huan Group International Resources Co. Ltd (the "Company", together with its subsidiaries, collectively referred to "the
Group" or "Jinchuan International", Stock Code: 2362.HK) today announced its annual results for the year ended 31 December 2018 ("Year Under Review"). The revenue for the year
ended 31 December 2018 was US$1,399,970,000 (2017: 549,188,000), representing an increase of 154.9%. Profit attributable
to the owners of the company increased by 60.8% to US$66,931,000 (2017: US$41,624,000). Basic earnings per share was
0.72 US cents (2017: 0.89 US cents) while diluted earnings per share was 0.51 US cents (2017: 0.32 US cents). The
Directors declare final dividend of HK 0.1 cent for the year ended 31 December 2018 (2017: Nil).
The Group's Mineral Resources as at 31 December 2018 are estimated to contain 4,657kt copper and 374kt cobalt. Ruashi
Mine contains price 623kt copper and 92kt cobalt; Chibuluma South Mine (including Chifupu deposit) contains 83kt copper;
Kinsenda Mine contains 1,210kt copper; Musonoi Project contains 1,023kt copper and 282kt cobalt; and Lubembe Project
contains 1,718kt copper.
The Group's Mineral Reserves as at 31 December 2018 are estimated to of which will contain 1,162kt copper and 192kt
cobalt. Ruashi Mine contains 190kt copper and 26kt cobalt; Musonoi Project contains 590kt copper and 165kt cobalt;
Chibuluma South Mine (including Chifupu deposit) contains 12kt copper; and Kinsenda Mine contains 370kt copper.
Commodities prices made a strong recovery in 2017 and continued to do so in the first half of 2018. As a result, cobalt
prices reached a 10 year high in mid-2018. Cobalt prices however experienced a sharp decline from July 2018 owing to the
rising supplies produced by artisanal miners in the DRC, and a surplus in supply of cobalt chemicals for the production
of rechargable batteries for electric vehicles in China.
The Group is confident that the demand and supply of cobalt will remain strong and cobalt prices will bounce back.
Analysts predict that the demand for cobalt will grow from 125,000 tonnes in 2018, of which the electric vehicle battery
sector accounts for 20%, to 185,000 tonnes and 35% respectively in 2023. It also anticipates that as manufacturers and
traders drain their stock, the year long downward trend of cobalt prices will come to an end, and heathier and more
sustainable demand for it will lead the gradual recovery of cobalt prices.
Copper demand from the PRC will also remain strong. PRC Custom figures show that the annual copper concentrate import
rose to an all-time high of 19.72 million tonnes in 2018, representing a 13.7% increase compared to 2017. Copper price
is expected to remain stable in 2019.
With the Kinsenda Mine already producing at full capacity, the Group's focus in the near future is the construction of
the Musonoi copper-cobalt mine in Kolwezi, the DRC and the development of the Ruashi's sulphide deposit. Early stage
construction work was started at Musonoi Project in late 2018. Exploration work will continue in Ruashi sulphide zone
below oxide, Musonoi Project deeper area and Kinsenda Mine infill drilling.
To be a world-class mineral corporation is the ultimate goal of the Group, apart from the existing operations in Africa
and the recent set-up trading arm in Shanghai, the Group will actively look into the market and seek for investment
opportunities which can provide the Group with growth and synergies while strictly comply with the regional regulation
in order to give investors and Shareholders confidence in supporting the Group.
Also, with the continuous support of its controlling shareholder Jinchuan Group Co., Ltd and prudent strategic planning
of the Board, the Group remains confident that the performance of the Group will overcome the disadvantages and stand
out from the crowd under such unfavorable market conditions, and create values for the stakeholders of the Company.