Revenue and Sales Performance - Revenue decreased by 12.6% to $221.2 million (2023: $253.0 million) primarily due to ore quality issues in the first half of 2024[7] - Total revenue for the group was $221.2 million in 2024, representing a decline of 12.6% from $253.0 million in 2023[13] - Revenue from iron ore sales decreased by 12.6% from $253.0 million in 2023 to $221.2 million in 2024[28] - Revenue from sales of iron ore decreased to $220.954 million in 2024 from $252.935 million in 2023, representing a decline of approximately 12.6%[108] - Revenue from major customer A decreased to $198,827 thousand in 2024 from $235,287 thousand in 2023, a decline of approximately 15.5%[116] Production and Operational Efficiency - Production volume decreased by 3.6% to 2,378 thousand tons (2023: 2,467 thousand tons) due to ore quality issues[7] - The group's iron ore production decreased by 3.6% to 2,377,519 tons in 2024, compared to 2,466,829 tons in 2023[13] - The company plans to enhance Sutara's production capacity to improve output and operational efficiency[11] - The Sutara mine is expected to commence operations in July 2024, which may alleviate production constraints caused by the declining quality at the Kimkan mine[17] - K&S processing plant operated at only 75% of its capacity in 2024, down from 87% in 2020, due to declining ore quality and increased stripping ratios[77] Financial Performance and Costs - Cash cost per ton increased by 9.0% to $86.0 (2023: $78.9) mainly due to temporary export tariffs and inflation[7] - EBITDA adjusted for non-Hong Kong Financial Reporting Standards decreased to $9.3 million (2023: $45.8 million)[7] - Adjusted EBITDA (excluding non-recurring items and foreign exchange) dropped by 79.6% to $9.3 million in 2024, down from $45.8 million in 2023[16] - Cash costs increased by 9.0% to $86.0 per ton in 2024, attributed to lower production and a temporary export tax introduced in Q4 2023[18] - Operating profit before changes in working capital was $7.4 million in 2024, down from $43.3 million in 2023, attributed to lower sales volume, weaker prices, and increased production costs[44] Shareholder and Market Confidence - Shareholders' loss reduced to $20.5 million (2023: $156.8 million), with no impairment provision in 2024 (2023: impairment of $163.9 million)[7] - The chairman expressed confidence in the company's long-term prospects despite the challenging operational environment[8] - The company received strong support from shareholders for its equity raising initiative, reflecting confidence in its long-term prospects[68] Debt and Financing - The company completed a rights issue, significantly improving liquidity and financial strength[10] - The company raised approximately $46.3 million through a rights issue completed on December 13, 2024, issuing 4,259,828,628 shares[46] - The company repaid $195.1 million of the $240 million loan taken in 2019, leaving an outstanding debt of $44.9 million as of December 31, 2024[52] - The company plans to repay $5 million of high-interest loans to MIC Invest Limited, improving financial flexibility and reducing debt burden[84] Challenges and Future Outlook - The company faced operational challenges at the K&S mine due to suboptimal ore quality and limited mining areas, impacting production rates[21] - The company faced significant operational challenges in 2024, resulting in a loss situation due to the transition of K&S mining operations to Sutara and unforeseen difficulties[75] - The company maintains a cautious optimism regarding future market conditions, closely monitoring developments that may impact operations and the broader iron ore market[86] Environmental and Governance Commitment - The company is committed to sustainable and responsible operations as a key factor for long-term success[69] - The company will further integrate environmental, social, and governance factors into strategic decision-making[69] - The company aims to reduce its environmental footprint and contribute to the global low-carbon economy transition[71] Market and Economic Conditions - The company is actively monitoring geopolitical risks and trade tensions, particularly with respect to iron ore demand and supply chain disruptions[88] - The company remains cautiously optimistic about China's economic development and its impact on iron ore demand, despite structural challenges[89] - The current economic situation presents uncertainties regarding product demand and available financing[99]
铁货(01029) - 2024 - 年度业绩