On March 7, Gelonghui (01029.HK) announced that in the fourth quarter of 2023, 578,700 tons of iron concentrate were produced, down 0.1% from the previous quarter. Due to the low total iron content of the processed ore magnetite, the iron concentrate production of the ore was low, and production continued to be blocked in the fourth quarter of 2023. The performance of mining contractors was suboptimal due to technical problems due to inadequate equipment preparation, which also led to production shortages. The insufficient mining surface of the mine also affects mining efficiency.
Sales volume was 587,400 tons, up 3.7% from the third quarter of 2023, mainly due to relatively low sales volume in the previous quarter due to production issues, so compared to a lower reference point.
Throughout 2023, despite the above ore quality issues, poor performance by mining contractors, and the temporary shutdown of production in May 2023 due to power issues, K&S was still able to operate at an average production capacity of about 78%. Production and sales volume decreased slightly by 4.0% and 1.5%, respectively, compared to the full year of 2022.