MONGOL MINING(00975) - 2025 - 中期业绩

Financial Highlights Key Financial Data for H1 2025 | Metric | H1 2025 (USD million) | H1 2024 (USD million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 346.6 | 541.1 | -35.9% | | (Loss)/Profit Attributable to Equity Holders of the Company | (23.3) | 133.0 | Turned to loss from profit | | Basic (Loss)/Earnings Per Share | (2.24) US cents | 12.05 US cents | Turned to loss from profit | | Dividend | Nil | Nil | Unchanged | - The decline in profitability was mainly due to a decrease in average selling prices and a one-time loss of $25.0 million related to debt refinancing[3] - Completed the acquisition of a 50.5% equity interest in Universal Copper LLC (UCC) on March 11, 2025, making it a subsidiary of the Company[3] - The processing plant and on-site facilities at the Bayan Khundii (BKH) mine have officially commenced operations, with commercial production expected in the third quarter of 2025[4] Consolidated Financial Statements Consolidated Statement of Profit or Loss The Group recorded a loss for the six months ended June 30, 2025, mainly due to a significant decline in revenue and a one-time loss from debt refinancing Key Data from Consolidated Statement of Profit or Loss (USD thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 346,648 | 541,129 | | Cost of revenue | (283,789) | (317,300) | | Gross profit | 62,859 | 223,829 | | Operating profit | 34,321 | 204,217 | | Net finance costs | (27,179) | (19,387) | | Loss on repurchase of senior notes due 2026 | (25,049) | – | | (Loss)/profit before taxation | (17,601) | 185,208 | | (Loss)/profit for the period | (19,934) | 132,920 | | (Loss)/profit attributable to equity holders of the Company | (23,323) | 132,995 | | Basic (loss)/earnings per share (US cents) | (2.24) | 12.05 | Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's total comprehensive income for the six months ended June 30, 2025 was negative, primarily impacted by the loss for the period, partially offset by positive exchange differences Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (USD thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | (Loss)/profit for the period | (19,934) | 132,920 | | Exchange differences on translation | 3,719 | 1,675 | | Total comprehensive income for the period | (16,215) | 134,595 | | Total comprehensive income attributable to equity holders of the Company | (19,664) | 134,481 | Consolidated Statement of Financial Position As of June 30, 2025, the Group's non-current and current assets increased, but a significant rise in non-current liabilities led to a slight decrease in net assets Key Data from Consolidated Statement of Financial Position (USD thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total non-current assets | 1,854,234 | 1,748,456 | | Total current assets | 459,503 | 386,757 | | Total current liabilities | 346,497 | 325,619 | | Net current assets | 113,006 | 61,138 | | Total assets less current liabilities | 1,967,240 | 1,809,594 | | Total non-current liabilities | 593,290 | 428,675 | | Net assets | 1,373,950 | 1,380,919 | | Total equity attributable to equity holders of the Company | 1,214,998 | 1,245,510 | | Total equity | 1,373,950 | 1,380,919 | Notes to the Consolidated Financial Statements 1 Basis of Preparation This interim financial report is prepared in accordance with the Listing Rules of the Hong Kong Stock Exchange and IAS 34, and has been reviewed by KPMG - The report is prepared in accordance with the Listing Rules of the Hong Kong Stock Exchange and International Accounting Standard 34[10] - The report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[10] 2 Changes in Accounting Policies The Group has applied amendments to IAS 21 in the current period, which had no material impact on this interim report as no non-convertible foreign currency transactions occurred - The Group has applied amendments to International Accounting Standard 21, but it had no material impact on the interim report[11] 3 Revenue and Segment Reporting The Group is primarily engaged in the mining, processing, transportation, and sale of coal products, with its business divided into coal mining and gold and metals mining segments Breakdown of Major Revenue (USD thousand) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Washed hard coking coal | 236,511 | 437,887 | | Washed medium-ash semi-hard coking coal | 50,348 | 69,468 | | Washed semi-soft coking coal | 26,685 | 30,097 | | Middlings | 32,559 | 2,975 | | Raw thermal coal | 545 | 702 | | Gold and metal products | – | – | | Total | 346,648 | 541,129 | - The Group's business is divided into the coal mining segment and the gold and metals mining segment[15][16] - For the six months ended June 30, 2025, the gold mining segment generated no revenue, with the gold mine expected to commence production in the third quarter of 2025[14][15] 4 Cost of Revenue The cost of revenue, primarily comprising mining, processing, transportation costs, and royalties, decreased compared to the same period last year Breakdown of Cost of Revenue (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Mining costs | 129,311 | 139,850 | | Processing costs | 35,300 | 30,842 | | Transportation costs | 63,891 | 65,437 | | Others (mainly royalties) | 55,287 | 81,171 | | Total cost of revenue | 283,789 | 317,300 | 5 Profit Before Tax Profit before tax was impacted by net finance costs and other items, with net finance costs increasing due to higher foreign exchange losses Net Finance Costs (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Finance income | (2,854) | (2,085) | | Interest on senior notes | 16,723 | 15,543 | | Net interest on borrowings | 784 | – | | Interest on lease liabilities | 23 | 32 | | Unwinding interest on provision for reclamation | 2,789 | 1,560 | | Foreign exchange loss, net | 8,758 | 4,044 | | Others | 956 | 293 | | Finance costs | 30,033 | 21,472 | | Net finance costs | 27,179 | 19,387 | Other Items (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Depreciation and amortisation | 58,336 | 63,944 | | Loss on disposal of property, plant and equipment | 808 | 723 | 6 Income Tax The Group's income tax expense decreased significantly, mainly due to a pre-tax loss and adjustments for tax effects Income Tax Expense (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | 8,906 | 58,417 | | Deferred tax | (6,573) | (6,129) | | Total | 2,333 | 52,288 | Reconciliation of Tax Expense to Accounting Profit (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | (Loss)/profit before taxation | (17,601) | 185,208 | | Estimated tax on (loss)/profit before taxation | 297 | 46,786 | | Tax effect of non-deductible items | 3,632 | 5,856 | | Utilisation of prior year tax losses | (16) | – | | Tax effect of tax-exempt items | (2,278) | (882) | | Unrecognised tax losses | 698 | 528 | | Actual tax expense | 2,333 | 52,288 | - Subsidiaries in Mongolia are subject to corporate income tax at progressive rates, while subsidiaries in China are taxed at a rate of 25%[21] 7 (Loss)/Earnings Per Share The Group recorded a basic and diluted loss per share for the six months ended June 30, 2025, in contrast to the earnings reported in the same period last year (Loss)/Earnings Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic (loss)/earnings per share | (2.24) US cents | 12.05 US cents | | Diluted (loss)/earnings per share | (2.24) US cents | 11.85 US cents | - Basic loss per share is calculated based on the loss attributable to equity holders of the Company of $23,323,000 and a weighted average of 1,041,472,786 ordinary shares in issue[20] - For the six months ended June 30, 2025, basic and diluted earnings per share were the same as the equity-settled share-based payment transactions had an anti-dilutive effect[22] 8 Property, Plant and Equipment, Net The Group's net property, plant and equipment increased, primarily due to additions in mining assets and mining structures - As of June 30, 2025, the carrying value of the Group's mining assets was $566,516,000, an increase from December 31, 2024[24] - During the six months ended June 30, 2025, additions to property, plant and equipment amounted to $87,509,000[24] 9 Construction in Progress Construction in progress is mainly related to the construction of the Bayan Khundii (BKH) mine of Erdene Mongol LLC (EM) - Construction in progress primarily involves buildings and plant, with additions mainly related to the construction of EM's BKH mine[25] 10 Intangible Assets Intangible assets mainly consist of acquired mining rights, with additions primarily from the acquisition of a subsidiary - Intangible assets mainly consist of acquired mining rights, with additions primarily representing mining rights obtained through the acquisition of a subsidiary[26] 11 Trade and Other Receivables Total trade and other receivables decreased significantly at the end of the reporting period, mainly due to a reduction in trade receivables and prepayments Trade and Other Receivables (USD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (net of allowance for doubtful debts) | 15,593 | 40,672 | | Other receivables | 1,834 | 499 | | Financial assets measured at amortised cost | 17,427 | 41,171 | | Prepayments and deposits | 1,108 | 9,603 | | VAT and other tax receivables | 43,846 | 47,123 | | Total | 62,381 | 97,897 | - VAT and other tax receivables include amounts due from the General Department of Taxation of Mongolia, which are expected to be fully recoverable[27] 12 Trade and Other Payables Total trade and other payables increased at the end of the reporting period, mainly due to a rise in trade payables, other tax payables, and payables for the acquisition of a subsidiary Trade and Other Payables (USD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total trade payables | 110,121 | 86,862 | | Payables for purchase of equipment | 13,873 | 1,554 | | Interest payable | 7,593 | 8,359 | | Other tax payables | 41,524 | 22,824 | | Amounts due to related parties | 10,771 | 7,949 | | Payables for acquisition of a subsidiary | 6,000 | – | | Others | 660 | 11,422 | | Total | 190,542 | 138,970 | 13 Borrowings The Group's long-term borrowings increased significantly, primarily from a loan agreement entered into by EM with a local bank Long-term Borrowings (USD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Long-term borrowings | 50,000 | 20,000 | - On December 4, 2024, EM entered into a $50,000,000 loan agreement with a local bank in Mongolia at an annual interest rate of 13.3%[29] 14 Senior Notes The Group issued new senior notes due 2030 and redeemed the senior notes due 2026, resulting in a one-time refinancing loss Senior Notes (USD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Senior notes due 2026 | – | 216,122 | | Senior notes due 2030 | 343,442 | – | | Total | 343,442 | 216,122 | - On April 3, 2025, the Company issued senior notes due 2030 with a principal amount of $350,000,000 at an annual interest rate of 8.44%[31] - On April 15, 2025, all senior notes due 2026 were redeemed, resulting in a repurchase loss of $25,049,000[31] 15 Share Capital, Reserves and Dividends The Group did not recommend a dividend, exercised some share options, and repurchased some of its shares during the reporting period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[33] - During the six months ended June 30, 2025, 2,351,000 share options were exercised[34] Share Repurchase Details (H1 2025) | Month/Year | Number of Shares Repurchased | Highest Price (HKD) | Lowest Price (HKD) | Total Price Paid (USD thousand) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 2,937,000 | 7.4100 | 6.4100 | 2,535 | | April 2025 | 13,962,000 | 6.7700 | 4.7900 | 9,916 | | Total | 16,899,000 | | | 12,451 | Management Discussion and Analysis Industry Overview In H1 2025, China's steel production and sales declined, while coke production increased but consumption and exports fell; coking coal consumption and domestic output rose, but imports decreased Performance of China's Steel, Coke, and Coking Coal Industries Performance of China's Steel, Coke, and Coking Coal Industries (H1 2025 vs H1 2024) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | China's crude steel production | 514.8 million tonnes | 530.7 million tonnes | -3.0% | | China's apparent crude steel consumption | 454.3 million tonnes | 471.9 million tonnes | -3.7% | | China's steel exports | 58.1 million tonnes | 53.4 million tonnes | +8.9% | | China's coke production | 249.4 million tonnes | 241.9 million tonnes | +3.1% | | China's coke consumption | 237.0 million tonnes | 238.2 million tonnes | -0.5% | | China's coke exports | 3.5 million tonnes | 4.9 million tonnes | -28.0% | | China's coking coal consumption | 296.3 million tonnes | 288.6 million tonnes | +2.6% | | Domestic coking coal production | 237.9 million tonnes | 228.3 million tonnes | +4.2% | | China's coking coal imports | 52.8 million tonnes | 57.4 million tonnes | -8.0% | | Mongolia's coking coal imports to China | 24.8 million tonnes | 29.5 million tonnes | -15.9% | - Mongolia maintained its position as China's primary coking coal supplier, accounting for 46.9% of total coking coal imports[37] Performance of the Gold Industry - As of the end of the reporting period, international gold prices were firm, with a spot price of $3,303.7 per ounce, an increase of 26.6% from the beginning of the period[38] - Global gold demand in H1 2025 totaled 2,423 tonnes, with investment demand accounting for 43.1%[38] - The Bank of Mongolia was the most active buyer of domestically produced gold, purchasing 5.9 tonnes in the first half of the year[38] Operating Environment The Mongolian government introduced new regulations on coal exports, labor, and taxation to boost mineral exports, enhance supervision, protect worker health, and increase gold mining Legal Framework - The Mongolian Parliament approved the GS-GM cross-border railway cooperation agreement, expected to add 40 million tonnes/year of rail transport capacity and boost coal exports[39] - The Mongolian Stock Exchange revised its mining commodity trading rules, allowing forward contracts to use fixed or index pricing and permitting installment or bank letter of credit payments[41] - The Mongolian government established a working group to review state ownership percentages in strategic mineral deposits and negotiate with license holders[42][43] - The Mongolian government issued the "Technical Regulation on Health Protection of Employees Exposed to Workplace Dust," effective July 1, 2025[44] - The implementation of the "Law on Air Pollution Fees" was postponed to June 1, 2026, with pricing authority delegated to local governments[45] - The Mongolian government stipulated that royalty fees will be calculated using MSE commodity exchange quotes if at least one-quarter of a taxpayer's total exports are traded via the MSE[46] - The Mongolian government issued "Certain Measures to Increase Gold Mining" and launched the nationwide "Gold-3" campaign to boost foreign exchange reserves and stabilize the economy[47] Political Environment - Mr. Zandanshatar Gombojav was appointed as the new Prime Minister of Mongolia and formed a new cabinet[48] Business Review The Group conducted resource exploration, reserve updates, production, and transportation activities in its coal and gold businesses, while maintaining a focus on occupational health, safety, and the environment Coal Resources and Exploration Activities - The JORC Coal Resource estimate for the UHG deposit has been updated, showing an increase in measured resources, totaling 540 million tonnes[49][50][52] UHG Mining Licence JORC (2012) Coal Resource Update (December 31, 2024, million tonnes) | Resource Category | Measured | Indicated | Inferred | Total (Measured+Indicated) | Total (Measured+Indicated+Inferred) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 445 | 30 | 65 | 475 | 540 | | Total (approx.) | 450 | 30 | 60 | 470 | 540 | - The JORC Coal Resource estimates for the BN and THG deposits have also been updated, with BN totaling 405 million tonnes and THG totaling 89 million tonnes[54][57][58] - Baruun Naran Gas LLC (BNG) conducted coal seam gas exploration within the BN mining license area, discovering gas desorption[60] Coal Reserves - An updated JORC Coal Reserve statement for the UHG deposit has been issued, totaling 340 million tonnes of Run-of-Mine (ROM) coal reserves[62][64] UHG Mining Licence JORC (2012) Coal Reserve Estimate (January 1, 2025, million tonnes) | ROM Coal Reserve | | Reserve Category (million tonnes) | | | :--- | :--- | :--- | :--- | | Coal Type | Proved | Probable | Total | | Coking Coal | 311 | 10 | 321 | | Thermal Coal | 19 | – | 19 | | Total | 330 | 10 | 340 | - The JORC Coal Reserve estimate for the BN deposit has been updated, totaling 272 million tonnes of ROM coal reserves[68][71] BN Mining Licence JORC (2012) Coal Reserve Estimate (January 1, 2025, million tonnes) | ROM Coal Reserve | | Reserve Category (million tonnes) | | | :--- | :--- | :--- | :--- | | Coal Type | Proved | Probable | Total | | Coking Coal | 239 | 23 | 262 | | Thermal Coal | 9 | 1 | 10 | | Total | 248 | 24 | 272 | Gold Resources and Exploration Activities - The NI 43-101 compliant Mineral Resource estimate for the BKH gold deposit has been updated, with Measured and Indicated resources of 7.4 million tonnes containing 613 koz of gold[72][74] BKH Gold Deposit NI 43-101 Compliant Mineral Resource (April 20, 2023) | Resource Category | Quantity (million tonnes) | Gold Grade (g/t Au) | Gold (koz) | Silver Grade (g/t Ag) | Silver (koz) | | :--- | :--- | :--- | :--- | :--- | :--- | | Measured | 4.0 | 3.03 | 394 | 1.44 | 187 | | Indicated | 3.3 | 2.04 | 219 | 1.22 | 131 | | Measured + Indicated | 7.4 | 2.58 | 613 | 1.34 | 319 | | Inferred | 0.2 | 1.08 | 6 | 1.32 | 8 | - An NI 43-101 compliant Mineral Resource estimate for the DH gold deposit has been issued, with Indicated resources of 682 kt containing 61.7 koz of gold[75][77] - The NI 43-101 compliant Mineral Resource estimate for the AN gold-polymetallic deposit shows Indicated resources of 5.0 million tonnes containing 318 koz of gold[81][82] - Gold mineralization was discovered in the southern area of the Ulaan exploration license[83] Gold Reserves - The independent feasibility study for the BKH gold deposit has been updated, projecting the production of 476 koz of recovered gold over the life of the mine[84] Khundii Mining Licence NI 43-101 Mineral Reserve Estimate (August 1, 2023) | Deposit | Category | Tonnes (million) | Gold Grade (g/t Au) | Gold Content (koz) | Silver Grade (g/t Ag) | Silver Content (koz) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | BKH Gold Deposit | Proven | 2.7 | 4.1 | 360.2 | 1.8 | 159.4 | | | Probable | 1.1 | 3.0 | 104.7 | 1.7 | 61.1 | | | Total | 3.8 | 3.8 | 464.9 | 1.8 | 220.5 | | DH Gold Deposit | Probable | 0.2 | 7.0 | 48.8 | – | – | | | Total | 0.2 | 7.0 | 48.8 | – | – | Copper Resources and Exploration Activities - The Mineral Resource estimate for the White Hill (WH) mining license shows total oxide zone resources of 7.5 million tonnes containing 79.2 kt of copper and total sulfide zone resources of 5.3 million tonnes containing 105.9 kt of copper[87][88] WH Deposit Mineral Resource Estimate Summary (June 30, 2024) | Category | Ore Type | Quantity Tonnes | | Average Grade | | | | Contained Metal | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | | | Cu | Au (g/ | Ag (g/ | Zn | Cu | Au | Ag | Zn | | | | | % | t) | t) | % | tonnes | oz | oz | tonnes | | Total | Oxide | 6,183,362 | 0.98 | 0.07 | 2.37 | 0.11 | 60,731 | 13,307 | 470,867 | 6,741 | | | Transitional | 1,291,283 | 1.43 | 0.10 | 4.51 | 0.28 | 18,433 | 4,339 | 187,417 | 3,562 | | | Sulphide | 5,288,234 | 2.00 | 0.20 | 9.41 | 0.85 | 105,861 | 34,075 | 1,599,814 | 44,872 | | | Total | 12,762,879 | 1.45 | 0.13 | 5.50 | 0.43 | 185,024 | 51,721 | 2,258,098 | 55,175 | - The Urkhut and Khukh Tolgoi mining licenses were also acquired by the Group through the acquisition of UCC[89][90] Production and Transportation - In H1 2025, the Group's total ROM coal production was 7.1 million tonnes, with 5.7 million tonnes from the UHG mine and 1.4 million tonnes from the BN mine[91] - In H1 2025, the Group processed a total of 7.3 million tonnes of ROM coking coal, yielding 4.3 million tonnes of primary products and 0.05 million tonnes of secondary products[95] - In H1 2025, a total of 122,999 coal-hauling trucks crossed the GS-GM border, a decrease from H1 2024[98][99] Occupational Health, Safety and Environment - The lost-time injury frequency rate for the coking coal business decreased to 0.76 per million man-hours (H1 2024: 0.97)[100] - The gold business recorded one lost-time injury, with a total recordable injury frequency rate of 0.2 per million man-hours[100] - The Group passed the periodic audit of its ISO 45001:2018 integrated management system and continues to provide occupational health, safety, and environmental training[101][102] Sales and Marketing - In H1 2025, the Group sold a total of 4.2 million tonnes of self-produced coal, primarily exported under Delivered-at-Destination GM and Free-on-Truck terms[103] - The Group auctioned 38.4 kt of medium-volatile hard coking coal, 243.2 kt of semi-soft coking coal, and 230.4 kt of thermal coal through the MSE commodity exchange platform[103] Gold Business - The BKH gold mine processing plant and mine support facilities have been commissioned, and overburden stripping began in the second quarter of 2025[104] - The BKH gold mine is expected to commence commercial production in the third quarter of 2025, with a nameplate ore feed capacity of 650,000 tonnes per annum[104] Outlook and Business Strategies for 2025 The Company will continue to implement prudent financial policies, enhance asset utilization, support infrastructure development, explore business expansion opportunities, and fulfill its safety, environmental, and social commitments - Strategies include maintaining an adequate capital structure, improving asset utilization, supporting regional infrastructure development, exploring strategic partnerships for business expansion, and fulfilling safety, environmental, and social responsibilities[107] Financial Review The Group's revenue and gross profit for H1 2025 decreased significantly due to lower average selling prices, resulting in a loss for the period Revenue - Total revenue for H1 2025 was approximately $346.6 million, a decrease of about $194.5 million from H1 2024, primarily due to lower average selling prices[108] Average Selling Price (USD/tonne) | Product Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Overall ASP | 82.0 | 128.9 | | Medium-volatile hard coking coal | 123.2 | 174.2 | | High-volatile hard coking coal | 97.0 | – | | Semi-soft coking coal | 90.2 | 134.9 | | Medium-ash semi-hard coking coal | 50.1 | 56.6 | | Middlings | 37.4 | 13.9 | Cost of Revenue - Total cost of revenue decreased from $317.3 million in H1 2024 to $283.8 million in H1 2025[109] Breakdown of Cost of Revenue (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Mining costs | 129,311 | 139,850 | | Processing costs | 35,300 | 30,842 | | Handling costs | 7,808 | 9,931 | | Transportation costs | 63,891 | 65,437 | | Logistics costs | 7,288 | 7,719 | | Mine administration costs | 14,747 | 15,706 | | Transportation and stock loss | 1,601 | 2,763 | | Royalties and fees | 23,843 | 45,052 | | Total cost of revenue | 283,789 | 317,300 | - The average accounting stripping ratio for H1 2025 was 4.7 cubic meters of waste per tonne, compared to 4.2 cubic meters per tonne in H1 2024[112] - The overall unit transportation cost for H1 2025 was $15.2 per tonne, a decrease from H1 2024[116] - The effective royalty rate for H1 2025 was 6.0%, compared to 7.9% in H1 2024[117] Gross Profit - Gross profit for H1 2025 decreased to $62.9 million, compared to $223.8 million in H1 2024, mainly due to reduced sales revenue[118] Gold and Metals Reporting Segment - The BKH mine removed approximately 0.3 million cubic meters of overburden and mined 477.0 tonnes of ore, incurring total mining costs of about $1.0 million[119] - General and administrative expenses related to the gold and metals segment were $1.5 million, with net finance costs of $5.1 million[119] Selling and Distribution Costs - Selling and distribution costs increased to $15.8 million in H1 2025 from $5.2 million in the same period of 2024, mainly due to increased sales volumes under GM Free-on-Truck terms[120] General and Administrative Expenses - General and administrative expenses decreased to $12.7 million in H1 2025 from $23.2 million in H1 2024[121] Debt and Net Finance Costs - As of June 30, 2025, the outstanding principal amount was $400.0 million, comprising $350.0 million in senior notes due 2030 and a $50.0 million bank loan[122] - Net finance costs were $27.2 million, an increase from H1 2024, primarily due to higher net foreign exchange losses[123] Income Tax Expense - Income tax expense decreased from $52.3 million in H1 2024 to $2.3 million in H1 2025, mainly due to lower taxable income[125] Loss for the Period - For the six months ended June 30, 2025, the Group recorded a net loss attributable to equity holders of approximately $23.3 million, compared to a net profit of $133.0 million in the same period of 2024[126] Non-IFRS Measures - In H1 2025, the Group's adjusted EBITDA was approximately $94.1 million, compared to $270.1 million in H1 2024[127] Financial Position and Risk Management Cash Flow In H1 2025, the Group's net cash from operating activities decreased, net cash outflow from investing activities increased, but net cash inflow from financing activities rose significantly, leading to a net increase in cash Consolidated Cash Flow (USD thousand) | For the six months ended June 30 | | :--- | | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 93,209 | 159,573 | | Net cash used in investing activities | (118,341) | (94,428) | | Net cash generated from financing activities | 103,629 | 40,151 | | Net increase in cash and cash equivalents | 78,497 | 105,296 | | Cash and cash equivalents at end of period | 219,712 | 278,596 | - Cash outflow from investing activities was mainly for deferred stripping activities, property, plant and equipment, construction in progress (including BKH mine capital development), and the acquisition of a subsidiary[131] - Cash inflow from financing activities was primarily from the senior notes due 2030 and bank loans, partially used for the redemption of senior notes due 2026 and share repurchases[131] - As of June 30, 2025, the capital-to-debt ratio was 17.0% (June 30, 2024: 9.6%)[130] Credit Risk The Group closely monitors credit risk, which primarily arises from trade receivables, and regularly reviews its credit policies and customers' payment capacity - As of June 30, 2025, trade receivables were $15.6 million, a significant decrease from $40.7 million as of December 31, 2024[132] - The Group holds regular credit committee meetings to review, assess, and evaluate overall credit quality and the recoverability of individual trade credit amounts[132] Foreign Exchange Risk The Group is exposed to foreign exchange risk, as some cash and cash equivalents and total borrowings are denominated in non-functional currencies - As of June 30, 2025, cash and cash equivalents denominated in non-functional currencies amounted to $81.8 million (December 31, 2024: $50.3 million)[133] - As of June 30, 2025, total borrowings denominated in non-functional currencies amounted to $50.0 million (December 31, 2024: $20.0 million)[133] Contingent Liabilities The Group has a contingent liability related to the BN share purchase agreement but considers the probability of it being triggered as remote - The Company may have a contingent liability arising from the royalty provisions of the BN share purchase agreement, but considers the probability of it being triggered as remote[134] - In H1 2025, administrative expenses and capital reserves of $0.6 million were recognized in relation to equity-settled share-based payment transactions[136] Other Important Matters Capital Commitments and Capital Expenditure As of June 30, 2025, the Group's total capital commitments were $31.09 million, primarily related to the capital development of the BKH mine Capital Commitments (USD thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted for | 21,461 | 31,269 | | Authorised but not contracted for | 9,629 | 50,833 | | Total | 31,090 | 82,102 | Historical Capital Expenditure (USD thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Coal handling and washing plant | 708 | 158 | | BKH mine capital development | 28,557 | 30,419 | | Trucks and equipment | 17,052 | 3,005 | | Others | 10,227 | 14,005 | | Total | 56,543 | 47,587 | - Capital commitments include $13.1 million related to the capital development of the BKH mine[138] Significant Investments Held As of June 30, 2025, the Company did not hold any significant investments - As of June 30, 2025, the Company did not hold any significant investments[140] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures The Group completed the acquisition of a 50.5% equity interest in Universal Copper LLC (UCC) on March 11, 2025, making it a subsidiary - On March 11, 2025, the Company completed the acquisition of a 50.5% equity interest in UCC for a consideration of $20,500,000, making it a subsidiary[141] Other and Post Balance Sheet Events No events occurred after June 30, 2025 that would require adjustment or disclosure in this interim results announcement, other than those already disclosed - No events occurred after June 30, 2025 that would require adjustment or disclosure in this interim results announcement[142] Employees The Group's employee headcount increased, and it continued to invest in employee training and development, particularly in occupational health and safety and professional skills enhancement - As of June 30, 2025, the Group had 3,105 employees (June 30, 2024: 2,559)[143] - The Group implements a strategically designed internal training and development system, including over 100 training courses covering occupational health and safety, professional development, and general skills enhancement[143] - Staff costs were $34.2 million (H1 2024: $29.4 million)[144] Purchase, Sale or Redemption of the Company's Listed Securities In H1 2025, the Company repurchased and cancelled 16,899,000 shares for a total purchase price of approximately $12.5 million - In H1 2025, the Company repurchased and cancelled 16,899,000 shares for a total purchase price of approximately $12.5 million[145][146] Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[147] Model Code for Securities Transactions The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules and has established written guidelines for employees, with no non-compliance incidents found during the reporting period - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules and has established written guidelines for employees[148] - During the reporting period, all directors confirmed compliance with the Model Code, and no incidents of employee violation of the written guidelines were found[148] Corporate Governance The Company has adopted and complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules - The Company has adopted and complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[149] Audit Committee Review The Audit Committee has reviewed the Group's accounting principles, financial reporting matters, and the unaudited interim results, and considers them to be in compliance with applicable standards - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed financial reporting matters, including the review of the Group's unaudited interim results for the period[150] - The Audit Committee considers that the relevant statements comply with applicable accounting standards, Listing Rules, and legal requirements, and that adequate disclosures have been made[150] Publication of 2025 Unaudited Consolidated Interim Results and 2025 Interim Report This interim results announcement is published on the websites of Hong Kong Exchanges and Clearing Limited and the Company, and the interim report will be published in due course - This interim results announcement is published on the websites of Hong Kong Exchanges and Clearing Limited and the Company[151] - The 2025 Interim Report containing all the information required by the Listing Rules will be published on the above websites in due course[151]