Financial Performance - EBITDA for 2021 reached $2,725.4 million, an increase of 98% compared to 2020[7] - The company’s revenue for the year ended December 31, 2021, was $4,255.0 million, a 40% increase from $3,033.7 million in 2020[46] - Net profit attributable to equity holders was $667.1 million, compared to a loss of $64.7 million in 2020, marking a 1,131% change[48] - The net profit before tax reached $1,503.8 million, a significant increase of 2,770% from $52.4 million in 2020[46] - The company reported a total of 770 million tons of copper from Ferrobamba, with a significant increase in production efficiency noted[26] - The company achieved a copper recovery rate of 0.63 grams per ton in Sulfobamba, indicating a stable performance[26] - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 15% year-over-year growth[146] Production and Operations - In 2021, total copper production was 339,681 tons, a 12% decrease from 2020, while zinc production increased by 2% to 249,767 tons due to strong performance at Dugald River and Rosebery[15] - The company expects copper production from Las Bambas to be between 300,000 and 320,000 tons in 2022, following the development of the Chalcobamba pit[15] - The Kinsevere expansion project is projected to produce 45,000 to 50,000 tons of electrolytic copper in 2022, enhancing the mine's lifespan[15] - Zinc concentrate production from Dugald River and Rosebery is expected to be between 225,000 and 255,000 tons, indicating stable production prospects[15] - The total processed ore in 2021 was 48,476,799 tons, a 7% increase from the previous year[65] - Las Bambas produced 290,097 tons of copper in 2021, a decrease of 20,923 tons (7%) compared to 2020 due to lower average ore grades and a two-week shutdown caused by community roadblocks[67] Financial Position and Debt Management - Net debt decreased by $1,952.8 million, with the debt ratio dropping from 73% in 2020 to 56% in 2021[7] - The company raised $299.0 million from a capital issuance completed in June 2021, strengthening its balance sheet[7] - Total liabilities decreased by $532.2 million to $9,096.1 million as of December 31, 2021[92] - The company reported a total equity increase of $1,258.3 million to $3,928.0 million, primarily due to annual profits of $920.5 million[92] - The debt-to-equity ratio improved to 0.56 in 2021 from 0.73 in 2020, indicating a stronger financial position[93] Strategic Initiatives and Growth Plans - The company aims to achieve net-zero carbon emissions by 2050, with a mid-term target of reducing emissions by 40% by 2030[8] - The company is focused on two clear organic growth projects: the Chalcobamba project and the Kinsevere expansion project, which will strengthen operations in key regions[18] - The company plans to assess growth opportunities to expand its current portfolio, particularly in Australia, where exploration results remain promising[18] - The company plans to allocate approximately 50% of the net proceeds from the share placement, amounting to about $1,160.56 million, for potential future acquisitions or projects[97] - The company is focused on extending the operational life of its key assets, with ongoing resource expansion and near-mine exploration drilling planned for 2022[143] Environmental, Social, and Governance (ESG) Practices - The company is committed to maintaining positive partnerships with local communities and contributing to economic development[8] - Ongoing research and development efforts are focused on sustainable mining practices to reduce environmental impact[26] - The management discussed the importance of environmental, social, and governance (ESG) practices in their operations[30] - The company has confirmed that it is committed to environmental, social, and governance (ESG) practices, as outlined in its reports[164] Market and Commodity Prices - The average LME cash price for copper increased by 51% to $9,315 per ton in 2021, compared to $6,169 per ton in 2020[54] - The company reported a 40% increase in copper revenue, totaling $3,050.4 million, up from $2,178.6 million in 2020[50] - The average copper price assumption for ore reserves was $3.28 per pound, while for mineral resources it was $3.68 per pound[39] Exploration and Resource Management - The resource and ore reserves report as of June 30, 2021, indicates a slight decrease in copper resources due to better understanding of the ore body, while zinc resources showed a mild increase[25] - The company is actively exploring new mining sites to expand its resource base and enhance production capabilities[26] - The company is focusing on expanding its mineral resources through exploration and development of existing projects[30] Tax and Regulatory Matters - The company is currently facing tax audits from the Peruvian tax authority (SUNAT) related to withholding tax assessments for the years 2014, 2015, and 2016, with potential liabilities amounting to approximately $58.3 million, $159.4 million, and $199.3 million respectively[137] - The company is actively managing tax audits and has appealed to relevant tax authorities regarding uncertain tax matters, with provisions raised to cover potential liabilities[138] Corporate Governance - The company has committed to maintaining high standards of corporate governance through effective internal controls and transparency to all shareholders[197] - The board consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors[198] - The company has adopted a set of standards for directors' securities trading, which are stricter than the standard code[198]
五矿资源(01208) - 2021 - 年度财报