Production and Mining Activities - Ruashi Mine's copper production decreased by 1% to 15,554 tonnes in 2022 1H from 15,637 tonnes in 2021 1H, while cobalt production increased by 80% to 2,603 tonnes from 1,447 tonnes[12]. - A total of 1,114,113 tonnes of ore was mined in 2022 1H, representing a 31% increase compared to 849,145 tonnes in 2021 1H[14]. - Ruashi processed 65,927 tonnes of third-party ore with high-grade cobalt content in 2022 1H[13]. - Leach feed processed in 2022 1H was 738,712 tonnes, a 1% decrease from 744,656 tonnes in 2021 1H[13]. - The focus on cobalt production in 2022 1H was due to the processing of more foreign ore with high-grade cobalt[12]. - Ruashi Mine continued high waste stripping in 2022 1H to prepare for the rainy season and create dumping space[14]. - The mining activities at Ruashi are expected to remain high until July 2022[14]. - The Group operates two mines (Ruashi and Kinsenda), one development project (Musonoi), and one exploration project (Lubembe)[10]. - The Group's operational strategy includes accelerating the depletion of Pit 1 to facilitate waste management from Pit 3[14]. Financial Performance - Total revenue for Ruashi in 2022 1H was US$273,567,000, representing a 44% increase compared to US$189,915,000 in 2021 1H, with copper revenue increasing by 3% and cobalt revenue rising by 157%[27]. - The Group's total revenue for 2022 1H was US$539.4 million, a 50% increase from US$360.4 million in 2021 1H[92]. - Consolidated profit for the period decreased to US$67.1 million in 2022 1H from US$78.7 million in 2021 1H[141]. - Profit attributable to shareholders fell to US$49.1 million in 2022 1H from US$61.1 million in 2021 1H, mainly due to higher production costs offsetting the impact of increased commodity prices[142]. - The Group's EBITDA for the six months ended June 30, 2022, was US$148.5 million, down 9.1% from US$163.4 million in the prior year[153]. Commodity Prices and Market Trends - Average copper price realized in 2022 1H was US$9,607 per tonne, a 7% increase from US$9,021 per tonne in 2021 1H, while average cobalt price realized was US$59,199 per tonne, up 38% from US$42,930 per tonne[25][26]. - The LME copper price peaked at US$10,730 per tonne in March 2022 and closed at US$8,245 per tonne by June 30, 2022[81]. - The LME copper price decreased by 15% from the end of 2021, closing at US$8,245 per tonne by June 30, 2022[100]. - Copper prices have dropped by one-third from a March 2022 high of $10,700 per tonne to $7,000 per tonne in mid-July 2022, the lowest since November 2020[179]. - The benchmark MB cobalt price has retreated approximately 40% from US$39.0 per pound at the end of March 2022 to US$23.5 per pound by the date of this report[197]. Production Costs and Expenses - Total expenses for exploration, development, and mining activities for the first half of 2022 amounted to US$162.9 million[78]. - Total cost of sales for mining operations rose to $207.0 million in 2022 1H, a 24% increase from $167.6 million in 2021 1H, with mining costs up 29% due to increased activities at Ruashi Mine[111]. - Gross profit decreased by 8% to $123.4 million in 2022 1H from $133.7 million in 2021 1H, as revenue growth was offset by higher costs[115]. - Processing costs increased by 20% in 2022 1H due to higher reagent consumption and rising reagent prices[111]. - Ore purchase expenses surged to $65.2 million in 2022 1H from $1.8 million in 2021 1H, as Ruashi Mine successfully sourced more ore from independent suppliers[111]. Capital Expenditure and Investments - The capital expenditure for Ruashi Mine in 2022 1H was US$8.8 million, including US$5.1 million for the flotation plant construction[28][32]. - Capital expenditure at Kinsenda Mine in 2022 1H was US$6.4 million, mainly for underground development and dewatering[44]. - The Group's capital expenditures for the six months ended June 30, 2022, amounted to $45.6 million, a decrease from $48.8 million in the same period of 2021[173]. Cobalt Production and Demand - Cobalt production increased by 80% from 1,447 tonnes in 2021 1H to 2,603 tonnes in 2022 1H, driven by higher-grade ore purchased from independent suppliers[85]. - Cobalt revenue from mining operations increased by 157% in 2022 1H due to an 86% increase in sales volume and a 38% rise in average realized price[103]. - EVs became the largest end-use sector for cobalt in 2021, representing 34% of global cobalt usage[198]. - Analysts forecast cobalt demand to expand at a compound annual growth rate of 7% through 2030[198]. Operational Challenges - Copper sales volume decreased by 12% in 2022 1H compared to 2021 1H, impacted by disruptions in international logistics due to COVID-19 measures[40]. - The Group's average delivery time from the DRC was longer than normal due to COVID-19 logistics disruptions, impacting sales volume[102]. - The geopolitical instability and high energy prices are affecting investments, contributing to the volatility of commodity prices in the first half of 2022[179]. Employee and Corporate Governance - As of June 30, 2022, the Group had 1,565 permanent employees and 3,084 contractor employees, with a slight decrease in permanent staff from 1,575 at the end of 2021[177]. - The Board resolved not to declare any interim dividend for the six months ended June 30, 2022, consistent with the same period in 2021[178].
金川国际(02362) - 2022 - 中期财报