Financial Performance - Sales revenue decreased by 76% to $60.5 million from $252.8 million in the same period of 2023[8] - Net loss amounted to $26.0 million, a decrease of $104.7 million from a net profit of $78.7 million in the same period of 2023[8] - Operating cash flow decreased to $7.2 million from $127.7 million in the same period of 2023[8] - The company reported a net loss of $26,048,000 for the three months ended March 31, 2024, compared to a profit of $78,659,000 in the same period of 2023[60] - Basic loss per share for the three months ended March 31, 2024, was $(6.63), compared to earnings of $19.62 per share in the same period of 2023[84] Production and Operations - Total gold production decreased by 61% to 20,714 ounces from 52,827 ounces in the same period of 2023[8] - Total copper production was 4.6 million pounds (approximately 2,093 tons), down from 44.1 million pounds (approximately 20,025 tons) in the same period of 2023[8] - The decrease in production and profit was primarily due to the suspension of operations at the Jiama mine following a tailings spill on March 27, 2023, with limited resumption starting on December 15, 2023[8] - The Jiama mine has resumed partial operations as of December 15, 2023, with a daily processing capacity of 6,000 tons from the first phase of the concentrator[10] - The Longshanhao mine is expected to reduce its mining rate in Q3 and Q4 2023 to enhance slope stability management, leading to a 51% decrease in gold production to 17,276 ounces in Q1 2024 compared to 35,291 ounces in Q1 2023[13] Costs and Expenses - The total production cost per ounce of gold rose by 23% to $1,653 in Q1 2024 from $1,339 in Q1 2023[13] - The total sales cost for gold was $28,157,089, with a cash production cost of $996 per ounce for the three months ended March 31, 2024, compared to $1,339 per ounce in the same period of 2023[20] - The total production cost per pound of copper rose to $11.54, up from $2.83 in the same quarter last year[14] - Cash production cost per pound of copper increased to $9.01 from $2.12 year-over-year[14] - General and administrative expenses totaled $9,096 thousand for the three months ended March 31, 2024, slightly down from $9,584 thousand in the same period of 2023[80] Revenue Breakdown - Copper sales revenue for the three months ended March 31, 2024, was $15.59 million, a decrease of 88.6% from $136.58 million in the same period of 2023[14] - Gold bar revenue was $36.166 million, down 45% from $66.415 million in the previous year[73] - Revenue from the sale of copper concentrate and other products to China National Gold Group was $24.0 million for the three months ended March 31, 2024, down from $173.6 million in the same period of 2023[50] Cash Flow and Financing - The net cash inflow from operating activities for the three months ended March 31, 2024, was $7.2 million, significantly lower than $127.7 million for the same period in 2023[39] - The net cash outflow from investing activities for the three months ended March 31, 2024, was $41.4 million, primarily due to land use rights and property, plant, and equipment purchases[41] - The net cash inflow from financing activities for the three months ended March 31, 2024, was $39.7 million, mainly from obtaining loans totaling $40.0 million[42] - The company's total debt as of March 31, 2024, was $805.4 million, with a debt-to-equity ratio of 0.47, up from 0.44 as of December 31, 2023[44] Assets and Liabilities - As of March 31, 2024, the company's accumulated earnings were $353.0 million, operating capital was $179.1 million, and total borrowings amounted to $805.4 million[36] - The company's cash and cash equivalents totaled $102.7 million, down from $553.0 million a year earlier[39] - Total liabilities increased to $1,148,168 thousand from $1,106,975 thousand, marking a growth of about 3.7%[62] - The equity attributable to owners decreased to $1,712,937 thousand from $1,727,741 thousand, a decline of approximately 0.86%[63] Future Outlook - The company anticipates gold production at the Longshanhao mine to be between 106,097 ounces and 112,528 ounces (approximately 3.3 tons to 3.5 tons) in 2024[11] - The company expects to receive government approval to resume operations at the Jiama mine in May 2024, with a planned processing capacity of approximately 34,000 tons per day for the second phase of the concentrator[11] - The company forecasts copper production for 2024 to be between 95.0 million pounds and 98.0 million pounds (approximately 43,200 tons to 44,500 tons)[11] Risks and Challenges - The company continues to face various risks, including metal price fluctuations and regulatory challenges in China, which could significantly impact its business operations and financial performance[56] - The company is currently facing operational challenges due to the suspension of the second phase of the Jiamar copper-gold polymetallic mine, pending government approval for resumption[68] Exploration and Development - The company plans to conduct deep exploration in the exploration permit area in 2024, with a drilling depth of 3,580 meters and three drill holes[25] - The company continues to evaluate the potential for underground operations at Changshan Mine as it approaches the end of its open-pit mining life[22]
中国黄金国际(02099) - 2024 Q1 - 季度业绩