China Nonferrous Mining Corporation (1258) H1 2024 earnings summary

Executive summary

• Revenue rose 9.0% year-over-year to US$2,009.8 million for H1 2024, driven by higher sales volume and copper prices.

• Net profit attributable to owners increased 18.0% to US$219.1 million; total net profit was US$303.2 million, up 14.9% year-over-year.

• Consolidated copper production was 263,000 tonnes, with 80,000 tonnes from self-owned mines; sulphuric acid output was 550,000 tonnes.

• Expansion projects at Luanshya and Kambove Mining are progressing, expected to boost future copper output.

• Shares included in the Hang Seng Composite Mid Cap Index; HK$1 billion raised via share placement to support growth.

Financial highlights

• Gross profit was US$512.0 million, down 1.8% year-over-year; gross margin declined to 25.5% from 28.3%.

• Distribution and selling expenses fell to US$3.5 million, and finance costs dropped 67.2% to US$6.3 million.

• Net cash from operating activities was US$413.1 million; cash and equivalents rose to US$1,037.8 million.

• Capital expenditure stable at US$46.0 million for H1 2024.

• No interim dividend declared for the period.

Outlook and guidance

• Management expects continued high but volatile copper prices, supported by global economic recovery and new energy demand.

• Plans to accelerate expansion, pursue M&A, and enhance compliance and risk controls in H2 2024.

• Focus on stable production, safety, environmental protection, and achieving annual targets.

• Market volatility and global economic uncertainties, including copper price fluctuations and geopolitical risks, are expected to persist.