Jincheng Mining's net profit increased by more than 50% YoY last year. The company plans to produce 80,000 mt of copper this year.

Benefiting from factors such as the increased output of copper products in the resource sector, Jincheng Mining (603979.SH) achieved a record high net profit in 2024, with a YoY increase of over 50%. The company plans to produce approximately 80,000 mt of copper metal content in 2025, a YoY increase of over 60%.

This evening, Jincheng Mining announced that in 2024, the company achieved operating revenue of 9.942 billion yuan, up 34.37% YoY; net profit attributable to shareholders of the publicly listed firm was 1.584 billion yuan, up 53.59% YoY; and net profit excluding non-recurring gains and losses was 1.57 billion yuan, up 52.74% YoY. The proportion of overseas main business revenue to total revenue further increased to 70.78%.

On the same day, the company also announced its Q1 2025 report, with revenue of 2.811 billion yuan, up 42.49% YoY, and net profit attributable to the parent company of 422 million yuan, up 54.10% YoY.

Regarding the reasons for the 2024 performance growth, the company stated that it was mainly due to the increased production and efficiency of mine projects in the mine resource development business during the reporting period.

Specifically, the company achieved resource sales revenue of 3.209 billion yuan in 2024, a YoY increase of 412.85%, accounting for 32.28% of the company's operating revenue during the reporting period, up from 8.46% in 2023. The annual production of copper metal (equivalent) was 48,700 mt, up 238.19% YoY; and phosphate ore production was 356,500 mt, up 115.67% YoY.

Due to factors such as the acquisition of the Lubambe copper mine in Zambia in 2024, the company's copper resource equity reserves further increased to 3.42 million mt, up 185% YoY; the equity reserves of phosphate ore, gold metal, and silver metal resources showed relatively small changes compared to last year, at 21.34 million mt, 19 mt, and 179 mt, respectively.

The company also announced its 2025 business plan, in which the mine service sector: completed a total of 3.8694 million m³ of underground excavation and 44.1729 million mt of underground mining and ore supply (including ore extracted by natural caving method), with YoY changes of -7.25% and 6.46%, respectively.

Resource development sector: plans to produce 79,400 mt of copper metal, up 63.04% YoY; and 300,000 mt of phosphate ore, down 15.85% YoY.

It is worth noting that Jincheng Mining pointed out the risks of operating in overseas markets in its annual report: in recent years, the company has vigorously developed overseas business, and currently, more than 50% of mine service business revenue comes from overseas, and most of the mine resource development projects are also located overseas. As of the end of the reporting period, overseas assets amounted to 11.605 billion yuan, accounting for 68.34% of total assets. Changes in political and economic environment policies, labor protection policies, and fiscal and tax policies in overseas markets will have a certain impact on the company.