CMOC's revenue in 2024 exceeds 200 billion, with Q4 net profit attributable to shareholders increasing by 84.2% quarter-on-quarter, and the copper-cobalt project experiencing a surge | Financial Report Insights
In 2024, CMOC's copper-cobalt project in the Democratic Republic of the Congo achieved operating revenue of 50.6 billion yuan, a year-on-year increase of 80.71%. Copper production reached 650,200 tons, a year-on-year increase of 65.02%, and cobalt production reached 114,200 tons, a year-on-year increase of 105.61%. The company's traditional molybdenum-tungsten business is facing dual pressures from declining molybdenum prices and decreasing grades
Benefiting from the explosion of the copper-cobalt project in the Democratic Republic of the Congo, CMOC's annual revenue has surpassed 200 billion yuan for the first time, with a quarter-on-quarter net profit attributable to shareholders increasing by 84% in the fourth quarter, marking the strongest profit season of the year.
On the evening of the 21st, CMOC announced its 2024 performance report, with the following key points:
Revenue Performance: In 2024, revenue exceeded 200 billion yuan for the first time, reaching 213 billion yuan, a year-on-year increase of 14%. Among them, copper and cobalt achieved operating revenue of 50.6 billion yuan, a year-on-year increase of 80.71%; fourth-quarter operating revenue was 58.274 billion yuan, a year-on-year increase of 12.2%.
Profit Situation: The annual net profit attributable to shareholders exceeded 10 billion yuan, reaching 13.5 billion yuan, a year-on-year increase of 64%; the fourth-quarter net profit attributable to shareholders was 5.259 billion yuan, a record high, with a quarter-on-quarter growth of 84.2%, making it the strongest quarter of the year.
Cash Flow Situation: The annual operating cash flow was 32.4 billion yuan, a year-on-year increase of 108%; the fourth-quarter operating cash flow was 15.106 billion yuan, accounting for 46.6% of the annual total.
Core Asset Performance: The copper-cobalt project in the Democratic Republic of the Congo performed outstandingly, with copper production of 650,200 tons, a year-on-year increase of 65.02%, and cobalt production of 114,200 tons, a year-on-year increase of 105.61%.
Financial Health Improvement: The debt-to-asset ratio decreased to 49.52%, a year-on-year decrease of 8.88 percentage points.
Shareholder Returns: The company plans to distribute a cash dividend of 2.55 yuan (including tax) for every 10 shares.
Strong Fourth Quarter Performance, Net Profit and Operating Cash Flow Reach New Highs
CMOC's 2024 annual report shows that the company's fourth-quarter performance was impressive, achieving operating revenue of 58.274 billion yuan, with a net profit attributable to shareholders of 5.259 billion yuan, a quarter-on-quarter increase of 84.2%, making it the best single-quarter performance of the year.
Even more noteworthy is that the fourth-quarter operating cash flow reached 15.106 billion yuan, accounting for 46.6% of the total annual operating cash flow, fully demonstrating the company's strong cash conversion capability.
This performance reflects the success of the company's "mining + trading" dual-drive model, especially the contribution from the continuous release of capacity from the copper-cobalt assets in the Democratic Republic of the Congo.
In 2024, the company achieved operating revenue of 213 billion yuan, a year-on-year increase of 14%; net profit attributable to shareholders was 13.532 billion yuan, a year-on-year increase of 64%; operating cash flow was 32.387 billion yuan, a year-on-year increase of 108%.
Copper-Cobalt Business Becomes Core Growth Engine, Management and Technology Optimization Enhance Asset Value
The copper-cobalt sector in the Democratic Republic of the Congo performed outstandingly in the fourth quarter, becoming the main driving force behind the company's performance growth. In 2024, this sector achieved operating revenue of 50.6 billion yuan, a year-on-year increase of 80.71%, with copper production of 650,200 tons, a year-on-year increase of 65.02%, and cobalt production of 114,200 tons, a year-on-year increase of 105.61%.
This performance improvement mainly stems from:
- The TFM mixed ore project fully reached production standards on schedule, fully releasing capacity.
- The KFM project successfully reduced production costs through technological upgrades, process optimization, and lean management, improving equipment utilization and metal recovery rates
- The operating cost of the copper-cobalt sector is 26.563 billion yuan, and the cost relative to revenue is well controlled.
It is worth noting that the copper-cobalt business has surpassed the traditional molybdenum-tungsten business, becoming the largest revenue-contributing sector for the company, fully reflecting the success of the company's global resource allocation strategy.
Traditional molybdenum-tungsten business faces challenges, technological innovation achieves cost reduction and efficiency improvement
In the fourth quarter, the company's traditional molybdenum-tungsten business faced dual pressures from falling molybdenum prices and declining grades. For the entire year of 2024, molybdenum production is 15,396 tons, a year-on-year decrease of 1.53%, with operating revenue of 6.297 billion yuan, a year-on-year decrease of 11.69%. However, the company achieved the following through technological innovation:
- The recovery rate of tungsten at Sandaozhuang, molybdenum at Shangfanggou, and molybdenum oxide at the smelter reached a historical high;
- Breakthroughs in comprehensive recovery of tailings, with an annual production of 25,300 tons of sulfur concentrate;
- Promoting the digital transformation of mines, achieving precise control of production scheduling;
These measures effectively controlled the rise in costs and improved the comprehensive utilization rate of resources, laying a foundation for the traditional business sector to maintain competitiveness during price downturns.
Trade business develops steadily, risk management capabilities enhanced
The IXM trading business continued the growth trend from previous periods in the fourth quarter. For the entire year of 2024, IXM's net profit attributable to the parent reached 1.353 billion yuan, a historical high. In terms of trading volume, copper products amounted to 3.3981 million tons, a year-on-year increase of 21.21%; nickel products reached 666,400 tons, a year-on-year increase of 98.10%.
Highlights of the trading business include:
- The combination of spot and futures business models effectively withstands market cycle fluctuations;
- The risk management system continues to improve, responding to price fluctuations, foreign exchange, and other risks through a comprehensive risk management framework;
- The global trading network further expands, providing stable sales channels and market intelligence for the mining end;
Financial situation is stable, debt structure optimized
As of the end of 2024, the company's total assets are 170.236 billion yuan, with a debt-to-asset ratio of 49.52%, a year-on-year decrease of 8.88 percentage points, further optimizing the financial situation. The EBITDA to total debt ratio reached 1.23, a year-on-year increase of 192.86%, and the interest coverage ratio improved to 7.07, indicating a significant enhancement in the company's debt repayment ability.
This improvement is mainly attributed to strong operating cash flow in the fourth quarter, allowing the company to respond more calmly to future market fluctuations and investment needs