Jinchuan Group International Resources Co. Ltd · HKEX:2362
Jinchuan Group International Resources — H1 2022 Earnings Presentation
32 slides from Jinchuan Group International Resources's earnings presentation, August 2022
Slide 1: 1H 2022 Results Presentation
金川集团国际资源有限公司 Jinchuan Group International Resources Co. Ltd 1H 2022 Results Presentation August 2022
Slide 2: Contents
Contents COMPANY OVERVIEW INVESTMENT HIGHLIGHTS FINANCIAL PERFORMANCE Q&A BUSINESS SUMMARY 2
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Company Overview
Company Overview ➢ Jinchuan Group International Resources Co. Ltd is a majority-owned subsidiary of Jinchuan Group and flagship platform for overseas resources development. The Company is listed on the Main Board of the Hong Kong Stock Exchange (2362. HK) ➢ With substantial support from Jinchuan Gro
Slide 5: Company Overview
Company Overview 2013 Acquire 5 mines’ assets in southern Africa from Jinchuan Group via issuance of 1,595,880,000 2018 shares (at an issue price of HK$1.00 per share) and 8,466,120,000 shares of PSCS which could Transferred and converted part of the PSCS, convert into ordinary shares at a conversio
Slide 6: Summary of Reserves and Resources
Summary of Reserves and Resources As at 31 Dec 2021, Presented On a 100% Basis Tonnage Grade Contained Metal Mt %Cu %Co Cu(Kt) Co(Kt) Copper - Cobalt Proved 11.6 3.1 0.9 363 100 Probable 19.4 2.4 0.5 471 97 Total reserves 31.0 2.7 0.6 833 198 Measured 17.6 2.8 0.8 489 149 Indicated 39.4 2.1 0.4 822
Slide 7: Financial Performance
O FINANCIAL PERFORMANCE
Slide 8: Key Financial Indicators
Key Financial Indicators For the six months ended 30 June 2022 1H 2021 1H Change Copper 28,789 28,503 +1% Production (tonnes) Cobalt 2,603 1,447 +80% Copper 27,148 29,385 -8% Volume of sold (tonnes) Cobalt 2,210 1,187 +86% Copper 8,638 9,281 -7% Average price realised per tonne (US$) Cobalt 59,199 4
Slide 9: Key Financial Indicators – Production Volume
Key Financial Indicators – Production Volume 主要财务指标-产量 For the six months ended 30 June Copper Production Cobalt Production (Tonne) (Tonne) +80% 2,603 35000 28,789 2500 28,503 30000 2000 25000 1,447 1500 20000 15000 1000 10000 500 5000 0 0 2021 1H 2022 1H 2021 1H 2022 1H 9
Slide 10: Key Financial Indicators – Revenue
Key Financial Indicators – Revenue 主要财务指标-产量 For the six months ended 30 June (US$M) +50% 600 539.4 500 Cobalt 400 360.4 Cobalt 300 Copper 200 Copper 100 Trading Trading 0 2021 1H 2022 2H 10
Slide 11: Key Financial Indicators – Revenue
Key Financial Indicators – Revenue 主要财务指标-产量 For the six months ended 30 June Total revenue from mining operations Trading of mineral and metal products (US$M) (US$M) +12.8% +373% 400 365.3 350 323.7 174.1 300 250 200 150 100 36.8 50 0 2021 1H 2022 1H 11
Slide 12: Key Financial Indicators – C1 Cash Cost
Key Financial Indicators – C1 Cash Cost 主要财务指标-产量 For the six months ended 30 June C1 Cash Cost per Tonne of Copper (US$/t) 3,500 2,878 -38.5% 3,000 2,500 2,000 1,771 1,500 1,000 500 0 2021 1H 2022 1H 12
Slide 13: Business Summary
O BUSINESS SUMMARY
Slide 14: Geographical Location
Geographical Location Ruashi Mine (Operating Mine) As at 31 Dec 2021 • Location: Lubumbashi, Katanga Province, DRC • Ownership: Jinchuan Intl. (75%), Gécamines (25%) • Products: Cathode copper, cobalt hydroxide • LoM: 7 years • Reserves: 227kt Cu, 25kt Co • Resources: 614kt Cu, 82kt Co • 1H 2022 pro
Slide 15: Ruashi Mine
Ruashi Mine Overview ❑ Located in the DRC. Open-cast oxide copper and cobalt mine with sulfide potential underneath ❑ Ruashi started construction of a 600kt flotation and magnetic separation plant to process low- grade oxide and sulfide materials through magnetic separation. This will further increa
Slide 16: Kinsenda Mine
Kinsenda Mine Overview ❑ Located in the DRC. Underground copper mine. ❑ Kinsenda Mine ranks one of the world’s highest grade copper deposits with an average feed grade of 5.6% ❑ Current mine life is more than 10 years and there exists substantial additional ore resources that could extend the mine l
Slide 17: Musonoi Project
Musonoi Project Overview Reserves and Resources Summary (as at 31 Dec 2021) Tonnage Grade Contained Metal Mt %Cu %Co Cu(Kt) Co(Kt) Oxide Proved 2.7 3.4 1.0 91 28 Probable 0.5 3.3 0.8 16 4 Total reserves 3.2 3.3 1.0 107 32 Measured 4.7 3.1 1.0 144 48 ➢ Musonoi Project is a brownfield copper and cobal
Slide 18: Musonoi Project
Musonoi Project Overview ➢ The main shaft construction commenced in Dec 2019 ➢ The 0mL–140mL ramp project was completed in Nov 2021, Construction commenced on the 140mL – 280mL ramp and 140mL-540mL ramp ➢ The 120KV main step-down substation and 120KV transmission The main shaft construction and vent
Slide 19: Lubembe Project
Lubembe Project Overview ➢ Contains mineral resources of 1.9 million tons of copper at the grading of 2.0% ➢ Mixed deposits with large resources that can be economically mined as a mixture of oxide and sulfide ores ➢ An exploration project, located 30 km south of Lubenbrazil, DRC, it has synergies w
Slide 20: Lubembe Project
Lubembe Project Overview ➢ Mining license renewed in 2016 and extended for a further to 2032 ➢ Mixed deposits with large resources that can be economically mined as a mixture of oxide and sulfide ores ➢ In 2020, ENFI updated the optimization pre-feasibility study report ➢ During the first 6 months o
Slide 21: Chibuluma South Mine
Chibuluma South Mine Overview ➢ Located in Zambia ➢ The Group decided to lease out Chibuluma South Mine (including Chifupu Deposit) and the processing plant to an independent third party on a five-year term lease in order to realise the remaining value of the mining assets in Dec 2020 ➢ The total le
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS
Slide 23: International copper and cobalt miner with sizeable output
International copper and cobalt miner with sizeable output and high quality copper and cobalt resources One of the only two Hong Kong-listed cobalt producers and a top 10 global cobalt listed producer Rank Company Cobalt Production of 2021E (kt) 1 Glencore 31 2 CMOC 18 3 ERG 18 4 Chemaf 12 5 CNMC 7
Slide 24: Highly competitive cost profile
Highly competitive cost profile ➢ The cost of the company in the DRC is relatively stable ➢ C1 cash cost from 2019 to 2021 has been decreased year by year 2021 global copper C1 cash cost curve (US$/lb; including by - product credit) 4.00 0 4391 8783 13174 17654 PAID COPPER(000 tonnes) 3.00 2.00 1st
Slide 25: Strong support from shareholder
Strong support from shareholder Parent Company, Jinchuan Group Overview ➢ Jinchuan Group is the 3rd largest Ni producer and the 4th largest Co producer in the world, as well as the 4th largest Cu producer in China and the largest PGM producer in Asia ➢ Jinchuan Group owns world’s 3rd largest Cu-Ni s
Slide 26: Strengthen ESG management and promote sustainable development
Strengthen ESG management and promote sustainable development Attach great importance to community building ▪ Ruashi provides 0.3 % of the sales as a community development fund each year. In recent years, it has donated millions of US dollars to local schools, hospitals and other livelihood projects
Slide 27: Strong fundamentals of copper and cobalt markets
Strong fundamentals of copper and cobalt markets support the growth of the Company Copper price review ➢ Copper price is highly susceptible to swing in global policy and economic uncertainty. The geopolitical instability between Russia and Ukraine, the re-emergence of COVID-19 and “zero-COVID” polic
Slide 28: Strong fundamentals of copper and cobalt markets
Strong fundamentals of copper and cobalt markets support the growth of the Company Copper Supply Copper Demand ▪ LME copper inventory has remained at a low level in a ▪ The trend towards carbon neutrality is unstoppable prolonged period ▪ Copper demand will be driven by the growth in fast expanding
Slide 29: Strong fundamentals of copper and cobalt markets
Strong fundamentals of copper and cobalt markets support the growth of the Company Cobalt price review ➢ After cobalt price more than doubled in 2021, benchmark MB cobalt price has retreated by approximately 40% since end of March 2022 from US$39.0 per pound at 31 March 2022 to US$24.5 per pound ➢ M
Slide 30: Strong fundamentals of copper and cobalt markets
Strong fundamentals of copper and cobalt markets support the growth of the Company ➢ According to Cobalt Institute, EV became cobalt’s largest end use sector for the first time in 2021, representing 34% of global cobalt usage ➢ The demand for cobalt was mainly distributed in the battery field, most
Slide 31: Q&A
Q&A 31
Slide 32: 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,”
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