Financial Performance - In the first half of 2023, China Nonferrous Mining Corporation Limited achieved revenue of $1,843.8 million, a decrease of 16.5% year-on-year[20]. - The net profit attributable to the company's owners for the first half of 2023 was $185.7 million, down 5.6% compared to the previous year[20]. - The group's revenue for the first half of 2023 was $1,843.8 million, a decrease of 16.5% compared to the same period last year[22]. - Profit attributable to the company's owners was $185.7 million, down 5.6% year-on-year, primarily due to a decline in copper and anode copper sales and fluctuations in international copper prices[22]. - The company's gross profit for the first half of 2023 was $521.4 million, a slight decrease of 1.8% from $531.0 million in the first half of 2022[71]. - The gross profit margin improved from 24.1% in the first half of 2022 to 28.3% in the first half of 2023[71]. - The company's financing costs increased by 37.1% to $19.2 million, compared to $14.0 million in the same period of 2022[73]. - Cash generated from operating activities increased by $187.0 million to $463.9 million in the first half of 2023, compared to $276.9 million in the same period last year[78]. - The net loss from other income and expenses was $14.2 million, compared to a loss of $3.3 million in the first half of 2022, mainly due to a decrease in fair value gains on financial instruments[75]. - The total profit and comprehensive income for the period increased by $140,000 for the six months ended June 30, 2023, compared to $608,000 for the same period in 2022[161]. Production and Operations - The production of crude copper and anode copper in the first half of 2023 was 144,833 tons, a decrease of 12.2% year-on-year[20]. - The production of cathode copper was 71,648 tons, reflecting a slight decrease of 0.4% year-on-year[20]. - Cobalt hydroxide production was 745 tons, down 11.8% year-on-year[20]. - Sulfuric acid production totaled 487,670 tons, a decrease of 6.7% year-on-year[20]. - Liquid sulfur dioxide production saw a significant decline of 51.7%, totaling 6,591 tons[20]. - The company processed 46,347 tons of copper products, marking a 26.6% increase year-on-year[20]. - The main operating company, China Nonferrous Africa Mining, produced anode copper of 41,226 tons, an increase of 45.4% year-on-year, due to reduced maintenance downtime in the previous year[26]. - The Luanshya operation produced cathode copper of 21,927 tons, a slight decrease of 0.9%, while anode copper production fell by 28.0% to 4,218 tons due to lower ore grades[27]. - The Chambishi Smelter produced 106,598 tons of copper (including 48,651 tons of processed copper), a decrease of 15.9%, primarily due to supply disruptions from a key supplier[28]. - The Lualaba Smelter achieved a 10.9% increase in copper production to 83,006 tons, while sulfuric acid production rose by 14.8% to 188,489 tons[32]. Investments and Capital Expenditure - Total exploration, development, and mining expenses for the six months ended June 30, 2023, amounted to $175.98 million[42]. - The company plans to invest a total of $20.25 million in the anode furnace refining system technology upgrade project, which successfully ignited on August 31, 2023[51]. - The optimization upgrade project for the flue gas desulfurization system at the Luallaba copper smelter has a planned investment of $0.98 million[54]. - The cobalt system pressure leaching and flash drying technology upgrade project has a planned total investment of $1.41 million, with completion expected by September 30, 2023[58]. - The total capital expenditure for the first half of 2023 was $45.957 million, an increase of $11.6 million from $34.436 million in the same period of 2022, driven by increased investments in the Luanshya and Kambishi copper smelting projects[88]. Cash Flow and Financial Position - As of June 30, 2023, the company had cash and cash equivalents of $902.7 million, an increase of $169.8 million from $732.9 million at the end of 2022[82]. - The net cash used in investing activities rose to $172.8 million, up from $14.2 million in the first half of 2022, primarily due to increased investments in property, plant, and equipment[79]. - As of June 30, 2023, the company had a net cash position of approximately $547.1 million, compared to $239.6 million on December 31, 2022, indicating no net debt[99]. - The company’s bank and other borrowings as of June 30, 2023, totaled $482.9 million, with $228.9 million due within one year[86][87]. - The company reported a total of 3,179.26 meters of surface drilling completed for resource exploration at the Luansha project[44]. Market Environment and Risks - The external operating environment is expected to remain complex and challenging in the second half of 2023, with potential fluctuations in copper prices due to weak demand[13]. - The company faces market risks primarily related to commodity price fluctuations, foreign exchange risks, and interest rate risks, with strategies in place to mitigate these risks[91][92][93][94]. - Factors such as grid investment, real estate recovery, and the transformation of the new energy sector are expected to support copper prices in the near future[124]. Corporate Governance and Compliance - The company has implemented various financial policies to enhance internal controls and protect investor interests, including budget management and inventory management systems[89]. - The group has strengthened its internal control system and compliance reporting during the reporting period[110]. - The company continues to enhance corporate governance practices to maintain investor trust[110]. Employee and Community Engagement - The total employee cost for the six months ending June 30, 2023, was approximately $58.6 million, down from $65.5 million for the same period in 2022[113]. - The group employed a total of 8,807 employees as of June 30, 2023, with 886 being Chinese employees and 7,921 local employees from Zambia and the Democratic Republic of the Congo[113]. - The group actively participates in local community development, contributing to municipal construction and vocational education in the first half of 2023[121]. Environmental and Safety Commitment - The company is committed to environmental protection, focusing on energy conservation and pollution monitoring[120]. - The group emphasizes a "safety first" approach, maintaining stable safety production conditions in the first half of 2023[118]. - The group has established emergency rescue teams and medical stations at each mine and factory to ensure employee safety[118].
中国有色矿业(01258) - 2023 - 中期财报