2024-03-22 16:00Operational Performance - In 2023, CMOC achieved record high operating performance, with copper production exceeding 520,000 tons and cobalt production over 60,000 tons, solidifying its position as the world's largest cobalt producer[7]. - The company plans to produce 800,000 to 1,000,000 tons of copper, 90,000 to 100,000 tons of cobalt, 25,000 to 30,000 tons of molybdenum, and over 10,000 tons of niobium annually by 2024[7]. - TFM and KFM projects commenced production, with TFM expected to reach full capacity in Q1 and KFM maintaining stable high production levels[8]. - The company achieved a record high operating revenue of 186.3 billion RMB, representing a year-on-year growth of 36%[20]. - The net profit attributable to shareholders reached 8.25 billion RMB, an increase of 36% year-on-year[20]. - The company’s EBITDA was 20.225 billion RMB, with a year-on-year growth of 11.45%[21]. - The company’s copper production capacity in the Democratic Republic of the Congo (DRC) is projected to reach 450,000 tons annually, contributing significantly to its global ranking among copper producers[27]. - The company’s operating income for 2023 was approximately ¥186.27 billion, an increase of 7.68% compared to ¥172.99 billion in 2022[43]. - The net profit attributable to shareholders for 2023 was approximately ¥8.25 billion, representing a 35.98% increase from ¥6.07 billion in 2022[43]. - The company reported a global direct economic contribution of approximately ¥182.9 billion in 2023[35]. Financial Performance - The total assets increased by 4.8% year-on-year, reaching 1729.75 billion RMB[21]. - The company’s debt-to-asset ratio decreased by 4 percentage points to 58.40%[22]. - IXM, the trading arm, generated a revenue of 141.463 billion RMB, with a gross profit of 2.055 billion RMB[30]. - The company is focusing on cost reduction and efficiency improvement, with 30%-40% of assessments aimed at these goals[11]. - The company has a strong cash reserve and is looking to expand its resource layout amid favorable market conditions[11]. - The company’s total assets at the end of 2023 were approximately ¥172.97 billion, up 4.82% from ¥165.02 billion at the end of 2022[43]. - The basic earnings per share for 2023 were ¥0.38, a 35.71% increase from ¥0.28 in 2022[44]. - The company achieved a weighted average return on equity of 15.00% in 2023, an increase of 1.59 percentage points from 13.41% in 2022[44]. - The company maintained a stable operating cash flow of 15.5 billion RMB, remaining consistent with the previous year[49]. - The total non-recurring gains and losses amounted to approximately 2.02 billion RMB in 2023, a significant increase from the previous year[46]. ESG and Governance - CMOC is committed to improving its international governance system and aligning with global ESG standards to enhance its competitive edge[9]. - The company is implementing a "5233" governance framework to strengthen its international operations and management capabilities[9]. - The company has established a complete ESG management team across its operations, enhancing its position as an ESG leader[35]. - The company plans to continue its focus on sustainable development and has launched a carbon neutrality roadmap[35]. - The company’s MSCI ESG rating improved to AA, placing it in the top 20% of the global non-ferrous metals mining industry[34]. - The company has established a comprehensive ESG management framework, achieving a leading position in the MSCI ESG rankings globally[73]. - The company aims to solidify its ESG leadership by enhancing its sustainable development governance model and fulfilling carbon neutrality commitments[123]. Production and Sales - Copper production reached 419,537 tons, a 51% increase year-on-year, while cobalt production surged by 174% to 55,526 tons[52]. - The KFM project produced 113,700 tons of copper and 33,900 tons of cobalt in 2023, contributing significantly to production capacity[50]. - The company sold 80% of its stake in the NPM copper mine, generating substantial returns[50]. - The company completed the construction of five copper-cobalt production lines, achieving an annual capacity of 450,000 tons of copper and 37,000 tons of cobalt[50]. - The company reported a significant increase in domestic demand for copper, with imports of scrap copper rising by 12.13% year-on-year to 1,986,567 tons[55]. Market Conditions - The average market price for molybdenum concentrate increased by 37.43% to 3,870 RMB per ton in 2023[53]. - The average price of cobalt fell to $15.11 per pound, down 50.12% year-on-year, reaching a five-year low by the end of 2023[57]. - The global copper supply in 2023 was approximately 26.53 million tons, a year-on-year increase of 3.3%, while demand was about 26.50 million tons, up 1.9%[55]. - Cobalt supply increased by 17% to approximately 224,000 tons, while demand rose by 14.5% to about 212,000 tons in 2023[57]. - The average price of niobium iron in 2023 was $47 per kilogram, reflecting a year-on-year increase of 3%[60]. Risk Management - The company faces risks from price volatility of key products like copper and cobalt, which could impact operational performance[124]. - Geopolitical and policy risks are present due to operations in diverse regions, necessitating compliance and constructive stakeholder relationships[125]. - The company utilizes interest rate swaps to mitigate risks associated with fluctuating bank loan interest rates[126]. - The company monitors foreign exchange risks related to its operations in multiple currencies, employing hedging strategies as necessary[127]. - IXM, the trading arm, implements a comprehensive risk management framework to address market, liquidity, and credit risks[129]. Environmental Initiatives - The company has implemented a zero discharge policy for mining wastewater, ensuring no pollutants are released into the environment[183]. - The company achieved zero excess emissions for wastewater, with a total discharge of 0 tons and ammonia nitrogen levels at 0 mg/L[180]. - The company has established emergency response plans for environmental incidents and conducts regular drills to mitigate potential impacts[192]. - The company has achieved A-level enterprise standards for eight subsidiaries and B-level standards for three subsidiaries in environmental management[197]. - The company has implemented energy substitution measures, transitioning to cleaner and renewable energy sources, and has invested in energy-saving management and emission reduction equipment[199]. Employee and Management - The total number of employees in the parent company is 3,003, while the total number of employees in major subsidiaries is 8,992, resulting in a combined total of 11,995 employees[162]. - The company has established a long-term incentive mechanism linked to performance and strategic goals, with ongoing employee stock ownership plans and equity incentive plans for mid-to-senior management and technical personnel[175]. - The company trained 111,719 employees and contractors at TFM and 10,256 at the Brazil company[167]. - The company emphasizes safety training, conducting various safety courses to enhance employee awareness and skills[167]. - The company encourages cross-departmental rotation and composite talent development through a talent pool management strategy[166]. Shareholder Returns - The board proposed a cash dividend of 1.5425 per 10 shares (tax included) for shareholders, with no stock distribution or capital reserve transfer[3]. - The company distributed a cash dividend of 0.8508 RMB per 10 shares, totaling 1,820,227,909.77 RMB during the reporting period[169]. - The cash dividend payout ratio is set at 40% of the net profit attributable to ordinary shareholders[172].