North Copper's 2026 semi-annual report released on the evening of August 26 shows: In H1, the company achieved revenue of 21.693 billion yuan, up 69.33% YoY, and net profit attributable to shareholders of the publicly listed firm of 1.396 billion yuan, up 186.61% YoY, with profitability continuing to improve. It produced 159,800 mt of copper cathode, 452,600 mt of sulphuric acid, 4.01 mt of gold ingots, and 36.52 mt of silver ingots. The increase in revenue was mainly due to higher sales volume and selling prices of major products.
Regarding its main business, North Copper introduced: The company was founded in April 1996 and completed a major asset restructuring in 2021, becoming the largest integrated copper enterprise in North China. It boasts rich resource reserves, advanced process technology, prominent brand advantages, and a profound cultural heritage. Since its establishment, it has made significant contributions to the economic and social development of China and the region. The company is principally engaged in copper mining, ore dressing, smelting, and rolling processing. Currently, its captive mine has an annual ore processing capacity of 9 million mt, producing 43,000 mt of copper in self-mined copper concentrates. Its copper smelting capacity includes 320,000 mt/year of copper cathode, 10.8 mt/year of gold ingots, 170 mt/year of silver ingots, and 1.22 million mt/year of sulphuric acid, along with the comprehensive recovery of valuable metals such as platinum, palladium, selenium, and bismuth. Its deep-processing copper products include high-performance copper and copper alloy strips, rolled copper foil, etc., with a capacity of 25,000 mt/year for copper alloy strips and 5,000 mt/year for rolled copper foil. It has formed an integrated industry chain covering mining, ore dressing, smelting, and rolling processing. The company's "Zhongtiaoshan" brand Grade A copper is registered on the Shanghai Futures Exchange and the Shanghai International Energy Exchange, and its "Zhongtiaoshan" brand gold and silver ingots are registered on the Shanghai Futures Exchange.
The revenue breakdown disclosed by North Copper in its semi-annual report shows:
In addition, regarding copper ore resource reserves, North Copper mentioned in its semi-annual report: As of the end of 2025, the Tongkuangyu Mine retained copper ore resources of 204.664 million mt above the 80-meter elevation, with a copper metal content of 1.2501 million mt. Meanwhile, below the 80-meter elevation at the bottom of the current mining rights area, the Tongkuangyu Mine has a cumulative identified industrial orebody (No. 5) with copper ore resources of 103.718 million mt, an average grade of 0.84%, and a metal content of 869,600 mt.
When announcing the risk of price fluctuations for products and raw materials in its semi-annual report, North Copper stated: The price of copper cathode, the company's main product, is the most direct and significant factor affecting its profit level. Its selling price is determined by reference to market prices, and is influenced by the global supply-demand balance, production conditions in major copper-producing countries, significant economic and political events, market speculation, and shipping costs. Copper price fluctuations will directly impact the profit level of the company's self-produced copper concentrates. Therefore, copper price fluctuations will bring uncertainty to the company's performance. The company will assess the constantly changing internal and external environment, strengthen cost control, and use financial instruments to hedge price risks, thereby minimizing the impact of copper price fluctuations on its performance as much as possible.
Regarding the production and operation plan for 2026, North Copper mentioned in its 2025 annual report: Production of major products: copper cathode 300,000 mt, sulphuric acid 800,000 mt, gold ingots 6 mt, and silver ingots 60 mt, to maximize economic benefits.
A research report from Huaxi Securities on August 23 pointed out: Copper: Tariff expectations driving inventory westward, low TC and regional mismatch supporting copper prices. The current support for copper prices comes mainly from three aspects: low TC at the mine end constraining refined supply, US tariff expectations driving inventory westward, and AI and power grid investment providing medium and long-term demand growth. Among these, although the refined copper tariff has not yet been officially implemented, as long as the policy expectation remains, the momentum of trade flows to the US will be hard to reverse quickly, and deliverable and available supplies in non-US regions may still be relatively tight. Short-term inventory accumulation limits the upside elasticity of copper prices, while low TC, regional mismatch, and structural demand collectively provide a floor. In the medium and long term, copper, as a key metal for the energy transition, has strategic allocation value under the policy guidance of the 15th Five-Year Plan. On the supply side, entering 2026, major global mines continue to experience strikes and production halts this year, keeping the supply side relatively tight. At the macro level, the probability of a Fed interest rate cut within the year remains, and in the long run the macro environment supports copper prices. The US dollar is expected to continue to depreciate in the future, making copper prices favorable. Additionally, strong supply-demand fundamentals support copper prices, and China's macro policies may continue to gain momentum, with stimulus measures in areas such as power infrastructure, NEVs, and home appliance consumption likely to expand further. Beneficiaries: [Zijin Mining], [CMOC], [Jinchengxin], [Jiangxi Copper Corporation], [Western Mining Co., Ltd.], [North Copper], [Tongling Nonferrous], [Yunnan Copper].
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