Financial Performance - EBITDA for the first half of 2022 was approximately $52 million, with a basic profit of about $39 million[14]. - The total impairment loss for the group amounted to approximately $113 million, resulting in a net loss of about $78 million for the first half of 2022[10]. - Revenue decreased by 23.7% to $165,658 thousand from $217,170 thousand year-on-year[26]. - The company reported a loss attributable to owners of $77,885 thousand, a significant decline from a profit of $98,271 thousand in the previous year[26]. - The company reported a loss before tax of $(80,173) thousand, compared to a profit of $97,964 thousand in the same period last year[134]. - The net loss for the period was $(77,942) thousand, a significant decline from a profit of $98,230 thousand in the previous year[137]. - Basic and diluted loss per share was $(1.10), compared to earnings of $1.39 per share in the prior year[134]. - The total comprehensive loss for the period was $(71,452) thousand, compared to a comprehensive income of $91,878 thousand in the same period last year[137]. Production and Sales - In the first half of 2022, K&S operated at slightly above 80% capacity, producing approximately 1.3 million tons of high-grade iron concentrate[10]. - Iron ore production decreased by 4.0% to 1,258,847 tons compared to 1,310,718 tons in the same period last year[26]. - K&S shipped 1,277,048 tons of iron concentrate in the first half of 2022, maintaining sales levels similar to the previous year despite logistical challenges[80]. - Sales volume of iron ore fell by 1.8% to 1,277,048 tons from 1,300,045 tons year-on-year[26]. - The realized selling price based on wet metric tons dropped by 22.3% to $129.7 from $167.0 in the previous year[26]. Costs and Expenses - Cash costs per ton, including transport to customers, increased by 19.8% to $78.6 from $65.6[26]. - Operating expenses (excluding depreciation and amortization) increased to $(115,561) thousand, up 23% from $(93,925) thousand in the prior year[134]. - General and administrative expenses rose to $10.104 million from $5.501 million, marking an increase of approximately 83.5%[173]. - The company reported a significant increase in transportation and freight costs, which rose to $38.837 million from $29.823 million year-over-year[173]. Cash Flow and Debt Management - Cash and deposit balance increased to approximately $77 million, while net debt decreased sharply to about $26 million as of June 30, 2022[14]. - Financing costs decreased by 61.5% to $4.2 million in the first half of 2022, attributed to a reduction in loan balance after a voluntary early repayment of $70 million in 2021[55]. - The company’s cash and bank balances increased to $76.9 million as of June 30, 2022, compared to $52.1 million at the end of 2021, due to strict cash management measures[67]. - Total borrowings as of June 30, 2022, amounted to $102.9 million, down from $113.2 million as of December 31, 2021[71]. - Net debt significantly reduced to $26.0 million as of June 30, 2022, enhancing the company's ability to withstand interest rate fluctuations[71]. Market Conditions and Challenges - The average Platts 65% iron ore index for the first half of 2022 was $165 per ton, a 22% decrease from $211 per ton in the same period last year[13]. - The inflation rate in Russia reached 14.2% in the first half of 2022, significantly impacting operational costs for K&S[14]. - K&S faced operational challenges due to railway congestion and geopolitical tensions affecting transportation demand[10]. - The company is exploring alternative shipping routes and expanding local sales to mitigate the impact of external challenges[10]. Future Plans and Developments - The company plans to enhance production capacity by potentially adding processing equipment for the K&S project and developing other exploration projects[6]. - The company is preparing to commence operations at the Sutara mine, expected to improve production capacity in the second half of 2023[20]. - The estimated initial capital expenditure to bring the Sutara mine into operation is approximately $49.2 million, with $14.6 million already incurred as of June 30, 2022[63]. - K&S is evaluating options to upgrade its first-phase production facility to increase annual capacity to approximately 4.6 million tons[77]. Regulatory and Governance - The company adhered to the corporate governance code as per the listing rules during the reporting period[123]. - The board of directors confirmed compliance with the standard code of conduct regarding securities trading[123]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2022, with discussions held with the management[124]. Employee and Operational Metrics - Employee costs totaled $19.5 million for the reporting period, compared to $13.7 million for the same period in 2021, with a workforce of 1,773 employees[73]. - K&S reported a lost time injury rate of 1.37 per million hours worked, compared to 0.7 in the same period of 2021, with one injury incident and no fatalities reported[88]. - K&S has established an emergency office to prevent the spread of COVID-19, implementing necessary measures without significant operational impact from the pandemic[88].
铁货(01029) - 2022 - 中期财报