Jinchuan Group International Resources Co. Ltd.

Jinchuan Group International Resources Co. Ltd. is a junior copper producer headquartered in Hong Kong, China, operating primarily in Africa. The organization's business model is centered on two principal activities: the mining of non-ferrous metals and the trading of mineral and metal products. Operational characteristics include a flexible production approach, with management adjusting output plans in response to market demand and commodity price fluctuations. The company has demonstrated the ability to modify its ore blending strategies, such as ceasing the purchase of foreign ore for blending purposes during periods of low market prices to manage costs and product mix. Processing capabilities are technologically advanced, incorporating leach SX-EW processing, flotation, and a magnetic separation plant designed to treat both low-grade oxide and sulphide ores. This dual-processing capability allows for greater resource utilization and operational adaptability. A key competitive advantage stems from operating high-grade deposits, which supports cost-effective production. The enterprise also engages in proactive financial risk management, utilizing instruments like interest rate swaps to hedge against cash flow volatility associated with its floating-rate debt obligations, thereby stabilizing its financial position against market fluctuations.

The entity's long-term strategic objective is to develop into a world-class mining corporation by coordinating resource development with asset management to enhance operational quality and efficiency. Key strategic pillars include strengthening cost controls, optimizing the equity structure to stimulate market vitality, and accelerating the construction and commissioning of deep processing facilities at its key development project. A core component of its growth strategy involves the steady execution of strategic mergers and acquisitions to augment its resource base and enhance its development capabilities. The organization is actively targeting synergistic mineral opportunities, particularly those in proximity to existing operations, to maximize operational efficiencies. Management is also focused on restructuring its overseas investment hierarchy to strengthen its international platform and oversee all foreign operations more effectively. The financing strategy is designed to support this growth, with a disciplined approach of seeking new facilities for brownfield projects as term loans for previous developments approach full repayment, ensuring a sustainable cycle of investment and development.

Executive leadership is separated, with the Chairman and Chief Executive Officer roles held by distinct individuals, both possessing over 31 years of industry experience. The Chairman's expertise is concentrated in nonferrous pyrometallurgy and hydrometallurgy operational management, while the CEO has an extensive background in financial cost management, risk management, and asset management. The Board of Directors is composed of 8 members, including 2 executive directors, 2 non-executive directors, and 4 independent non-executive directors, ensuring a majority of non-executives. Governance is structured through 4 primary committees: Audit, Remuneration and Nomination, Risk Management, and Strategy and Investment. The board and its committees maintain a high level of engagement, with 7 board meetings and 7 committee meetings held during the 2023 fiscal year. To ensure independent oversight, the Chairman holds meetings with independent directors at least annually without the presence of other directors, and the board has the authority to seek independent professional advice at the company's expense. The company has received annual confirmations of independence from all independent non-executive directors.

The corporate structure is defined by its ultimate controlling shareholder, Jinchuan Group Co., Ltd. (JCG), a state-owned enterprise, which holds its interest through a series of intermediate holding companies. The group's primary operational assets are held within subsidiaries that function as joint ventures with other state-owned entities, with the group maintaining majority ownership and operational control, holding stakes of 75% and 77% in its key operating companies. This partnership model with state-owned enterprises is a foundational element of its structure. Another significant shareholder is Gansu Province Xinye Asset Management Co. Ltd., which holds a substantial interest. In 2020, the company entered into a strategic 5-year finance lease agreement with an independent third party to lease out one of its mining assets, including its processing plant, in exchange for a fixed rental fee and a variable royalty payment. This arrangement was designed to realize the remaining value of the asset. The group's operational arm, Metorex (Proprietary) Limited, is an indirect wholly-owned subsidiary that oversees the mining operations. No material acquisitions or disposals of subsidiaries, associates, or joint ventures were conducted during the 2023 fiscal year.