Since the global outbreak of the new crown pneumonia in 2020, it has had a huge impact on the global mining market. In response to the epidemic, global mining companies have taken actions to ensure a stable supply of mineral resources.
A few days ago, the performance reports or production reports of major international mining companies for the first half of 2020 were summarized. In general, although most international mining companies have declined in profitability, their overall operations have basically remained stable; a small number of mining companies have been affected by the epidemic, and the financial crisis has once again worsened; there are also some gold and iron mining companies that have achieved performance during the epidemic. break out.
Due to the rapid and effective control of the epidemic in China, compared with large international mining companies, most domestic mining companies are more resilient, more energetic, and tend to grow against the trend.
Today, I summarized the performance and operation of major domestic large-scale mining companies in the first half of 2020 for everyone to see how they are doing? (Note: The following operating income and net profit are data for the first half of 2020)
01 Jiangxi Copper
Operating income: approximately 146.985 billion yuan, a year-on-year increase of 39.93%
Net profit: about 745 million yuan, down 42.68% year-on-year
In the first half of the year, Jiangxi Copper's "three-year innovation and multiplication" action was steadily steadily steadily progressing, various key tasks were accelerated, the output of main products completed the schedule, and the main operating income reached the expected target, and the company successfully completed the time task "double over half" goal.
During the reporting period, Jiangxi Copper produced 80,600 tons of copper cathodes, a year-on-year increase of 6.85%; self-produced copper concentrates contained 104,600 tons of copper, a year-on-year increase of 2.55%; 38.5 tons of gold, a year-on-year increase of 198.91%; and silver 544.85 tons, a year-on-year increase 222.38%; sulfuric acid was 2,495,900 tons, a year-on-year increase of 20.08%; standard sulfur concentrate was 1.339 million tons, a year-on-year increase of 3.03%.
Jiangxi Copper's domestic and overseas development projects have been accelerated at the same time, and dozens of domestic key projects have been built non-stop. City Copper Tailings Comprehensive Utilization Project, Jiangxi Copper North China (Tianjin) Co., Ltd. 220,000 tons of copper rod and wire project, Guixi Hongyuan Copper Co., Ltd. 100,000 tons of electrolytic copper project, copper foil company expansion project, Jiangxi Copper South China (Guangzhou) non-ferrous metals The construction project of the gathering center, the EPC construction project of Jiangxi Copper R&D Center Building, the third phase of Wuhan Copper Project, and the industrial site project of the lead-zinc-silver mine mining in Guixi Yinzhushan mining area are progressing smoothly as planned.
02 Yanzhou Coal Industry
Operating income: 109.61 billion yuan, a year-on-year increase of 3.4%
Net profit: 4.6 billion yuan, down 14.2% year-on-year
Under the difficult situation of complex and severe macroeconomics and increased volatility in the coal market, Yanzhou Coal's leading industries such as coal and coal chemical industry achieved growth against the trend. In the first half of the year, it produced 50.11 million tons of commercial coal, a year-on-year increase of 6.6%; sold 67.62 million tons of commercial coal , A year-on-year increase of 22.3%; methanol sales volume was 934,000 tons, a year-on-year increase of 12%. Affected by the decline in the prices of major products, the company's profitability declined year-on-year, but its profitability remained the industry's leading level.
During the reporting period, Yanzhou Coal continued to implement the development strategy of focusing on its main business. In the first half of the year, it completed a 10% shareholding increase in Moraben Coal Mine, implemented the divestiture of non-coal trading companies, invested in the construction of a number of characteristic logistics parks and shipping stations, and developed advantages in the coal industry Gradually appear. The coal chemical industry has achieved "secure, stable and long-lasting" operation. The second phase of the two high-end fine chemical projects of Erdos Nenghua and Yulin Nenghua was put into trial production, and the scale effect was gradually released.
In terms of optimizing financial conditions, Yanzhou Coal has seized the favorable opportunity for the decline in financing costs, rationally arranged financing scale, effectively replaced high-interest financing, and took multiple measures to optimize the capital structure. Compared with the same period last year, average financing costs fell from 4.98% to 4.57%, financial expenses fell by 20.2% year-on-year, and interest expenses fell by 10.1% year-on-year. The financial situation remained sound.
03 Zijin Mining
Operating income: 83.142 billion yuan, a year-on-year increase of 23.73%
Net profit: 2.421 billion yuan, a year-on-year increase of 30.64%
Zijin Mining seized the market opportunity of the rapid rise in gold and realized 20.24 tons of mined gold, an increase of 5.93% year-on-year, under the condition that the Pogla gold mining rights continued to be blocked and production was suspended. The gross profit of the gold sector accounted for 38.60% of the company's gross profit. Among them, overseas projects achieved 12.13 tons of mineral gold, an increase of 6.08% year-on-year, accounting for 59.95% of the company's total.
Copper prices experienced a "roller coaster" of falling in the first quarter and rebounding in the second quarter. In the first quarter, Zijin Mining demonstrated its high-quality anti-risk capabilities through effective management innovation and technological innovation measures. Since the second quarter, copper prices have recovered steadily, and Zijin Mining has increased its sales efforts. The copper sector has maintained a high growth momentum and achieved good economic benefits.
In addition, what is even more anticipated is Zijin Mining’s two major contrarian mergers and acquisitions in June this year: the company achieved a shareholding in Tibet Julong Copper for 3.883 billion yuan, and led the development of the largest proven porphyry copper mine in China. After that, the annual output of copper is 263,000 tons. Acquiring 100% equity of Guyana Jintian Company for 1.699 billion yuan, the average annual gold production will contribute more than 4 tons.
04 Luoyang Molybdenum
Operating income: 46.744 billion yuan, a year-on-year increase of 368.44%
Net profit: 1.008 billion yuan, a year-on-year increase of 24.73%
Luoyang Molybdenum Co., Ltd. overcome the impact of the new crown epidemic in the first half of the year. The production and operation of each segment is stable, and the output of various varieties is in line with expectations. The production of molybdenum and tungsten in China were 7,070 tons and 4,664 tons; the output of Congo (DRC) copper and cobalt were 90,972 tons and 6,543 tons respectively; the production of niobium and phosphorus in Brazil were 4980 tons and 550,200 tons respectively; NPM (80% equity) in Australia ) The output of copper and gold was 13,933 tons and 10,889 ounces respectively; the physical sales volume of Exxon mineral metals was 1.24 million tons, and the physical sales volume of refined metals was 1.14 million tons.
Acsen achieved a net profit of 300 million yuan attributable to its parent in the first half of the year. Through a combination of futures and current operating models, it effectively resisted industry cyclical risks and achieved good operating results. At the same time, Luoyang Molybdenum has gradually brought into play the synergies between the trading sector and the mining sector to integrate overseas sales and increase profitability.
As of June 30, Luoyang Molybdenum's monetary fund balance was 18.2 billion yuan, and the net interest-bearing debt ratio was 25.88%. The bank credit and other liquidity reserves were sufficient. In July 2020, the company and Triple Flag Precious Metals reached the first metal flow sale agreement for a Chinese company and received a cash advance of US$550 million to lock in a long-term financing at an attractive cost.
05 China Hongqiao
Operating income: about 39.938 billion yuan, a year-on-year decrease of about 3.6%
Net profit: about 2.83 billion yuan, a year-on-year increase of 14.3%
In the first half of the year, China's Hongqiao aluminum alloy product output reached approximately 2.741 million tons, a year-on-year decrease of approximately 4.1%. This was mainly due to the Group's relocation of some production equipment to Yunnan Green Aluminum Innovation Industrial Park ("Capacity Relocation Plan") in accordance with the capacity relocation plan. As a result, the capacity utilization rate has been reduced. The output of processed aluminum alloy products reached approximately 301,000 tons, which was basically the same as the same period last year.
In terms of domestic business, China Hongqiao accelerated the construction of the Yunnan Green Aluminum Innovation Industrial Park project to further optimize the Group’s energy structure, reduce production costs, and continue to focus on the “three new and one high” material strategy to accelerate the development of lightweight materials base Construction; in terms of overseas business, we will continue to steadily promote the second phase of one million tons of alumina project in Indonesia, and also carefully operate the bauxite project in Guinea. The scale effect of the operation pattern of the entire upstream and downstream industry chain is prominent. While continuing to operate the stock assets, the Group actively extends to the downstream of the aluminum industry chain, focusing on the development of circular economy in lightweight materials and recycled aluminum, and further increases investment in scientific research to promote the high-quality development of the aluminum processing industry.
06 Shandong Gold
Operating income: approximately 33.05 billion yuan, a year-on-year increase of 3.5%
Net profit: about 1.153 billion yuan, a year-on-year increase of 98.22%
Shandong Gold's output of mineral gold in the first half of the year declined slightly year-on-year. The epidemic affected overseas mine production and sales. The company's output of mineral gold in the first half of the year was 20.0 tons, a year-on-year decrease of 0.51 tons. The output of domestic mines increased slightly year-on-year, while the overseas core asset, Veladero, Argentina In the second quarter of this year, the gold mine was affected by the local epidemic in Argentina, and the production and sales volume declined significantly from the previous quarter. The total output of mineral gold in the first half of this year was 3.86 tons, down 12% year-on-year, and sales were about 2.86 tons. The annual output is expected to be lower than the target set at the beginning of the year. , The unit cost will also be slightly higher than the upper limit of the range;
At the same time, Shandong Gold has accelerated the deployment of overseas gold mines. In the first half of the year, it launched two major overseas mergers and acquisitions. They signed the acquisition of 100% equity of Canadian TMAC Resources Inc. and the acquisition of Cardinal Resources by way of an off-site offer. Limited (Cardino Resources Co., Ltd.) the entire equity agreement, the merger of the two projects is in progress. If the acquisition is successful, the company will enter a well-known Canadian gold-producing area and at the same time own the first gold mining project in Ghana, West Africa.
07 CICC Gold
Operating income: 18.974 billion yuan, a year-on-year increase of 0.99%
Net profit: 516 million yuan, an increase of 6.22% year-on-year
Since the beginning of this year, CICC Gold has coordinated the prevention and control of the epidemic and its production and operation, and the main budget indicators have achieved "double over half", and the market-based debt-to-equity swap has successfully concluded. In the first half of the year, CICC Gold completed 10.6 tons of mined gold, 18.49 tons of smelted gold, and 32.28 tons of refined gold, and completed prospecting of approximately 41,100 tons of copper in mines, accumulating 12.2 tons of new gold reserves.
In the first half of the year, the CICC gold capital market had more operations. One of them is the key stage results of the highly anticipated asset injection. It is reported that CICC Gold issued shares to China Gold and paid cash to purchase 90% of the equity of Inner Mongolia Mining, a high-quality asset of China National Gold Group. At the same time, it issued shares to strategic investors to purchase the equity of Zhongyuan Smelter which it held, realizing a wholly-owned holding of Zhongyuan Smelter, an important profitable subsidiary of CICC Gold. The semi-annual report disclosed that the assets injected into the underlying assets have been completed and transferred, and the registration procedures for new shares have been completed.
At the same time, CICC Gold seized the favorable opportunity for both the market and the policy to start a non-public offering in the first half of the year. Combined with the communication with investors and market feedback, it finally determined the issuance price of RMB 9.77 per share, compared with the issue The reserve price is RMB 7.82 per share and a premium of 24.94%. In the end, 7 investors were successfully allocated, and 2 billion yuan of supporting financing was fully raised.
08 Huayou Cobalt
Operating income: 9.052 billion yuan, down 0.57% year-on-year
Net profit: 350 million yuan, a year-on-year increase of 965.28%
In the first half of the year, the sales of Huayou Cobalt's copper products and ternary products both achieved growth, but the sales of cobalt products declined, resulting in a slight year-on-year decrease in its revenue. In the first half of the year, Huayou Cobalt's gross profit reached 1.32 billion yuan, a year-on-year increase of 20%. CITIC Securities said this was mainly due to the increase in gross profit of its copper products and ternary products. Among them, the gross profit of copper products reached 680 million yuan, a year-on-year increase of 33.9%, accounting for 52% of the total gross profit. It is the main force contributing to the gross profit of Huayou Cobalt. In addition, the cost of Huayou cobalt products in the first half of the year was 186,000 yuan/ton, a year-on-year decrease of 10.4%, making the gross profit per ton of cobalt products 32,000 yuan/ton, an increase of 19.2% year-on-year.
In the non-ferrous sector, the entrusted processing business was expanded and the production load continued to be high. During the reporting period, a total of 13,510 tons of cobalt products (including the entrusted processing business) were produced, which was basically the same as the same period last year; the sales of cobalt products were 10,360 tons, a year-on-year decrease ( Turned to entrusted processing business due to some market demand).
In addition, during the reporting period, the company’s new energy sector continued to in-depth study and judge market trends, seized the market opportunities of the substantial growth of European new energy vehicles, and continued to achieve high-end products and market globalization. A total of 13,004 tons of precursors were produced, a year-on-year increase of 95.47%; Sales of precursors amounted to 12,745 tons, a year-on-year increase of 87.92%, excluding 6,578 tons of overseas products directly exported by joint ventures, a year-on-year increase of 215.64%.
09 Zhaojin Mining
Operating income: about 3.132 billion yuan, a year-on-year increase of about 11.14%
Net profit: about 456 million yuan, a year-on-year increase of about 78.24%
In the first half of the year, Zhaojin Mining completed a total gold output of 15.23 tons, including 7.92 tons of mineral gold. Key enterprises such as Dayingezhuang Gold Mine and Zaozigou Gold Mine have obvious pulling effects. In the context of the sharp rise in the price of gold and the continuous optimization of production and management in scientific organization, the company seized the best opportunity to increase the price of gold, took advantage of the trend, and achieved an average gold sales price of RMB 370.96 per gram, which was higher than the average price of RMB 1.86 per gram on the Shanghai Stock Exchange. , Achieving a profit before tax of 580 million yuan, a year-on-year increase of 78.79%.
In order to enhance the liquidity of corporate shares, optimize the equity structure, revitalize existing assets, and promote the preservation and appreciation of state-owned assets, Zhaojin Mining made every effort to promote the "full circulation" of H shares in the first half of the year. After the China Securities Regulatory Commission fully implemented the "full circulation" policy of H shares Submit the application as soon as possible. On June 17, the company obtained approval from the China Securities Regulatory Commission; on August 3, the company obtained approval for listing and permitted trading granted by the Hong Kong Stock Exchange; on August 10, approximately 1.56 billion domestic shares were converted into H shares and The Hong Kong Stock Exchange was listed, and the "full circulation" of H shares was fully completed.
10 Tianqi Lithium
Operating income: 1.879 billion yuan, down 27.44% year-on-year
Net loss: 697 million yuan, down 460.15% year-on-year
Regarding the sharp decline in performance, Tianqi Lithium said that the main reasons were that the sales volume and price of lithium chemical products, and the sales price of lithium concentrate products decreased significantly compared with the same period of the previous year, resulting in a decline in operating income and gross profit; second, investment The performance of the unit's SQM declined, resulting in a decline in investment income.
And its follow-up performance is not optimistic. Tianqi Lithium announced in its semi-annual report that due to the decrease in the price and sales volume of lithium chemicals and lithium mines compared with the same period last year, the net profit from January to September is expected to be between -15.9 billion yuan and -954 million yuan, a significant year-on-year A decline of 1239.88%-783.93%.
Specifically, mining and smelting business and chemical raw material and chemical product manufacturing business are currently the main sources of income of Tianqi Lithium, accounting for 55.73% and 44.22% of total revenue respectively. Among them, the operating income of the mining and smelting business in the first half of the year was 1.047 billion yuan, an increase of 0.82% year-on-year, but the operating cost increased by 39.06% year-on-year. In this regard, Tianqi Lithium explained that it was mainly due to the 28% increase in sales of lithium ore from the same period last year and the depreciation and amortization of the second phase expansion project of Australia's Thalison lithium concentrate in the fourth quarter of 2019. The company's chemical raw materials and chemical products manufacturing business revenue in the first half of the year was 830 million yuan, a year-on-year decline of 46.41%, and the gross profit margin was 33.47%, a year-on-year decrease of 19.16 percentage points. Tianqi Lithium Industry said that it was mainly due to the decrease in the selling price and sales volume of lithium chemicals compared with the same period last year due to the impact of the epidemic and market adjustments.
