Gelonghui, March 27 | Iron and Steel (01029.HK) announced its 2023 annual results, with earnings falling 9.2% to US$253 million, mainly due to a decrease in the market price of iron ore with 65% iron content; cash costs of US$78.9 per ton were still similar to last year (2022: US$78.8 million per ton); EBITDA (excluding non-recurrent items and foreign exchange) decreased to US$45.8 million (2022: US$56.1 million); loss attributable to shareholders was US$156.8 million US dollars (2022: US$87.9 million), mainly due to non-cash impairment of US$163.9 million (2022: US$103.2 million); increase in cash balance to $56.6 million (December 31, 2022: US$36.9 million), mainly due to positive operating cash inflows and changes in working capital; and net liabilities decreased to US$11.2 million (December 31, 2022: $41.6 million) due to increased loan repayments and cash balances.
Nikolai Levitskii, Chairman of Tiejiang Cash, commented on the results: “2023 will be a challenging year for us. The company faces many internal and external challenges. The above factors have an impact on our operating and financial performance, and we must plan our way through difficult times with resilience and strategy. Despite the challenges, I am pleased to report that the company recorded a basic profit of $8.7 million in 2023. Even more encouraging, the Group's financial position has strengthened. The increase in cash reserves and the reduction in net liabilities have improved the company's liquidity, made the overall financial situation more stable, and laid a good foundation for future development and investment opportunities.
As the Kimkan mine gradually dries up and the company waits for the Sutara mine to start operation, we are currently in a transition period, which will inevitably affect our operating and financial results. I can assure you that we have made every effort to develop the Sutara mine, maximize its potential, and invest significant resources to ensure that the mine is put into operation as soon as possible.
Our primary goal is to create significant long-term value for our shareholders to repay their trust and confidence in the company. We look forward to your continued support, so that we can work together to achieve further success and create more value in all areas. The road ahead may be bumpy for all stakeholders, but it is also full of opportunities and potential.”