Western Mining 2026 H1 Net Profit Up 123% on Higher Nonferrous Metal Prices and Output

Western Mining released its 2026 half-year report after the market close on July 29. In the first half, the company achieved operating revenue of RMB 39.443 billion, up 25% year-on-year; net profit attributable to shareholders of the listed company was RMB 4.169 billion, up 123%; non-GAAP net profit was RMB 4.211 billion, up 130%; basic earnings per share were RMB 1.75. The company attributed the growth mainly to the global rally in nonferrous metal prices, with copper prices once breaking through RMB 114,000 per tonne, molybdenum concentrate prices rising over 32%, and sharp increases in by-product prices such as sulphuric acid and sulphur, combined with mine output exceeding plan targets. In addition, all three smelting segments for copper, lead and zinc achieved profitability through optimized management and cost control, contributing a cumulative profit of RMB 595 million, with two subsidiaries, Qinghai Copper and Rare & Precious Metals, turning from loss to profit.

By quarter, Western Mining recorded second-quarter revenue of RMB 20.719 billion, up 10.66% quarter-on-quarter; net profit attributable to shareholders of RMB 2.583 billion, up 62.88% quarter-on-quarter; and non-GAAP net profit of RMB 2.604 billion, up 62.04% quarter-on-quarter. The company implemented technical upgrades at its core mines, Yulong Copper Mine, Xiacun Silver Polymetallic Mine and Xitieshan Lead-Zinc Mine, raising beneficiation and smelting recovery rates by 3 to 12 percentage points. The Phase III project at Yulong Copper Mine is scheduled to complete infrastructure construction by the end of 2026, after which annual ore processing capacity will increase from 22.8 million tonnes to 30 million tonnes.

Despite the strong earnings growth, some of Western Mining's financial indicators showed pressure. Net cash flow from investing activities in the first half was negative RMB 9.999 billion, expanding 576% from negative RMB 1.478 billion in the same period of 2025, mainly due to payment for the acquisition of the Chating copper polymetallic exploration right. Surface drilling at the Chating copper polymetallic mine has been fully completed, and sample testing and beneficiation trials are underway. Asset impairment losses were RMB 331 million, up sharply from RMB 99 million in the same period of 2025, including inventory write-down and contract fulfilment cost impairment losses of RMB 195 million and fixed asset impairment losses of RMB 136 million. Non-operating expenses were RMB 118 million, up 321% year-on-year, of which fines and penalties amounted to RMB 86.36 million, compared with just RMB 3.92 million in the same period of 2025. In addition, output of some minerals fell short of the half-year plan: iron concentrate achieved 72% of plan, mined lead 96%, and gold in concentrate 95%, all attributed to ore processing volume and feed grade being below planned targets.