Financial Performance - Revenue for the period increased by $488.2 million (35%), primarily due to higher sales from Las Bambas, offsetting declines in copper and zinc prices[22] - For the six months ended June 30, 2023, the company's revenue increased by 35% to $1,896.2 million compared to $1,408.0 million in the same period of 2022[32] - The company recorded a net loss of $24.9 million for the period, including a loss attributable to equity holders of $58.8 million[22] - The net loss attributable to equity holders for the first half of 2023 was $58.8 million, a decline of 174% compared to a profit of $79.5 million in the same period of 2022[33] - Total comprehensive loss for the first half of 2023 was $29.0 million, compared to a comprehensive income of $176.4 million in the same period of 2022[198] - Basic and diluted loss per share for the first half of 2023 was $0.68, compared to earnings of $0.92 per share in the same period of 2022[195] Production and Sales - Las Bambas produced 139,594 tons of copper in the first half of 2023, a 38% increase year-over-year, with second-quarter sales reaching a record 417,000 tons[23] - Kinsevere produced 21,641 tons of electrolytic copper, a 2% decrease from the previous year, with cobalt production expected to commence in 2023[23] - Dugald River produced 57,374 tons of zinc, a 28% decrease due to a fatal accident that led to a 34-day shutdown[25] - Las Bambas generated $1,480.4 million in revenue, an increase of 84% from $805.0 million in the previous year, while Kinsevere's revenue decreased by 12% to $178.4 million[37] - Copper sales increased by 96% to 160,764 tons in the first half of 2023, compared to 81,931 tons in the same period of 2022[48] - Total revenue for the first half of 2023 reached $1,480.4 million, an increase of 84% from $805.0 million in the first half of 2022[48] Costs and Expenses - Operating expenses rose by $495.3 million (65%) in the first half of 2023, primarily due to adverse inventory changes and higher production costs[43] - Total production expenditure for the first half of 2023 was $591.8 million, an increase of 42% from $416.8 million in the same period of 2022[48] - Depreciation and amortization expenses rose by $94.8 million (27%) to $445.9 million, mainly due to increased mining and processing volumes[46] - The C1 cost for the first half of 2023 was $1.60 per pound, up from $1.27 per pound in the same period of 2022, but below the guidance range of $1.70 to $1.90 per pound[52] Cash Flow and Financing - Cash flow from operating activities increased by $290.8 million (216%) to $425.6 million, driven by favorable working capital changes[78] - As of June 30, 2023, total loans amounted to $5,622.0 million, with net debt at $5,098.3 million, and total equity at $4,199.6 million, resulting in a debt-to-equity ratio of 0.55[82] - The company raised $299.0 million from a share placement at HKD 4.15 per share, with 49.8% allocated to the KEP project and 50.2% for working capital and general corporate purposes[85] Strategic Developments - MMG anticipates starting the development of the Chalcobamba deposit by the end of 2023, contingent on reaching a lasting agreement with the Huancuire community[26] - The Kinsevere expansion project is on track, with cobalt production expected to commence in 2023, aiming for an annual output of approximately 80,000 tons of copper and 4,000 to 6,000 tons of cobalt hydroxide by 2025[88] - The Chalcobamba project is expected to increase mid-term production to 380,000 to 400,000 tons, with ongoing discussions with the Huancuire community for long-term agreements[86] Exploration and Resource Management - Exploration expenses increased by $14.2 million (131%) to $25.0 million in 2023, driven by drilling activities around Ferrobamba[44] - Successful deep drilling at the Ferrobamba site indicates potential large deposits with copper grades of 0.4% to 0.6% and molybdenum grades of 200 to 500 ppm[87] - Exploration activities around the Rosebery mine are ongoing, with multiple mineralized zones identified, aiming to extend the mine's life[89] Risk Management and Compliance - The company has not made any changes to its risk management policies since December 31, 2022, indicating a stable approach to managing financial risks[108] - The group is currently facing a tax audit from authorities in Australia, Peru, Zambia, Laos, and the Democratic Republic of the Congo[124] - The group has not recognized any liabilities in the interim consolidated financial statements for the tax assessments, pending appeals against the assessments[128] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the six months ending June 30, 2023, except for certain deviations explained in the report[181] - The independent auditor has reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2023[183]
五矿资源(01208) - 2023 - 中期财报