Financial Performance - Revenue decreased to $112.3 million, down 19.3% from $139.2 million in the same period last year, primarily due to an 18.6% decline in sales volume[2] - EBITDA (excluding non-recurring items and foreign exchange) was negative $1.7 million, a significant drop from a positive $28.5 million in the same period last year[6] - Basic loss attributable to shareholders was $13.2 million, compared to a loss of $65.7 million in the previous year, reflecting a 79.8% improvement[4] - The company reported a loss of $13.2 million for the first half of 2024, with a basic loss of $10.8 million excluding non-recurring items and foreign exchange effects, reflecting a 216.2% increase from a profit of $9.3 million in the same period of 2023[8] - The company reported a net loss of $(13,226) thousand, significantly improved from a net loss of $(65,749) thousand in the prior year, representing an 80.1% reduction[43] - Basic and diluted loss per share improved to $(0.16) from $(0.77) year-over-year[42] Production and Sales - Production decreased by 13.5% to 1,132,201 tons, compared to 1,308,821 tons in the previous year, attributed to ore quality and mining issues[4] - Sales volume fell to 1,118,750 tons, down 18.6% from 1,374,549 tons in the previous year, consistent with the production decline[4] - Iron ore production decreased by 37.0% to 1,132,201 tons in the first half of 2024, down from 1,308,821 tons in the same period last year, while sales volume fell by 18.6% to 1,118,750 tons[9] - K&S reported a commercial iron ore production of 1,132,201 tons in the first half of 2024, down 13.5% from 1,308,821 tons in the same period of 2023[90] Costs and Expenses - Cash costs increased to $97.4 per ton sold, up 25.4% from $77.7 per ton in the previous year, driven by high mining costs and temporary export taxes[4] - Cash costs per ton increased by approximately 25.4% to $97.4 from $77.7, driven by rising inflation and mining costs[39] - General administrative expenses before depreciation decreased by 8.9% to $5.1 million from $5.6 million in the same period last year[17] - Depreciation expenses for the first half of 2024 were $5.6 million, a decrease of 42.4% from $9.8 million in the previous year[19] Debt and Financing - Net debt increased to $23.9 million from $11.2 million, primarily due to reduced profitability and difficulties in bank fund transfers[2] - The total borrowings from MIC as of June 30, 2024, amounted to $63.3 million, down from $67.7 million as of December 31, 2023[32] - The company's debt-to-equity ratio decreased to 22.7% as of June 30, 2024, compared to 23.3% as of December 31, 2023, due to reduced borrowings after loan repayments[34] - The weighted average interest rate on borrowings for the first half of 2024 was 8.78%, slightly up from 8.65% in the same period of 2023[32] Operational Challenges - Future outlook remains challenging due to low iron ore prices and high inflation, impacting profit margins and profitability[3] - The company is facing challenges in pricing power due to competition from local producers and has noted a trend of steel mills opting for lower-grade and cheaper iron ore[12] - The company is actively addressing ore quality issues and has upgraded processing facilities to handle lower-grade ores more effectively[9] - The company is facing ongoing challenges from geopolitical factors and sanctions affecting operations in Russia, complicating cash management and operational stability[40] Projects and Developments - The company is progressing with the Sutara project, which aims to improve ore quality and extend the overall mining life of K&S[3] - Mining operations at the Sutara site are expected to improve production capacity due to higher-grade iron ore, with stripping and mining activities commenced in Q2 2024[9] - The Sutara mine is expected to enhance operational efficiency and extend the overall mining period, with stripping and mining operations having commenced in Q2 2024[41] - K&S is exploring two feasible development options for the Garinskoye project, with one option targeting an annual capacity of 4.6 million tons and a mine life of over 20 years[95] Cash Flow and Liquidity - Cash and bank balances decreased to $45.151 million as of June 30, 2024, down from $56.557 million at the beginning of the year[25] - Cash balance decreased to $39.4 million as of June 30, 2024, down from $56.6 million on December 31, 2023, while net debt increased to $23.9 million from $11.2 million[40] - The company reported a net cash flow from operating activities of $(1,395) thousand, a decrease from $32,523 thousand in the same period of 2023[48] - The company reported total cash and cash equivalents balance of $38,890 thousand as of June 30, 2024, down from $44,930 thousand a year earlier[48] Market Conditions - The average price of iron ore with 65% Fe content was $130.7 per ton, a decrease of 1.0% from $132.0 per ton in the previous year[4] - The average inflation rate in Russia was 9.2% as of June 2024, significantly above the central bank's target of 4%[15] - The company continues to monitor the impact of sanctions from the UK, EU, and US, which have not had a significant direct effect on operations to date[51] Employee and Governance - The company employed 1,579 people as of June 30, 2024, down from 1,629 employees a year earlier, with total employee costs amounting to $17.4 million[36] - The company’s management compensation for the six months ending June 30, 2024, totaled $2,296,000, a decrease from $2,765,000 in the same period of 2023[83] - The company has adopted corporate governance principles and complies with the listing rules of the Hong Kong Stock Exchange[102]
铁货(01029) - 2024 - 中期业绩