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Wednesday, 28 March 2018, 20:08 HKT/SGT

Source: Jinchuan Group International Resources Co., Ltd.
Jinchuan International Announces Annual Results for the Year Ended 31 December 2017
Profit for the Year Attributable to Owners of the Company Up 398.7% to US$41.6 Million

HONG KONG, Mar 28, 2018 - (ACN Newswire) - Jinchuan Group International Resources Co. Ltd (the "Company", together with its subsidiaries, collectively referred to "the Group" or "Jinchuan International", Stock Code: 2362.HK) today announced its annual results for the year ended 31 December 2017 ("Year Under Review"). The revenue for the year ended 31 December 2017 was US$549.2 million, representing an increase of 50.5% compared with US$364.8 million for the year ended 31 December 2016. Revenue of the Group's mines reported at US$449.2 million and increased by 71% from 2016. The copper mining revenue increased by 28% from 2016 to 2017, as a result of higher price. 2017 copper production volume was comparable to the 2016 production volume. The cobalt revenue increased by 221% from 2016 to 2017 as a result of higher cobalt price as well as an increase in cobalt production volume. The trading of mineral and metal products segment recorded a decrease in revenue from sales of copper related raw materials by 3.6% from US$101.7 million for the year ended 31 December 2016 to US$98 million for the year ended 31 December 2017. New revenue generated from inventory financing relating to non-ferrous metal commodities which was initiated in late 2016. Profit attributable to the owners of the company was US$41.6 million (2016: profit of US$8.3 million). Basic earnings per share was 0.89 US cents (2016: earnings of 0.19 US cents). The Directors do not recommend final dividend for the year ended 31 December 2017 (2016: Nil).

The Group's Mineral Resources as at 31 December 2017 are estimated to contain 4,462kt copper and 362kt cobalt. Ruashi Mine contains 571kt copper and 75kt cobalt; Chibuluma South Mine contains 106kt copper; Kinsenda Project contains 1,140kt copper; Musonoi Project contains 868kt copper and 287kt cobalt; and Lubembe Project contains 1,777kt copper. The Group's Mineral Reserves as at 31 December 2017 are estimated to contain 484kt copper and 26kt cobalt. Ruashi Mine contains 170kt copper and 26kt cobalt; Chibuluma South Mine contains 33kt copper; and Kinsenda Project contains 281kt copper.

During the year, the Company issued 483,000,000 new shares by way of subscription at the price of HK$0.80 per subscription share to SD Hi-Speed Investment HK Limited (the "Subscriber"), and raised gross proceeds of approximately HK$386,400,000. The said subscription of shares was intended to serve as a strategic cooperative partnership between the Group and the Subscriber, whereby the Group has leveraged on the additional funding from the subscription to strengthen its financial position and enhance its funding liquidity for internal operations, while further broadening the shareholder base and capital base of the Group. The net proceeds has been also used for general working capital purposes.

Management team of Jinchuan International said, "The recovery of copper and cobalt prices during 2017 has given rise to positive impact on our overall financial performance for the period under review. Beside, through technological reform, continuous optimization of economy and reducing operating costs, the Group was able to achieve more profit in 2017 as compared with last year. Moreover, the Group has strengthened its capital base upon the subscription of shares to SD Hi-speed during 2017. As for its mines, apart from the operating mines of Ruashi Mine and Chibuluma South Mine in the Group's African mining operations, Kinsenda Project had finished its commissioning of concentrator. Establishment of key systems including pre-dewatering, ventilation and backfill systems are in progress to ensure the target for production with full capacity. Kinsenda will be in production from early 2018. Musonoi Project, a quality copper and cobalt property, is gaining momentum for its project progress. The Group will continue to work on the site establishment work. "


Mining Operations
The Group's mining operations is represented by the Metorex Group, which is headquartered in South Africa. Metorex Group has majority control over two operating mines in Africa which are Ruashi Mine, a copper and cobalt mine located in the DRC and Chibuluma South Mine (including the Chifupu deposit), a copper mine located in Zambia. For the year ended 31 December 2017, the Group produced 42,512 tonnes of copper (2016: 42,587 tonnes) and 4,638 tonnes of cobalt (2016: 3,391 tonnes), and sold 42,443 tonnes of copper (2016: 43,083 tonnes) and 4,677 tonnes of cobalt (2016: 3,264 tonnes) which generated sales of US$263 million and US$186.2 million respectively (2016: US$205.2 million and US$58 million respectively). Copper production was comparable to 2016. The significant increase in cobalt production was mainly because of technological reform and optimization and higher cobalt feed grade.

Metorex Group also has control over Kinsenda Project, a development copper project which commence trial-production stage at the end of 2017 in the DRC, and Musonoi project, a copper and cobalt project in feasibility study stage, and Lubembe project, a copper project in exploration stage.

Trading of Mineral and Metal Products
For the year ended 31 December 2017, Golden Harbour International Trading Limited (a wholly-owned subsidiary of the Group, "GHL") purchased and sold a total of 16,141 tonnes (2016: 19,969 tonnes) of copper blister. The revenue from sales of copper blister for the year ended 31 December 2017 amounted to US$98 million (2016: US$96.3 million). The copper blister was sourced from a Zambian producer under a renewed annual contract for 20,000 tonnes in 2017. The volume of copper blister shipped during 2017 decreased by 19% as compared to 2016. The copper blister was sold in China directly.

The zinc repurchase business that GHL started in late 2016 intended as a low-risk trading business which purchases physical zinc and hedges the market risk with London Metal Exchange futures. For the year ended 31 December 2017, GHL traded zinc repo trading products. The profit from zinc repo business for the year ended 31 December 2017 amounted to US$0.27 million.

Management team of Jinchuan International concluded, "As commodities price rose on more positive macroeconomic data, cobalt price had increased significantly as a result of growing new energy vehicle and battery market during 2017. Copper and cobalt prices are anticipated to show a steady to optimistic outlook in medium to long term. The Group is committed to explore ore resources within our own mine site as well as surrounding areas that could extend the mine life and increase output and production volumes to achieve the growth. Meanwhile, the Group has been actively pursuing other suitable copper or cobalt projects to capture opportunities for strategic development. With a solid financial foundation, the Group also plans to leverage on its parent company, Jinchuan Group's strengths and experience to capitalize the growth in demand of commodities market. The Group remains confident in delivering attractive returns to the Company's shareholders in the long run."

About Jinchuan Group International Resources Co. Ltd
Jinchuan International is a Hong Kong listed company established by the Jinchuan Group Co., Ltd for the purposes of accelerating the establishment of the mining group's multinational operational strategy and elevating Jinchuan Group's global investing, financing and operating capabilities. By virtue of Hong Kong's advantages as an international financial and trade center, and through the Company's focus on an internationalized operating strategy, the Company has established itself as the flagship platform for the Jinchuan Group to develop its overseas non-ferrous metal mining business. The Company is primarily engaged in the development of overseas mining resources projects, capital operation and assets management of overseas mining resources projects, as well as trading of raw materials and products of nickel, copper, cobalt and precious metals.

About Jinchuan Group Co., Ltd
Jinchuan Group Co., Ltd, founded in 1958, is a state-owned enterprise with its majority interest held by the People's Government of Gansu Province. Jinchuan Group specializes in mining, concentrating, metallurgy, chemical engineering and further downstream processing. Jinchuan Group is widely recognized as a renowned mining corporation and is the fourth largest nickel producer and second largest cobalt producer in the world and the third largest copper producer in the PRC.

Media Contacts:
Angel Yeung
Jovian Communications
Tel: +852 2581 0168
Fax: +852 2854 2012
Email: jinchuan@joviancomm.com

Topic: Press release summary
Source: Jinchuan Group International Resources Co., Ltd.

Sectors: Metals & Mining, Daily News
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