Higher copper prices boost revenue of Yunnan copper industry by 47.16%

In the first half of 2021, the company achieved an operating income of 59.324 billion yuan, an increase of 47.16% over the same period last year; a total profit of 909 million yuan, an increase of 50.28% over the same period last year; a net profit of 252 million yuan, down 10.78% from the same period last year; and a profit and loss of 436 million yuan for minority shareholders, an increase of 92.37%. In the first half of 2021, the company produced 43800 tons of copper concentrate, down 10.1 percent from the same period last year; 646300 tons of cathode copper, up 4.8 percent from the same period last year; 11.67 tons of gold, up 24 percent from the same period last year; 333.49 tons of silver, up 8.78 percent from the same period last year; and 2.1266 million tons of sulfuric acid, up 1.53 percent from the same period last year.

Yunnan Copper said that during the reporting period, the domestic epidemic situation was effectively controlled, the global economy recovered further, the price of non-ferrous metals continued to improve, and the performance of China's non-ferrous metals industry was released in an all-round way. On the whole, from January to June, the overall operation of the national non-ferrous metal industry was stable, the output of major non-ferrous metal smelting products increased rapidly, the output of processing materials declined, and the prices of major varieties fluctuated at a high level. In terms of output, from January to June, the national output of refined copper was 5.154 million tons, an increase of 12.2 percent over the same period last year, and the output of copper processing materials was 10.178 million tons, down 1.3 percent from the same period last year. In terms of price, the average spot price of copper in China from January to June was 66636 yuan / ton, up 49.2% from the same period last year.

Looking forward to the second half of the year, as the epidemic control becomes more effective, due to the gradual increase in the upstream mine operation rate and the gradual recovery of international transportation, the smelting processing fees in the middle reaches are expected to bottom and rebound, and the profits of the smelting industry may pick up slightly; in terms of prices, the rapid rise of commodities in the upstream has raised the production costs of downstream enterprises, and domestic administrative measures such as selling copper, aluminum and zinc reserves will help to restrain the rapid rise in commodity prices. On the demand side, the global economy will maintain a stable recovery trend, and the demand of downstream traditional industries will remain at a high level, coupled with the promotion of the "carbon peak and carbon neutralization" policy, green energy investment will continue to grow rapidly, and the demand for non-ferrous metals is still optimistic.

The company's main business covers copper exploration, mining, smelting, extraction and processing of precious and scattered metals, sulfur chemical industry and trade, and is an important production base of copper, gold, silver and sulfur chemical industry in China. After years of development, the company has established a relatively perfect industrial chain in the field of copper and related non-ferrous metals.