Financial Performance - In the first half of 2022, MMG reported a net profit of $89.8 million, down from $584 million in the same period of 2021, with shareholders' profit decreasing from $400.1 million to $79.5 million[10]. - Revenue for the six months ended June 30, 2022, was $1,408.0 million, a decrease of 42% compared to $2,433.5 million in the same period of 2021[15]. - EBITDA for the first half of 2022 was $651.7 million, down from $1,498.7 million in the prior year[15]. - The decrease in revenue was primarily due to a drop in sales volume of $1,005.7 million and a decline in realized commodity prices of $19.8 million[20]. - The company reported a total comprehensive income of $176.4 million, down from $616.3 million in the previous year[121]. - The company reported a profit of $79.5 million for the six months ended June 30, 2022, compared to a profit of $10.3 million in the same period last year, indicating a substantial increase[125]. - The company reported a total revenue of $1,827.8 million, with copper contributing significantly to this figure[142]. - The total revenue for the six months ended June 30, 2022, was reported as 1,105.8 million USD, compared to 1,405.3 million USD for the same period in 2021, indicating a decrease of approximately 21.3%[146]. Production and Sales - Copper sales for MMG reached 104,437 tons, while zinc sales totaled 93,233 tons, resulting in an EBITDA of $651.7 million, a 57% decrease compared to the previous year[5]. - Las Bambas produced 101,009 tons of copper concentrate in the first half of 2022, a decrease of 30% year-over-year due to over 50 days of production stoppage caused by community protests[11]. - Kinsevere produced 22,090 tons of electrolytic copper, down 12% from the same period in 2021, primarily due to a decline in average ore grade[11]. - Dugald River produced 79,587 tons of zinc concentrate, an 11% decrease year-over-year, mainly due to reduced available workforce at the beginning of the year[13]. - Rosebery produced 23,664 tons of zinc concentrate and 9,324 tons of lead concentrate, representing decreases of 37% and 32% respectively, impacted by COVID-19 affecting workforce availability[13]. - Total copper sales volume for H1 2022 was 104,437 tons, a decrease of 45.5% from 191,670 tons in H1 2021[24]. - Silver sales volume for H1 2022 was 2,893,688 ounces, down from 4,339,739 ounces in H1 2021, a decline of 33.4%[24]. Operational Challenges - The Las Bambas mine experienced production stoppages for over 50 days due to community protests, significantly impacting overall performance[5]. - The company anticipates continued operational challenges but is focused on maintaining production levels at Las Bambas following the resolution of community protests[30]. - The company is focused on managing costs and funding usage amid rising energy costs and inflationary pressures[5]. - The company continues to focus on operational stability and cost management in response to industry-wide cost pressures[13]. - The group faced community disruptions in Peru, leading to 97 days of roadblocks and a total operational suspension of 51 days in the first half of 2022[77]. - The company anticipates ongoing community unrest and political instability in Peru, which may impact operations in the second half of 2022[75]. Environmental and Safety Initiatives - MMG is committed to achieving a 40% reduction in greenhouse gas emissions by 2030 and aims for net-zero carbon emissions by 2050[5]. - The total recordable injury frequency (TRIF) increased to 1.49 per million hours worked, up from 1.09 in 2021, indicating a need for improved safety measures[9]. - The company emphasizes the importance of sustainable development and community engagement in its mining operations[6]. Financial Position and Debt Management - Total assets amounted to $12,505.8 million, while total liabilities were $8,402.7 million, resulting in total equity of $4,103.1 million[49]. - The debt-to-equity ratio was calculated at 0.56, reflecting the company's financial leverage[50]. - As of June 30, 2022, the group had available but undrawn debt financing of $800.0 million, with a credit facility of $300.0 million expiring in December 2023[52]. - The group has outstanding debt financing of $300.0 million (excluding Las Bambas Joint Venture) as of June 30, 2022, compared to $560.0 million as of December 31, 2021[130]. - The company has secured new and revised agreements worth $394.37 million to optimize production and operational requirements, including long-term heavy mining equipment contracts[54]. Exploration and Future Projects - The company plans to accelerate the Kinsevere expansion project and ensure the future development of Rosebery while maintaining labor availability at Dugald River[5]. - The Chalcobamba project is expected to increase production to 380,000 to 400,000 tons, with the first cobalt production anticipated in Q4 2023 and the first copper from sulfide expected in Q3 2024[52]. - The company plans to optimize mining activities at Ferrobamba to obtain higher-grade ore in the second half of 2022[31]. - Exploration activities continued at Las Bambas, focusing on the Ferrobamba and Chalcobamba areas, with ongoing drilling to define economic indicators for potential mining targets[57]. Commodity Price Sensitivity - The company estimates that a 10% increase in copper prices would result in a profit increase of $15.4 million for 2022, while a 10% decrease would lead to a profit decrease of $22.8 million for 2021[69]. - Zinc prices would similarly see a profit increase of $2.9 million with a 10% rise, and a decrease of $0.6 million with a 10% drop[69]. - The total impact of a 10% price change in copper and zinc would result in a profit increase of $18.3 million or a decrease of $20.5 million, respectively[69]. Financial Risk Management - Financial risk management strategies are in place to mitigate commodity price risks, with several hedging agreements established for copper and zinc sales, including 41,800 tons of zinc with strike prices between $3,300 and $4,100 per ton[65]. - The company has a nominal amount of $2.1 billion in a five-year interest rate swap to hedge against floating interest rates, converting them to fixed rates[70]. - The interest rate swap is designed to mitigate approximately half of the remaining interest rate risk exposure related to a $2.942 billion loan due in July 2032[71]. - The company is committed to maintaining a balanced approach to managing financial risks, including interest rate and commodity price fluctuations[70]. Corporate Governance and Leadership - The company experienced a change in executive leadership with Li Liangang appointed as Executive Director and acting CEO on January 5, 2022[99]. - The company has complied with all provisions of the Corporate Governance Code, except for the absence of a dividend policy[108]. - The total fixed remuneration for the acting CEO Li Liangang increased from AUD 817,874 to AUD 850,589 effective January 1, 2022, and further to AUD 852,313 effective July 1, 2022[111].
五矿资源(01208) - 2022 - 中期财报