Minmetals Resources: Copper production is expected to be 319,000 to 364,000 tons in 2024
On March 5, Minmetals Resources Co., Ltd. released its 2023 operating results on the Hong Kong Stock Exchange. Amid multiple challenges such as the political turmoil in Peru and rising industry costs, the company's mines have actively explored value optimization opportunities, and both output and costs are in line with or better than the latest guidance. The company produced 347,000 tons of copper and 203,000 tons of zinc throughout the year, and by signing the acquisition agreement for the Homacao Mine, it took an important step in the company's asset growth.
In 2023, the company's total recordable injury frequency (TRIF) per million hours was 1.97, up from 1.25 in 2022. The company actively identifies improvement opportunities in reducing major potential accidents and continues to strengthen its "safety first" value. The frequency of work-related injury accidents in the fourth quarter dropped to 1.13.
Benefiting from the continued and stable operation of the Bombas mine, the company's annual copper output increased by 14% year-on-year. Bombas' copper production for the year increased by 19% year-on-year. It not only set a record high ore processing volume, but also achieved the second-highest concentrate sales volume, selling more than 1.1 million tons of concentrate. At the same time, negotiations between Bombas and the Huancuire community have made positive progress, and early work on the Chalcobamba stope has been launched. Due to unstable power supply from the national grid, the annual copper output of the Kingseville mine fell by 10% year-on-year. However, the expansion project progressed smoothly as planned, and the cobalt plant was put into operation in the fourth quarter.
Affected by the suspension of production in the first quarter, the annual zinc production of the Dugar River Mine fell by 12% year-on-year, but it performed strongly in mining and processing, achieving a record zinc recovery rate of 90% throughout the year; Annual zinc production of the Rosebury Mine A year-on-year increase of 1%. Thanks to the optimization of the mining sequence, the mining volume and mineral processing volume of the mine in the fourth quarter hit the highest level of the whole year.
Benefiting from the growth in sales at the Bombas mine, the company's full-year operating income increased by 34% year-on-year to US$4.347 billion, with net profit after tax of US$122 million. Driven by strong cash flow, the company's overall debt decreased by US$788 million, and the asset-liability ratio dropped by 5% to 50%.
Looking forward to 2024, the company will continue to focus on operational optimization, commit to promoting steady growth of all assets, and continue to strengthen mineral investments that are critical to global decarbonization, striving to create greater value for shareholders and other stakeholders. The company expects copper output to be 319,000 to 364,000 tons and zinc output to be 225,000 to 250,000 tons in 2024.
