Jinchuan Group International Resources Co. Ltd · HKEX:2362
Jinchuan Group International Resources — H1 2024 Earnings Presentation
42 slides from Jinchuan Group International Resources's earnings presentation, August 2024
Slide 1: 2024 Interim Results Announcement
JINCHUAN GROUP INTERNATIONAL RESOURCES CO. LTD 2024 Interim Results Announcement Aug 2024
Slide 2: Disclaimer
Disclaimer Statements in this presentation, other than historical facts, that address exploration activities and mining potential are “forward-looking” statements and are not statements of fact. These statements are generally identified by words such as “believes,” “expects,” “predicts,” “intends,”
Slide 3: Jinchuan Group - Overview
Jinchuan Group - Overview
Slide 4: Overview of JCG
Overview of JCG Major Recognitions ➢ Jinchuan Group is a conglomerate controlled by the People's Government of Gansu Province that mainly produces nickel, copper, cobalt, platinum group metals and non- 2024 Fortune Global 500 Ranked 300 ferrous metal calendaring and processing products, chemical pro
Slide 5: Jinchuan Hong Kong - Overview
Jinchuan Hong Kong - Overview
Slide 6: Jinchuan Hong Kong - Overseas Asset Layout
Jinchuan Hong Kong - Overseas Asset Layout ✓ In 2000, Jinchuan Group responded to the national “Going Global" strategy and the "the Belt and Road" initiative; implemented a resource strategy primarily focused on overseas mineral resources and an overseas capital strategy with Jinchuan Hong Kong as t
Slide 7: Jinchuan Hong Kong - Resources Assistance
Jinchuan Hong Kong - Resources Assistance ✓ Support capital with resources and assist resources with capital. Through independent development and acquisition of overseas resources to discover and control global mines, and optimize the layout of overseas resources ✓ Strengthen Jinchuan's overseas ass
Slide 8: Indonesia - WP&RKA Laterite Nickel Mine
Indonesia - WP&RKA Laterite Nickel Mine ❑ Location: Headquarters is in Jakarta, the project is located in Obi Island, North Maluku Province, Indonesia, with two mining areas, WP and RKA, covering an area of 3,525 hectares ❑ Business: Development of laterite nickel ore resources, production of ferron
Slide 9: Indonesia - KRS Ferronickel Project
Indonesia - KRS Ferronickel Project ❑ Location: Located in Weda Bay Industrial Park, North Maluku Province, Indonesia ❑ Business: Mining of laterite nickel ore, smelting of ferronickel, and sales of mineral products, etc. ❑ Timeline: Established on August 25, 2020 → Construction began in December 20
Slide 10: Indonesia - USMI Nickel Matte Project
Indonesia - USMI Nickel Matte Project ❑ Location: Located in Weda Bay Industrial Park, North Maluku Province, Indonesia ❑ Business: Exploit laterite nickel ore, smelt nickel matte, and sale mineral products, etc. ❑ Timeline: Established in Jakarta, Indonesia in April 2022, construction began in Nove
Slide 11: Zambia - Munali Nickel Mine
Zambia - Munali Nickel Mine ❑ Location: 85 kilometers south of Lusaka, the capital of Zambia ❑ Reserves: 31,000 tonnes of nickel (data as of December 31, 2022) ❑ Capacity: Currently capable of producing nickel concentrate with a nickel content of 4,500 tonnes per year, accompanied by copper, cobalt,
Slide 12: South Africa - Wesizwe Platinum Mine
South Africa - Wesizwe Platinum Mine ❑ Location: West of Bushveld Complex, South Africa, with superior mineralization environment and high ore quality ❑ Total resources: 87.52 million tonnes, including 4.9 grams/tonne of platinum group 4E (platinum, palladium, rhodium, gold), 0.04% copper, and 0.16%
Slide 13: Tibet - Xiongcun Copper and Gold Mine
Tibet - Xiongcun Copper and Gold Mine ❑ Location: Xietongmen County, Shigatse City, Tibet, with convenient traffic conditions ❑ Product: Mainly copper, accompanied by gold, silver, and sulfur ❑ Service period: 13 years ❑ Resources: 203 tonnes of gold (grade 0.4g/t), 2.09 million tonnes of copper (gr
Slide 14: Mexico - Bahuerachi Copper Mine
Mexico - Bahuerachi Copper Mine ❑ Main products: Copper concentrate, Molybdenum concentrate ❑ Location: Located in the southwest of Chihuahua, Mexico, at the intersection of three states ❑ Mine type: Large scale polymetallic symbiotic porphyry copper mine with open-pit mining, capable of mining 232
Slide 15: Jinchuan International - Overview
Jinchuan International - Overview
Slide 16: JCI - Shareholding Structure
JCI - Shareholding Structure ➢ Jinchuan International, a holding subsidiary of Jinchuan Group, the listed flagship platform for overseas resources development of the Group ➢ Listed on the Main Board of the Hong Kong Stock Exchange (stock code: 2362.HK) ➢ Relying on the strong support of Jinchuan Gro
Slide 17: JCI - Development Timeline
JCI - Development Timeline Included in the list of the first batch of Five mining assets in southern Introduced 9 investors, including newly included Hong Kong Stock Africa were injected into the JCI Gansu Xinye and Gansu Jinghe. Connect shares under the Shanghai- Hong Kong Stock Connect 2010 2017 2
Slide 18: JCI - Summary of Reserves and Resources
JCI- Summary of Reserves and Resources Figures as of 31 December 2023 Ore Grade Metal content million tonnes % % thousand tonnes thousand tonnes Summary of Copper and Cobalt Cu Cobalt Cu Cobalt Proved Reserves 11.5 3.1 0.9 357 100 Probable Reserves 21.6 2.4 0.5 511 103 Total Copper and Cobalt 33.1 2
Slide 19: Jinchuan International - Mine Operations
Jinchuan International - Mine Operations
Slide 20: JCI - Mine Layout
JCI - Mine Layout Ruashi Mine (In operation) Africa Musonoi Project (Coming into production) Congo Kinsenda Mine (DRC) (In operation) Zambia Lubembe Project Chibuluma South Mine (under exploration) South （Finance lease） Africa 20
Slide 21: Ruashi Copper and Cobalt Mine
Ruashi Copper and Cobalt Mine ❑ Mine type: Open-pit oxidized copper-cobalt mine with potential sulfides at depth ❑ Location: Lubumbashi, Haut Katanga Province, the DRC ❑ Ownership: Jinchuan International (75%), Gécamines(25%) ❑ Smelting: SX-EW leaching processing, flotation and magnetic separation p
Slide 22: Kinsenda Copper Mine
Kinsenda Copper Mine ❑ Mine Type: underground copper mine ❑ Location: Congo (DRC) Haut-Katanga Province ❑ Ownership: Jinchuan International (77%) , Sodimico (23%) ❑ Product: copper concentrate ❑ One of the highest grade copper deposits in the world, with a copper grade of up to 5% ❑ LoM: 12 years. T
Slide 23: Musonoi Copper and Cobalt Mine
Musonoi Copper and Cobalt Mine ❑ Location: North of Kolwezi, Lualaba Province, the DRC ❑ Ownership: JCI (75%), Gécamines SA (25%) ❑ LoM: 16 years (according to ENFI Feasibility Study) ❑ Products: Copper cathode, cobalt hydroxide and sulphide copper concentrate ❑ Resources: 1,085kt copper, 363kt coba
Slide 24: Lubembe Copper Project
Lubembe Copper Project ❑ Location: Haut-Katanga Province in Congo (DRC); 30 kilometers away from the Kinsenda Mine and has synergistic effects with the Kinsenda Mine ❑ Mining license: Renewed in 2016 and further extended for 15 years to 2032 ❑ Progress: An infill drilling program was completed in 20
Slide 25: Chibuluma Copper Mine
Chibuluma Copper Mine ❑ Located in Zambia ❑ In December 2020, Chibuluma entered into a lease agreement with an independent third party to lease out the mining assets, and starting from 1st April 2021, Chibuluma South Mine (including Chifupu Deposit) and the processing plant to an independent third p
Slide 26: Jinchuan International - Financial Performance for 2024 1H
Jinchuan International - Financial Performance for 2024 1H
Slide 27: Financial Performance
Financial Performance For the 6 months ended June 30, 2024 Key Financial Indicators 2024 1H 2023 1H Gross profit （US$’000） 43,046 28,389 copper 209,077 221,041 Revenue from sales（US$’000） cobalt 13,705 (1,532) copper 7,973 7,538 Average price realised (US$/tonne)） cobalt 13,830 N/A Revenue（US$’000）
Slide 28: Key Financial Indicators - Gross Profit and Cost
Key Financial Indicators - Gross Profit and Cost Gross Profit C1 cash cost per tonne of copper (including by-product credit) （US$’000） ((US$/tonne) 43,046 5,200 5,116 5,000 4,800 4,600 28,389 4,469 4,400 4,200 4,000 2023 1H 2024 1H 28
Slide 29: Key Financial Indicators - Profit
Key Financial Indicators - Profit Profit EBITDA （US$’000） （US$’000） 9,241 80,000 74,626 8,000 70,000 4,000 60,000 50,000 0 2023 1H 2024 1H 40,000 40,196 (4,000) 30,000 -12,501 20,000 (8,000) 10,000 (12,000) 0 2023 1H 2024 1H 29
Slide 30: Environment, Society and Governance
Environment, Society and Governance
Slide 31: Strengthen ESG Management
Strengthen ESG Management Excellent ESG information Staff participated in Working closely Actively donating to local Disclosure Enterprise Award local environmental communities to promote protection activities with government harmonious development Conducting multiple anti- Implementing vegetation B
Slide 32: Promote Sustainable Development
Promote Sustainable Development Fully covered GRI standards, TCFD recommended framework, SASB standards, Stock Exchange guidelines, Wide Range of CASS-CSR5.0. Compliance Will further cover ISSB standards and provide more in-depth disclosure on the TCFD recommended framework to ensure leadership. Ens
Slide 33: Jinchuan International - Outlook
Jinchuan International - Outlook
Slide 34: Endogenous Growth of JCI – Steadily Increase of Copper Production
Endogenous Growth of JCI – Steadily Increase of Copper Production Evolution of Copper Output Operating Project about Exploration Mine to start production Project 350 300kt 300 Musonoi Lubembe 240kt Ruashi 60 250 200 100 140kt 150 100kt 40 240 100 60kt 40 140 50 30 →Kinsenda 100 60 30 →Ruashi 0 Opera
Slide 35: JCI - Outlook
JCI - Outlook Capital Market cap growth: The market cap reaches HKD50 billion Market Revenue growth: JCI’s annual revenue reaches more than USD5 billion Objectives Listing on multiple capital markets: Strive to achieve the goal of listing JCI on multiple capital markets and enhance its international
Slide 36: JCI - Capital Market Planning
JCI - Capital Market Planning Capital operation strategies ➢ Industrial chain extension: Expand the Company's layout in the field of new energy materials ➢ Asset restructuring: Consider injecting high-quality assets, such as the copper and gold mine in Tibet; nickel assets in WP&RKA, KRS, and USMI i
Slide 37: Copper and Cobalt Market
\ = < Copper and Cobalt Market
Slide 38: Copper Fundamentals Support Copper Prices
Copper Fundamentals Support Copper Prices The U.S. dollar interest rate cut cycle has begun, and copper prices are expected to grow in the second half of the year ➢ The recent minutes of the Federal Reserve's interest rate meeting released a signal of interest rate cuts. The US dollar continues to b
Slide 39: Copper Demand Is Expected to Rise Steadily
Copper Demand Is Expected to Rise Steadily Economic Recovery + New Energy Transformation Drives Demand Global Copper Consumption and Growth Rate in Every 4 Years ➢ In long term, copper fundamental factors are strong. Copper, as a critical commodity used in construction and infrastructure, will defin
Slide 40: Supply Growth of Copper Mines is Weak in Long-term
Supply Growth of Copper Mines is Weak in Long-term Capital expenditures of global copper companies are at a low level ➢ After 2011, as copper prices experienced a long period of decline, capital expenditures of global copper mining companies gradually slowed down after peaking in 2013 ➢ Usually, glo
Slide 41: The Terminal Application Fields of Cobalt Continue to Emerge
The Terminal Application Fields of Cobalt Continue to Emerge ➢ Together with the demand growth in aerospace and the recent government stockpiling programs, the long-term demand of cobalt remains strong. ➢ The cobalt price is at its lowest point in history, and vehicle manufacturers are waiting for t
Slide 42: Contact
Contact： Jinchuan Group International Resources Ltd. (02362.HK) Address: Unit 3101, 31st Floor, United Centre,95 Queensway, Admiralty, Hong Kong Tel: +852 3919 7239 Fax: +852 3919 7208 Email: ir@jinchuan-intl.com Website: www.jinchuan-intl.com
Jinchuan Group International Resources — H1 2024 Earnings Presentation on 6ix