China Nonferrous Mining Corporation (1258) H1 2025 earnings summary

Executive summary

• Net profit rose 22.5% year-over-year to US$371.3 million, with profit attributable to owners up 20.2% to US$263.3 million and EPS at US¢6.75; revenue was US$1,751.5 million, down 12.9% year-over-year.

• Copper production from self-owned mines reached 85,200 tonnes, up 7.2% year-over-year.

• Announced acquisition of equity in Benkala copper mine in Kazakhstan, expanding resource footprint.

• Maintained high dividend payout ratio, but no interim dividend declared for H1 2025.

• Advanced new projects and mine expansions.

Financial highlights

• Gross profit increased 11.4% to US$570.3 million; gross margin rose to 32.6% from 25.5% year-over-year.

• Cost of sales decreased 21.1% to US$1,181.3 million.

• Net cash from operating activities was US$525.9 million, up from US$413.1 million year-over-year; cash and equivalents reached US$1,353.4 million.

• Capital expenditure was US$108.4 million, mainly for mine development and expansion.

• Finance costs dropped to US$1.2 million from US$6.3 million year-over-year.

Outlook and guidance

• Full-year production guidance reduced due to temporary suspension at Chambishi Southeast Mine after a safety incident.

• Smelting and processing fees expected to remain low, impacting profitability.

• New mine projects at Luanshya and Kambove Mining entering construction phase, with production expected in coming years.

• Plans to acquire controlling stake in Benkala project and pursue further M&A opportunities.

• Copper prices expected to remain high due to tight supply and resilient demand, but volatility and African country risks may impact H2 2025 output and profitability.