Financial Performance - In the first half of 2023, the average price of iron ore with 65% iron content decreased by 20% compared to the same period last year, impacting overall performance [2]. - Despite a 7.6% increase in sales volume, total revenue fell by 16.0% from $165.7 million in the first half of 2022 to $139.2 million in the first half of 2023 [9]. - EBITDA decreased to $28.9 million, reflecting the challenging market conditions [2]. - The company reported a basic profit of $9.3 million, which is a more accurate reflection of its underlying performance, despite a reported loss of $65.7 million due to non-recurring items and foreign exchange [7][21]. - For the six months ended June 30, 2023, the company reported a loss of $65.7 million, compared to a loss of $77.9 million for the same period in 2022, primarily due to an impairment loss of $73.6 million on K&S and other assets [42]. - Revenue from external customers for the six months ended June 30, 2023, was $165.6 million, a decrease from $165.7 million in the same period of 2022 [49]. - The group reported a loss before tax of $60.4 million for the first half of 2023, compared to a loss of $80.2 million in the same period of 2022 [49]. - The net loss for the six months ended June 30, 2023, was $65,749 thousand, an improvement from a net loss of $77,942 thousand in the prior year [138]. - The basic loss per share for the period was $0.77, compared to $1.10 for the same period in 2022 [136]. Cost and Expenses - Cash costs per ton (excluding transportation) increased by $11.8 to $59.8 per ton, driven by high inflation in Russia, particularly in electricity and labor costs [12]. - The average cash cost per ton, including transportation, was $77.7, slightly lower than the previous year's $78.6 [13]. - General administrative expenses before depreciation decreased by 44.4% compared to the previous year, primarily due to one-time payments to management [18]. - Operating expenses, including depreciation, totaled $122.7 million for the six months ended June 30, 2023, slightly down from $126.9 million in the prior year [51]. - The financing costs increased by 5.6% to $4.4 million in the first half of 2023 due to rising market interest rates [54]. - The depreciation expense for the first half of 2023 was $9.8 million, a decrease of 13.3% compared to the same period in 2022 [36]. Production and Capacity - K&S maintained an average production capacity of approximately 83%, producing 1,308,821 tons of iron ore concentrate, a 4.0% increase year-on-year [23]. - The company produced 1,308,821 tons of iron concentrate during the reporting period, an increase of 4.0% year-over-year, while sales volume rose by 7.6% to 1,374,549 tons [94]. - K&S's iron ore production increased by 9.7% to 4,584,800 tons for preliminary processing compared to the first half of 2022 [191]. - K&S faced a production halt for about one week due to external power grid issues in May 2023, but managed to resolve the issue by the end of the month [186]. Impairment and Asset Management - The company recognized an impairment charge of $73.6 million for K&S and other assets during the first half of 2023, reflecting a decline in the price of iron ore [40]. - The recoverable amount of property, plant, and equipment for the K&S project was approximately $360.3 million as of June 30, 2023, down from $433.3 million as of December 31, 2022, resulting in an impairment loss of $74.306 million during the period [117]. - The company reported a net impairment loss of $73,575 thousand for the six months ended June 30, 2023, down from $112,987 thousand in the previous year [136]. Cash Flow and Liquidity - Operating cash flow for the first half of 2023 was $35.3 million, down from $47.9 million in the same period of 2022 [45]. - Cash and cash equivalents increased by $8.3 million to $45.2 million in the first half of 2023, enhancing the company's liquidity position [86]. - The company reported a cash flow hedge gain of zero for the six months ended June 30, 2023, compared to a gain of $5,656,000 in the prior year, highlighting a significant change in hedging effectiveness [1]. - Cash and cash equivalents at the end of the period were $44,930,000, down from $75,775,000 year-over-year, reflecting a decrease of approximately 40.7% [1]. Debt and Financing - The group's debt-to-equity ratio increased to 19.1% as of June 30, 2023, up from 17.4% at the end of 2022, primarily due to impairment provisions [65]. - The total debt of the group as of June 30, 2023, was $73.1 million, down from $78.5 million as of December 31, 2022, indicating a reduction in leverage [75]. - The company has pledged 2,120,000,000 shares of common stock as collateral for its borrowings, which were released on February 27, 2023 [112]. - The company’s borrowings from MIC invest LLC amounted to $72,698,000 as of June 30, 2023, down from $78,058,000 at the end of 2022, indicating a reduction in debt levels [1]. Strategic Initiatives and Future Outlook - The company is actively pursuing business expansion initiatives, including the purchase and subsequent sale of vessels, to diversify its operations and reduce risks associated with focusing on a single product [87]. - The company is focused on developing the Sutara mine, with expectations for it to commence operations in the first half of 2024, despite some delays in design document approvals [115]. - The company continues to monitor macroeconomic conditions and adjust its marketing strategies accordingly due to ongoing instability in the market [24]. - The company is actively seeking opportunities to diversify its business and product offerings to enhance shareholder value and capitalize on emerging market trends [114]. Employee and Operational Metrics - As of June 30, 2023, the company employed 1,629 people, a decrease from 1,773 employees on June 30, 2022, with total employee costs amounting to $17.0 million, down from $19.5 million in the previous year [93]. - The company maintained a high safety level with a lost time injury rate of 2.26, compared to 1.37 in the previous year, indicating a need for further safety improvements [1].
铁货(01029) - 2023 - 中期业绩