FAST NEWS: CMOC’s profit surges on strong sales growth

The Latest:

CMOC Group Ltd. (CMOC) (3993.HK; 603993.SH) on Friday it would report an adjusted net profit, which excludes non-recurring gains and losses, of between 5.38 billion ($742 million) and 5.94 billion yuan for the first half of 2024, up 2,343% to 2,600% year-on-year, respectively.

Looking Up:

The strong profit growth came as output and sales for CMOC’s core copper and cobalt products more than doubled, assisted by rising copper prices. The company also benefited from its cost optimization efforts and technological reform.

Take Note:

Restrictions on the export of copper and cobalt products from CMOC’s TFM project in the Democratic Republic of Congo caused its adjusted net profit to fall to just 220 million yuan in the first half of 2023, making this year’s big gain possible due to last year’s low base.

CMOC mainly engages in the mining and sale of cobalt and copper. While cobalt prices have been volatile in recent years, rising copper prices have become a major booster to the company’s profitability. Last year, CMOC resolved a dispute involving its largest overseas investment, the TFM mixed mine project, and commenced production. That helped to sharply raise its copper and cobalt mining activity, reinforcing its leading position in the global new energy metals industry.

CMOC shares rose on Monday, closing up 3.4% at HK$7.85 by the midday break. The stock now trades near the upper end of its 52-week range.