Hong Kong's IRC interim revenue rises on higher Platts iron ore prices

IRC

28/08/2026 24:42

Overview
Hong Kong iron ore miner's interim revenue rose 25% yr/yr, driven by higher sales volume
Net profit attributable to shareholders was $0.4 mln, compared to $102 mln loss last year
Company completed rights issue raising $41.4 mln and fully repaid MIC loan

Outlook
K&S expects to commission its own emulsion explosives plant in H2 2026
Co assumes average annual production of 3,351kt over the mine life in its June valuation
K&S expects Platts 65% iron ore prices of $114.2/dmt in H2 2026 and $113.5/dmt in 2027

Result Drivers
SUTARA RAMP-UP – Better-quality Sutara ore and processing upgrades lifted production 16.9% to 1.66 mln tonnes and sales 17.0%
IRON ORE PRICING – Higher sales volumes and a 7.8% rise in Platts 65% iron ore prices lifted revenue 24.9% to $153.4 mln
ROUBLE COST HEADWIND – Rouble appreciation and Russian inflation lifted U.S.-dollar cash costs 7.8% to $83.4 per tonne, despite lower rouble-denominated costs
ABSENT IMPAIRMENT – Profit swung to $0.4 mln from a $102.0 mln loss, primarily due to no K&S and other asset impairment charge versus $126.9 mln a year earlier

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
$153.40 mln
 
H1 Net Income Attributable
 
$400,000
 

Reuters Recommended Reads
Aug 27 - China's Aowei Holding H1 revenue rises, helped by iron ore prices, volumes
Aug 27 - Hong Kong's Shougang Fushan H1 revenue surges on higher selling prices
Aug 25 - Brazil miner Samarco eyes regaining No. 2 iron ore pellet exporter spot in 2028

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-27/3cd0a612-e016-417d-a2c3-5dacf6684b42.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)