Financial Performance - In the first half of 2024, the company reported a basic loss of approximately $10.8 million, a significant decline compared to a basic profit of $9.3 million in the same period last year[6]. - Revenue decreased by approximately 19.3% from about $139.2 million to $112.3 million due to a significant drop in sales volume[8]. - The company reported a negative EBITDA of $1.7 million in 2024, compared to a positive EBITDA of $28.5 million in 2023[8]. - EBITDA excluding non-recurring items and foreign exchange for the first half of 2024 was a loss of $1.735 million, compared to a profit of $28.453 million in the same period of 2023, marking a decline of 106.1%[22]. - The company reported a loss of $13.2 million for the first half of 2024, with a basic loss of $10.8 million after excluding non-recurring items and foreign exchange effects, reflecting a 216.2% increase from a profit of $9.3 million in the same period last year[24]. - The company reported a cumulative loss of $1,062,545 thousand as of June 30, 2024, compared to $1,049,306 thousand as of December 31, 2023, reflecting an increase in cumulative losses[95]. - The company reported a total comprehensive loss for the six months ended June 30, 2024, was $66,836 thousand, compared to $65,749 thousand for the same period in 2023, indicating a slight increase in losses[95]. Production and Sales - K&S operated at an average capacity of about 72%, producing 1,132,201 tons of iron concentrate, a decrease of 13.5% from 1,308,821 tons in the previous year[6]. - Iron ore production and sales for the first half of 2024 were 1,132,201 tons and 1,118,750 tons, respectively, representing declines of 13.5% and 18.6% compared to the same period in 2023[17]. - Sales volume for K&S in the first half of 2024 was 1,118,750 tons, down 18.6% from 1,374,549 tons in the previous year[25]. - The company faced challenges with ore quality and mining efficiency, leading to a 37.0% decrease in mining volume, while the processing plant's feed only decreased by 5.7% due to the use of accumulated low-quality ore stock[25]. - K&S aims to produce 3.2 million tons of iron concentrate with a grade of 65% annually in the first phase, with potential expansion to 6.3 million tons in the second phase[60]. Costs and Expenses - The cash cost per ton increased by approximately 25.4% from $77.7 to $97.4 in the first half of 2024, driven by inflation and rising mining costs[8]. - The company faced significant increases in production costs due to high mining costs, temporary export taxes from Russia, and high inflation rates[21]. - Cash costs net (excluding transportation) increased by $22.1 per ton to $81.9 per ton, primarily driven by high mining costs due to higher average mining volumes of lower-quality ore[31]. - The net cash cost (including transportation) rose by 25.4% to $97.4 per ton, influenced by increased mining costs, new export taxes, and strong inflation[35]. - General administrative expenses before depreciation decreased by 8.9% to $5.1 million compared to $5.6 million in the same period last year[36]. - Financing costs decreased by 18.4% to $3.3 million, attributed to increased cash balances generating more interest income and reduced loan principal[39]. Cash Management and Liquidity - The company is currently facing difficulties in cash management due to complex funding issues and rising operational costs[7]. - As of June 30, 2024, the cash balance decreased to $39.4 million from $56.6 million as of December 31, 2023, and net debt increased to $23.9 million from $11.2 million[10]. - The company is focused on maintaining financial stability and managing cash resources effectively in response to ongoing market volatility and high inflation pressures[15]. - The company plans to explore potential solutions to enhance liquidity to manage current uncertainties in the market[15]. - The company reported a net cash outflow of $1.2 million for the six months ended June 30, 2024, attributed to decreased sales and increased operating costs[47]. Geopolitical and Operational Challenges - The geopolitical environment and sanctions against Russia have created significant operational challenges and uncertainties for the company[9]. - The company acknowledges the challenges posed by geopolitical issues, which complicate strategic planning and operational decisions[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[99]. - The company is actively assessing risks related to supply chain disruptions due to geopolitical factors and macroeconomic conditions[99]. Future Plans and Projects - The Sutara mine is anticipated to improve operational efficiency and extend the overall mining life by providing higher quality ore, with operations expected to commence in the second quarter of 2024[9]. - The company is actively exploring the establishment of its own mining team to reduce reliance on third-party contractors, which is expected to enhance operational efficiency[6]. - The company has initiated stripping and mining operations at the Sutara mine, which is expected to provide a long-term solution to the ore quality issues[25]. - The company is considering additional wet magnetic separation stages to produce ultra-high-grade iron ore with 68% iron content, enhancing project value[69]. Shareholder and Corporate Structure - As of June 30, 2024, the company has issued 8,519,657,257 shares, with Nikolai Levitskii holding 4,836,157,937 shares, representing 56.76% of the total[72]. - Public shareholders held 43.24% of the company's shares following the completion of the offer on February 22, 2024[81]. - On February 22, 2024, MIC invest LLC sold its entire equity interest in the company, and Axioma became the ultimate parent company[128]. - The company had no stock options granted during the six months ending June 30, 2024, under the stock option plan[78]. Miscellaneous - The company is involved in the mining and metallurgy sector, focusing on resource estimation and feasibility studies[134]. - The report indicates that all amounts are in US dollars unless otherwise specified[134]. - The company has a comprehensive board structure, including various committees such as audit, remuneration, and health, safety, and environment[137].
铁货(01029) - 2024 - 中期财报