Financial Performance - Sales revenue for the three months ended June 30, 2023, decreased by 75% to $73.0 million from $292.0 million in the same period of 2022[10]. - Net loss for the three months ended June 30, 2023, was $53.3 million, a decrease of 165% or $135.0 million from a profit of $81.7 million in the same period of 2022[10]. - Sales revenue for the six months ended June 30, 2023, decreased by 45% to $325.8 million from $596.0 million in the same period of 2022[11]. - Net profit for the six months ended June 30, 2023, decreased by 84% or $128.2 million to $25.3 million from $153.5 million in the same period of 2022[11]. - The company reported a net loss of $53.34 million for the quarter ended June 30, 2023, compared to a net profit of $78.66 million in the previous quarter[14]. - The company reported a net loss attributable to shareholders of $53,696,000 for the three months ended June 30, 2023, compared to a profit of $81,194,000 in the same period of 2022[115]. Production and Operations - Total gold production for the three months ended June 30, 2023, decreased by 44% to 36,490 ounces from 65,527 ounces in the same period of 2022[10]. - Total copper production for the three months ended June 30, 2023, was zero, compared to 47.1 million pounds (approximately 21,356 tons) in the same period of 2022[10]. - The company suspended operations at the Jiamar mining area due to a tailings dam breach on March 27, 2023, and is currently conducting a comprehensive repair and safety assessment[12]. - The company has withdrawn its 2023 annual production guidance due to the uncertainty surrounding the resumption of operations at the Jiamar mining area[12]. - The company is actively taking measures to expedite the resumption of production at the Jiamar mining area, with a safety assessment report expected to be submitted to regulators by the end of August 2023[12]. Costs and Expenses - Mining operating loss for the three months ended June 30, 2023, was $6.2 million, a decrease of 105% from a profit of $117.7 million in the same period of 2022[10]. - The cash production cost per ounce of gold increased by 14% to $913 for the quarter ended June 30, 2023, compared to $798 in the same period of 2022[15]. - Research and development expenses decreased from $11.4 million in the first half of 2022 to $6.1 million in the first half of 2023, primarily due to the suspension of operations at the Jiamar Mine[22]. - General and administrative expenses decreased slightly from $18.2 million in the first half of 2022 to $17.5 million in the first half of 2023[22]. Debt and Financing - The company's total debt as of June 30, 2023, was $722.0 million, with total equity amounting to $1,748.9 million, resulting in a debt-to-equity ratio of 0.41[54]. - The company has secured loans totaling approximately $613 million at an interest rate of 2.83% from a syndicate led by Bank of China, with funds allocated for the development of the Jiamar mining area[48]. - The company reported a total repayment obligation of $721.996 million for bank loans, with $132.281 million due within one year[58]. - The company issued $300 million in bonds at a 2.8% interest rate, which were fully repaid on June 23, 2023[57]. Legal and Regulatory Matters - The company recognized $22.6 million in legal expenses related to ongoing litigation in Q2 2023[21]. - The company confirmed a provision of $23 million related to a construction contract dispute as of June 30, 2023, reflecting ongoing legal challenges[93]. - The group recognized a litigation compensation payable of RMB 157 million (approximately $21,686,000) as of June 30, 2023, related to a lawsuit with Huaxin[143]. Shareholder Information - The company declared a special dividend of $0.37 per common share, payable on June 15, 2023, to shareholders on record as of April 20, 2023[68]. - The major shareholder, China Gold Group Limited, holds approximately 40.01% of the issued shares, totaling 158,588,330 shares[74]. - The company did not recommend any interim dividend for the six months ended June 30, 2023[82]. Asset and Liability Management - As of June 30, 2023, total assets decreased to $2,865,651 thousand from $3,194,911 thousand in 2022, representing a decline of approximately 10.3%[85]. - Current liabilities decreased to $326,478 thousand from $638,635 thousand in 2022, a reduction of about 48.9%[85]. - Non-current liabilities increased to $790,250 thousand in 2023 from $652,846 thousand in 2022, marking an increase of approximately 21%[87]. Market and Economic Conditions - The company faced foreign exchange risk but has not taken measures to hedge against it, although management is monitoring the risk[56]. - The average realized price per ounce of gold increased to $1,977 for the quarter ended June 30, 2023, compared to $1,868 in the same period of 2022[15]. - Average realized price of copper decreased by 11% from $3.68 per pound in the first half of 2022 to $3.27 per pound in 2023[21]. Operational Challenges - The company has temporarily halted geological exploration plans due to tailings overflow from the tailings pond[41]. - The company is in the final stages of completing repairs and safety assessments of the tailings dam, with a report expected to be submitted to regulatory authorities by the end of August 2023[92]. - The Jiamar Mine ceased production in the second quarter of 2023[40].
中国黄金国际(02099) - 2023 - 中期财报