China Nonferrous Metal Mining: Rehabilitation of Auxiliary Shaft at Southeast Ore Body of Chambishi Completed, Main Shaft Under Repair, Copper Production Guidance for This Year Revised Downward Due to Production Suspension

China Nonferrous Mining Corporation Limited recently issued an announcement regarding the repair progress of the main and auxiliary shafts at the Southeast Ore Body of the Chambishi Mine and the adjustment to its 2025 production guidance. The announcement shows:

Repair Progress of the Main and Auxiliary Shafts at the Southeast Ore Body of the Chambishi Mine

At the end of June this year, the inner wall of the auxiliary shaft at the Southeast Ore Body of the Chambishi Mine, operated by NFC Africa Mining PLC, a subsidiary of China Nonferrous Mining Corporation Limited, was damaged and peeled off, resulting in one casualty. On July 23 this year, the Company had already issued an announcement disclosing the relevant situation. After the incident, the Company attached great importance, arranged for the temporary suspension of production at the Southeast Ore Body of the Chambishi Mine, and organized experts to conduct on-site inspections and assessments. After investigation, it was found that the main and auxiliary shafts of the Southeast Ore Body of the Chambishi Mine pass through multiple aquifers. Although curtain grouting work had been carried out for treatment, the concrete shaft lining had been subjected to long-term erosion and corrosion before the treatment, resulting in varying degrees of damage to the shaft and local cracking.

In order to eliminate safety hazards and ensure the long-term safe operation of the Southeast Ore Body of the Chambishi Mine project, the Company arranged for thorough repair and treatment work on the shaft lining to restore the damaged sections of the main and auxiliary shafts. On-site, corresponding shaft lining reinforcement plans were formulated based on the degree of shaft damage. For severely damaged areas, dense shaft rings using No. 20 channel steel were erected and filled with C30 concrete to form a new steel ring-concrete composite shaft lining structure.

Due to the difficulty of construction inside the shaft, formal treatment began in September this year. To date, all repair work on the auxiliary shaft has been completed, and repair work on the main shaft is currently being implemented.It is expected that all repair work will be completed by mid-December this year. During the construction period, production at the Southeast Ore Body of the Chambishi Mine is temporarily suspended.

Adjustment2025Annual Production Guidance

Affected by the temporary suspension of production at the Southeast Ore Body of the Chambishi Mine, the Company has adjusted its full-year 2025 production plan. The copper production from its captive mine has been revised from 160,000 mt to 140,000 mt.

China Nonferrous Mining previously released its production and operation report for the first three quarters. From January to September 2025, the Company cumulatively produced approximately 108,000 mt of copper cathode, up approximately 12% YoY, achieving approximately 77% of its annual production guidance. Among this, the captive mine produced approximately 63,900 mt of copper cathode, basically flat compared to the same period last year. The Company cumulatively produced approximately 308,000 mt of blister copper and copper anode, up approximately 7% YoY, achieving approximately 77% of its annual production guidance. Among this, the captive mine produced approximately 54,200 mt of blister copper and copper anode, down approximately 6% YoY. From January to September 2025, the Company cumulatively produced approximately 788,000 mt of sulphuric acid, up approximately 2% YoY, achieving approximately 79% of its annual production guidance. It cumulatively produced approximately 676 mt of cobalt contained in cobalt hydroxide, down approximately 12% YoY, achieving approximately 75% of its annual production guidance. It cumulatively produced approximately 1,442 mt of liquid sulfur dioxide, down approximately 90% YoY, achieving approximately 14% of its annual production guidance. In the first three quarters of 2025, the company is expected to achieve net profit attributable to shareholders of approximately $356 million, up about 13% YoY. The main reason for the YoY growth in economic indicators is the increase in international copper prices and the rise in copper cathode production and sales YoY.

A Guosen Securities research report on China Nonferrous Mining commented on core mines: In the first three quarters, NFC Africa Mining produced 49,864 mt of copper anode, down about 2% YoY, mainly due to the temporary suspension of production at the Southeast Ore Body of the Chambishi Mine for the replacement of the main and auxiliary shaft collar beams; China Nonferrous Metal Mining's Luanshya produced 34,785 mt of copper cathode, up about 2% YoY, and produced 3,133 mt of copper anode, basically flat YoY; Kambove Mining SAS produced 28,811 mt of copper cathode, up about 4% YoY. In the first three quarters, the company's captive mine production experienced a slight YoY decline due to the temporary suspension at the Southeast Ore Body of the Chambishi Mine. The company's annual copper production from captive mines is expected to gradually increase to approximately 300,000 mt in the medium and long term: The company currently has a total of five mining projects under construction and in preparation: 1) The Chambishi Samba Copper Mine hydrometallurgical project with a capacity of 1.5 million t/a; 2) The new mine project of China Nonferrous Metal Mining's Luanshya, currently advancing dewatering, feasibility study design, and facility restoration works, with the potential to increase copper-in-concentrate capacity by approximately 40,000 mt/year; 3) The Kambove Munsansa Ore Body project, which has initiated water drainage and discharge works and is expected to commence open-pit mining construction this year; 4) The Kambove West Ore Body project, currently in the feasibility study and demonstration phase; 5) The Phase II project of the Southeast Ore Body of the Chambishi Mine, planned to be built into a mine with an ore mining capacity of 3.3 million t/a, with the potential to increase copper-in-concentrate capacity by approximately 46,000 mt/year. After all five projects are commissioned and reach full production, the company is expected to add an annual copper production capacity of 150,000 mt, and it is projected that by 2030, the annual copper metal content from captive mines will reach approximately 300,000 mt. The company is simultaneously conducting external acquisitions: In June, the company announced the acquisition of a 10.5% stake in the issued share capital of SM Minerals through a share subscription, with the subscription proceeds mainly used for the technical exploration and development of the Bunkala mining project. SM Minerals, through its subsidiaries, holds assets including the Bunkala North mining license and the Bunkala South exploration license. The Bunkala North mining license holds copper ore reserves of approximately 1.5 million mt of copper metal, with sufficient resources for large-scale mining operations. Considering the company's simultaneous efforts in increasing copper reserves and production and external acquisitions, it is expected to fully benefit from the profit elasticity brought by rising copper prices. The company's dividend payout ratio and dividend yield are at leading levels among peers, maintaining an "Outperform the Market" rating. Risk warnings: Risk of mineral product selling prices not meeting expectations, risk of the company's project construction progress not meeting expectations, risk of changes in mineral resource-related policies in overseas countries.