ZIJIN MINING GROUP COMPANY LIMITED On August 25, Zijin Mining released its 2023 interim results. In the first half of the year, the output of its main mineral products reached record highs and the company sustained its position as a leading miner in China and one of the top 10 global mining companies by main performance metrics. This is attributable to Zijin's efforts to implement the overarching principle of improving quality, controlling costs, and boosting profitability. Such results, combined with rapid advances made in key construction projects, lay a robust foundation for it to achieve its annual production and operational targets.
Here are the highlights from the 2023 Interim Report:
1.Production:
l Copper production reached 490,000 tonnes, a rise of 14.21% year-on-year;l Gold production stood at 32 tonnes, up 19.63% year-on-year;l Zinc and lead production hit 240,000 tonnes, marking a 5.02% year-on-year increase;l Silver production reached 208 tonnes, which grew by 10.92% compared to the same period of the previous year; andl The company expanded its product portfolio with the production of 1,293 tonnes of lithium carbonate equivalent.2.Profits:
l Total revenue reached RMB 150.3 billion, reflecting a year-on-year increase of 13.5%.l Profit before tax amounted to RMB 15.5 billion, an increase of 36.09% compared to the second half of 2022. Net profit attributable to shareholders of the parent company reached RMB 10.3 billion, up 38.99% from H2 2022. Despite this, profits experienced a slight year-on-year dip, primarily due to rising production costs and the decline in copper and zinc prices. Notably, fluctuations in metal prices resulted in a RMB 1.56 billion reduction in earnings.l As of the end of the reporting period, the company's total assets stood at RMB 326.6 billion, reflecting a 6.70% increase compared to the beginning of the year, and the asset-liability ratio decreased by 0.39 percentage points to 58.94%. Furthermore, the company generated RMB 16 billion in operating net cash flow during the period.3.Growth Projects:
l The Phase 1&2 debottlenecking projects of Kamoa-Kakula came on stream ahead of schedule. Development of the Lower Zone of the Čukaru Peki Copper-Gold Mine in Serbia has been advancing steadily and the Phase 2 expansion of the Julong Copper Mine in Tibet, China, is well underway. l The Rosebel Gold Mine in Suriname achieved a half-year gold production of 3.5 tonnes. The Pressure Oxidation Plant of the Taror Gold Mine in Tajikistan has been built and commissioned, while production has commenced at the Binduli Processing Plant in Norton Gold Fields, Australia. Several debottlenecking and new projects, such as the Hewan Porphyry Gold Mine in Shanxi, have been fast-tracked.l The 300Ktpa Phase 1 Processing Plant of the Xiangyuan Hard-Rock Lithium Mine in Hunan has been recommissioned and produced revenue, while progress continues on the project's 5Mtpa Phase 2 Processing Plant. The 3Q Lithium Project in Argentina has produced crude lithium carbonate and is on track for production by the end of 2023. The Lakkor Tso Lithium Project in Tibet is also advancing rapidly.4. Outlook:
l Copper: Despite subdued demand and slower growth in China, copper prices remain relatively high. This suggests that copper demand is growing in the renewable energy sector, providing mid- and long-term support to the metal's prices.l Gold: Gold's significant role as an investment instrument has been accentuated by global political uncertainties, high inflation, and excessive money supply. The price of gold is expected to fluctuate within a high range. l Lithium: Lithium prices are likely to increase further as the penetration of electric and hybrid vehicles continues to rise globally, along with the rapid development of energy storage and smart devices.5.2023 Production Guidance:
Zijin Mining maintains its guidance set at the beginning of the year: 950,000 tonnes of copper and 72 tonnes of gold.
The company's full-year production of mined copper may surpass the 950,000-tonne target, more than doubling its output in 2020. If achieved, it may become the first Chinese company to produce over one million tonnes of copper in a single year.
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Zijin Mining Group Company Ltd. published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2023 05:51:04 UTC.
