CMOC Reports Up to 716% Increase in Net Profit for 1H 2024

China Molybdenum has reported a preliminary net profit of RMB 5,189-5,735 million ($726-804 million) for the first half of 2024, marking a significant increase of 638%-716% year-on-year. The company's recurring net profit for the same period is expected to be RMB 5,375-5,941 million ($753-832 million), up an astonishing 2,343%-2,600% compared to the previous year. This substantial growth is attributed to increased copper and cobalt production, cost optimization, and technological advancements.

In the first half of 2024, CMOC achieved production targets at the Mixed Ore Project at Tenke Fungurume (TFM), the world's fifth-largest copper mine in the Democratic Republic of Congo (DRC), leading to a ramp-up in production. Similarly, the Kisanfu Mine (KFM), another major mine in the DRC, continued to set new monthly production records. The economies of scale from these world-class mines have been realized, with copper and cobalt production reaching historic highs.

Copper production for 1H 2024 was 313,788 tons, an increase of 101% year-on-year, achieving 58% of the production guidance midpoint and 75% of the annual copper production in 2023. Cobalt production was 54,024 tons, up 178% year-on-year, reaching 83% of the production guidance midpoint and 97% of the annual cobalt production in 2023. This increase in production, coupled with higher sales volumes and strengthened copper market prices, significantly contributed to the improved financial performance. Notably, the LME copper price reached a historical high of $11,104.5 per ton in May 2024, compared to $8,200-$8,700 per ton around the same period last year.

TFM's annual copper production capacity stands at 450,000 tons, with KFM maintaining a rapid production pace. With 58% of the annual copper production target already achieved, CMOC is likely to surpass the upper limit of its annual production guidance of 520,000-570,000 tons, positioning itself as the largest incremental source of global copper production in 2024.

In addition to production and performance improvements, CMOC has upheld high ESG standards. The company maintained its AA MSCI ESG rating in the July 2024 MSCI ESG Rating report, placing it in the top 19% of the global non-ferrous metal industry. In June, TFM received The Copper Mark certification, a globally recognized ESG standard in the copper industry, becoming the first mine in Africa and the first Chinese-operated mine globally to receive this certification.