Strengthening CBH’s management foundation and improving mining operation efficiency

「In the previous consolidated fiscal year, the two operating companies for the Endeavour Mine and the one operating company for the Rasp Mine, formerly consolidated subsidiaries, were excluded from the scope of consolidation following the transfer of all shares held in them as part of the withdrawal from the resources business.」

「The two operating companies for the Endeavour Mine and the one operating company for the Rasp Mine, formerly consolidated subsidiaries and all subsidiaries of CBH Resources Ltd., were excluded from the scope of consolidation for the current consolidated fiscal year because all shares held in them were transferred.」

「In July 2024, all shares held in Cobar Operations Pty Ltd. and Endeavor Operations Pty Ltd., the operating subsidiaries of the Endeavour Mine and wholly owned subsidiaries of CBH Resources Ltd. in Australia, were transferred.」

「Abra, an equity-method affiliate in which the company holds a 40% interest through CBH, operates the Abra Mine. The mine began full-scale operations in January 2023, but production fell substantially below the initial plan due to the impact of heavy rain in March 2023, unstable operations caused by start-up factors and a shortage of skilled operators.」

「At Australia's CBH Co., profit declined at the Rasp mine due to lower concentrate shipments resulting from reduced ore throughput and lower ore grades. The Abra mine, which began full-scale operations in January 2023, also recorded a ¥2.6 billion equity-method investment loss due to unstable operations during the initial start-up phase and interest costs associated with development.」

「At CBH in Australia, lower throughput and ore grades at the Rasp Mine reduced concentrate shipments and profit. At the Abra Mine, which began full-scale operations in January 2023, initial start-up factors resulted in losses preceding earnings, while development-related interest costs led to an equity-method investment loss of just under ¥2 billion.」

「At CBH in Australia, actual mining of the high-grade orebody at the Rasp Mine was postponed until the beginning of fiscal 2024, resulting in lower run-of-mine ore grades and production cuts. At the Abra Mine, which began full-scale operations during the current quarter, initial start-up factors resulted in losses preceding earnings, while development-related interest costs also led to an equity-method investment loss of just over ¥900 million.」

「Although higher metal prices and a weaker Australian dollar provided support, concentrate production at CBH's Rasp Mine in Australia declined from the previous period, mainly because ore grades fell as the amount of high-grade ore mined decreased, compounded by reduced operation of the processing plant due to a shortage of operators amid the COVID-19 pandemic.」

「Although higher metal prices and a weaker Australian dollar had a favorable impact, revenue declined year on year partly because of lower ore shipments. In addition, production cuts resulting from lower run-of-mine ore grades, together with the resulting deterioration in productivity, caused operating profit to turn into a loss.」

「Although ore sales declined, revenue increased slightly year on year due to higher metal prices and a weaker Australian dollar. Operating profit, however, declined due to lower production resulting from deteriorating ore grades and worsening ore sales terms.」

「Profit increased due to lower production costs resulting from improved ore grades, higher metal prices and a weaker Australian dollar.」

「Rasp Mine productivity improvements contributed to earnings, with operating profit reaching ¥1,535 million, an increase of ¥2,971 million from the previous period, and the company returning to profitability.」

「Because the Australian Rasp mine changed to reduced production from the third quarter of 2020, crude ore production declined year on year, but improved ore grades reduced unit production costs for concentrate.」

「Revenue and operating profit increased, with the company returning to profitability, due to improved unit manufacturing costs resulting from higher ore grades and rising metal prices.」

「At CBH's Rasp Mine, operations shifted in July 2020 to an optimal production configuration involving an approximately 30% production cut aimed at improving economic performance. As a result, concentrate production declined, and, together with lower metal prices compared with the previous period, comparing January–December, and the suspension of operations at the Endeavour Mine, revenue fell to ¥7,557 million, a decrease of ¥3,888 million, or 34%, from the previous period.」

「Revenue declined year on year due in part to lower metal prices, comparing January–September with the same period of the previous year, and the suspension of operations at CBH's Endeavour Mine.」

「Revenue declined substantially year on year due in part to lower metal prices, comparing January–June with the same period of the previous year, and the suspension of operations at CBH's Endeavour Mine.」

「Deep exploration aimed at extending the mine life produced insufficient results from an economic evaluation standpoint, and the mine was placed on care and maintenance at the end of 2019.」

「Amid a sharp fall in metal prices, comparing January–September with the previous period, shipments declined as a result of planned production cuts at the Endeavour Mine.」

「Revenue declined substantially year on year due in part to the sharp fall in metal prices, comparing January–June with the previous period, and production cuts at the Endeavour Mine. The deterioration in metal prices also had a significant impact on earnings, resulting in a ¥2.9 billion year-on-year decline in profit.」

「Revenue declined substantially year on year due in part to the sharp fall in metal prices, comparing January–March with the previous period, and production cuts at the Endeavour Mine.」

「Ore throughput at the Endeavour Mine increased from the previous period, when the effects of planned production cuts remained. However, worsening mining conditions beyond expectations, including rock strength, made it necessary to reduce the amount mined and resulted in lower ore grades.」

「Ore throughput at the Endeavour Mine increased year on year, partly because planned production cuts affected the beginning of the previous fiscal year. However, mining of lower-grade ore became unavoidable due to technical problems in mining, and concentrate production grew only modestly relative to the increase in ore throughput.」

「The business segment that includes CBH recorded lower revenue and profit year on year, partly due to lower sales and higher mining costs resulting from deteriorating productivity.」

「The business segment that includes CBH increased production year on year, partly because production was being reduced according to plan in the same period of the previous year. Metal prices were also higher year on year. As a result, revenue increased year on year, as did operating profit.」

「The business segment that includes CBH recorded a substantial year-on-year increase in revenue and profit, driven by higher metal prices and the significant impact of increased production following the lifting of production cuts at CBH’s Endeavor mine.」

「The business segment that includes CBH recorded higher revenue and profit year on year, despite such factors as preparatory costs recognized in connection with the lifting of production cuts at the Endeavor mine and the resulting preparation for increased production. The impact of higher metal prices was substantial.」

「CBH's performance was strong, with operating profit rising by just under ¥600 million year on year to just under ¥700 million. However, the adjustment for the difference in fiscal year-end periods, as CBH closes its books in December, had a substantial negative impact, resulting in lower profit year on year.」

「At the Endeavour Mine, which had been operating under temporary production cuts, staffing increases and underground development are proceeding as planned toward full-scale operations.」

「The division that includes CBH Co. reported a substantial decline in revenue, partly because shipments fell following planned production cuts at the Endeavor mine reflecting weak metal prices at the beginning of the period. Operating profit, however, turned positive due partly to lower depreciation expenses following the mine impairment recognized in the previous fiscal year, improved productivity at the Rasp mine and improved sales terms.」

「Operating profit turned positive, partly due to the reduced depreciation burden following the impairment of the mine carried out in the previous fiscal year, improved productivity at the Rasp mine, and improved sales conditions.」

「At CBH Co., an executive officer of our company became CEO last July to strengthen the company's management platform. In addition, at its Endeavor mine, CBH Co. reduced crude ore production from February this year to 10,000 tonnes per month, one-quarter of normal production, and responded to the difficult situation by reducing its workforce by 116 people to a workforce of 60. Going forward, we will promote further efficiency improvements and earnings improvement at the company.」