Production and Sales Performance - The company achieved a record iron ore production of 2.6 million tons in 2019, a 15.3% increase compared to 2018[21] - The iron ore sales volume reached 2.5 million tons in 2019[13] - K&S achieved a high production rate of approximately 95% despite the impact of COVID-19, with iron ore prices maintaining a robust level of around $100 per ton[37] - K&S's production in 2018 was 2,234,517 tons, reflecting a 43% increase from the previous year[110] - K&S aims to produce 3.2 million tons of iron concentrate with a 65% iron content annually in its first phase, with potential expansion to 6.3 million tons in the second phase[113] - In 2019, K&S processed 7,892,500 tons of ore, resulting in the production of 2,576,325 tons of iron concentrate, of which 2,464,401 tons were sold[119] Financial Performance - Revenue increased by 16.9% to $177.2 million in 2019, while EBITDA (excluding foreign exchange) rose by 39.2% to $33.3 million[21] - The company reported a net loss of $38.7 million after tax due to various non-operating items, including $11.5 million in unamortized loan costs and $6.2 million in foreign exchange losses[21] - The net revenue for the year was $177,164,000, a 16.9% increase from $151,549,000 in 2018[52] - The company reported a basic loss of $21,000,000 (10.2% increase from $19,060,000) excluding non-recurring items and foreign exchange effects[61] - The company experienced a significant hedge loss of $23,296,000 in 2019, compared to a loss of $1,585,000 in 2018, impacting overall profitability[52] - The company secured $240 million from Gazprombank for refinancing, which will ease cash flow burdens despite higher costs[48] Cost Management - The cash cost per ton remained stable at $51, despite the expansion of operational scale[21] - The average cash cost per ton increased by 2.4%, lower than the 3.1% general inflation rate in Russia[43] - The total cash cost per ton of iron ore was $51.4, up from $50.2 in 2018, representing a 2.4% increase[52] - The net cash cost per ton for iron ore increased by only 2.4% to $51.4 per ton, which is below the overall inflation rate of 3.1% in Russia for 2019[76] Market Conditions and Future Outlook - The price of iron ore with 65% iron content peaked at $136 per ton during the year, ending at $104 per ton, which is $17 higher than the end of 2018[25] - The company aims to strengthen its market position and explore growth and expansion opportunities in the future[22] - The company anticipates continued demand for high-grade iron ore, driven by supply constraints and strong market conditions[66] - The board decided not to engage in further iron ore hedging as the market remains in a contango state[48] Safety and Community Engagement - The company reported a lost time injury frequency rate of 1.04 for 2019, indicating a strong focus on employee safety and community welfare[36] - The company emphasizes safety and sustainability as top priorities, focusing on employee development and environmental responsibility[50] - The company has been actively involved in community support and charitable activities, extending its efforts to the Amur Oblast and Jewish Autonomous Oblast communities[178] - The company has implemented a zero-injury environment initiative, adhering to Russian regulations and international health and safety standards[189] Employee and Governance - The company employed approximately 1,760 employees as of December 31, 2019, an increase from 1,698 employees in 2018[105] - The company is committed to attracting and retaining high-quality employees, aiming to become a leading employer in the Russian Far East[188] - The company has a health, safety, and environment committee composed of three independent non-executive directors to evaluate the effectiveness of policies related to health, safety, and environmental risks[181] Environmental Responsibility - The company has been recognized as the first and only pure iron ore company in the Russian Far East to comply with international standard ISO 14001:2004[178] - The company has a focus on sustainable development, emphasizing safe working conditions, responsible resource use, and environmental conservation for future generations[180] - The total carbon dioxide emissions for 2019 were reported at 2,576,325 tons[174] Resource and Reserve Management - The company's resources and reserves at the end of 2019 were 1,410 million tons and 372 million tons, respectively, compared to 1,419 million tons and 387 million tons at the end of 2018[110] - The total estimated resources across all categories reached 1,410.0 million tons with an average iron grade of 29.1%, equating to 410.4 million tons of iron[146] - The company holds a 99.6% interest in the Garinskoye project, which is the largest exploration project in its portfolio[131]
铁货(01029) - 2019 - 年度财报