Financial Performance - Basic profit reached $25 million for the year 2022, while the net loss after asset impairment was $88 million[2]. - The company reported a basic profit of $25.0 million for 2022, demonstrating strong financial performance despite a challenging business environment[58]. - EBITDA, excluding extraordinary items and foreign exchange, decreased by 66.9% to $56,514,000 in 2022[27]. - Basic earnings, excluding extraordinary items and foreign exchange, fell by 80.1% to $24,954,000 in 2022[28]. - The company reported a loss before tax of $88.540 million compared to a profit of $134.103 million in 2021[157]. - The group recorded a basic and diluted loss per share of $(87,896,000) for the year ended December 31, 2022, compared to a profit of $134,069,000 in 2021[180]. Production and Sales - Iron ore production was 2,569,845 tons in 2022, a slight increase of 0.5% compared to 2,557,794 tons in 2021; sales volume also increased by 0.5% to 2,566,480 tons[5]. - Iron ore production for 2022 was 2,569,845 tons, representing an 81% capacity utilization and a 0.5% increase from the previous year[29]. - In 2022, the company's sales and production volumes increased by 0.5% compared to the previous year, indicating a stable performance despite challenges[98]. Revenue and Pricing - The average price of iron ore with 65% iron content dropped by 25.3% to $139 per ton in 2022 from $186 per ton in 2021[5]. - The realized selling price for iron ore in 2022 was $118 per dry ton, a decrease of 25.8% compared to the previous year[7]. - The realized iron ore selling price dropped by 27.6% to $118 per dry ton in 2022 compared to $163 per dry ton in 2021[32]. - Total revenue for 2022 was $278.757 million, a decrease of 25% from $371.279 million in 2021[157]. - Revenue from iron concentrate sales was $274.598 million, down from $369.173 million in 2021, representing a decline of 25.5%[157]. - Revenue from external customers in China was $251.198 million, a decrease of 29.5% from $356.003 million in 2021[157]. Costs and Expenses - The cash cost per ton increased to $28.2 in 2022 from $21.5 in 2021, reflecting higher operational costs[17]. - The overall cash cost increased from $71.7 per ton in 2021 to $78.8 per ton in 2022, driven by higher shipping costs and mining expenses[22]. - Operating expenses for K&S in 2022 totaled USD 213.1 million, compared to USD 192.5 million in 2021[76]. - Operating expenses, excluding depreciation, increased to $227.700 million from $202.786 million, reflecting a rise of 12.3%[157]. Impairment and Asset Management - The company recorded an impairment loss of $103.2 million related to K&S mining assets due to weak iron ore prices and other economic factors[10]. - The company recognized an impairment loss of $103.169 million in 2022, with no impairment loss reported in 2021[157]. - The K&S project's recoverable amount was approximately $433.3 million as of December 31, 2022, leading to an impairment loss of $94,621,000 during the period[172]. Debt and Financial Position - The net debt to EBITDA ratio for the company was 0.36 in 2022, indicating a stable financial position[54]. - The company’s net debt decreased from $61.1 million at the end of 2021 to $41.6 million at the end of 2022, reflecting improved liquidity[102]. - As of December 31, 2022, total borrowings amounted to USD 78.5 million, a decrease from USD 113.2 million as of December 31, 2021[77]. - The company repaid $34.7 million in principal loans during the year, with $19.0 million coming from a debt-to-equity swap with its main lender[72]. - The company’s weighted average interest rate increased to 8.48% in 2022, up from 7.0% in 2021[53]. Market Conditions and Outlook - The outlook for 2023 remains uncertain, but the market is gradually recovering, with expectations of fruitful results from the Sutara mine and the Amur River Bridge operations[3]. - The company plans to continue monitoring market conditions and adjust its sales and marketing strategies accordingly[14]. - The demand for iron ore remains uncertain as China's economic recovery post-COVID-19 is still unclear, with the steel industry in China continuing to operate under low-profit margins[131]. - Geopolitical risks related to the Ukraine crisis continue to adversely affect the global economic situation, influencing the company's outlook[86]. Strategic Initiatives - The company plans to start mining at the Sutara site in the second half of 2023, as the Kimkan site is nearing depletion[87]. - The company plans to utilize the newly opened Amur River Bridge to transport more products to Chinese customers, reducing delivery time from 3-5 days to 1-3 days[124]. - The company is actively seeking diversification opportunities, including potential ship purchases in Q1 2023, to mitigate risks and establish new revenue sources[88]. - The company emphasizes the importance of completing the Sutara development to maintain continuous production despite external threats and challenges[132]. Employee and Operational Metrics - As of December 31, 2022, the company employed 1,804 staff, with total employee costs amounting to $35.7 million, an increase from $28.3 million in 2021[56]. - The company faced challenges in Q4 2022 due to a difficult operating environment, impacting profit margins and necessitating a temporary reduction in operational scale[85]. - The company has successfully resolved mining issues through constructive discussions with contractors, improving production efficiency[96].
铁货(01029) - 2022 - 年度业绩