CMOC Group (HKG:3993, SHA:603993) reported strong top- and bottom-line growth in its third-quarter results on Friday, as higher shipments, better product prices, and a leaner operating structure helped offset high operating costs.
The Chinese mining company saw total revenue surge 42% to 71.97 billion yuan, attributing the explosive double-digit percentage momentum to higher volumes and prices for copper, and higher prices for molybdenum and tungsten. CMOC said the topline metric also benefited from the consolidation of the Brazilian gold mine business.
Adjusted net profit for the three months ended Sept. 30 rose to 7.73 billion yuan, from 5.81 billion yuan for the same period last year.
Earnings per share came in at 0.37 yuan, up from 0.26 yuan last year, but marginally missed FactSet consensus estimates by 0.03 yuan.
During the quarter, higher commodity prices affected CMOC's base metals trading business and drove overall operating costs up nearly 42%.
Nevertheless, the business performed robustly: copper production rose roughly 10% to 596,691 tonnes, while sales rose 9% to 567,233 tonnes, with a gross profit margin of 60.45%.
Although sales and production fell for molybdenum and tungsten, CMOC offset the declines with strong margins of 45.83% and 80.39%, respectively.
CMOC's Hong Kong shares were down 3.6%, while its Shanghai-listed shares fell 4% in Monday morning trade.
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