Western Mining Co., Ltd.: Q1 net profit up 9.61% YoY, with production of copper, lead, and zinc ores increasing both YoY and QoQ

Western Mining Co., Ltd.'s share price rose on April 28. As of 13:45 on the 28th, the company's shares were up 0.84%, trading at 15.57 yuan per share.

Western Mining Co., Ltd.'s Q1 2025 report showed that from January to March 2025, the company achieved operating revenue of 16.542 billion yuan, up 50.74% YoY, total profit of 1.795 billion yuan, and net profit attributable to shareholders of the parent company of 808 million yuan, up 9.61% YoY. Copper production increased 14.35% YoY and 5.81% MoM, zinc production increased 18.17% YoY and 6.95% MoM, and lead production increased 38.38% YoY and 32.76% MoM. Details are as follows:

Regarding the reasons for the increase in operating revenue, Western Mining Co., Ltd. stated that the production and sales volumes of smelted copper, smelted lead, and gold ingots increased compared to the same period last year.

Western Mining Co., Ltd. announced in an evening announcement on April 17 that Xikuang Asset had cumulatively increased its stake in the company by approximately 6.46 million shares (including an initial increase of approximately 1.17 million shares) through centralized bidding transactions, accounting for 0.271% of the company's total share capital. The total amount of the increase was 96.747 million yuan, all from its own funds. The relevant shareholding increase plan has been completed.

Western Mining Co., Ltd.'s 2024 annual report, previously released, showed that the company achieved operating revenue of 50.026 billion yuan in 2024, up 17% YoY, total profit of 5.992 billion yuan, up 27% YoY, and net profit of 5.294 billion yuan, including net profit attributable to shareholders of the parent company of 2.932 billion yuan, up 5% YoY. The main reasons were the increase in non-ferrous metal prices and the increase in copper production and sales volumes compared to the same period last year.

Western Mining Co., Ltd.'s 2024 annual report showed that in 2024, the company's affiliated mine units operated at high levels in accordance with the annual production and operation plans, achieving significant increases in copper, molybdenum, and smelted copper production. The company ranked among the top domestic super-large mine enterprises. In 2024, the company produced 177,543 mt (metal content) of copper, up 35% YoY, including 159,084 mt (metal content) produced by Yulong Copper, up 39.10% YoY, 4,009 mt (metal content) of molybdenum, up 18% YoY, 1,376,891 mt of iron ore concentrates, up 15% YoY, and 130,829 kg of silver in concentrate, up 6% YoY. Smelting units comprehensively optimized and upgraded their smelting systems, achieving 263,771 mt of smelted copper, including 178,499 mt produced by Qinghai Copper and 80,617 mt produced by Western Copper Semis. Salt lake chemical enterprises actively participated in the development and utilization of salt lake resources, producing 114,834 mt of high-purity magnesium hydroxide and 39,022 mt of high-purity magnesium oxide.

The main products planned for production by Western Mining Co., Ltd. in 2025, as announced in its 2024 annual report, are as follows:Copper production of 168,208 mt (metal content), zinc production of 124,581 mt (metal content), lead production of 65,672 mt (metal content), molybdenum production of 4,005 mt (metal content), nickel production of 1,565 mt, iron ore concentrate production of 1,457,679 mt, gold in concentrate production of 183 kg, silver in concentrate production of 132.92 mt, smelted copper production of 354,003 mt, smelted lead production of 240,008 mt, and smelted zinc production of 200,000 mt. The company plans to achieve operating revenue of 55 billion yuan and total profit of 5 billion yuan in 2025.

In its research report on Western Mining Co., Ltd.'s Q1 2025 results, China Galaxy Securities pointed out that the increase in both volume and price of copper production, coupled with manageable impacts from the smelting segment and the elimination of asset impairments, led to a significant improvement in 25Q1 performance MoM: 1) Mine segment: In 25Q1, the company's copper, zinc, lead, molybdenum, and iron ore concentrate production volumes were 4.4, 3, 1.7, 0.1, and 338,000 mt, respectively, up 14.4%, 18.2%, 38.4%, 43.6%, and 14.7% YoY, and up 5.8%, 7%, 32.8%, 20.4%, and -13.5% MoM, achieving 26%, 24%, 25%, 31%, and 23% of the planned targets, respectively. The average domestic prices of copper, zinc, and lead in 25Q1 were 77,000, 24,000, and 17,000 yuan/mt, respectively, up 11.5%, 14.5%, and 5.8% YoY, and up 2.5%, -5.9%, and 1.0% MoM. 2) Smelting segment: In 25Q1, the company's smelted copper (including SX-EW copper), smelted zinc, and smelted lead production volumes were 90,000, 34,000, and 44,000 mt, respectively, up 54.8%, 19.2%, and 1752% YoY, and up 11.6%, 2.5%, and 30.6% MoM. The significant increase in smelted lead production was mainly due to the infrastructure period of precious metals in 2024, during which smelted lead production was suspended from February to September. Despite the continued pressure on copper smelting processing fees, as the company's raw material purchases were mostly domestic ore and anode plates, and Yulong Copper Mine had a high self-sufficiency rate for the company's copper smelting products, the overall impact on the smelting segment was manageable. Benefiting from the increase in both volume and price of mine copper production and the improvement in smelting segment profitability, the company's gross profit increased 67% MoM to 2.88 billion yuan in 25Q1. Key projects are progressing in an orderly manner, with significant increases expected from Yulong Phase III: In the copper segment, with the completion and effectiveness of the expansion project for Yulong Copper Mine's Phase I and II beneficiation plants, the copper ore processing capacity has been increased to 22.8 million mt/year. In 2024, copper and molybdenum production reached 163,000 mt. Currently, Yulong Copper is handling the preliminary procedures for the 30 million mt expansion project. In the lead-zinc segment, the lead-zinc system of Huo Geqi Copper Polymetallic Mine was successfully upgraded and put into operation as scheduled in 2024, with a lead-zinc ore processing capacity of 1.5 million mt/year and annual production of lead and zinc exceeding 40,000 mt. In the iron segment, the Shuangli No. 2 Iron Mine is advancing the open-pit to underground expansion project, with a designed annual mining and beneficiation capacity of 3.4 million mt/year. With the future commissioning of the Phase III expansion project at Yulong Copper Mine, the company's main mine, copper production is expected to drive performance growth through increases in both volume and price. Risk warnings: 1) Risk of a significant decline in copper prices; 2) Risk of slower-than-expected global economic recovery; 3) Risk of slower-than-expected interest rate cuts by the US Fed; 4) Risk of changes in overseas geopolitical situations; 5) Risk of the impact of tariff hikes between China and the US exceeding expectations.

According to Dongxing Securities' research report, in 2024, Western Mining Co., Ltd. achieved increases in both volume and price of copper production, with Yulong Copper Mine producing 159,000 mt. Smelting profit pressures and asset impairment losses dragged down 24Q4 performance. The company's 2025 business plan includes copper production of 168,208 mt (metal content), zinc production of 124,581 mt (metal content), lead production of 65,672 mt (metal content), molybdenum production of 4,005 mt (metal content), nickel production of 1,565 mt, iron ore concentrate production of 1,457,679 mt, gold in concentrate production of 183 kg, silver in concentrate production of 132.92 mt, smelted copper production of 354,003 mt, smelted lead production of 240,008 mt, and smelted zinc production of 200,000 mt. The company plans to achieve operating revenue of 55 billion yuan and total profit of 5 billion yuan in 2025. Key projects are progressing in an orderly manner, with significant increases expected from Yulong Phase III: In the copper segment, with the completion and effectiveness of the expansion project for Yulong Copper Mine's Phase I and II beneficiation plants, the copper ore processing capacity has been increased to 22.8 million mt/year. In 2024, copper and molybdenum production reached 163,000 mt. Currently, Yulong Copper is handling the preliminary procedures for the 30 million mt expansion project. In the lead-zinc segment, the lead-zinc system of Huo Geqi Copper Polymetallic Mine was successfully upgraded and put into operation as scheduled in 2024, with a lead-zinc ore processing capacity of 1.5 million mt/year and annual production of lead and zinc exceeding 40,000 mt. In the iron segment, the Shuangli No. 2 Iron Mine is advancing the open-pit to underground expansion project, with a designed annual mining and beneficiation capacity of 3.4 million mt/year.