Financial Performance - The company's EBITDA for the year was $1,535.4 million, with a net profit of $243.5 million, representing a decrease of 44% and 74% respectively compared to the previous year due to reduced sales from Las Bambas[3]. - MMG's EBITDA for 2022 was $1,535.4 million, a decrease of 44% from 2021, attributed to reduced sales from Las Bambas and Rosebery mines, as well as rising costs due to global inflation[11]. - The net profit after tax was $243.5 million, including a profit attributable to equity holders of $172.4 million, representing a 74% decline from the previous year[11]. - The company's revenue for the year ended December 31, 2022, was $3,254.2 million, a decrease of 24% compared to $4,255.0 million in the previous year[65]. - The profit attributable to equity holders for the year was $172.4 million, a significant decline from $667.1 million in the previous year[59]. - Revenue for the year was $2,086.8 million, a decrease of 30% from the previous year, primarily due to lower copper sales (down 19%) and lower realized commodity prices[90]. - Operating cash flow decreased by $1,719.4 million (67%) to $832.1 million in 2022, driven by lower commodity prices and reduced sales[128]. - The total production costs increased by $172.6 million (19%) to $1,066.2 million, driven by higher diesel costs ($65.0 million) and explosives costs ($36.9 million)[90]. Production and Operations - The anticipated copper production from Las Bambas for 2023 is projected to be between 265,000 and 305,000 tons, contingent on the resolution of political protests and stabilization of logistics[6]. - The company aims to increase mid-term production capacity at Las Bambas to between 380,000 and 400,000 tons through the development of the Chalcobamba deposit[3]. - The Kinsevere expansion project is expected to extend the mine's life by 13 years and introduce new production capabilities, with anticipated annual production of 40,000 to 48,000 tons of electrolytic copper[6]. - The group-level zinc production is projected to be between 225,000 and 250,000 tons[6]. - The Kinsevere mine's production increased by 2% in 2022 due to the resumption of mining activities and an increase in third-party ore supply[11]. - Las Bambas produced 254,836 tons of copper in 2022, a decrease of 35,261 tons (12%) compared to 2021 due to community protests affecting mining operations[90]. - Kinsevere's copper production for 2022 was 49,000 tons, an increase of 1,053 tons or 2% compared to 2021, driven by higher average ore grades[99]. - Dugald River produced 173,395 tons of zinc concentrate in 2022, a decrease of 4% from 2021, attributed to labor availability issues and lower ore grades[112]. Exploration and Resource Management - The company continues to invest in exploration projects in the Democratic Republic of the Congo surrounding the Kinsevere mine[3]. - The company is focusing on expanding its mineral resource base and enhancing its exploration efforts to increase future production capabilities[27]. - The total mineral resources for Dugald River are reported at 61 million tons, with a breakdown of 12 million tons (measured), 15 million tons (indicated), and 33 million tons (inferred)[33]. - The total mineral resources for Rosebery are reported at 20 million tons, with 7.3 million tons (measured), 4.6 million tons (indicated), and 7.9 million tons (inferred)[33]. - The total mineral resources for High Lake are reported at 14 million tons, with 7.9 million tons (measured) and 6 million tons (indicated)[33]. - The total mineral resources for Izok Lake are reported at 15 million tons, with 13 million tons (measured) and 1.2 million tons (indicated)[33]. - The company has identified a total of 0.93 million tons of controlled resources in the mixed copper ore category, with an inferred resource of 0.31 million tons[27]. - The company is conducting ongoing underground resource drilling at the Dugald River site, with a focus on converting resources to reserves[146]. Sustainability and ESG Initiatives - The company is focusing on sustainable production and safety, with a commitment to maximizing asset value and strengthening competitiveness in the context of energy transition[6]. - The company has revised its vision to become a leading international mining company serving a low-carbon future[6]. - MMG's climate resilience strategy was launched in 2021, integrating climate factors and greenhouse gas reduction commitments into all aspects of the company's strategy and future planning[10]. - The company has committed to improving its ESG practices, aiming for a 10% reduction in carbon emissions by 2025[40]. - The company plans to invest in renewable energy measures at Dugald River, including a long-term solar power purchase agreement to reduce carbon footprint[199]. - The company is committed to exploring sustainable tailings storage solutions to extend the operational life of its assets[200]. Community Engagement and Challenges - The company emphasizes the importance of sustainable dialogue and partnerships to address challenges posed by the Las Bambas community[6]. - The company continues to seek long-term solutions to community disruptions affecting the Las Bambas project[198]. - The company is currently facing national political protests affecting operations at Las Bambas, but production has continued at a lower level[153]. - The company has resumed concentrate transportation as of March 11, 2023, and is working to reduce copper concentrate inventory[153]. - The company is focused on constructive dialogue with the Las Bambas community for the development of the Chalcobamba deposit, which is critical for asset growth[12]. Financial Risks and Management - The company has implemented various financial risk management strategies, including the use of derivatives to hedge against commodity price fluctuations[155]. - The company’s financial risk management is executed by the treasury department in collaboration with operational units[155]. - The company faces foreign exchange risk, with a 10% depreciation of the Australian dollar resulting in a decrease in after-tax profit by $5.6 million[170]. - The company has assessed credit risk related to trade receivables, with 100% of trade receivables being collectible within six months from the invoice date[172]. - The company reported a net exposure of $2,653.6 million in borrowings related to project financing, maturing in July 2032[165]. Future Outlook - The company expects copper production in 2023 to be between 265,000 and 305,000 tons, contingent on the resolution of ongoing protests in Peru[90]. - The capital expenditure for 2023 is anticipated to be between $700 million and $850 million, with $400 million to $450 million allocated for Las Bambas[200]. - The company plans to leverage its resource base for future market expansion and potential acquisitions[27]. - Future exploration plans include expanding resource assessments in existing sites to increase overall mineral reserves[34]. - The outlook remains positive despite anticipated cost pressures, with expectations of stable global demand for the company's products[6].
五矿资源(01208) - 2022 - 年度财报