China Molybdenum reports 125% net profit surge in Q1 2021
(Kitco News) - China Molybdenum, a globally diversified base, precious and rare metals producer, said today that the company was benefiting from the rising prices of copper and cobalt during Q1 2021, and that the company's performance has been steadily rising.
During the reporting period, the company achieved operating revenue of RMB39.915 billion (~$6 billion), up 78% year-on-year; EBITDA of RMB3.306 billion (~$0.5 billion), up 124% year-on-year; and net profit attributable to the parent company of RMB1.007 billion (~$0.2 billion), up 125% year-on-year; all of which were the best single-quarter levels since 2019.
The company noted that during the reporting period, the production operation of each segment was good, and production was in line with expectations.
The company’s operations in DRC achieved copper production of 49,687 tonnes and cobalt production of 3,300 tonnes; molybdenum and tungsten production in China achieved 4,031 tonnes and 2,091 tonnes; Brazil operations produced 1,877 tonnes of niobium and 255.2 thousand tonnes of phosphate; NPM in Australia (based on 80% of equity interests) produced 5,648 tonnes of copper and 4,489 ounces of gold; IXM achieved concentrates sales of 608 thousand tonnes and refined metal sales of 792 thousand tonnes.
The company noted that it had continued to promote cost reduction and efficiency improvement and achieved significant cost reduction results in the first quarter of 2021. RMB175 million (~$27 million) cost reduction was achieved, of which the contribution of the DRC segment was particularly significant, with a total reduction $16.5 million through measures such as improving recovery rate of copper and reducing administrative costs.
As of the end of first quarter of 2021, the company's cash and cash equivalents was RMB23.1 billion (~$3.6 billion), and the net interest-bearing debt ratio was further reduced to 23.38%, with sufficient liquidity reserves.