | 1,175,633 | 860,869 | | **Total liabilities** | **1,448,062** | **1,125,315** | | **Total equity and liabilities** | **4,681,110** | **4,154,407** | - Net book value of property, plant and equipment was **$1,480,751 thousand**, a slight increase from the end of **2024**[138](index=138&type=chunk) - Cash and cash equivalents were **$1,353,433 thousand**, a significant increase from **$1,018,662 thousand** at the end of **2024**[138](index=138&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=43&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement shows that for the six months ended June 30, 2025, total equity attributable to owners of the company increased from $2,249.1 million to $2,345.0 million, primarily influenced by profit for the period and dividends declared H1 2025 Condensed Consolidated Statement of Changes in Equity Summary (Thousand USD) | Item | Total equity attributable to owners of the Company (Thousand USD) | Non-controlling interests (Thousand USD) | Total equity (Thousand USD) | | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 | 2,249,068 | 780,024 | 3,029,092 | | Total profit and comprehensive income for the period | 263,328 | 107,998 | 371,326 | | Dividends declared by the Company | (167,370) | – | (167,370) | | Balance at June 30, 2025 | 2,345,026 | 888,022 | 3,233,048 | [Condensed Consolidated Cash Flow Statement](index=44&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) This statement shows that for the six months ended June 30, 2025, operating activities generated a net cash inflow of $525.9 million, investing activities resulted in a net outflow of $151.2 million, and financing activities resulted in a net outflow of $42.1 million. Cash and cash equivalents at period-end were $1,353.4 million H1 2025 Condensed Consolidated Cash Flow Statement Summary (Thousand USD) | Activity Type | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Net cash generated from operating activities | 525,901 | 413,118 | | Net cash (used in)/generated from investing activities | (151,195) | 26,765 | | Net cash (used in)/generated from financing activities | (42,099) | 94,858 | | Net increase in cash and cash equivalents | 332,607 | 534,741 | | Cash and cash equivalents at June 30 | 1,353,433 | 1,027,787 | [Notes to the Interim Financial Report](index=44&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section provides detailed explanations and supplementary information to the condensed consolidated financial statements, covering the basis of preparation, accounting policy changes, segment reporting, composition and changes in various financial data, liquidity, capital expenditure, related party transactions, and contingent liabilities [Basis of Preparation](index=45&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared in accordance with applicable disclosure requirements of the Hong Kong Stock Exchange Listing Rules and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA, and was authorized for issue on August 28, 2025 - This interim financial report is prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[144](index=144&type=chunk) - This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[145](index=145&type=chunk) [Changes in Accounting Policies](index=46&type=section&id=Changes%20in%20Accounting%20Policies) The Group has applied the amendments to Hong Kong Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability" issued by the HKICPA, but these amendments had no material impact on this interim report as the Group did not undertake related transactions, and no new standards or interpretations not yet effective have been applied - The Group has applied the amendments to Hong Kong Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability' issued by the Hong Kong Institute of Certified Public Accountants, but these amendments had no material impact on this interim report[146](index=146&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[147](index=147&type=chunk) [Revenue and Segment Reporting](index=46&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's operating segments are primarily divided into hydrometallurgy and pyrometallurgy, with revenue categorized by major product or service lines and geographical markets. The hydrometallurgy segment mainly produces cathode copper and cobalt hydroxide, while the pyrometallurgy segment primarily produces blister and anode copper, sulfuric acid, and liquid sulfur dioxide, also providing copper product tolling services. Singapore and Hong Kong are the main customer geographical markets - The Group's operating segments are primarily based on the type of goods produced, divided into two reportable segments: hydrometallurgy and pyrometallurgy[148](index=148&type=chunk)[149](index=149&type=chunk) - The hydrometallurgy segment primarily produces and sells cathode copper and cobalt hydroxide; the pyrometallurgy segment primarily produces and sells blister and anode copper, sulfuric acid, and liquid sulfur dioxide, and provides copper product tolling services[149](index=149&type=chunk) H1 2025 Revenue from Contracts with Customers by Geographical Market (Thousand USD) | Customer Geographical Location | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Singapore | 1,156,495 | 362,333 | | Hong Kong | 186,318 | 383,198 | | Africa | 183,963 | 126,103 | | Switzerland | 157,593 | 349,331 | | Belgium | 61,431 | 26,940 | | Mainland China | 5,733 | 761,863 | | **Total** | **1,751,533** | **2,009,768** | H1 2025 Segment Results (Thousand USD) | Segment | External Sales Revenue (Thousand USD) | Reportable Segment Profit (Thousand USD) | | :--- | :--- | :--- | | Hydrometallurgy | 611,635 | 180,374 | | Pyrometallurgy | 1,139,898 | 193,031 | | **Consolidated** | **1,751,533** | **373,405** | [Other Gains and Losses](index=51&type=section&id=Other%20Gains%20and%20Losses_Notes) In H1 2025, net other gains and losses amounted to a gain of $48.7 million, primarily driven by a significant increase in net foreign exchange gains, while also recognizing impairment losses on input VAT receivables and financial assets H1 2025 Other Gains and Losses Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Net (loss)/gain on disposal of property, plant and equipment | (35) | 179 | | Impairment loss on input VAT receivables | (7,668) | (11,493) | | Impairment loss (recognized)/reversed on financial assets under expected credit loss | (4,056) | 600 | | Net foreign exchange gains | 41,991 | 5,251 | | (Losses)/gains arising from changes in fair value of financial liabilities/assets at fair value through profit or loss | 18,455 | 9,893 | | **Total** | **48,687** | **3,430** | - Net foreign exchange gains significantly increased from **$5,251 thousand in H1 2024 to $41,991 thousand in H1 2025**[156](index=156&type=chunk) [Finance Costs](index=51&type=section&id=Finance%20Costs_Notes) In H1 2025, finance costs were $1.2 million, a significant reduction from the prior period, primarily due to a substantial decrease in interest on bank and other borrowings, with some interest expenses capitalized to property, plant, and equipment H1 2025 Finance Costs Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 111 | 5,583 | | Interest on lease liabilities | 654 | 6 | | Reversal of discount | 546 | 664 | | Less: Interest expense capitalized to property, plant and equipment | (86) | – | | **Total** | **1,225** | **6,253** | - Interest on bank and other borrowings was capitalized at an annual rate of **1.75%**[158](index=158&type=chunk) [Profit Before Tax](index=52&type=section&id=Profit%20Before%20Tax) In H1 2025, profit before tax was net of total depreciation and amortization of $95.4 million, most of which was capitalized to inventories and property, plant, and equipment. Inventory cost was $1,144.5 million, and an inventory write-down of $615 thousand was recognized H1 2025 Profit Before Tax Deductions/Additions Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 91,163 | 96,492 | | Depreciation of right-of-use assets | 1,045 | 141 | | Amortisation of mining rights | 3,170 | 6,315 | | **Total amortisation and depreciation** | **95,378** | **102,948** | | Less: Capitalised to inventories | (84,177) | (90,990) | | Less: Capitalised to property, plant and equipment | (3,398) | – | | Cost of inventories recognised as an expense at carrying amount | 1,144,457 | 1,478,557 | | Write-down/(reversal of write-down) of inventories to net realisable value | 615 | (2,000) | | Cost of services recognised as an expense | 36,194 | 21,251 | [Income Tax in the Consolidated Statement of Profit or Loss](index=52&type=section&id=Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2025, income tax expense was $161.2 million, with an effective tax rate of 30.3%, primarily comprising current tax in Zambia and the Democratic Republic of Congo, and deferred tax was recognized. The Group is subject to Pillar Two income tax rules and has applied the temporary mandatory exception H1 2025 Income Tax in the Consolidated Statement of Profit or Loss Summary (Thousand USD) | Item | 2025 (Thousand USD) | 2024 (Thousand USD) | | :--- | :--- | :--- | | Current tax: | | | | －Hong Kong profits tax | 263 | 200 | | －Ireland income tax | 48 | 1,379 | | －DRC income tax | 34,730 | 24,261 | | －Zambia income tax | 110,151 | 72,078 | | Deferred tax: | | | | －Current period | 15,987 | 31,262 | | **Total income tax expense** | **161,179** | **129,180** | | Effective tax rate – current period | 30.3% | 29.9% | - The Group is subject to the Global Anti-Base Erosion Model Rules ('Pillar Two Model Rules') issued by the Organisation for Economic Co-operation and Development, and has applied the temporary mandatory exception to deferred tax accounting for top-up tax[161](index=161&type=chunk)[162](index=162&type=chunk) - Luanshya Copper Smelter Co., Ltd. is eligible for a **68.29% income tax exemption** for five years starting from **July 2021**[165](index=165&type=chunk) [Earnings Per Share](index=53&type=section&id=Earnings%20Per%20Share) In H1 2025, basic earnings per share were 6.75 US cents, an increase from 5.75 US cents in the prior period. Diluted earnings per share were the same as basic earnings per share due to the absence of dilutive potential ordinary shares - Basic earnings per share for the six months ended June 30, 2025, were **6.75 US cents** (2024: **5.75 US cents**)[137](index=137&type=chunk)[163](index=163&type=chunk) - Basic earnings per share are calculated based on profit attributable to shareholders of the Company of **$263,328,000** and the weighted average number of ordinary shares in issue during the period of **3,902,036,000 shares**[163](index=163&type=chunk) - For the six months ended June 30, 2025 and 2024, there were no dilutive potential ordinary shares, thus diluted earnings per share were the same as basic earnings per share[164](index=164&type=chunk) [Property, Plant and Equipment](index=54&type=section&id=Property,%20Plant%20and%20Equipment) In H1 2025, the Group acquired property, plant, and equipment and incurred construction costs totaling $103.3 million. During the period, property, plant, and equipment with a net book value of $1.1 million were disposed of, resulting in a loss on disposal of $35 thousand - During the six months ended June 30, 2025, the Group acquired property, plant and equipment and incurred construction costs totaling **$103,275,000**[166](index=166&type=chunk) - During the period, items of property, plant and equipment with a net book value of **$1,073,000** were disposed of, resulting in a loss on disposal of **$35,000**[166](index=166&type=chunk) [Other Equity Investments](index=54&type=section&id=Other%20Equity%20Investments) As of June 30, 2025, the Group held an unlisted equity investment in SM Minerals of $5.0 million, designated as fair value through other comprehensive income due to its strategic purpose - As at June 30, 2025, the Group held an unlisted equity investment in SM Minerals of **$5,000 thousand**[167](index=167&type=chunk) - This investment is designated as fair value through other comprehensive income as it is held for strategic purposes[167](index=167&type=chunk) - SM Minerals is located in Kazakhstan and holds certain copper mining and exploration rights[168](index=168&type=chunk) [Trade Receivables Measured at Amortised Cost / Trade Receivables Measured at Fair Value Through Profit or Loss](index=54&type=section&id=Trade%20Receivables%20Measured%20at%20Amortised%20Cost%20/%20Trade%20Receivables%20Measured%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, trade receivables measured at amortized cost were $86.8 million, and trade receivables measured at fair value through profit or loss were $258.1 million. The total of both increased from the end of 2024, primarily due to increased receivables from copper product sales Trade Receivables (Thousand USD) | Item | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Trade receivables measured at amortised cost | 86,824 | 70,913 | | Trade receivables measured at fair value through profit or loss | 258,074 | 185,742 | Ageing Analysis of Trade Receivables Measured at Amortised Cost (Thousand USD) | Ageing | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | 0 to 30 days | 60,238 | 36,836 | | 31 to 90 days | 8,725 | 28,351 | | 91 to 180 days | 17,861 | 3,119 | | 181 to 365 days | – | 2,607 | - Trade receivables related to related parties totaled **$251.4 million**, primarily from fellow subsidiaries and non-controlling shareholders of subsidiaries[170](index=170&type=chunk)[171](index=171&type=chunk) [Prepayments and Other Receivables](index=56&type=section&id=Prepayments%20and%20Other%20Receivables) As of June 30, 2025, non-current prepayments and other receivables were $222.2 million, and current portions were $300.3 million. Net input VAT receivables totaled $303.9 million, with an impairment provision of $133.8 million. During the period, $62.7 million was deposited with fellow subsidiary CNMC Treasury Management (Hong Kong) Limited Prepayments and Other Receivables (Thousand USD) | Item | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Non-current prepayments and other receivables | 222,188 | 178,227 | | Current prepayments and other receivables | 300,256 | 236,378 | | **Total** | **522,444** | **414,605** | - Net book value of input VAT receivables was **$303,953,000**, with an impairment provision of **$133,827,000**[175](index=175&type=chunk)[176](index=176&type=chunk) - Deposits with a fellow subsidiary amounted to **$62,700 thousand**, under the treasury management services agreement with CNMC Treasury Management (Hong Kong) Limited[172](index=172&type=chunk)[175](index=175&type=chunk) [Restricted Deposits, Cash and Cash Equivalents and Other Cash Flow Information](index=58&type=section&id=Restricted

Core Viewpoint - The recent tailings dam collapse incident at China Nonferrous Mining's subsidiary in Zambia has drawn media attention, but the company asserts that the impact on its annual production is limited due to the small scale of the project and ongoing production suspension [1][6]. Group 1: Incident Details - On February 18, a tailings dam at the Zambia-based subsidiary collapsed due to theft of a waterproof membrane and heavy rainfall, leading to some tailings leakage [3]. - The company has complied with government directives for repair and compensation, and is working closely with the Zambian government on environmental assessments and remediation [3][4]. - A petition was filed by over a hundred local residents demanding $80 billion for environmental restoration, which the company claims lacks basis [3][4]. Group 2: Production Impact - The affected subsidiary has been suspended since the incident, with production of cathode copper dropping by 73.3% to 755 tons in the first half of 2025, and production of crude copper and anode copper down by 42.4% to 1,540 tons [5]. - The overall impact on China Nonferrous Mining's annual production is considered limited due to the small output of the affected project [6]. Group 3: Government Response - The Zambian government has stated that the situation has returned to normal, with no significant health issues reported related to the pollution incident [4]. - Laboratory tests indicate that water quality has improved, with pH levels normalizing and heavy metal concentrations decreasing [4]. Group 4: Risk Management - The company had established risk management protocols prior to the incident, including environmental management systems and emergency response plans [7]. - Experts suggest that the company’s approach reflects a need for improved preemptive risk management rather than reactive measures after incidents occur [8]. Group 5: Industry Context - The challenges faced by Chinese mining companies overseas, including theft and accidents, are not uncommon, highlighting the need for enhanced ESG governance and risk awareness [9].

Core Viewpoint - China Nonferrous Mining's recent tailings dam collapse incident in Zambia has drawn renewed attention, with the company clarifying allegations made by the media regarding the incident [1][5]. Group 1: Incident Overview - The tailings dam collapse at the Zambia Chambishi Hydrometallurgical Company occurred on February 18, 2025, due to a combination of factors including theft of the impermeable membrane and heavy rainfall, which was the highest in nearly 20 years for that period [5]. - The company has stated that the breach was effectively controlled by February 19, and it has complied with local government directives for remediation and compensation to affected farmers [5][6]. - A recent media report indicated that over 100 local residents filed a petition demanding the establishment of an environmental restoration fund of $80 billion (approximately 624 billion HKD) managed by the Zambian government [5]. Group 2: Production Impact - The company is currently not in production due to the incident, but the overall impact on annual production is considered limited as the affected project has a small output [3][7]. - In the first half of 2025, the company produced 11.13 million tons of crude copper and anode copper, a decrease of 30.4% year-on-year, while cathode copper production increased by 15.6% to 7.22 million tons [8]. Group 3: Government Response and Environmental Assessment - The Zambian government has stated that the situation has largely returned to normal, with no significant health issues or deaths reported related to the pollution incident [8]. - The local government has been actively responding to the incident, and laboratory tests have shown that water quality has returned to normal levels [7][8]. Group 4: Risk Management and ESG Practices - The company had previously established risk management protocols for tailings dam safety and environmental management, as noted in its 2024 ESG report [9][10]. - The company is facing climate risks such as extreme flooding and has implemented measures like drainage systems to mitigate these risks [10]. Group 5: Expert Analysis - Experts have pointed out that the company's handling of the incident reflects a need for improved risk awareness among Chinese enterprises operating overseas, emphasizing the importance of proactive risk management rather than reactive measures [11][12].

9月18日晚间，中国有色矿业发布公告称，近期有媒体文章就公司旗下赞比亚谦比希湿法冶炼有限公司 （以下简称谦比希湿法公司）尾矿坝溃坝事件作出指控，并对事件进行说明。 9月19日，有接近上市公司的人士向《每日经济新闻》记者表示，发生事故的公司目前仍停产，由于项 目产量不大，事件对中国有色矿业年产量影响有限。目前，复产需等待当地政府聘请环评机构出具环评 报告，但各方对选聘环评机构存在一定争议。 《每日经济新闻》记者注意到，截至9月19日，中国有色矿业今年以来股价涨幅超150%。 中国有色矿业： 800亿美元索赔缺乏依据 中国有色矿业表示，2月18日，谦比希湿法公司一座尾矿坝因防渗膜被盗割以及持续强降雨（2025年1月 至2月赞比亚当地降雨量接近20年来同期降雨量最大值）等原因溃坝，导致部分尾矿泄漏。溃口于19日 凌晨3点半完成封堵，事故源头得到有效控制。 对于尾矿坝事件，谦比希湿法公司已依据政府指令全面履行修复和治理义务，并按照赞比亚政府出具的 损害赔偿报告完成了对个体农户的赔偿工作。未来，公司将继续与赞比亚政府紧密协作，全力推进环境 影响评估和修复治理工作。 中国有色矿业（HK01258，股价12.85港元，市值 ...

《每日经济新闻》记者注意到，截至9月19日，中国有色矿业今年以来股价涨幅超150%。 中国有色矿业： 中国有色矿业旗下公司今年2月发生的一起事故，在9月中旬再次成为热点。 9月18日晚间，中国有色矿业发布公告称，近期有媒体文章就公司旗下赞比亚谦比希湿法冶炼有限公司 （以下简称谦比希湿法公司）尾矿坝溃坝事件作出指控，并对事件进行说明。 9月19日，有接近上市公司的人士向《每日经济新闻》记者表示，发生事故的公司目前仍停产，由于项 目产量不大，事件对中国有色矿业年产量影响有限。目前，复产需等待当地政府聘请环评机构出具环评 报告，但各方对选聘环评机构存在一定争议。 800亿美元索赔缺乏依据 中国有色矿业表示，2月18日，谦比希湿法公司一座尾矿坝因防渗膜被盗割以及持续强降雨（2025年1月 至2月赞比亚当地降雨量接近20年来同期降雨量最大值）等原因溃坝，导致部分尾矿泄漏。溃口于19日 凌晨3点半完成封堵，事故源头得到有效控制。 对于尾矿坝事件，谦比希湿法公司已依据政府指令全面履行修复和治理义务，并按照赞比亚政府出具的 损害赔偿报告完成了对个体农户的赔偿工作。未来，公司将继续与赞比亚政府紧密协作，全力推进环境 影响评估和 ...

Core Viewpoint - China Nonferrous Mining's recent tailings dam incident in Zambia has raised concerns, but the company asserts that the impact on its annual production is limited and it is actively managing the situation [1][3][4]. Group 1: Incident Overview - The tailings dam collapse at Zambia's Chambishi Hydrometallurgical Company was attributed to theft of a waterproof membrane and heavy rainfall, with the dam breach being sealed by February 19 [3][4]. - The company has complied with government directives for remediation and compensation to affected farmers, while disputing a claim for $80 billion in damages as unfounded [3][4]. Group 2: Production Impact - The Chambishi Hydrometallurgical Company remains offline, with production significantly affected; copper production in the first half of 2025 saw a 30.4% decline for crude and anode copper, while cathode copper production increased by 15.6% [4][5]. - The company’s overall production for cathode copper was 7,220 tons, while crude and anode copper totaled 11,130 tons [4]. Group 3: Regulatory and Environmental Response - The Zambian government has stated that the environmental impact of the incident is minimal, with water quality returning to normal and no significant health issues reported [4]. - The company is awaiting the completion of an environmental assessment by the local government before resuming operations, amid some disputes regarding the selection of the assessment agency [1][6]. Group 4: Risk Management and ESG Considerations - The company had previously established risk management protocols for tailings dam safety and environmental governance, indicating a proactive approach to potential risks [7]. - Experts suggest that the company’s response reflects a need for improved preemptive risk management rather than reactive measures after incidents occur [8].