Tongling Nonferrous Metals Saw Lower Profits with Copper Concentrate Self-Sufficiency Rate Down to 5.35%

SHANGHAI, Apr. 22 (SMM) – Tongling Nonferrous Metals revealed in its 2012 annual report that the company’s operating revenues increased 9.21% YoY to RMB 77.258 billion last year, but the net profit distributable to shareholders of the listed company fell 35.49%, and its return on equity also showed significant decline. The slipping copper concentrate self-sufficiency rate was behind the falling profits.

According to the report, the proportion of copper concentrate content at domestic mines to cathode copper output was only 5.35% in 2012. The ratio has been falling since 2009 and is expected to drop to 4.09% in 2013, as Tongling Nonferrous Metals expects its copper output will increase 32.66% to 1.2 million mt this year but copper concentrate output will only edge up 1.45% to 49,100 mt.

Tongling Nonferrous Metals came online in June 1952 and was one the first group of copper industrial bases. The company now owns Dongguashan Copper Mine, Anqingm Copper Mine, Tongshan Copper Mine, Fenghuangshan Copper Mine, Xianrenqiao Copper Mine, Yueshan Copper Mine, and Jinkouling Copper Mine. Of these, most the company’s copper concentrate output comes from Dongguashan Copper Mine and Anqing Copper Mine with production at the two mines stable. Grade of copper concentrate from Anqing Copper Mine is expected to fall in the recent three years, while Chaohu Shaxi Copper Mine and Chifeng Guowei Copper Mine will start producing. Given the falling copper prices both at home at abroad, Tongling Nonferrous Metals still needs to improve itself for further development.