Financial Performance - For the fiscal year 2024, the company reported an adjusted net loss of $15 million compared to a net profit of $9 million in the previous year, primarily due to a 6.6% decline in the average price of 65% iron ore and a 7.4% decrease in sales volume[16]. - The average price of 65% iron ore significantly impacted revenue, reflecting the challenges faced in the global iron ore market[16]. - The company’s EBITDA for 2024 was reported at $79.7 million, showing a decline from the previous year, highlighting the impact of market conditions on profitability[11]. - The company reported a loss attributable to shareholders of $20.5 million in 2024, a significant improvement from a loss of $156.8 million in 2023[55]. - The company recorded a basic EBITDA of $9.3 million in 2024, a significant decline from $45.8 million in 2023, attributed to lower sales prices, reduced production, and increased costs[108]. - Revenue from iron ore sales decreased by 12.6% from $253.0 million in 2023 to $221.2 million in 2024 due to falling prices and sales volume[64]. - Operating profit before changes in working capital decreased to $7.4 million in 2024 from $43.3 million in 2023, primarily due to a decline in sales volume and rising production costs[84]. Production and Operations - The company's production decreased by 3.6% due to the natural depletion of reserves at the Kimkan mine, while the new Sutara mine was successfully commissioned in the second half of the year, expected to enhance production quality and output[17]. - The company’s iron ore production decreased by 3.6% to 2,377,519 tons in 2024, while sales dropped by 7.4% to 2,342,633 tons[49]. - The Sutara mine commenced production in July 2024, contributing 3,676,000 tons of iron ore in the second half of the year, with expectations of further increasing its share of total mined ore[35]. - The average production capacity of K&S was only 75% in 2024, down from 87% in 2020, due to declining ore quality and increased stripping ratios[31]. - The transition of K&S mining operations from Kimkan to Sutara began in 2024, which is expected to alleviate production constraints[52]. - The company faced challenges with ore quality at the Kimkan site, impacting production in the first half of 2024[52]. - The operational efficiency of K&S improved in the second half of 2024, with an average production capacity of 81% in Q4, up from 67% in Q1[35]. Financial Position and Capital Management - The company completed a capital raising through a rights issue, significantly improving its liquidity position and financial strength to navigate challenging market conditions[20]. - The company successfully raised approximately $46.3 million through a rights issue, achieving an oversubscription rate of 21.9%, significantly enhancing its financial stability[40]. - The company’s cash and deposits increased to $60.7 million, representing a 242% improvement year-over-year, indicating enhanced financial resilience[11]. - At year-end, the company reported a cash balance of $60.7 million and an outstanding loan balance of $44.9 million, marking the first time it recorded a net cash position of $15.9 million since operations began in 2017[40]. - The company plans to utilize funds raised from a rights issue to reduce debt levels and enhance production capacity, including establishing an internal mining team[23]. - The company plans to repay $5 million of high-interest loans to MIC, reducing debt burden and interest expenses, thereby increasing financial flexibility[41]. - The debt-to-equity ratio decreased to 14.2% as of December 31, 2024, down from 23.3% in 2023, primarily due to the repayment of MIC loans[101]. Market Conditions and Challenges - The price of iron ore with 65% iron content averaged $123 per ton in 2024, a decrease of 6.6% compared to the previous year, amid significant market volatility[38]. - The Russian ruble depreciated nearly 10% from 85 rubles per dollar in 2023 to 93 rubles per dollar in 2024, leading to a 9.0% increase in cash costs per ton due to new temporary export taxes and high inflation rates[39]. - Geopolitical tensions and trade risks are impacting global markets, prompting the company to diversify its supply chain to mitigate operational risks[44]. - The company remains cautiously optimistic about China's economic development, which is crucial for global iron ore demand, while preparing for potential demand fluctuations[44]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to further integrate environmental, social, and governance (ESG) factors into strategic decision-making to enhance its role as a responsible corporate citizen[22]. - The company emphasizes its commitment to environmental, social, and governance (ESG) responsibilities across all operational stages[155]. - The report covers the period from January 1, 2024, to December 31, 2024, in accordance with the Hong Kong Stock Exchange's ESG reporting guidelines[160]. - The company has established specific goals and deadlines for its environmental, social, and governance activities, which are reviewed annually by the board[161]. Workforce and Employee Management - The company employed 1,670 employees in 2024, an increase from 1,636 in 2023, with total employee costs rising to $32.9 million from $28.8 million[104]. - Employee turnover rate for 2024 reached 21.7%, with 333 employees leaving the company, exceeding the mining industry average[181]. - The company implemented measures to improve working conditions and increase wages, resulting in a reduction in employee turnover rate in 2024[182]. - The company established a training center to provide professional training, holding a vocational training license from the Jewish Autonomous Region Education Committee[198]. - The company aims to create a culture of excellence in the workplace, emphasizing high productivity and compliance with safety regulations[199].
铁货(01029) - 2024 - 年度财报