Jinchuan Group International Resources (2362) H1 2024 earnings summary

Executive summary

• Achieved a turnaround from loss to profit in 2024 1H, driven by higher copper prices, lower production costs, absence of cobalt inventory impairment, and reduced net exchange losses compared to 2023 1H.

• Produced 28,578 tonnes of copper (down 5% YoY) and 681 tonnes of cobalt (down 50% YoY); sold 26,222 tonnes of copper and 991 tonnes of cobalt.

• Revenue decreased 14% YoY to US$283.0 million, mainly due to lower trading revenue and reduced copper/cobalt production.

• Net profit attributable to shareholders was US$9.2 million, reversing a US$12.5 million loss in 2023 1H.

Financial highlights

• Revenue: US$283.0 million (down 14% YoY).

• Gross profit: US$43.0 million (up 52% YoY).

• Net profit: US$12.8 million (vs. net loss of US$10.0 million in 2023 1H).

• EBITDA: US$75.0 million (up from US$40.2 million YoY).

• C1 cash cost per tonne of copper: US$4,469 (down 13% YoY).

• Basic and diluted EPS: US$0.07 cents (vs. -US$0.10 cents YoY).

Outlook and guidance

• Copper prices expected to rise in late Q3 and Q4 2024, supported by infrastructure and energy transition demand.

• Cobalt prices likely to remain subdued in the short term due to oversupply, but long-term demand remains strong, especially from the EV sector.

• Musonoi Project construction progressing well, with commissioning targeted for early 2025.