Financial Performance - Revenue decreased by 17% to 252.8millionfrom304.0 million in the same period of 2022[6] - Net profit increased by 10% or 6.9millionto78.7 million compared to 71.8millioninthesameperiodof2022[6]−Operatingcashflowdecreasedby21127.7 million from 160.8millioninthesameperiodof2022[6]−SalesrevenueforQ12023decreasedby20.2252.8 million from 304.0millioninQ12022[12]−Operatingprofitfromminingdecreasedby32.8 million to 102.7million,whilethepercentageofoperatingprofittosalesrevenueincreasedfrom3571,228 thousand for the three months ended March 31, 2023, compared to a profit of 77,779thousandforthesameperiodin2022,showingadecreaseofapproximately8.486,484,000, an increase from 81,609,000inthepreviousyear[53]−Basicearningspersharefortheperiodwere19.62cents,upfrom17.97centsinthesameperiodof2022[54]ProductionandSales−Totalgoldproductiondecreasedby10136.58 million, down from 178.67millioninQ12022,representingadecreaseof23.5186.4 million, a decrease of 47.9millioncomparedto234.3 million in the same period of 2022[13] - The mining segment for gold generated revenue of 66,415,000,whilethecopperconcentratesegmentgenerated186,363,000, indicating a significant contribution from copper operations[67] Costs and Expenses - Total production cost per pound of copper decreased by 13% to 2.83inQ12023from3.25 in Q1 2022[10] - Cash production cost per pound of copper decreased by 17% to 2.12inQ12023from2.58 in Q1 2022[10] - General and administrative expenses slightly decreased from 9.9millioninQ12022to9.6 million in Q1 2023 due to ongoing cost reduction efforts[13] - Research and development expenses decreased from 5.9millioninQ12022to4.6 million in Q1 2023, primarily due to the completion of multiple research projects in 2022[13] - The company incurred mining costs of 23.8million,processingcostsof33.6 million, and transportation costs of 1.7millionforthethreemonthsendedMarch31,2023[36]OperationalChallenges−Thecompanyhassuspendedoperationsduetotailingsdamoverflowandiscurrentlyassessingtheimpactonproduction[7]−Thecompanyhaswithdrawnits2023annualproductionguidanceduetouncertaintyregardingtheresumptionofoperations[7]−Thecompanyisconductingacomprehensiverepairandsafetyassessmentofthetailingsdam,expectedtobecompletedbytheendofJuly2023[7]−Thecompany’soperationsattheJiamarCopper−GoldPolymetallicMineweretemporarilysuspendedduetoatailingsdamincident,withfullrestorationandsafetyassessmentsexpectedtobecompletedbytheendofJuly2023[60]FinancialPosition−Thecompanyhasacashbalanceof553.0 million as of March 31, 2023, with total borrowings amounting to 842.7million[31]−ThetotaldebtasofMarch31,2023,was842.7 million, with a total equity of 1,842.8million,resultinginadebt−to−equityratioof0.46,upfrom0.44asofDecember31,2022[36]−Thecompany’scurrentliabilitiestotaled798,957 thousand, up from 638,635thousand,indicatinganincreaseofapproximately25.1501,260 thousand from $571,226 thousand, a decline of about 12.3%[56] Legal and Regulatory Matters - The company is currently facing a forced execution matter from a court ruling dated November 5, 2022, which remains unresolved as of the report date[93] - The company has been involved in litigation concerning the delivery of new properties since June 2021, with ongoing legal proceedings[93] - The company is actively monitoring the legal developments and has consulted external legal advisors regarding the ongoing litigation[93] Future Outlook - The company plans to implement geological exploration projects at the Jiamar Mine in 2023, including detailed surveys and sampling over 37.31 square kilometers[26] - The company anticipates that operating cash flow will be sufficient to cover planned capital expenditures and debt repayments over the next twelve months[31]
