North Copper: Engages in gold-related businesses, with a small amount of gold associated in its self-produced ore. Net profit in Q1 was up 57.29% YoY.

On May 21, North Copper stated on the investor interaction platform that the company has gold-related businesses. In 2024, the company sold 6,319 kg of gold, generating sales of 3.56 billion yuan, accounting for 14.77% of the total revenue. A small amount of gold is associated with the company's self-produced ore.

The performance briefing announced by North Copper on May 20 revealed the following:

1. In the 2024 annual report, what is the progress of the company's major non-equity investment projects underway during the reporting period as of 2025? In particular, has there been an improvement in the returns from the high-performance rolled copper strip project with an annual production capacity of 50,000 mt and the 2 million m² rolled copper clad laminate (CCL) project for copper rolling and processing?

North Copper responded: The company's comprehensive recovery project with an annual processing capacity of 1.5 million mt (optimized and changed from 800,000 mt) of copper concentrates has reached full production standards, except for the precious metals workshop. The Yuanzigou Tailings Pond Project at Tongkuangyu Mine has been completed and put into use. The high-performance rolled copper strip foil and CCL project is currently in the trial production stage. Product production is influenced by market development, and the capacity has not been fully released, with only partial production lines in operation. With improvements in production processes and the expansion of product market development, it will have a positive impact on the company's financial indicators.

2. Apart from gold, copper, and silver, does the company have products that deeply extract rare metals from other mineral contents, such as palladium, cobalt, and molybdenum?

North Copper responded: The company's smelting comprehensive recovery products include valuable metals such as gold, silver, selenium, tellurium, platinum, palladium, and rhenium.

3. The 2024 profit distribution plan has been approved by the shareholders' meeting. When is the equity registration date?

North Copper responded: The company's profit distribution plan will be implemented within two months after approval by the shareholders' meeting. The equity registration date for cash dividends has not yet been determined. Please stay tuned for company announcements.

4. Has the deep mining license for Tongkuangyu Mine been obtained? If not, what stage is it currently in? Has the mining license for the peripheral area of Hujiayu Mine been obtained? Will Zhongtiaoshan Group inject assets into the publicly listed firm in the future?

North Copper responded: The on-site exploration work for deep prospecting below the 80-meter elevation at Tongkuangyu Mine has been completed, and the review of the resource reserve report is currently underway. The mining license for the peripheral area of Hujiayu Mine is in the process of being obtained. According to the relevant commitments made by Zhongtiaoshan Group, the controlling shareholder of the company, during the 2021 asset restructuring, within 24 months after Zhongtiaoshan Group obtains the mining license for the peripheral area of Hujiayu Copper Mine, it will transfer part or all of the equity of Hujiayu Mining Company and the corresponding mining license for the peripheral area of Hujiayu Copper Mine to the company through a non-public agreement transfer or a public listing transfer on a property rights trading institution.

5. Given the company's low valuation, does it have any share repurchase plans?

North Copper responded: As a publicly listed firm controlled by local state-owned assets, the company attaches great importance to market value management. It will comprehensively utilize legal and compliant methods to continuously improve and strengthen market value management, carry out scientific, effective, and compliant market value management practices, further enhance its value creation and realization capabilities, continuously strengthen its market value management practices, and promote the company's high-quality development in accordance with the requirements of the "Regulatory Guidelines for Publicly Listed Firms No. 10 – Market Value Management."

6. The gold and copper smelting industries are currently facing intense competition, while environmental protection requirements are becoming increasingly stringent, leaving little room for profit. Does the company have plans to expand overseas or acquire new ore sources to increase its ore reserves and capacity? Additionally, apart from introducing new electronic copper foil products, does the company have any development and construction projects aimed at extending into more technologically advanced and higher value-added fields?

North Copper responded: The company is strengthening the exploration, development, and reserve augmentation of copper ore resources, accelerating the exploration of deep-seated replacement resources at Tongkuangyu Mine. It is closely aligning with the national "New Round of Strategic Action for Mineral Exploration Breakthroughs," continuously promoting in-depth cooperation with scientific research institutions and exploration units, striving for policy support for domestic mine exploration and development, and achieving new breakthroughs in the exploration of copper ore resources surrounding its captive mines and within China. The company's copper deep-processing sector will expedite the trial production process, establish mid-to-high-end differentiated independent brands, seize market share with "specialized, refined, and unique" products, form core competitiveness with independent intellectual property rights, and embark on the path of becoming a customized supplier of personalized and differentiated copper foil and strip materials.

North Copper disclosed its Q1 2025 report on April 30th. The company achieved a total operating revenue of 6.838 billion yuan, up 23.56% YoY; net profit attributable to shareholders of the publicly listed firm was 371 million yuan, up 57.29% YoY; net profit excluding non-recurring gains and losses was 365 million yuan, up 63.06% YoY; net cash flow generated from operating activities was 397 million yuan, down 8.57% YoY. During the reporting period, North Copper's basic earnings per share were 0.195 yuan, and the weighted average return on net assets was 5.77%.

North Copper's 2024 annual report, previously released, showed that in 2024, the company achieved an operating revenue of 24.107 billion yuan, up 156.60% YoY; net profit attributable to shareholders of the publicly listed firm was 613 million yuan, down 1.37% YoY.

In its 2024 annual report, North Copper introduced its main businesses: The company is primarily engaged in the mining, beneficiation, smelting, and rolling processing of copper metals. It owns one mine, Tongkuangyu Mine, with an annual ore processing capacity of 9 million mt, and two smelters with an annual copper concentrate processing capacity of 1.3 million mt. The company's business covers the main industry chain of copper operations, making it a non-ferrous metal enterprise with profound industry experience.The company's main products include copper cathode, gold ingots, silver ingots, copper alloy strips, and rolled copper foil, with by-products such as sulphuric acid, sponge gold, and sponge palladium. Among these, the annual production capacity is 320,000 mt for copper cathode, 1.22 million mt for sulphuric acid, 25,000 mt for copper alloy strips, and 5,000 mt for rolled copper foil.

North Copper introduced the production volumes of its main products in 2024: 43,600 mt of copper in copper concentrates, 313,200 mt of copper cathode, 1.0308 million mt of sulphuric acid, 6.3 mt of gold ingots, and 57.96 mt of silver ingots.

Regarding the production and operation plan for 2025, North Copper outlined the production targets for its main products in its 2024 annual report: The mine will process 9 million mt of ore, produce 42,000 mt of copper in copper concentrates, 300,000 mt of copper cathode, 880,000 mt of sulphuric acid, 6 mt of gold ingots, and 60 mt of silver ingots.