CMOC reports RMB5.3bn net profit for the first three quarters of 2022, up 49% YoY

2022-10-24 14:45:35

Key financials:

In the first three quarters of 2022, the company reported a revenue of RMB132.47bn, up 5% YoY; EBITDA of RMB14.64bn, up 41% YoY; net profit attributable to shareholders of the parent company of RMB5.31bn, up 49% YoY; net profit attributable to shareholders of the parent company after extraordinary gains and losses of RMB4.7bn, up 146% YoY; and EPS of RMB0.248, up 50% YoY.

The company registered solid production results from all business units. In the first three quarters, 187,400 tons of copper and 15,300 tons of cobalt were produced at operations in the DRC, 11,461 tons of molybdenum and 6,003 tons of tungsten at operations in CMOC China, 6,924 tons of niobium and 856,500 tons of phosphate fertilizers at operations in Brazil, and 16,940 tons of copper and 12,396 ounces of gold at NPM, Australia (attributable production based on 80% equity). Sales volume of IXM was 4,614,000 tons.

The company recorded stronger solvency with RMB38.68bn cash and cash balance and a lowered net interest-bearing debt/EBITDA multiple of 1.24.

Business highlights in the reporting period:

Significant increase in production of key products. DRC copper and cobalt productions increased by 23% and 37.6%, respectively, over same period last year through efforts made to maintain strong operational performance including improved site and equipment management, broader technical upgrades, and roll-out of workplace competition. Niobium and phosphate fertilizer productions increased by 10.4% and 2%, respectively, as CMOC Brazil continued to enhance organizational upgrade and cost and efficiency initiatives.

Construction of major projects progressed smoothly. At KFM, the mining plant infrastructure stripping was completed, the civil works and structural steel works of KFM beneficiation plant, smelting plant, acid plant, and tailings pond were basically completed, installation of main equipment including the crusher and the mill was completed, and the installation of pipeline and electrical equipment is progressing as planned. At TFM, the civil works of central area has been basically completed and that of eastern area is progressing smoothly as the mill and other main equipment are being installed.

Breakthroughs made in digitalization program. The launch of SAP phase I and its 15 supporting systems offers a solid base for the “5233” strategic structure, on which modules related to the global procurement business, CMOC China’s production, supply and sales, and KFM construction project management run smoothly. Global financial management and operations were improved by enhancing HQ management efficiency supported by AI employees and by enabling automated interface between financial processes and certain business processes via digital tools.

Major development:

CATL will become the second largest shareholder of the company via indirect shareholding structure, and this proposed transaction will help to further diversify product portfolio and enhance industry positioning of the company. CATL and the company, leveraging their respective strengths, will jointly focus on new energy metal resources and support the building of a resilient global supply chain system.

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