CMOC Group Limited — Interim / Quarterly Report 2017

Aug 28, 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(Stock Code: 03993)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

INTERIM RESULTS

The board of directors (the “ Board ”) of China Molybdenum Co., Ltd. (the “ Company ”) is pleased to announce the unaudited consolidated financial results of the Company and its subsidiaries (collectively, the “ Group ”) for the six months ended 30 June 2017. This announcement contains the full text of the interim report of the Group for the six months ended 30 June 2017 and the contents were prepared in accordance with the relevant disclosure requirements pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Stock Exchange* ”). The unaudited consolidated financial results of the Group have been reviewed by the audit committee of the Company. This results announcement is also published on the websites of the Company (www.chinamoly.com) and the Stock Exchange (www.hkexnews.hk). The interim report of the Company for the six months ended 30 June 2017 will be despatched to shareholders and will also be available at the abovementioned websites in due course.

SUMMARY OF 2017 INTERIM REPORT

• Operating revenue amounted to RMB11,655 million, an increase of 415.74% year on year; operating profit amounted to RMB2,114 million, an increase of 245.49% year on year; net profit after deduction of non-recurring profits or losses attributable to owners of the parent company amounted to RMB1,159 million, an increase of 215.38% year on year; net cash flow from operating activities amounted to RMB3,481 million, an increase of 551% year on year; earnings per share were RMB0.05, and the net cash flow per share from operating activities amounted to RMB0.21. These increases were mainly attributable to profit contributions upon the completion of international mergers and acquisitions (“ M&A ”) projects and higher selling prices of products in various business sectors;

• The Company secured an exclusive option to buy 24% non-controlling interests in the DRC Copper/ Cobalt Mine, which will enhance the results of international M&A and raise its voice, control and profitability;

• International M&A projects went through transition smoothly with improving production towards better efficiency and operation, as such, a comprehensive business management and control system was established preliminarily and put into effective operation;

• A non-public issuance of A Shares was completed successfully with 2.15 times of oversubscription, raising RMB18 billion. Both asset-liability structure and equity structure of the Company were optimized, laying a foundation for facilitating the overseas development strategy;

• The competitive cost structure was further strengthened and efforts were made to facilitate technological innovation and management improvement;

Progress of domestic projects for comprehensive utilization of resources: 2,172 tonnes of copper concentrate by-product were recycled, generating a revenue of RMB9.69 million; 27 kilograms of rhenium by-product were recovered, generating a revenue of RMB0.78 million; and 275 tonnes of ammonium molybdate were recovered from secondary treatment during tungsten processing, generating a revenue of RMB16.95 million. Recovery of the by-products of fluorspar and iron entered into the trial stage for an enlarged recovery at industrial scale.

MAJOR FINANCIAL INDICATORS OF THE FIRST HALF OF 2017

• (I) Major Accounting Data

Unit: 0’000 yuan Currency: RMB

Major accounting data	During the reporting period (January – June)	Same period last year	Increase/decrease for the reporting period as compared with the same period last year (%)
Operating revenue	1,165,494.06	225,985.16	415.74
Net profit attributable to shareholders of the
Company	83,513.87	51,190.63	63.14
Net profit after deduction of non-recurring
profits or losses attributable to shareholders
of the Company	115,912.02	36,753.22	215.38
Net cash flow from operating activities	348,141.15	53,495.75	550.78

China Molybdenum Co., Ltd. 1

	At the end of the reporting period	At the end of last year	Increase/decrease at the end of the reporting period as compared with the end of last year
			(%)
Net assets attributable to shareholders of the Company Total assets	1,870,892.04 8,798,041.50	1,873,805.82 8,814,683.86	-0.16 -0.19

• (II) Major Financial Indicators

Unit: Yuan Currency: RMB

Major financial indicators	During the reporting period (January – June)	Same period last year	Increase/decrease for the reporting period as compared with the same period last year (%)
Basic earnings per share (RMB/share)	0.05	0.03	66.67
Diluted earnings per share (RMB/share)	N/A	N/A	N/A
Basic earnings per share excluded
non-recurring profit or loss (RMB/share)	0.07	0.02	250
The Weighted Average Rate of Return on net			up by 1.51
assets (%)	4.43	2.92	percentage points
The Weighted Average Rate of Return on net			up by 3.99
assets excluded non-recurring profit or loss			percentage
(%)	6.09	2.10	points increase

• (III) Breakdown of Non-Recurring Profit or Loss In the Period

Unit: 0’000 Yuan Currency: RMB

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Item Amount Note
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Profit or loss from disposal of non-current assets	-461.86
Tax rebate or reduction by incompetent authorities, without official approval
documents or on an occasional basis
Government subsidy included in current profits and losses(excluding	538.40	Includes the deferred
government grants which are closely related to the Company’s business		income-subsidies for
and conform with the national standard amount or quantity)		low-grade scheelite
		demonstration
		project of
		RMB3.5024 million
		and land reclamation
		subsidy of RMB
		1.4264 million

Profit or loss arising from contingencies not related to the principal operations of the entity

2 2017 INTERIM REPORT

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Item Amount Note
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Fair value change from held-for-trading financial assets and financial	-29,661.68	Mainly refers to
liabilities and investment income from disposal of held-for-trading financial		the loss from
assets and financial liabilities and available-for-sale financial assets,		the changes of
except for effective hedging business related to the entity’s normal		the contingent
operations		consideration
		from acquisition of
		copper and cobalt
		businesses in DRC
		during the period
Other non-operating revenue and expenses other than the above items	-2,461.88	Includes the donation
		expense of
		RMB21.9422 million
		in the Period
Other profit or loss items that fall into the definition of non-recurring profit or
loss
Income tax	-0.69
Minorityinterests	-350.44
Total	-32,398.15

VISION AND DEVELOPMENT STRATEGY

The vision of the Company is to become a respected international group. While solidifying and entrenching the highly competitive costs structure in the industry, the Company is dedicated to investing in and integrating high-quality resources projects on a global scale based on its advanced management philosophy and team advantages by leveraging on its good credit and multi-channel financing platforms. The aim is to become an international resource company equipped with global vision and in-depth industrial consolidation capability.

The Company’s development strategy focuses on:

• strengthening and maintaining the most competitive cost advantage of the existing business, striving for continuous cost reduction, improvement of management, enhancement of efficiency, and identifying and exploiting of internal potentials;

• managing and optimizing balance sheet and constructing multi-channel platforms for investment and financing persistently; and

• transforming its structure and growth pattern, actively promoting the resources acquisition based on scale, industry chains, technology, funds, market, management advantages and financing platform, and prioritizing M&A of or investment in such quality and mature resources projects which are located in politically stable areas and have good cash flow.

China Molybdenum Co., Ltd. 3

MARKET REVIEW AND OUTLOOK

During the reporting period, the Company generated revenue mainly from the sales of copper, cobalt, molybdenum, tungsten, niobium, phosphates and other relevant products. Its operating results are largely subject to the fluctuations in the prices of the above resources. At the same time, NPM of the Company has certain sales of gold as by-product. Accordingly, the fluctuation of the prices of gold would also impact on results of the Company.

(I) Market Review

Comparison between prices of the Company’s relevant products in the first half of 2017 and those in same period of 2016:

Domestic market

Products	First half of 2017	First half of 2016	Increase/ decrease on a year-on-year basis (%)
Molybdenum concentrates (RMB/metric tonne unit)	1,115.39	861.57	29.46
Ferromolybdenum (RMB0’000/tonne)	7.85	6.44	21.89
Black tungsten concentrates (RMB/metric tonne unit)	1,189.26	1,027.28	15.77
APT (RMB0’000/tonne)	11.96	10.53	13.58

Note: Stated prices are extracted from relevant domestic websites.

International market

Products	First half of 2017	First half of 2016	Increase/ decrease on a year-on-year basis (%)
Molybdenum oxide (US$/pound of molybdenum)	7.96	6.15	29.43
Cathode Copper (US$/tonne)	5,724	4,692	21.99
Metallic cobalt (US$/pound)	24.70	10.85	127.65
MAP (US$/tonne)	365	354	3.11

Note: The prices of molybdenum, cobalt and MAP are extracted from the relevant international websites, and the price of copper represented the price quoted by the London Metal Exchange (“ LME ”).

4 2017 INTERIM REPORT

Domestic Market

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Molybdenum concentrates Ferromolybdenum Black tungsten concentrates APT
(RMB/metric tonne unit) (RMB0’000/tonne) (RMB/metric tonne unit) (RMB0’000/tonne)
1,200 10 1,400 14
1,115.39
1,189.26 11.96
1,000 861.57 8 7.85 1,200 1,027.28 12 10.53
800 6.44 1,000 10
6 800 8
600
4 600 6
400
400 4
2
200 200 2
0 0 0 0
First half First half First half First half First half First half First half First half
of 2017 of 2016 of 2017 of 2016 of 2017 of 2016 of 2017 of 2016
International Market
Molybdenum oxide Cathode copper Metallic cobalt MAP
(US$/pound) (US$/tonne) (US$/pound) (US$/tonne)
10 7,000 30 400
365 354
7.96 5,724 24.70 350
8 5,600 24
4,692 300
6.15
6 4,200 18 250
200
4 2,800 12 10.85 150
100
2 1,400 6
50
0 0 0 0
First half First half First half First half First half First half First half First half
of 2017 of 2016 of 2017 of 2016 of 2017 of 2016 of 2017 of 2016
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(1) Molybdenum market

Domestic market: During the reporting period, macro economy in China achieved steady and positive performance. Amid supply-side reform and normalization of environmental supervision, the operating environment improved as the iron and steel price trended up in fluctuations. As for the molybdenum market, supply of molybdenum raw materials was in a staged shortage, and the overseas molybdenum market rallied up for period. Such favourable external environment coupled with domestic enabling factors set the domestic molybdenum market into a rebound. In the first quarter, large steel mills had adequate stocks and most small and medium steel mills idled in production due to policies of capacity reduction, making traders act cautiously and hesitant to buy products for stock-ups. Due to the absence of support for demand, product prices were hardly adjusted early in the first quarter. Later in the first quarter, amid certain speculation, the market registered inflow of actual demand which was further boosted by environmental protection concerns and stimulated by rapid rise in international molybdenum market. As such, prices of molybdenum raw materials in China kept surging above records and prices of ferro-molybdenum also ramped up steadily. Early in the second quarter, although the prices of commodities and ferrous products stumbled for a period, prices of molybdenum raw materials in the market remained stable at a high level. In addition, uncertainties relating to the impact of environmental protection in the Northeast China also helped sustain the momentum of boom in molybdenum market. Late in the second quarter, steel mills produced less molybdenum-bearing steel, but due to the lower demand, related products stockpiled gradually. As a result, the force driving up the cost of molybdenum raw materials faded, giving way to staged fluctuation and decline in the domestic molybdenum market.

China Molybdenum Co., Ltd. 5

During the reporting period, the average price of molybdenum concentrates (45%) was RMB1,115.39/metric tonne unit, representing an increase of 29.46% as compared with the same period last year. The lowest price was RMB1,000/metric tonne unit and the highest price was RMB1,210/metric tonne unit. The average price of ferromolybdenum was RMB78,500/tonne, representing an increase of 21.89% as compared with the same period last year. The lowest price was RMB71,000/tonne, and the highest price was RMB86,000/tonne.

International market: During the reporting period, the international molybdenum market, largely subject to the dynamics of spot molybdenum supply and China’s market demand, experienced more frequent fluctuations. In the first quarter, to mitigate shock on the market arising from China’ exports, the international molybdenum price declined in such anticipation. But the spot molybdenum supply was squeezed under the impact of strikes in South America. After demand recovered in the European and American markets, the international market saw a swift jump with brisk market activities and noticeable increase in trading volume. In the second quarter, global molybdenum market presented an noticeable performance led by the United States market. As product prices went up in the United States, traders were reluctant to sell out, and the international market was relatively active. After Chinese exports arrived, however, traders sold much more inventory than they purchased during the stalemate between short and long positions. As a result, the international molybdenum market was set in a recession.

The average MW price of molybdenum oxide during the reporting period was US$7.96/pound of molybdenum, with a year-on-year increase of 29.43%. The lowest price was US$6.8/pound of molybdenum and the highest price was US$9.2/pound of molybdenum.

(2) Tungsten market

Domestic market: During the reporting period, demand met supply in the domestic tungsten market at a low equilibrium. Mines continued the low operation rate due to cost factor and environmental review; holding back sales still represented the selling strategy of large enterprises; and staged shortage of spot raw materials contributed to the fluctuation and rebound of the domestic tungsten market. In the first quarter, even traders did not have any excessive spot products, as large mines supplied their products to meet the demand of national reserve and long-term orders, and small and medium mines ran at low operation rate, which tightened up the spot tungsten supply. In this context, companies hoarding the spot tungsten gave strong quotations, and therefore the tungsten market turned up steadily. Since the start of April, environmental review came to the two major production areas in Hunan and Fujian provinces, causing some tungsten producers to stop production one after another, squeezing the supply of spot raw materials from the upstream. But the rigid demands still existed in the downstream, so the market was still strong. Into the slack season usually seen in May, the ability of suppliers to hold up the price could not be sustained any longer under rising stockpile, liquidity pressure and other constraints, and the tungsten market experienced a staged recession.

During the reporting period, the average price of domestic black tungsten concentrates (65%) was RMB77,300/tonne, with a year-on-year increase of 15.77%. The lowest price was RMB71,000/tonne and the highest price was RMB84,000/tonne. The average price of ammonium paratungstate (APT) was RMB119,600/tonne, with a year-on-year increase of 13.58%. The lowest price was RMB108,000/tonne and the highest price was RMB129,000/tonne.

International market: After nearly three years of price drop and de-stocking, the international tungsten demand recovered notably, as the “Belt and Road” Initiative (the “Silk Road Economic Belt” and “21st Century Maritime Silk Road”, two transnational economic belts initiated and led by Chinese government in 2013) of the PRC played out its effects gradually, developed economies proceeded with re-industrialization and manufacturing upgrade, emerging economies quickened the pace of industrialization and urbanization, infrastructure interconnectivity advanced across the world, and overseas producers showed strong intention to replenish inventory. In the first half of 2017, European tungsten market followed the similar trend of domestic tungsten market, trending up step-by-step. The price of APT in Europe increased from US$192.5/ metric tonne unit at the beginning of 2017 to US$219/metric tonne unit at the end of June, up by 13.77%. In the first quarter, price of ferrotungsten slid primarily due to the shock incurred by ferrotungsten exports from Russia to Europe, which also affected China’s ferrotungsten exports. In the second quarter, however, the price began to regain momentum from the US$25.88/kilogram of tungsten at the beginning of 2017 to US$26.97/kilogram of tungsten at the end of June, representing a slight increase in the first half of 2017.

6 2017 INTERIM REPORT

According to data of Metal Bulletin (“ MB ”), the average price of APT in the European market during the reporting period was US$209.50/metric tonne unit, representing a year-on-year increase of 10.82%. The lowest price was US$187/metric ton unit and the highest price was US$226/metric tonne unit.

(3) Copper market

During the first half of 2017, international copper price went up amid fluctuations at the beginning of year and peaked at about US$6,104/tonne in the middle of February. The price gradually reduced to US$5,465/ tonne in early May, and then rose steadily to end the first half year at about US$5,923/tonne, close to the peak for the first half of 2017.

According to the analysis of Wood Mackenzie, galvanized by the initiative of “Made In Europe”, stronger consumer confidence index, buoyed housing market in the United States and higher profits of Chinese industrial enterprises, the outlook in international copper market improved during the first half of 2017. In addition, depreciation of US Dollar and decline in inventory available on the LME and Shanghai Futures Exchange (“ SHFE ”) further contributed to a bullish copper market and supported the copper price by a large margin. Moreover, affected by supply-side factors such as strikes at part of Grasberg copper mines and suspension of operation at some mine fields in Northern Chile due to storms, the copper market saw cessation of production by some relatively large copper producers, which mitigated the downside risks in copper price. Cash settlement price for copper quoted on the LME closed at US$5,907/tonne (US$2.68/ pound), representing an increase of 7.0% compared with the beginning of year. Charges to process and refine spot copper concentrates rose from the low point at the beginning of March to the high point at the end of June, mainly indicating the impact of low capacity on the market.

During the first half of 2017, the LME price of copper fluctuated between US$5,465 to US$6,104/ tonne (US$2.48 to US$2.77/pound), with the average price of US$5,724/tonne (US$2.60/pound), up by approximately 21.99% as compared to US$4,692/tonne (US$2.13/pound) in the first half of 2016.

(4) Cobalt market

During the reporting period, cobalt price nearly doubled, reaching the highest level since 2008 (based on the low price quoted on the MB. Global demand for cobalt has more than doubled since 2000 with battery industry becoming the largest consumer of cobalt. In 2016, benefiting from the explosive growth of electric vehicles, the demand for cobalt has increased significantly for the production of power batteries. CRU estimated that the gap of cobalt supply in 2016 amounted to 2,729 tonnes globally and predicted that there will still be relative large supply gaps in both 2017 and 2018.

During the first half of 2017, the MB price of cobalt increased from US$14.75/pound to US$29.85/pound. CRU (a British analysis authority) believed, such sharp rise in cobalt price was primarily due to end consumers and hedge funds stocking up inventory in the anticipation of a lasting supply gap much likely to occur in the foreseeable future.

(5) Phosphates market in Brazil

During the first half of 2017, Brazilian market demand for fertilizers was robust mainly due to a favourable barter ratio (the cost of fertilizer relative to crop commodity prices), driven by a lack of corn availability in the market which allowed Brazilian farmers to charge a price premium and fostering fertilizer pre-purchases (mostly in the first quarter). According to the Brazilian National Fertilizer Association, fertilizer deliveries were in line with the first half of 2016 and demand for phosphates was close to the deliveries, reaching 5.1 million tonnes. Imports remained robust during the first half of 2017, reaching 3.5 million tonnes of phosphate. The increased demand at the beginning of year drove prices up with prices reaching US$385/tonne (MAP CFR Brazil) levels in March (compared with US$330/tonne at the beginning of year). Average MAP CFR for the six-month period in 2017 was US$365/tonne.

China Molybdenum Co., Ltd. 7

(6) Niobium market

During the first half of 2017, there was robust demand for niobium. Iron and steel industry is the largest consumer of niobium, and ferronibium accounted for 90% of the total niobium consumption. Exports of ferroniobium (from Brazil) gained 21% compared to the same period last year, much of which was going into Europe and China. Ferroniobium price remained under pressure during the first quarter due to strong competition, but the market has started to signal recovery during the second half of 2017.

(II) Market Outlook

(1) Molybdenum market

Domestic market: In the second half of 2017, performance of iron and steel industry related to the macroeconomic landscape and supply on the molybdenum market will remain the critical factors to steer the trends of molybdenum market. Macro-economically speaking, steady progress is still expected to be the core macro-economic target for the second half of 2017. At the same time, we are aware of the structural imbalance between overcapacity and weak demand as well as risks in the real estate industry and the financial sector. As for demand, though the iron and steel industry has witnessed staged warming-up, the challenge of overcapacity is yet to be resolved and the environmental review is increasingly stringent. As for supply, with capacity unleashed from mines having resumed production and depressed demand in slack season, mines will see glut in inventory to certain extent. In a nutshell, the domestic molybdenum market will face both opportunities and challenges in the second half of 2017. The molybdenum market recorded positive performance of staged spike during the slack season in July and August, and the price of molybdenum products will go up in fluctuations amid recovering demand after August.

International market: Starting from early 2017, global economy as a whole, however, has registered positive performance indicated by increasing economic and trading activities across the world, less deflation pressure, stronger market confidence, as well as rapid recovery in the international financial market and commodity prices. As such, the difficulty of deflation pressure in conjunction with weak demand cycle goes away. It is expected that the global economy will generally perform better in 2017 than in the previous year. From the perspective of demand, the global output of crude steel in the first five months of 2017 amounted to 695 million tonnes, up by 4.7% year on year, according to the latest statistics of the World Steel Association. In breakdown, crude steel produced by the 28 countries of the European Union reached 71.71 million tonnes, up by 4.1% year on year; crude steel produced by North America reached 48.06 million tonnes, up by 3.6% year on year; crude steel produced by Asia reached 478 million tonnes, up by 4.8% year on year; and crude steel produced by South America reached 17.69 million tonnes, up by 11.3% year on year. In other words, crude steel output experienced a year-on-year increase to varying degrees in all of the above-mentioned countries and regions during the first five months of 2017. Moreover, as revealed by the data published by Baker Hughes, a company dedicated to oil service, as of the week of 23 June, the number of oil wells active in drilling in the United States had trended up for 23 consecutive weeks. Such rally in the oil and gas exploitation industry may stimulate the demand for oil pipes made of materials containing molybdenum. From the perspective of supply, the first half of 2017 witnessed the production resumption of mines in the United States and Chile that experienced suspension and disruption in production in the first half of last year, which resulted in expanded output in both countries in different degrees. In the same period, output in China also rose, while output in other regions remained basically the same. Based on these facts, it is expected the output of overseas mines in operation will not have drastic changes in the second half of 2017. As for the market tendency after August, all players in the market express positive expectations, because the price at the bottom is more likely to rebound gradually after demand regains momentum. So, the international molybdenum market is still likely to capture a staged rally after the third quarter.

8 2017 INTERIM REPORT

(2) Tungsten market

Domestic market: From the demand perspective, the aggregate tungsten consumption in China has been on a steady rise over the past three years, and it is expected to retain such positive momentum as underpinned by expanding exports and reviving demand from manufacturing in this year. From the supply perspective, increasingly stringent environmental review in 2017 has caused certain mines not up to the national environmental requirements to cut production and suspend operation. Moreover, Hunan Province and other major provinces producing tungsten concentrates saw a tumble in operation rate of mines in July due to high temperature and floods, giving rise to a shrink in the supply of tungsten concentrates. Since 2015, prices of tungsten concentrates have been lingering below RMB80,000/tonne, setting the tungsten mine industry in a long-term money-losing predicament. Some small and low-grade mines running at high cost have stopped operation and even been shut down. Therefore, with shrunk production capacity of tungsten concentrates, tungsten price is likely to become stronger in a short period to come.

International market: In the second half of 2017, European tungsten market will still be subject to the impact from the Chinese market, and it is expected to have only minor fluctuations and a steady and positive trend. Besides, export of tungsten products out of China is also expected to stay stable.

(3) Copper market

Copper price went up further in August 2017. to above US$6,500/tonne. In the second half of 2017, demand for copper in China is expected to further expand as China is increasing investment in infrastructure; whereas incidents such as strikes at mines in Latin America will keep dampening the confidence in the supply of copper ores. Therefore, the cooper price is expected to have strong support. In the second half of 2017, the cooper market will sustain a relative balance between supply and demand. In several years to come, some new projects (including large-scale projects) are expected to undergo trial operation, in order to meet ever growing market demand. Most supply-demand models forecast that, the market will see a slight supply shortage in next 2 years before turning towards larger supply gap. According to the forecast by Wood Mackenzie, demand for refined copper will reach 22.80 million tonnes in 2017, representing a year-on-year increase of 1.7%. Specifically, China and Northeast Asia are expected to record prominent performance, because China is expected to benefit from infrastructure investment and stabilizing housing market, while Japan and South Korea markets will be mainly boosted by growing industrial production. Europe and the United States, however, are likely to be hindered by the recycle of copper waste. Wood Mackenzie forecast that, demand for refined copper worldwide will expand by approximately 1.8% for both 2018 and 2019. Reuters forecast that, copper price will average US$5,715/tonne (or US$2.59/pound) in 2017 and US$5,780/tonne (or US$2.62/pound) in 2018.

(4) Cobalt market

Cobalt demand is expected to reach approximately 105,000 tonnes in 2017, which means a market surplus of 3,000 tonnes based on the supply in the first half of 2017. According to the forecast of CRU (a British analysis authority), power batteries will continuously serve as the key factor driving up the demand for cobalt. Despite the fact that the use of cobalt per unit may diminish against the tendency towards higher content of nickel in producing NCM (nickel cobalt manganese batteries), demand for cobaltous sulphate by power batteries is expected to gain by 24.2% in 2017. CRU forecast that, the gap in cobalt supply worldwide will stand at 5,127 tonnes and 3,147 tonnes for 2017 and 2018, respectively, and the period to satisfy market demand only with cobalt inventory will be shortened from 4.65 months in 2015 to 2.58 months in 2018. From this year till 2020, the demand is estimated to maintain a growth of 5.6% each year, which is primarily attributable to the use of cobalt to make battery sections and cobalt alloys applied in the aerospace industry. In short, from the second half of 2017 to 2018, cobalt price is expected to stay above US$25.00/pound with solid support due to strong market demands, including those on the exploration of cobalt resources.

China Molybdenum Co., Ltd. 9

(5) Phosphates market in Brazil

Brazil is one of the world’s main producers and exporters of agricultural products, including soybean, corn, sugarcane, coffee, orange, beef and chicken. With high demand for fertilizers, Brazil is the fourth largest fertilizer consumer in the world, with annual demand that significantly exceeding its domestic production. Mono-ammonium phosphate (“ MAP ”) and single superphosphate (“ SSP ”) are respectively the main highand low-concentrated phosphate fertilizer products in the Brazilian market.

Global phosphates demand is expected to remain robust for the second half of 2017 as well as in 2018. Despite the drop in agricultural commodity prices in the international market in the last 12 months, Brazil’s relatively weak currency is expected to maintain farmers’ profitability (despite more recent currency strengthening) and fertilizer demand is also expected to be strong in the second half of 2017. In terms of pricing, international markets may experience price pressure with additional phosphate capacity/supply coming from Saudi Arabia and Morocco and with this, the benchmark MAP CFR (Brazil) is expected to be around $350/tonne.

(6) Niobium market

According to the latest outlook by the World Steel Association, China’s steel demand is expected to remain flat in 2017, while demand in the developed economies is expected to increase moderately in 2017 and 2018.

BUSINESS REVIEW

Comparable Table of Production Volume, Sales Volume and Unit Cash Production Cost of Major Products of the Company

	For the first half of 2017	For the first half of 2017	For the first half of 2017	For the first half of 2017	For the first half of 2017	For the first half of 2017	For the first half of 2016	For the first half of 2016
	Production Volume		Sales Volume	Unit cash production cost Copper（USD/Tonne） Molybdenum / Tungsten / Cobalt / Niobium Production Volume			Sales Volume	Unit cash production cost Copper (USD/Tonne) Molybdenum Tungsten / Cobalt / Niobium
	(Tonne)		(Tonne)	(RMB/Tonne)		(Tonne)	(Tonne)	(RMB/Tonne)
Name of Products	Actually completed	Completed proportion in the estimated volume	Actually completed	Actually completed	Increase/ decrease from the estimated volume
		(%)			(%)
Molybdenum Tungsten Copper NPM (80% of equity interests) Tenke (100% of equity interest) Cobalt (100% of equity interest) Niobium Phosphate fertilizer	8,161 5,649 18,910 109,186 7,364 4,286 546,930	51% 54% 56% 50% 41% 52% 46%	10,207 5,928 18,951 113,355 7,559.00 4,181.00 464,413	54,353 16,671 0.87 0.28 N/A – –	-7% 15% -9% -73% N/A – –	8,008 4,950 19,063 N/A N/A N/A N/A	10,793 6,077 19,282 N/A N/A N/A N/A	55,153 12,080 0.69 N/A N/A N/A N/A

10 2017 INTERIM REPORT

1. Molybdenum sector

During the reporting period, the Company realized a production volume of molybdenum concentrates (with metal equivalents of 100% MO metal) of 8,161 tonnes and the unit cash production cost was RMB54,353/tonne.

2.

Tungsten sector

During the reporting period, the Company realized a production volume of tungsten concentrates (with metal equivalents of 100% WO3) of 5,649 tonnes (excluding Yulu Mining) and the unit cash production cost was RMB16,671/tonne.

3. Copper and cobalt sector

During the reporting period, when calculated based on 80% of equity interests, NPM realized a production volume of available-for-sale copper metal of 18,910 tonnes, and C1 cash cost of US$0.87 per pound, and it realized a production volume of gold of 16,723 ounces for sale.

During the reporting period, when calculated based on 100% of equity interests, Tenke Copper/Cobalt Mine realized a production volume of 109,186 tonnes of copper metal and C1 cash cost of US$0.28 per pound, and it realized a production volume of 7,364 tonnes of cobalt metal based on 100% of equity interests.

4.

Niobium and phosphate sector

During the reporting period, Brazil realized a production volume of phosphate fertilizer (high analysis fertilizer and low analysis fertilizer) of 546,930 tonnes and niobium metal of 4,286 tonnes.

OPERATION REVIEW

With clear recovery of the global economy, infrastructure investment in the United States, India, China and countries along the route of “Belt and Road” Initiative was expected to generate new demands. As such, prices of commodities such as copper showed certain rise. Moreover, explosive growth of new energy vehicles spiked up the cobalt price, and China’s supply side reform fostered restructuring of the iron and steel industry and stronger prices in the industry. All of these brought about a salient rally in the molybdenum price, and created a long-lasting and positive momentum for relevant business sectors of the Company.

1. Exclusive option of the non-controlling interests in the copper and cobalt business in Congo to entrench the results of overseas M&A and raise voice and control

On 20 January 2017, the Company and BHR entered into the “Cooperation Framework Agreement between China Molybdenum Co., Ltd. and BHR Newwood Investment Management Limited on the Investment Cooperation Regarding Tenke Fungurume Mining Area” (the “ Cooperation Framework Agreement ”), pursuant to which BHR exclusively and irrevocably granted the Company the exclusive option to buy 24% minority interests in TFM. BHR’s acquisition of the minority interests in TFM was completed on 20 April 2017. Given the Company completed the acquisition of and indirectly held 56% interests in TFM, by obtaining the exclusive right to buy the further 24% of minority interests in TFM through such cooperation, the Company consolidated its voice and control over the project, and further boost its profitability and risk-resisting capabilities.

China Molybdenum Co., Ltd. 11

1. Completion of the non-public issuance of A shares to effectively refine the capital structure and solidify the strength of the Company

The Company obtained the approval from CSRC regarding the non-public issuance of A shares raising no more than RMB18 billion on 23 June, and finished capital verification for the issuance on 20 July. Works related to the issuance were successfully completed on 24 July, with 2.15 times over-subscription. Subscribers included large state-owned investment institutions, strategic investment corporations and large mutual funds. The success of this private placement refined the capital structure and equity structure of the Company and further solidified its strength, laying a solid foundation for its acquisition of quality international assets in the future.

3. Stable operation of international assets and improving management

Upon the successful completion of two major overseas M&A projects of the Company in 2016, the Company has been committed to creating a better and sound governance and control system, integrating management and fostering a strong pool of talent. At present, the management and control platform for international businesses is put in place and the management structure has been further improved. While acquired international businesses are transitioning and operating smoothly, the Company is also committed to operational improvements. Relevant actions include the operational enhancement measures to streamline organizational structure, improve recovery rate of niobium and raise consumption rate during production for the businesses in Brazil; and bottleneck removing measures to carry out leaching from low-grade resources and exploit sulphide resources for the copper and cobalt business in the DRC.

1. Tighter cost control and higher standards for production and technical indicators, resulting remarkable achievement of comprehensive resources recovery project and further reinforcing competitive advantage in cost structure

During the reporting period, in order to consolidate and enhance its competitive advantage in cost structure, the Company implemented a series of measures for refined management, which took the recovery rate of molybdenum and tungsten ore dressing to a higher level, and the centralized procurement rate increased by 7.11 percentage points over that at the end of last year. The Company also realized a sharp decline in spare part consumption and energy consumption as compared with the same period last year, by efficiently mobilizing energy management and equipment management companies. NPM is actively promoting research on new mining points as a response to the cost hike caused by decreasing ore grade at existing mining points.

During the reporting period, in terms of domestic businesses, 2,172 tonnes of copper concentrate by-product were recycled, generating a revenue of RMB9.69 million; 27 kilograms of rhenium by-product were recovered, generating a revenue of RMB0.78 million; and 275 tonnes of ammonium molybdate were recovered from secondary treatment, generating a revenue of RMB16.95 million. Recovery of the by-products of fluorspar and iron entered into the trial stage for an enlarged recovery at industrial scale.

5.

Strict requirements and rigid implementation to ensure safety and environmental protection

To achieve production safety with zero injury and environmental protection with zero accident, the Company never stopped in maintaining high standard on safety and environmental protection, creating a favourable environment for the production and operation. In terms of safety management, the Company revised and improved the system of safety accountability and the rules on production safety assessment to assign responsibility rigorously. The Company kept implementing the “Ten Principal Standards for Safety” and “Danger Source Identification, Prevention and Control”, as part of efforts to standardize safety practices. The Company also intensified safety trainings and enhanced safety inspection and risk rectification. In terms of environmental protection, the Company acted proactively by ramping up investment in environmental protection and ensuring the normal operation of environmental protection equipment and facilities, to guarantee environmental compliance and clear obstacles for production and operation. The Company also introduced and improved the system of environmental accountability and facilitated the establishment of an environmental management system.

12 2017 INTERIM REPORT

INDUSTRY POLICY

During the reporting period, policies of the industry where the Company operates changed in the PRC and overseas:

(1) In the PRC

Indicators for control over the aggregate mining volume of tungsten mines

In order to protect and reasonably develop the high quality mining resources, pursuant to the relevant requirements regarding mining activities of certain protected resources, the aggregate mining volume of rare earth mines and tungsten mines continued to be under control in 2017. According to real demands, indicators for control over the aggregate mining volume of rare earth mines and tungsten mines were issued in two batches in 2017. On 28 February 2017, the Ministry of Land and Resources issued the notice of the first batch, “Notice on Indicators for Controlling the Aggregate Mining Volume of Rare Earth Mines and Tungsten Mines for the Year 2017 (First Batch) Issued by the Ministry of Land and Resources” (《國土資源部關於下達二零一七年度稀土礦鎢礦開採總量控制指標（第 一批）的通知》), stating that the indicator for controlling the aggregate mining volume of the first batch of tungsten concentrates (containing 65% tungsten trioxide) was 45,650 tonnes. On 30 June 2017, the annual notice, “Notice on Indicators for Controlling the Aggregate Mining Volume of Rare Earth Mines and Tungsten Mines for the Year 2017 Issued by the Ministry of Land and Resources” (《國土資源部關於下達二零一七年度稀土礦鎢礦開採總量控制指標的 通知》) was issued, stating that the indicator for controlling the annual aggregate mining volume (including the first batch) of tungsten concentrates (containing 65% tungsten trioxide) was 91,300 tonnes in 2017.

(2) Overseas

There were no significant changes in policies relating to overseas businesses during the reporting period.

MATERIAL EVENTS

1. Cooperation with BHR for investment in Tenke Copper/Cobalt Mine and cooperation with its shareholders or upper-level investors for investment in Tenke Fungurume mining

On 15 November 2016, BHR, THL and Lundin Mining Corporation entered into a stock purchase agreement on the acquisition of 100% equities held by THL in Lundin Shell Company from THL by BHR or its wholly-owned subsidiary. Upon the completion of the purchase, BHR will hold 24% interest in TFM indirectly.

On 20 January 2017, the Company and BHR entered into the Cooperation Framework Agreement, pursuant to which the Company intends to cooperate with BHR regarding the introduction of ultimate investor in BHR, the indirect investment of BHR in 24% equities of TFM and the subsequent exit of such investment. BHR exclusively and irrevocably granted the Company the exclusive option to buy the 24% interests in TFM.

On 20 April 2017, the acquisition of 100% equities held by THL in Lundin Shell Company from THL by BHR through its wholly-owned subsidiary was completed. BHR directly owns 100% equities in Lundin Shell Company through its wholly-owned subsidiary, and indirectly owns 24% interests in TFM.

For the details of the aforementioned contents, please refer to the relevant announcements and/or circulars published by the Company on the websites of SSE (www.sse.com.cn), Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Company (www.chinamoly.com).

China Molybdenum Co., Ltd. 13

2. Non-Public Issuance of A Shares

On 18 January 2017, the Company passed the CSRC review for the non-public issuance of A Shares, and on 23 June 2017, received the “Approval in Relation to the Non-Public Issuance of Shares by China Molybdenum Co., Ltd.” (Zheng Jian Xu Ke [2017] No. 918) from CSRC that the Company was approved to issue no more than 5,769,230,769 new A Shares.

On 18 July 2017, the 8 target subscribers for the non-public issuance remitted all subscription payments in full to the account designated by the sponsor. Relevant payments were verified in the Capital Verification Report issued by the Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership). In fact, the Company issued 4,712,041,884 A Shares at RMB3.82 per share, and the total subscription payments made by the target subscribers for the non-public issuance was RMB17,999,999,996.88.

On 20 July 2017, as verified by the “Capital Verification Report on the Increase in Registered Capital and Share Capital of China Molybdenum Co., Ltd. upon Its Non-public Issuance of RMB Ordinary Shares (A Shares)” (De Shi Bao (Yan) Zi (17) No. 00317) issued by Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership), net proceeds from the issuance was RMB17,858,632,663.30 after deducting issuance fees of RMB141,367,333.58 from the total proceeds.

On 24 July 2017, the Company completed the registration and custody procedures with the Shanghai Branch of China Securities Depository and Clearing Company Limited for the newly-increased A Shares, and its share capital increased from 16,887,198,699 shares to 21,599,240,583 shares.

For the details of the aforementioned contents, please also refer to the relevant announcements and/or circulars published by the Company on the websites of SSE (www.sse.com.cn), Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the Company (www.chinamoly.com).

14 2017 INTERIM REPORT

FINANCIAL HIGHLIGHTS

Consolidated Balance Sheet

30 June 2017

Presented by: China Molybdenum Co., Ltd.

Unit: 0’000 Yuan Currency: RMB

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Closing Opening Increase
Item balance balance (decrease)
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Current assets:
Cash and cash equivalents				1,254,287.66		997,022.41		25.80%
Financial assets measured at fair value through
profit or loss				3,806.90		5,559.90		-31.53%
Derivative financial assets						–		–
Notes receivable				137,216.38		95,086.16		44.31%
Accounts receivable				194,748.91		146,180.72		33.22%
Prepayments				31,106.04		29,557.21		5.24%
Interest receivable				2,227.86		4,049.28		-44.98%
Other receivables				84,878.81		114,703.93		-26.00%
Inventories				517,815.48		508,276.75		1.88%
Non-current assets due within one year				73,488.44		–
Other current assets				41,260.11		79,859.26		-48.33%
Total current assets				2,340,836.59		1,980,295.62		18.21%
Non-current assets:
Available-for-sale financial assets				288,955.98		300,060.25		-3.70%
Long-term equity investments				117,091.12		119,149.93		-1.73%
Fixed assets				2,610,100.87		2,727,292.13		-4.30%
Construction in progress				83,795.14		69,535.90		20.51%
Inventories				438,306.24		426,961.79		2.66%
Intangible assets				2,297,756.82		2,450,131.40		-6.22%
Goodwill				108,885.07		111,480.36		-2.33%
Long-term deferred expenses				15,430.22		11,524.74		33.89%
Deferred tax assets				39,209.02		43,212.14		-9.26%
Other non-current assets				457,674.43		575,039.60		-20.41%
Total non-current assets				6,457,204.91		6,834,388.24		-5.52%
Total assets				8,798,041.50		8,814,683.86		-0.19%

China Molybdenum Co., Ltd. 15

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Closing Opening Increase
Item balance balance (decrease)
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Current liabilities:
Short-term borrowings				480,235.50		437,243.35		9.83%
Financial liabilities measured at fair value through
profit or loss				439,567.27		282,144.18		55.80%
Notes payable				31,750.00		66,000.00		-51.89%
Accounts payable				89,050.26		74,150.83		20.09%
Receipts in advance				23,087.90		5,186.75		345.13%
Employee benefits payable				37,185.92		35,482.22		4.80%
Taxes payables				83,592.19		5,786.12		1344.70%
Interest payable				18,558.65		18,368.42		1.04%
Dividends payable				2,788.58		2,788.58		0.00%
Other payables				51,939.26		141,677.58		-63.34%
Non-current liabilities due within one year				287,326.49		258,449.74		11.17%
Other current liabilities				211,240.94		270,889.72		-22.02%
Total current liabilities				1,756,322.96		1,598,167.49		9.90%
Non-current liabilities:
Long-term borrowings				2,246,484.40		2,337,687.99		-3.90%
Bonds payables				200,000.00		200,000.00		0.00%
Provisions				180,509.96		175,779.37		2.69%
Deferred tax liabilities				957,173.10		1,005,512.79		-4.81%
Other non-current liabilities				817,470.22		63,843.53		1180.43%
Total non-current liabilities				4,401,637.68		3,782,823.68		16.36%
Total liabilities				6,157,960.64		5,380,991.17		14.44%

16 2017 INTERIM REPORT

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Closing Opening Increase
Item balance balance (decrease)
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Owners’ equity
Share capital	337,743.97	337,743.97	0.00%
Capital reserve	1,072,848.35	1,072,030.66	0.08%
Other comprehensive income	354.95	28,285.43	-98.75%
Special reserve	647.34	857.01	-24.47%
Surplus reserve	84,009.89	84,009.89	0.00%
Retainedprofit	375,287.54	350,878.86	6.96%
Total equity attributable to owners of
the company	1,870,892.04	1,873,805.82	-0.16%
Non-controlling interests	769,188.82	1,559,886.87	-50.69%
Total owners’ equity	2,640,080.86	3,433,692.69	-23.11%
Total liabilities and owners’ equity	8,798,041.50	8,814,683.86	-0.19%

China Molybdenum Co., Ltd. 17

Consolidated Income Statement

From January to June 2017

Unit: 0’000 Yuan Currency: RMB

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Amount for Amount for Increase
Item the period the prior period (decrease)
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I.	Total operating revenue	Total operating revenue	1,165,494.06	225,985.16	415.74%
	Including:	Operating revenue	1,165,494.06	225,985.16	415.74%
II.	Total operating costs		926,061.81	182,246.21	408.14%
	Including:	Operating costs	752,158.95	140,794.61	434.22%
		Taxes and surcharges	14,261.87	8,541.55	66.97%
		Selling expenses	10,119.28	3,734.49	170.97%
		Administrative expenses	46,339.87	18,122.52	155.70%
		Financial expenses	102,613.52	8,899.75	1052.99%
		Assets impairment loss	568.32	2,153.29	-73.61%
	Add:	Gains from changes in fair value (loss is
		indicated by “-”)	-32,601.27	3,498.28	-1031.92%
		Investment income (loss is indicated by
		“-”)	4,558.79	13,948.14	-67.32%
		Including: Income from investments in
		associates and joint ventures	2,176.77	395.42	450.50%
III.	Operating profit (total loss is indicated by “-”)		211,389.77	61,185.37	245.49%
	Add:	Non-operating income	589.65	353.98	66.58%
	Less:	Non-operating expenses	2,974.99	1,993.17	49.26%
IV.	Total profit (total loss is indicated
	by “-”)		209,004.43	59,546.18	251.00%
	Less:	Income tax expenses	72,059.66	9,389.94	667.41%

18 2017 INTERIM REPORT

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Amount for Amount for Increase
Item the period the prior period (decrease)
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V.	Net profit (net losses are indicated
	by “-”)	136,944.77	50,156.24	173.04%
	Net profit attributable to owners of the company	83,513.87	51,190.63	63.14%
	Non-controlling interest	53,430.90	-1,034.39	5265.45%
VI.	Other comprehensive income
	(net of tax)	-63,703.57	-5,546.20	-1048.60%
	Other comprehensive income attributable to
	owners of the company, net of tax	-27,930.48	-5,546.20	-403.60%
	(I) Other comprehensive income not to be
	reclassified subsequently to profit or loss
	(II) Other comprehensive income that will
	subsequently be reclassified into the profit or
	loss	-27,930.48	-5,546.20	-403.60%
	1. Gains (losses) on change in fair value of
	available-for-sale financial assets	-158.62	-12,389.80	98.72%
	2. Differences in foreign currency translation	-27,771.86	6,843.60	-505.81%
	Other comprehensive income attributable to
	minority shareholders, net of tax	-35,773.09
VII.	Total comprehensive income	73,241.20	44,610.02	64.18%
	Attributable to owners of the company	55,583.39	45,644.42	21.77%
	Attributable to minority shareholders	17,657.81	-1,034.40	1807.06%
VIII.	Earnings per share
	(I) Basic earnings per share
	(Yuan/Share)	0.05	0.03	66.67%
	(II) Diluted earnings per share
	(Yuan/Share)

China Molybdenum Co., Ltd. 19

Consolidated Cash Flow Statement

From January to June 2017

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Unit: 0’000 Yuan Currency: RMB
Amount for Amount for Increase
Item the period the prior period (decrease)
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I.	Cash flows from operating activities:
	Cash received from sales of goods and rendering
	of services				1,217,412.48		196,850.23		518.45%
	Other cash received relatingto operatingactivities				13,695.58		15,651.14		-12.49%
	Subtotal of cash inflows from operatingactivities				1,231,108.06		212,501.37		479.34%
	Cash paid for goods purchased and services
	received				594,983.20		88,351.93		573.42%
	Cash paid to and behalf of employees				108,875.19		28,997.50		275.46%
	Cash paid for various types of taxes				126,649.63		29,968.34		322.61%
	Other cashpaid relatingto operatingactivities				52,458.89		11,687.85		348.83%
	Subtotal of cash outflows from operatingactivities				882,966.91		159,005.62		455.31%
	Net cash flow from operating activities				348,141.15		53,495.75		550.78%
II.	Cash flows from investing activities:				–		–
	Cash received from disposal or withdrawal of
	investments				119,037.06		254,537.28		-53.23%
	Cash received from investment income				20,921.55		16,995.09		23.10%
	Net cash received from the disposal of fixed
	attests, intangible attests, and other long-term
	assets				33.40		17.40		91.95%
	Other cash received relatingto investingactivities				2,631.51		–
	Subtotal of cash inflows from investingactivities				142,623.52		271,549.77		-47.48%
	Cash paid to acquire or construction of fixed
	assets, intangible assets, and other long-term
	assets				40,196.28		15,486.64		159.55%
	Cash paid to acquire investments				35,396.60		191,982.25		-81.56%
	Other cash received relatingto investingactivities				8,286.74		53.72		15325.80%
	Subtotal of cash outflows from investment activities				83,879.62		207,522.61		-59.58%
	Net cash flow from investment activities				58,743.90		64,027.16		-8.25%

20 2017 INTERIM REPORT

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Amount for Amount for Increase
Item the period the prior period (decrease)
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III.	Cash flows from financing activities:				–		–
	Cash received from borrowings				275,178.57		677,848.05		-59.40%
	Other cash received relatingto financingactivities				154,552.61		107,071.96		44.34%
	Subtotal of cash inflows from financingactivities				429,731.18		784,920.01		-45.25%
	Cash repayments of borrowings				325,855.80		461,004.29		-29.32%
	Cash paid for distribution of dividends, profits or
	settlement of interests				151,594.20		8,650.10		1652.51%
	Other cashpaid relatingto financingactivities				49,848.62		98,278.07		-49.28%
	Subtotal of cash outflows from financingactivities				527,298.62		567,932.46		-7.15%
	Net cash flow from financing activities				-97,567.44		216,987.55		-144.96%
IV.	Impact of exchange rate changes on cash and
	cash equivalents				-22,322.32		1,642.00		-1459.46%
V.	Net increase in cash and cash equivalents				286,995.29		336,152.46		-14.62%
	Add: Opening balance of cash and cash
	equivalents				842,020.81		898,216.23		-6.26%
VI.	Closing balance of cash and cash equivalents				1,129,016.10		1,234,368.69		-8.53%

China Molybdenum Co., Ltd. 21

MANAGEMENT’S DISCUSSION AND ANALYSIS

Overview

For the six months ended 30 June 2017, the net profit of the Group increased by RMB867.89 million or 173.04% from RMB501.56 million for the six months ended 30 June 2016 to RMB1,369.45 million. For the six months ended 30 June 2017, net profit attributable to the owners of the company was RMB835.14 million, representing an increase of RMB323.23 million or 63.14% from RMB511.91 million for the six months ended 30 June 2016, which was primarily due to the Company’s profit rose up significantly for its purchase of quality assets through international M&A.

Operating Results

For the six months end 30 June 2017, the operating revenue of the Group increased by RMB9,395.09 million or 415.74% from RMB2,259.85 million for the six months ended 30 June 2016 to RMB11,654.94 million. For the six months ended 30 June 2017, the gross profit of the Group was RMB4,133.35 million, representing an increase of RMB3,281.45 million or 385.19% from RMB851.91 million for the same period last year.

The table below sets out the operating revenue, operating cost, gross profit and gross profit margin of our products in the first half of 2017 and the same period of 2016:

Unit: 0’000 Yuan Currency: RMB

Region	Operating revenue	Principal businesses by region Operating cost Gross profit margin Increase/ decrease of operating revenue as compared with the same period last year (%) (%)	Principal businesses by region Operating cost Gross profit margin Increase/ decrease of operating revenue as compared with the same period last year (%) (%)	Principal businesses by region Operating cost Gross profit margin Increase/ decrease of operating revenue as compared with the same period last year (%) (%)	Increase/ decrease of operating cost as compared with the same period last year (%)	Increase/ decrease of gross profit margin as compared with the same period last year (%)
						up by 3.87
PRC	181,585.58	94,566.81	47.92	20.80	12.44	percentage points
						up by 6.83
Australia	83,864.44	57,435.15	31.51	23.18	12.02	percentage points
Brazil	215,047.18	173,484.44	19.33	N/A	N/A	N/A
DRC	676,088.40	419,623.28	37.93	N/A	N/A	N/A
Total	1,156,585.60	745,109.68

Administrative Expenses

For the six months ended 30 June 2017, the administrative expenses of the Group were RMB463.40 million, representing an increase of RMB282.17 million or 155.70% from RMB181.23 million for the same period in 2016. Such increase was mainly due to the enlarged enterprise scale upon the completion of international M&A by the Group.

Financial Expenses

For the six months ended 30 June 2017, the financial expenses of the Group amounted to RMB1,026.14 million, representing an increase of RMB937.14 million or 1,052.99% from RMB89.00 million for the same period in 2016. Such increase was mainly due to higher financing costs for international M&A business of the Group.

22 2017 INTERIM REPORT

Investment Income

For the six months ended 30 June 2017, the investment income of the Group was RMB45.59 million, representing a decrease of RMB93.89 million or 67.32% from RMB139.48 million for the same period in 2016, mainly due to less wealth management products purchased by the Group during the period.

Changes in Fair Values

For the six months ended 30 June 2017, changes in fair values of the Group was RMB-326.01 million, representing a decrease of RMB361.00 million or 1,031.92% from RMB34.98 million for the same period in 2016, which was due to changes in fair values of financial liabilities measured at fair value through profit or loss caused by rising cobalt price in 2017.

Income Tax Expenses

For the year ended 30 June 2017, the income tax expenses of the Group amounted to RMB720.60 million, representing an increase of RMB626.70 million or 667.41% from RMB93.90 million for the same period of 2016. Such increase was mainly due to the overall increase of the profit for the period upon the completion of overseas M&A.

Net Profit Attributable to Owners of the Parent Company

For the six months ended 30 June 2017, the net profit of the Group attributable to owners of the parent company increased by RMB323.23 million or 63.14% from RMB511.91 million for the six months ended 30 June 2016 to RMB835.14 million for the six months ended 30 June 2017. Such significant increase was mainly due to the increase in net profit for the six months ended 30 June 2017. The increase in net profit attributed to the significant increase in the Company’s profit for its purchase of quality assets through overseas M&A.

Financial Position

For the six months ended 30 June 2017, the total assets of the Group amounted to RMB87,980.42 million, comprising non-current assets of RMB64,572.05 million and current assets of RMB23,408.37 million.

Financial Assets Measured at Fair Value Through Profit or Loss

For the six months ended 30 June 2017, the financial assets measured at fair value through profit or loss of the Group amounted to RMB38.07 million, representing a decrease of RMB17.53 million or 31.53% from RMB55.60 million for the year ended 31 December 2016. Such decrease was mainly due to the change of financial assets held for trading in the context of changing market price.

Other Current Assets

For the six months ended 30 June 2017, the other current assets of the Group amounted to RMB412.60 million, representing a decrease of RMB385.99 million or 48.33% from RMB798.59 million for the year ended 31 December 2016. Such decrease was mainly due to the maturity of bank-initiated wealth management products held by the Group during the period.

Long-Term Deferred Expenses

For the six months ended 30 June 2017, the long-term deferred expenses of the Group amounted to RMB154.30 million, representing an increase of RMB39.05 million or 33.89% from RMB115.25 million for the year ended 31 December 2016. Such increase was mainly due to the advance payments and arrangement expenses incurred by the financing actions taken by the Group during the period.

China Molybdenum Co., Ltd. 23

Financial Liabilities Measured at Fair Value Through Profit or Loss

For the six months ended 30 June 2017, financial liabilities measured at fair value through profit or loss of the Group amounted to RMB4,395.67 million, representing an increase of RMB1,574.23 million or 55.80% from RMB2,821.44 million for the year ended 31 December 2016. Such increase was mainly due to the expansion of the Group’s gold lease business during the Period.

Notes Payable

For the six months ended 30 June 2017, the notes payable by the Group amounted to RMB317.50 million, representing a decrease of RMB342.50 million or 51.89% from RMB660.00 million for the year ended 31 December 2016. Such decrease was mainly due to the repayment of notes by the Group upon their maturity during the period.

Taxes Payable

For the six months ended 30 June 2017, the taxes payable by the Group amounted to RMB835.92 million, representing an increase of RMB778.06 million or 1,344.70% from RMB57.86 million for the year ended 31 December 2016. Such increase was mainly due to the M&A carried out by the Group during the period.

Other Payables

For the six months ended 30 June 2017, the other payables of the Group amounted to to RMB519.39 million, representing a decrease of RMB897.38 million or 63.34% from RMB1,416.78 million for the year ended 31 December 2016. Such decrease was mainly due to the actual payment of compensation due to Congo government..

Other Non-Current Liabilities

For the six months ended 30 June 2017, the other non-current liabilities of the Group amounted to RMB8,174.70 million, representing an increase of RMB7,536.27 million or 1,180.43% from RMB638.44 million for the year ended 31 December 2016. Such increase was primarily because the Group entered into an agreement with BHR group on repurchasing 24% interests in TFM indirectly invested by BHR during the period and thereupon recognized other non-current liabilities.

Gearing Ratio

The gearing ratio (total liabilities divided by total assets) of the Group increased to 69.99% for the six months ended 30 June 2017 from 61.05% for the year ended 31 December 2016. Such increase was mainly due to the increase in long-term liabilities arising from the acquisition of 24% minority interests in TFM.

Cash Flow

For the six months ended 30 June 2017, the Group had cash and cash equivalents of RMB11,290.16 million, representing an increase of RMB2,869.95 million or 34.08% from RMB8,420.21 million for the year ended 31 December 2016.

For the six months ended 30 June 2017, the Group had net cash inflow of RMB3,481.41 million from operating activities; net cash inflow of RMB587.44 million from investing activities; and net cash inflow of RMB-975.67 million from financing activities.

24 2017 INTERIM REPORT

POSSIBLE RISKS

1. Exposure To Risks Related To Price Fluctuations Of Principal Products

The revenue of the Company primarily comes from the sales of non-ferrous metals and phosphorus products, mainly including ferromolybdenum, tungsten concentrates, copper concentrates, electrolytic copper, cobalt hydroxide, ferroniobium, phosphate fertilizer and other related products, and its operating results are largely subject to fluctuations in the market prices thereof. At the same time, the NPM Copper/Gold Mine of the Company has sales of gold as by-product. Accordingly, the price fluctuations in gold will also have an impact on the Company. Since the fluctuations in the costs of mining and smelting relevant resources are relatively insignificant, the Company’s profit and profit margin in the reporting period are closely related to the price trend of the commodities. If there is a significant fluctuation in the prices of related resource products and gold in the future, the operating results of the Company will become unstable. In particular, if the prices of related resource products record sharp decreases, the operating results of the Company will fluctuate significantly.

Given the relatively significant fluctuations in the short-term prices of copper and gold products and the existence of products in transit, rolling settlement and other factors, the financial statements of the Company and related subsidiaries recorded certain volatilities. Therefore, the 2016 Annual General Meeting authorized the Board of Directors to determine and carry out specific matters on the hedging of copper and gold products in line with market conditions, production plans and pursuant to the “Hedging Management System” of the Company, within the scope of total annual output planned on the basis of equity interests.

2. Exposure To Risks Related To Reliance On Mineral Resources

As the primary operation of the Company is mineral resources exploitation, the Company is highly dependent on mineral resources. The retained reserves and grade of mineral resources directly affect the Company’s operation and development. The exploitation of mineral reserves with relatively low grade may be economically infeasible if the cost of production rises due to fluctuations in the market price of resource products, drop in the recovery rate, inflation or other factors, or due to restrictions caused by technical problems and natural conditions such as weather and natural disasters in the process of mining. In this scenario, full utilization of the retained reserves of the Company cannot be guaranteed and the production capacity of the Company might be affected.

3. Exposure To Risks Related To Production Safety Or Natural Disasters

The Company engages in the businesses of mining and processing mineral resources. The Company invested substantial resources in production safety, established a relatively sound management body, personnel and systems for production safety, and continuously pushed forward the safety standardization management to form a relatively complete system of production safety management, prevention and supervision. However, safety incidents may still occur. As a mineral resources exploiter, large amounts of barren rocks and tail slags are produced in the production process. If the management of slag discharge fields and tailing storage is inefficient, small scale of disaster may occur. The Company is required to use explosives in the mining process. If there are defects in the management of storage and use of such materials, there may be possible risk of causalities. In addition, tailing storage and slag discharge fields may be damaged if serious natural disaster happens such as torrential rain and debris flow.

4. Exposure To Risks Related To Interest Rate

The exposure to fair value interest rate risk of the Company mainly comes from fixed-rate bank borrowings. As the exposure related to fair value interest rate risk of the Company is rare, we currently have no hedging policy for such risk. The risk of changes in cash flows of financial instruments arising from fluctuations in interest rate is mainly related to floating-rate bank borrowings. The Company closely monitors the impact on risk of fluctuations in interest rate on changes in cash flows.

China Molybdenum Co., Ltd. 25

5. Exposure To Risks Related To Exchange Rate

The exchange rate risk exposure of the Company is primarily arising from assets and liabilities held in foreign currencies other than the functional currency, and is mainly associated with USD, HKD, EUR, CAD, RMB, BRL, GBP, CDF and AUD. The principal business operations of domestic subsidiaries of the Company are denominated and settled in RMB; the principal business operations of subsidiaries of the Group in Australia are mainly denominated and settled in AUD or USD; the niobium and phosphates businesses of the Company in Brazil are mainly denominated and settled in USD and BRL; and the copper and cobalt business of the Group in the DRC is mainly denominated and settled in USD and CDF. Therefore, the exposure of the Company to changes in the exchange rates is not significant, as its foreign currency transactions mainly comprise the financing activities of subsidiaries in the mainland and Hong Kong denominated and settled in USD, the operational activities of subsidiaries (whose functional currency is USD) in Australia settled in AUD, the operational activities of subsidiaries (whose functional currency is USD) in Brazil settled in BRL (Brazil) and the operating activities of subsidiaries (whose functional currency is USD) in the DRC settled in CDF.

The exchange risks arising from assets and liabilities with balances denominated in foreign currencies may affect the operating results of the Company. The Company has paid close attention to the effect of the changes in exchange rates on the exchange risks of the Company, and has purchased appropriate forward exchange contracts to avoid exchange risks.

6. Exposure To Risks Related To Policies

The Tenke mining area operated by the Company is located in the DRC which is one of the underdeveloped countries in the world with relatively prominent social problems. If the politics and security circumstances of the DRC deteriorate in the future, it will cause adverse effects on the production and operation of the Company. The foreign assets operational philosophy of the Company underlies the cultivation of positive relations with local government, communities and social organizations. As the political ties between China and the DRC stabilizes and draw ever closer, there is a trend that the government of China encourages outbound investments in the DRC. In order to further reduce economic losses of the Company likely to be incurred by relevant risks in the course of operation, the Company actively procures the purchase of overseas investment insurance.

7.

Exposure To Risks Related To Operation Of Overseas Assets

Through operating the NPM Copper/Gold Mine in Australia, the Company has accumulated certain experience in the operation and management of overseas mineral resources, which offers certain reference for the successful mineral operation in Brazil and the DRC. But significant differences of operational environment and the variation of business attributes in different countries are likely to pose material challenges to asset operation and management in Brazil and the DRC. In addition, as the Company quickens its pace of internationalization, the expansion of its scale as a whole also increases the difficulty in corporate management and operation, including higher requirements of organizational structure, competence of the management and professionalism of the staff. As such, the Company may be affected by the shortage of talents to a certain degree.

26 2017 INTERIM REPORT

ANALYSIS OF MAJOR SUBSIDIARIES

Basic information of major subsidiaries

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----- Start of picture text -----

Way of
Company name Principal businesses Registered capital shareholding Shareholding ratio
----- End of picture text -----

CMOC Mining Pty Limited	Copper and gold	US$346 million	Indirectly	100%
	related products
CMOC DRC Limited	Copper and cobalt	HKD1	Indirectly	100%
	related products
Luxembourg SPV	Niobium and	US$20,000	Indirectly	100%
	phosphates related
	products

Financial Indicators for major subsidiaries during the reporting period

Unit:100 million Yuan Currency: RMB

Company name	Operating income	Operating profit	Netprofit	Total assets	Net assets
CMOC Mining Pty Limited	8.52	1.77	0.90	61.38	25.89
CMOC DRC Limited.	67.61	19.11	12.82	452.36	233.43
Luxembourg SPV	21.50	0.39	0.87	148.62	41.93

China Molybdenum Co., Ltd. 27

EXPLORATION, DEVELOPMENT AND MINING ACTIVITIES

(1) Exploration

NPM Copper/Gold Mine:

Exploration activities: Surface drilling programs were undertaken on EL5801, EL5323, ML1367 and ML1247 with 45 holes completed using two drill rigs. A total of 13,206.7m of drilling was completed during the first half of the year, with 7,293.7m of Diamond core, and 5,913.0m of Reverse Circulation (RC) drilling undertaken.

Niobium/Phosphates Mine in Brazil:

Exploration activities: During the first half of 2017, exploration work for mines in Brazil included 1,853.7 meters of drilling at 21 core holes for phosphates areas and 907.6 meters of drilling at 7 core holes for niobium areas.

Tenke Copper/Cobalt Mine:

Exploration and in-fill progress during the first half of 2017 included 37,985 meters of surface drilling in 227 core holes. Drilling began in February with 6 drills and 2 additional rigs were added in July. Exploration drilling was completed for the Dipeta Syncline, Shadirandzoro, and Kakapidi areas while infill drilling to support geologic modeling for deposit definition and mine planning was completed for the Kansalawile, Kamalondo, Mwadinkomba, Mambilima, Zikule and Sefu deposits, A supplemental drilling renewal proposal was approved for US$15.18 million during the 2nd quarter, resulting in renewed exploration drilling on sulfide targets in the Dipeta Syncline and Kwatebala areas. The renewal plan includes a ground geophysical survey on the eastern Dipeta Syncline to help guide sulfide exploration in that very prospective area.

(2) Development

Sandaozhuang Mine: During the reporting period, the Company did not have any significant development in Sandaozhuang Mine.

Shangfanggou Mine: During the reporting period, the Company did not have any significant development in Shangfanggou Mine.

Xinjiang Mine: During the reporting period, the Company did not have any significant development in Xinjiang Mine.

NPM Copper/Gold Mine: During the reporting period, the Company did not have any significant development in NPM Mine.

Niobium/Phosphates Mine in Brazil: For mines in Brazil, development activity was mainly the removal of waste above the average strip ratio of the mine to expose more ore to be extracted.

Tenke Copper/Cobalt Mine in Congo (DRC): In the first half of 2017, development has been centred on Mambalima with road construction, bridge over the railroad and relocation of production systems from the area.

28 2017 INTERIM REPORT

(3) Mining

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First half of 2017
----- End of picture text -----

Domestic mining activities
Sandaozhuang Molybdenum/Tungsten Mine
Mining volume (kilotonnes)	9,124.00
Overseas mining activities
NPM Copper Mine
Mining volume (kilotonnes)	3,119.10
Brazil Niobium Mine
Mining volume (kilotonnes)	1,388.48
Brazil Phosphates Mine
Mining volume (kilotonnes)	2,794.23
Tenke Copper/Cobalt Mine
Mining volume (kilotonnes)	4,061.98

Remarks:

1. The data above was calculated on basis of the statistics prepared by the Company and had been confirmed by internal experts.

2. During the reporting period, no mining activities were conducted in Xinjiang Mine and Shangfanggou Mine.

3. (4) EXPLORATION, DEVELOPMENT AND MINING EXPENSES

In the PRC:

The mining expenses of Sandaozhuang Mine amounted to RMB238.6176 million; (Note: The above expenses exclude ore processing, same for below)

Overseas:

Unit: million Yuan Currency: US$

Item	Exploration	Development	Mining
Niobium Mine Phosphates Mine Tenke Copper/Cobalt Mine NPM	0.2 0.4 6 3.06	0.7 – 1.7 –	10.9 7.3 108 12.99
Total	9.66	2.4	139.19

China Molybdenum Co., Ltd. 29

DIRECTORS AND SUPERVISORS

As of the date of this report, the Board of the Company consisted of the following 8 directors, and the supervisory committee consisted of the following 3 supervisors. Pursuant to the Company’s articles of association, our Directors and Supervisors have a term of three years and are subject to re-election.

Executive Directors	:	Li Chaochun, Li Faben
Non-Executive Directors	:	Ma Hui, Yuan Honglin, Cheng Yunlei
Independent Non-Executive Directors	:	Bai Yanchun, Xu Shan, Cheng Gordon
Supervisors	:	Kou Youmin, Zhang Zhenhao, Wang Zhengyan

EMPLOYEES

As of 30 June 2017, the Group had approximately 11,403 full-time employees, classified by function and department as follows:

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----- Start of picture text -----

Department Employees Proportion
----- End of picture text -----

Management, administration, finance, sales and other	2,615	22.93%
Quality control, research and development	1,155	10.13%
Production	7,633	66.94%
Total	11,403	100%

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----- Start of picture text -----

Employees Management,
administration,
finance,
sales and other
2,615
(22.93%)
Production
7,633 Quality control,
(66.94%) research anddevelopment
1,155
(10.13%)
----- End of picture text -----

The remuneration policy for the employees of the Company principally consists of a salary point and performance remuneration system, based on employees’ positions and responsibilities and their quantified assessment results. The evaluation of performance remuneration is evaluated in connection with the overall economic effect of the Company and the individual result, which provides a consistent, fair and impartial remuneration system for all the employees. The domestic companies of Group have participated in the social insurance contribution plans introduced by the provincial local governments in the PRC. In compliance with the laws and regulations regarding to the national and local labor and social welfare in the PRC, the Group is required to pay on behalf of its employees a monthly social insurance premium covering pension insurance, medical insurance, unemployment insurance and housing reserve fund. Pursuant to the current applicable PRC local regulations, the percentages of certain insurance policies are as follows: the pension insurance, medical insurance, unemployment insurance and the contribution to housing reserve fund of our PRC employees represent 19%, 7%, 0.7% and 12% of his or her total basic monthly salary respectively. The overseas employees are enrolled in the requisite pension and healthcare plans under the requirements of the laws in the countries where they reside.

30 2017 INTERIM REPORT

SHARE CAPITAL

	As at 30 June 2017	As at 30 June 2017
	Number of shares Amount
	(million shares) RMB in millions
A Shares at a nominal value of RMB0.20 per share H Shares at a nominal value of RMB0.20per share	12,953.73 3,933.47	2,590.75 786.69
Total	16,887.20	3,377.44

The Company completed the Non-Public Issuance of A Shares in July 2017, upon which the share capital is as follows:

	As of the date of this report Number of shares Amount (million shares) RMB in million	As of the date of this report Number of shares Amount (million shares) RMB in million
A Shares at a nominal value of RMB0.20 per share	17,665.77	3,533.15
H Shares at a nominal value of RMB0.20per share	3,933.47	786.69
Total	21,599.24	4,319.85

SUBSTANTIAL SHAREHOLDERS’ INTERESTS IN SHARES AND UNDERLYING SHARES AND SHORT POSITIONS

To the best knowledge of all the Directors and Supervisors, as at 30 June 2017 and after the non-public issuance of A Shares by the Company in July 2017, the persons or companies (other than Directors, the chief executives or Supervisors of the Company) who had interests or short positions in the shares and underlying shares of the Company which would fall to be disclosed under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance (“ SFO ”) or who were deemed to be directly or indirectly interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company are as follows:

Name	Number of shares held	Capacity	Class of Share	Approximate percentage of shareholding in relevant class of shares as at 30 June 2017	Approximate percentage of shareholding in relevant class of shares as of the date of this report
LMG Guohong Group CFC	5,329,780,425 5,329,780,425 5,030,220,000 303,000,000(L)	Beneficial owner Interest in controlled corporation Beneficial owner Interest in controlled corporation	A Share A Share A Share H Share	41.14% 41.14% 38.83% 7.70%	30.17% 30.17% 28.47% 7.70%

China Molybdenum Co., Ltd. 31

Name	Number of shares held	Capacity	Class of Share	Approximate percentage of shareholding in relevant class of shares as at 30 June 2017	Approximate percentage of shareholding in relevant class of shares as of the date of this report
Cathay Hong Kong(1)	303,000,000(L)	Beneficial owner	H Share	7.70%	7.70%
Yu Yong(2)	5,030,220,000	Interest in	A Share	38.83%	28.47%
		controlled
		corporation
	303,000,000(L)	Interest in	H Share	7.70%	7.70%
		controlled
		corporation

(L) – Long position

Notes:

(1) Cathay Hong Kong is a wholly-owned subsidiary of CFC in Hong Kong.

(2) Mr. Yu Yong holds 99% interest in CFC.

Save as disclosed above, during the reporting period, the Directors were not aware of any other person (other than Directors, chief executives or Supervisors of the Company) who had interests or short positions in the shares and underlying shares of the Company as recorded in the register required to be kept under section 336 of the SFO.

DIRECTORS’, CHIEF EXECUTIVES’ AND SUPERVISORS’ INTERESTS AND SHORT POSITIONS IN SHARES

As of 30 June 2017, details of the shareholdings of A Shares by the current Directors, Supervisors and management of the Company are as follows:

Name	Number of shares held (shares)	Percentage of shareholding in the total issued share capital (%)
Li Chaochun	1,587,692	0.009
Li Faben	1,064,400	0.006
Yuan Honglin	1,050,600	0.006
Zhang Zhenhao	1,063,500	0.006
Gu Meifeng	531,600	0.003
JiangZhongqiang	532,500	0.003
Total	5,830,292	0.033

32 2017 INTERIM REPORT

Save as disclosed above, so far as was known to the Directors, during the reporting period, none of the Directors, chief executives, management and Supervisors and their respective associates had interests or short positions in the shares, underlying shares and debentures of the Company or its associated corporations (within the meaning of Part XV of the SFO, which required the Company and Hong Kong Stock Exchange to be notified pursuant to Part XV of the SFO or which were required to be entered into the register required to be kept under Section 352 of the SFO or as otherwise notified to the Company and Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) as set out in Appendix 10 of the Rules Governing the Listing of Securities on the Hong Kong Listing Rules.

DIVIDENDS

At the eleventh meeting of the fourth session of the Board held on 26 August 2017, the Board resolved not to declare any interim dividend for the six months ended 30 June 2017 (for six months ended 30 June 2016: Nil).

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any listed securities of the Company for the six months ended 30 June 2017.

CORPORATE GOVERNANCE

The Group has strived to uphold high standard of corporate governance to safeguard the interests of shareholders, to enhance corporate value and implement the accountability for the Group. During the six months ended 30 June 2017, save as disclosed below, in the opinion of the Board, the Company has complied with the code provisions of the Corporate Governance Code (the “ Code Provisions ”) set out in Appendix 14 to the Listing Rules.

Pursuant to the Code Provision E.1.2, the chairman of the Board should invite the chairmen of its Board committees to attend the annual general meeting. In their absence, the chairman of the Board should invite another committee member (or failing this his/her duly appointed delegate), to attend. The chairman and other members of the Audit Committee were unable to attend the annual general meeting of the Company held on 28 June 2017 due to other business commitments. The attendance of all chairmen of the Strategic Committee, Remuneration Committee, Nomination Committee and Supervisory Committee and the chief financial officer was sufficient for (i) answering the questions raised by the shareholders who attended the annual general meeting and (ii) communicating effectively with shareholders who attended the annual general meeting. The Company will strive to optimize the planning and procedures of annual general meetings, give adequate time to all Directors to accommodate their work arrangement and provide all necessary support for their presence and participation at general meetings such that all Directors will be able to attend future annual general meetings of the Company.

BOARD OF DIRECTORS

The Board of the Company consists of 8 Directors, including 2 executive Directors, 3 non-executive Directors and 3 independent non-executive Directors. For the six months ended 30 June 2017, the Board convened a total of ten meetings (with an attendance rate of 100%).

SUPERVISORY COMMITTEE

The Company has a supervisory committee comprising 3 Supervisors to exercise supervision over the Board and its members as well as members of the senior management; and to prevent them from abusing their powers and authorities and jeopardizing the legal interests of the shareholders, the Company and its employees. The supervisory committee convened a total of three meetings for the six months ended 30 June 2017 (with an attendance rate of 100%).

China Molybdenum Co., Ltd. 33

MODEL CODE FOR SECURITIES TRANSACTION MADE BY DIRECTORS AND EMPLOYEES

The Company has adopted the Model Code as set out in Appendix 10 of the Hong Kong Listing Rules in respect of dealings in the Company’s securities by Directors. Specific enquiry has been made on all Directors and they have confirmed that the required standards set out in the Model Code have been complied with throughout the six months ended 30 June 2017. The Company has also formulated written guidelines equally stringent as the Model Code for securities transactions by employees of the Company (the “ Employees Written Guidelines ”) who are likely to be in possession of unpublished inside information of the Company. No incident of non-compliance against the Employees Written Guidelines by the employees has been noted by the Company after making reasonable enquiry.

REVIEW OF AUDIT COMMITTEE

The Terms of Reference and the Operation Rules of the Audit Committee mainly based on “A Guide for Effective Audit Committees” issued by the Hong Kong Institute of Certified Public Accountants have been adopted by the Board. The Audit Committee provides an important connection between the Board and the Company’s auditors in matters falling within the scope of the audit of the Company and the Group. The Audit Committee will review the effectiveness of the external audit as well as risk management and internal control systems, evaluate risks and provide advice and guidance to the Board. The current Audit Committee comprises two independent non-executive Directors and one non-executive Director, namely, Mr. Xu Shan (chairman of the committee), Mr. Cheng Gordon and Mr. Yuan Honglin. The Audit Committee has reviewed the unaudited financial statements of the Company for the six months ended 30 June 2017 and considered that the statements complied with relevant accounting standards and that the Company has made adequate disclosures.

NON-COMPETE AGREEMENTS

On 6 September 2006, non-compete agreements were entered into between the Company and each of CFC and LMG, respectively. CFC and LMG agreed not to compete with the Company in businesses and granted the Company certain options and rights of first refusal pursuant to the non-compete agreements. Details of the non-compete agreements have already been disclosed under the section headed “Relationship with Controlling Shareholders – Non-Compete Agreements” in the prospectus of the Company dated 13 April 2007. CFC and LMG issued Non-competition Undertaking Letters (《避免 同業競爭承諾函》) to the Company on 30 January 2011 and 18 May 2011 respectively, and undertook not to compete in the businesses that the Company operates or further develops. Details of the Non-competition Undertaking Letters had been disclosed under Section VII headed “Peer Competition and Connected Transactions” in the prospectus of A Shares dated 8 October 2012. CFC (together with its party acting in concert, Cathay Hong Kong) and Luoyang Guohong Group issued the Acquisition Report of China Molybdenum Co., Ltd.* on 23 January 2014 and 29 November 2013, respectively, pursuant to which each of them undertook not to compete with the Company in the businesses the Company operated. Details of the Acquisition Reports were disclosed in the announcements of the Company dated 23 January 2014 and 27 January 2014.

On 18 April 2017, the Company received from LMG the Notice on Gratuitous Transfer of State-Owned Shares by Luoyang Non-ferrous Mining Group Co., Ltd. (洛陽有色礦業集團有限公司), to transfer the 100% equities in Luoyang Guo’an Trade Co., Ltd. (the “ Luoyang Guo’an ”) held by Luoyang Non-ferrous Mining Group Co., Ltd. (洛陽有色礦業集團有限公司) to LMG free of charge, as from which, LMG will perform the duty as the shareholder. Upon LMG’s acceptance of the transfer, in accordance with the Non-Competition Undertakings and to avoid actual competition between LMG and the Company upon actual commencement of production operation activities by Luoyang Fuchuan Mining Co., Ltd., LMG made an undertaking to the Company on 18 April 2017, pursuant to which, LMG undertakes to the Company that, after LMG obtains the Luoyang Guo’an Interests (and indirectly holds the equities of Luoyang Fuchuan Mining Co., Ltd.) and before Luoyang Fuchuan Mining Co., Ltd. commences production operations, LMG will procure the sale of the Luoyang Guo’an Interests, and the Company shall have the pre-emptive right to purchase Luoyang Guo’an Interests, or shall resolve the issue of competing business through comprehensive use of asset restructuring, equity replacement, business adjustment and other similar methods as indicated in the “Guiding Opinions on Promoting the Resolution of Horizontal Competition and the Regulation of Affiliated Transactions by the State-owned Shareholders and the Listed Companies under Their Control” (《關於推動國 有股東與所控股上市公司解決同業競爭規範關聯交易的指導意見》) jointly issued by the State-owned Assets Supervision and Administration Commission of the State Council (國務院國有資產監督管理委員會) and the CSRC.

34 2017 INTERIM REPORT

I. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET (30 June 2017)

Unit: 0’000 Yuan Currency: RMB

Item		Note	30 June 2017	31 December 2016
Current assets:
Cash and cash equivalents		VI(1)	1,254,287.66	997,022.41
Financial assets measured at fair value through
profit or loss		VI(2)	3,806.90	5,559.90
Note receivables		VI(3)	137,216.38	95,086.16
Account receivables		VI(4)	194,748.91	146,180.72
Prepayments		VI(5)	31,106.04	29,557.21
Interests receivable		VI(6)	2,227.86	4,049.28
Other receivables		VI(7)	84,878.81	114,703.93
Inventories		VI(8)	517,815.48	508,276.75
Non-current assets due within one year		VI(9)	73,488.44	–
Other current assets		VI(10)	41,260.11	79,859.26
Total current assets			2,340,836.59	1,980,295.62
Non-current assets:
Available-for-sale financial assets		VI(11)	288,955.98	300,060.25
Long-term equity investments		VI(12)	117,091.12	119,149.93
Fixed assets		VI(13)	2,610,100.87	2,727,292.13
Construction in progress		VI(14)	83,795.14	69,535.90
Inventories		VI(8)	438,306.24	426,961.79
Intangible assets		VI(15)	2,297,756.82	2,450,131.40
Goodwill		VI(16)	108,885.07	111,480.36
Long-term deferred expenses		VI(17)	15,430.22	11,524.74
Deferred tax assets		VI(18)	39,209.02	43,212.14
Other non-current assets		VI(19)	457,674.43	575,039.60
Total non-current assets			6,457,204.91	6,834,388.24
Total assets			8,798,041.50	8,814,683.86

China Molybdenum Co., Ltd. 35

Item		Note	30 June 2017	31 December 2016
Current liabilities:
Short-term borrowings		VI(20)	480,235.50	437,243.35
Financial liabilities at fair value through profit or loss		VI(21)	439,567.27	282,144.18
Notes payable		VI(22)	31,750.00	66,000.00
Account payables		VI(23)	89,050.26	74,150.83
Receipts in advance		VI(24)	23,087.90	5,186.75
Employee benefits payable		VI(25)	37,185.92	35,482.22
Taxes payable		VI(26)	83,592.19	5,786.12
Interests payable		VI(27)	18,558.65	18,368.42
Dividends payable		VI(28)	2,788.58	2,788.58
Other payables		VI(29)	51,939.26	141,677.58
Non-current liabilities due within one year		VI(30)	287,326.49	258,449.74
Other current liabilities		VI(31)	211,240.94	270,889.72
Total current liabilities			1,756,322.96	1,598,167.49
Non-current liabilities:
Long-term borrowings		VI(32)	2,246,484.40	2,337,687.99
Bonds payable		VI(33)	200,000.00	200,000.00
Provisions		VI(34)	180,509.96	175,779.37
Deferred tax liabilities		VI(18)	957,173.10	1,005,512.79
Other non-current liabilities		VI(35)	817,470.22	63,843.53
Total non-current liabilities			4,401,637.68	3,782,823.68
Total liabilities			6,157,960.64	5,380,991.17
Equity
Share capital		VI(36)	337,743.97	337,743.97
Capital reserve		VI(37)	1,072,848.35	1,072,030.66
Other comprehensive income		VI(38)	354.95	28,285.43
Special reserve		VI(39)	647.34	857.01
Surplus reserve		VI(40)	84,009.89	84,009.89
Retained earnings		VI(41)	375,287.54	350,878.86
Total equity attributable to owners of the Company			1,870,892.04	1,873,805.82
Non-controllinginterests			769,188.82	1,559,886.87
Total equity			2,640,080.86	3,433,692.69
Total liabilities and equity			8,798,041.50	8,814,683.86

Legal representative: Li Chaochun

Person in charge of accounting: Gu Meifeng

Person in charge of accounting department: Zhang Hongwei

36 2017 INTERIM REPORT

BALANCE SHEET OF THE COMPANY (30 June 2017)

Unit: 0’000 Yuan Currency: RMB

Item		Notes	30 June 2017	31 December 2016
Current assets:
Cash and cash equivalents			635,696.06	583,587.79
Financial assets measured at fair value through
profit or loss			3,806.90	5,559.90
Bills receivable			135,112.10	92,107.49
Account receivables		XVII(1)	72,984.78	74,302.22
Prepayments			3,733.41	2,579.33
Interests receivable			21,403.80	19,041.43
Dividends receivable			4,400.61	4,400.61
Other receivables		XVII(2)	533,912.04	560,144.96
Inventories			17,023.72	17,938.57
Non-current assets due within one year			18,488.44	0.00
Other current assets			5,047.60	38,406.03
Total current assets			1,451,609.46	1,398,068.33
Non-current assets:
Available-for-sale financial assets			20,000.49	20,000.49
Long-term equity investments		XVII(3)	1,691,761.09	1,691,984.32
Fixed assets			138,548.90	146,781.75
Construction in progress			10,797.17	5,015.61
Intangible assets			42,514.68	43,204.26
Long-term deferred expenses			14,194.38	14,186.56
Other non-current assets			212,067.84	254,460.83
Total non-current assets			2,129,884.55	2,175,633.82
Total assets			3,581,494.01	3,573,702.15

China Molybdenum Co., Ltd. 37

Item		Notes	30 June 2017	31 December 2016
Current liabilities:
Short-term borrowings			393,589.10	395,621.35
Financial liabilities measured at fair value
through profit or loss			388,565.66	277,583.79
Account payables			13,937.39	10,750.17
Receipts in advance			31.30	20.89
Employee benefits payable			3,481.65	4,798.84
Taxes payable			-2,807.54	-3,477.46
Interests payable			16,712.64	13,924.63
Other payables			72,617.29	70,816.85
Non-current liabilities due within one year			217,948.75	212,958.76
Other current liabilities			219,440.18	279,380.23
Total current liabilities			1,323,516.42	1,288,378.05
Non-current liabilities:
Long-term borrowings			301,606.40	307,831.20
Bonds payable			200,000.00	200,000.00
Provisions			4,757.04	4,757.04
Deferred tax liabilities			1,889.64	1,513.88
Other non-current liabilities			34,410.56	34,429.84
Total non-current liabilities			542,663.64	548,531.96
Total liabilities			1,866,180.06	1,836,910.01
Equity
Share capital			337,743.97	337,743.97
Capital reserve			1,072,030.66	1,072,030.66
Special reserve			582.14	784.95
Surplus reserve			84,009.89	84,009.89
Retained earnings			220,947.29	242,222.67
Total equity			1,715,313.95	1,736,792.14
Total liabilities and equity			3,581,494.01	3,573,702.15

Legal representative: Li Chaochun

Person in charge Person in charge of accounting: of accounting department: Gu Meifeng Zhang Hongwei

38 2017 INTERIM REPORT

CONSOLIDATED INCOME STATEMENT (January–June 2017)

Unit: 0’000 Yuan Currency: RMB

			Six Months Ended 30 June	Six Months Ended 30 June
Item		Notes	2017	2016
I.	Total operating revenue		1,165,494.06	225,985.16
	Including: Operating revenue	VI(42)	1,165,494.06	225,985.16
II.	Total operating costs		926,061.81	182,246.22
	Including: Operating costs	VI(42)	752,158.96	140,794.61
	Taxes and surcharges	VI(43)	14,261.87	8,541.55
	Selling expenses	VI(44)	10,119.28	3,734.49
	Administrative expenses	VI(45)	46,339.87	18,122.52
	Financial expenses	VI(46)	102,613.52	8,899.75
	Assets Impairment loss	VI(47)	568.32	2,153.29
	Add: (Loss)/gain on changes of fair value	VI(48)	-32,601.27	3,498.28
	Investment income	VI(49)	4,558.79	13,948.14
	Including: Investment income in associates
	and joint ventures		2,176.77	395.42
III.	Operating profit		211,389.77	61,185.37
	Add: Non-operating income	VI(50)	589.65	353.98
	Less: Non-operating expenses	VI(51)	2,974.99	1,993.17
IV.	Total profit before tax		209,004.43	59,546.18
	Less: Income tax expenses	VI(52)	72,059.66	9,389.94
V.	Net profit		136,944.77	50,156.24
	Net profit attributable to owners of the parent
	company		83,513.87	51,190.63
	Non-controlling interests		53,430.90	-1,034.39
VI.	Other comprehensive income, net of tax	VI(53)	-63,703.57	-5,546.20
	Other comprehensive income attributable to owners
	of the Company, net of tax		-27,930.48	-5,546.20
	(1) items that will not be reclassified subsequently
	to profit or loss
	(2) Items that may be classified subsequently
	to profit or loss		-27,930.48	-5,546.20
	1. Gains/(losses) on change in fair value of
	available-for-sale financial assets		-158.62	-12,389.80
	2. Exchange difference on translation of financial
	statements in foreign currencies		-27,771.86	6,843.60
	Other comprehensive income (net of tax) attributable
	to non-controlling interests		-35,773.09	–
VII.	Total comprehensive income		73,241.20	44,610.02
	Attributable to owners of the parent company		55,583.39	45,644.42
	Non-controlling interests		17,657.81	-1,034.40
VIII. Earnings per share
	(I) Basic (yuan per share)		0.05	0.03
	(II) Diluted (yuan per share)

Person in charge of accounting department: Zhang Hongwei

Person in charge of accounting: Gu Meifeng

Legal representative: Li Chaochun

China Molybdenum Co., Ltd. 39

INCOME STATEMENT OF THE COMPANY (January–June 2017)

Unit: 0’000 Yuan Currency: RMB

			Six Months Ended 30 June	Six Months Ended 30 June
Item		Notes	2017	2016
I.	Operating revenue	XVII(4)	136,325.20	115,048.22
	Less: Operating costs	XVII(4)	61,003.10	56,185.38
	Taxes and surcharges		10,757.44	8,259.97
	Selling expenses		60.91	72.95
	Administrative expenses		14,084.72	9,680.20
	Financial expenses		11,641.37	-3,660.17
	Assets Impairment loss		–	137.27
	Add: Gains on change in fair values loss		624.27	3,498.28
	Investment income		4,752.60	5,557.04
	Including: In vestment income in associates
	and joint ventures	XVII(5)	2,176.77	892.09
II.	Operating profit		44,154.53	53,427.94
	Add: Non-operating revenue		190.29	344.88
	Less: Non-operating expenses		2,011.82	1,948.62
III.	Total profit		42,333.00	51,824.20
	Less: Income tax expenses		4,503.19	5,799.94
IV.	Net profit		37,829.81	46,024.26
V.	Other comprehensive income, net of tax
VI	Total comprehensive income		37,829.81	46,024.26

Legal representative: Li Chaochun

Person in charge of accounting: Gu Meifeng

Person in charge of accounting department: Zhang Hongwei

40 2017 INTERIM REPORT

CONSOLIDATED CASH FLOW STATEMENT (January–June 2017)

Unit: 0’000 Yuan Currency: RMB

				Six Months Ended 30 June	Six Months Ended 30 June	Six Months Ended 30 June
Item			Note	2017		2016
I.	Cash flows from operating activities:
	Cash received from sales of goods and rendering of
	services			1,217,412.48		196,850.23
	Cash received relatingto other operatingactivities		VI(54)	13,695.58		15,651.14
	Sub-total of cash inflows from operatingactivities			1,231,108.06		212,501.37
	Cash paid for goods and services			594,983.20		88,351.93
	Cash paid to and on behalf of employees			108,875.19		28,997.50
	Cash paid for various types of taxes			126,649.63		29,968.34
	Cashpaid relatingto other operatingactivities		VI(54)	52,458.89		11,687.85
	Sub-total of cash outflows from operatingactivities			882,966.91		159,005.62
	Net cash flow from operating activities			348,141.15		53,495.75
II.	Cash flows from investing activities:
	Cash received from recovery of investments			119,037.06		254,537.28
	Cash received from investment income			20,921.55		16,995.09
	Net cash received from disposals of fixed assets,
	intangible assets and other long-term assets			33.40		17.40
	Cash received relatingto other investingactivities		VI(54)	2,631.51		–
	Sub-total of cash inflows from investingactivities			142,623.52		271,549.77
	Cash paid to acquire or construct fixed assets,
	intangible assets and other long-term assets			40,196.28		15,486.64
	Cash paid to acquire investments			35,396.60		191,982.25
	Cashpaid relatingto other investingactivities		VI(54)	8,286.74		53.72
	Sub-total of cash outflows from investingactivities			83,879.62		207,522.61
	Net cash flow from investing activities			58,743.90		64,027.16

China Molybdenum Co., Ltd. 41

				Six Months Ended	Six Months Ended	30 June
Item			Note	2017		2016
III.	Cash flows from financing activities:
	Cash receipts from borrowings			275,178.57		677,848.05
	Cash received relatingto other financingactivities		VI(54)	154,552.61		107,071.96
	Sub-total of cash inflows from financingactivities			429,731.18		784,920.01
	Repayments of borrowings			325,855.80		461,004.29
	Cash paid for distribution of dividends or profits and
	settlement of interests			151,594.20		8,650.10
	Cashpaid relatingto other financingactivities		VI(54)	49,848.62		98,278.07
	Sub-total of cash outflows from financingactivities			527,298.62		567,932.46
	Net cash flow from financing activities			-97,567.44		216,987.55
IV.	Impact of exchange rate changes on cash and
	cash equivalents			-22,322.32		1,642.00
V.	Net increase in cash and cash equivalents			286,995.29		336,152.46
	Add: Openingbalance of cash and cash equivalents			842,020.81		898,216.23
VI.	Closing balance of cash and cash equivalents			1,129,016.10		1,234,368.69

Legal representative: Li Chaochun

Person in charge of accounting: Gu Meifeng

Person in charge of accounting department: Zhang Hongwei

42 2017 INTERIM REPORT

CASH FLOW STATEMENT OF THE COMPANY

Unit: 0’000 Yuan Currency: RMB

				Six Months Ended 30 June	Six Months Ended 30 June	Six Months Ended 30 June
Items			Note	2017		2016
I.	Cash flows from operating activities:
	Cash received from sales of goods and rendering
	of services			146,515.65		108,964.59
	Tax refund			–		13,039.82
	Cash received relatingto other operatingactivities			6,818.63		–
	Sub-total of cash inflows from operatingactivities			153,334.28		122,004.41
	Cash paid for goods and services			22,370.74		37,600.88
	Cash paid to and on behalf of employees			13,692.97		14,673.29
	Cash paid for various types of taxes			30,366.69		23,158.82
	Cashpaid relatingto other operatingactivities			55,279.14		16,725.10
	Sub-total of cash outflows from operatingactivities			121,709.54		92,158.09
	Net cash flow from operating activities			31,624.74		29,846.32
II.	Cash flows from investing activities:			–		–
	Cash received from recovery of investments			158,000.00		173,500.00
	Cash received from investment income			11,760.92		15,855.43
	Cash received relatingto other investingactivities			88,351.23		80,924.12
	Sub-total of cash inflows from investingactivities			258,112.15		270,279.55
	Cash paid to acquire or construct fixed assets,
	intangible assets and other long-term assets			2,379.89		2,006.72
	Cash paid to acquire investments			68,530.00		118,800.00
	Cashpaid relatingto other investingactivities			88,000.00		268,053.12
	Sub-total of cash outflows from investingactivities			158,909.89		388,859.84
	Net cash flow from investing activities			99,202.26		-118,580.29

China Molybdenum Co., Ltd. 43

				Six Months Ended	Six Months Ended	30 June
Items			Note	2017		2016
III.	Cash flows from financing activities:			–		–
	Cash received from borrowings			231,089.10		634,664.48
	Other Cash receipts relatingto financingactivities			152,368.73		107,063.48
	Sub-total of cash inflows from financingactivities			383,457.83		741,727.96
	Repayments of borrowings			288,232.16		347,638.07
	Cash paid for distribution of dividends or profits and
	settlement of interests			98,740.66		2,619.11
	Cashpaid relatingto other financingactivities			45,284.73		98,278.07
	Sub-total of cash outflows from financingactivities			432,257.55		448,535.25
	Net cash flow from financing activities			-48,799.72		293,192.71
IV.	Effect of exchange rate changes on cash and
	cash equivalents			-188.98		-608.52
V.	Net increase in cash and cash equivalents			81,838.30		203,850.22
	Add: Openingbalance of cash and cash equivalents			453,586.18		816,315.65
VI.	Closing balance of cash and cash equivalents			535,424.48		1,020,165.87

Person in charge Legal representative: of accounting: Li Chaochun Gu Meifeng

Person in charge of accounting department: Zhang Hongwei

44 2017 INTERIM REPORT

CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (January–June 2017)

Unit: 0’000 Yuan Currency: RMB

==> picture [476 x 48] intentionally omitted <==

----- Start of picture text -----

Attributable to owners of the parent company
Less: Other Non-
Treasury comprehensive Special Surplus Retained controlling Total
Item Share capital Capital reserve Shares income reserve reserve earnings interests equity
----- End of picture text -----

I. Balance at the end of last year		337,743.97		1,072,030.66		–		28,285.43		857.01		84,009.89		350,878.86		1,559,886.87		3,433,692.69
II. Opening balance for the year		337,743.97		1,072,030.66		–		28,285.43		857.01		84,009.89		350,878.86		1,559,886.87		3,433,692.69
III. Changes for the period
(decrease is indicated by “–”)		–		817.69		–		-27,930.48		-209.67		–		24,408.68		-790,698.05		-793,611.83
(I) Total comprehensive income		–		–		–		-158.62		–		–		83,513.87		52,740.28		136,095.53
(II) Capital invested and reduced by owners		–		817.69		–		-27,771.86		–		–		–		-810,020.41		-836,974.58
4. Other		–		817.69		–		-27,771.86		–		–		–		-810,020.41		-836,974.58
(III) Profit distribution		–		–		–		–		–		–		-59,105.19		-33,411.34		-92,516.53
3. Distribution to owners (or shareholders)		–		–		–		–		–		–		-59,105.19		-33,411.34		-92,516.53
(IV) Transfer within owners’ equity		–		–		–		–		–		–		–		–		–
(V) Special reserve		–		–		–		–		-209.67		–		–		-6.58		-216.25
1. Provision in the period		–		–		–		–		4,989.79		–		–		70.31		5,060.10
2. Amount utilized in the period		–		–		–		–		5,199.46		–		–		76.89		5,276.35
IV. Balance at the end of the period		337,743.97		1,072,848.35		–		354.95		647.34		84,009.89		375,287.54		769,188.82		2,640,080.86
						Attributable	to owners of the parent company
						Less:		Other								Non-
				Capital		Treasury		comprehensive		Special		Surplus		Retained		controlling		Total
Item		Share capital		reserve		Shares		income		reserve		reserve		earnings		interests		equity
I. Balance at the end of last year		337,743.97		1,072,030.66		–		-63,249.27		11,520.07		78,605.01		298,697.68		46,320.99		1,781,669.11
II Opening balance for the year		337,743.97		1,072,030.66		–		-63,249.27		11,520.07		78,605.01		298,697.68		46,320.99		1,781,669.11
III. Changes for the period
(decrease is indicated by “–”)		–		–		–		-5,546.20		-6,800.46		–		8,972.62		-1,000.98		-4,375.02
(I) Total comprehensive income		–		–		–		-5,546.20		–		–		51,190.62		-1,034.40		44,610.02
(III) Profit distribution		–		–		–		–		–		–		-42,218.00		–		-42,218.00
1. Distribution to owners (or shareholders)		–		–		–		–		–		–		-42,218.00				-42,218.00
(V) Special reserve		–		–		–		–		-6,800.46		–		–		33.42		-6,767.04
1. Provision in the period		–		–		–		–		5,600.72		–		–		79.69		5,680.41
2. Amount utilized in the period		–		–		–		–		12,401.18		–		–		46.27		12,447.45
IV. Balance at at the end of the period		337,743.97		1,072,030.66		–		-68,795.47		4,719.61		78,605.01		307,670.30		45,320.01		1,777,294.09

Legal representative: Li Chaochun

Person in charge of accounting: Gu Meifeng

Person in charge of accounting department: Zhang Hongwei

China Molybdenum Co., Ltd. 45

STATEMENT OF CHANGES IN OWNERS’ EQUITY OF THE COMPANY (January–June 2017)

Unit: 0’000 Yuan Currency: RMB

Item	Share capital	Capital reserve	Special reserve	Surplus reserve	Retained earnings	Total equity
I. Balance at the end of last year	337,743.97	1,072,030.66	784.95	84,009.89	242,222.67	1,736,792.14
II. Opening balance for the year	337,743.97	1,072,030.66	784.95	84,009.89	242,222.67	1,736,792.14
III. Changes for the period
(decrease is indicated by “–”)	–	–	-202.81	–	-21,275.38	-21,478.19
(I) Total comprehensive income	–	–	–	–	37,829.81	37,829.81
(III) Profit distribution	–	–	–	–	-59,105.19	-59,105.19
1. Distribution to owners (or shareholders)	–	–	–	–	-59,105.19	-59,105.19
(IV) Transfer within owner’s equity
(V) Special reserve	–	–	-202.81	–	–	-202.81
1. Provision in the period	–	–	4,311.11	–	–	4,311.11
2. Amount utilized in the period	–	–	4,513.92	–	–	4,513.92
IV. Balance at the end of the period	337,743.97	1,072,030.66	582.14	84,009.89	220,947.29	1,715,313.95
		Capital	Special	Surplus	Retained	Total
Item	Share capital	reserve	reserve	reserve	earnings	equity
I. Balance at the end of last year	337,743.97	1,072,030.66	11,485.37	78,605.01	235,796.75	1,735,661.76
II. Opening balance for the year	337,743.97	1,072,030.66	11,485.37	78,605.01	235,796.75	1,735,661.76
III. Changes for the period
(decrease is indicated by “–”)	–	–	-6,835.25	–	3,806.27	-3,028.98
(I) Total comprehensive income	–	–	–	–	46,024.27	46,024.27
(II) Profit distribution	–	–	–	–	-42,218.00	-42,218.00
1. Distribution to owners (or shareholders)	–	–	–	–	-42,218.00	-42,218.00
(III) Special reserve	–	–	-6,835.25	–	–	-6,835.25
1. Provision in the period	–	–	3,960.94	–	–	3,960.94
2. Amount utilized in the period	–	–	10,796.18	–	–	10,796.19
IV. Balance at the end of the period	337,743.97	1,072,030.66	4,650.12	78,605.01	239,603.02	1,732,632.78

46 2017 INTERIM REPORT

II. BASIC INFORMATION ABOUT THE COMPANY

1. Company Profile

China Molybdenum Co., Ltd. (the “ Company ”) was incorporated in the People’s Republic of China (“ PRC ”) on 25 August 2006 as a joint-stock limited company in preparation for the listing of the Companies on the Hong Kong Stock Exchange by Luoyang Mining Group Co., Ltd. (“ LMG ”) and Cathay Fortune Corporation (“ CFC ”).

The Company was listed on The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”) on 26 April 2006 (stock code: 03993) and the Shanghai Stock Exchange (the “ SSE ”) on 9 October 2012 (stock code 603993). On 24 July 2017, the Company’s share capital totaled 21,599,240,000 shares after completion of the registration of non-public issuance of A shares, including 17,665,770,000 A shares and 3,933,470,000 H shares with par value of RMB0.2. As at the reporting date, the Company’s share capital totaled RMB4,319.85 million.

The Company which is in the non-ferrous metal mining industry primarily engages in the mining and processing, smelting, deep processing of copper, molybdenum, tungsten, cobalt, niobium, and phosphorus, with a relatively complete and integrated industry chain. It represents one of the top five molybdenum producers and one of the largest tungsten producers in the world. It is also the second largest cobalt and niobium producer and the leading copper producer in the world as well as the second largest phosphate fertilizer producer in Brazil. While solidifying and improving the existing advantages in the industry, the Company is dedicated in investing in and integrating high-quality resources projects on a global scale as well as developing it into an internationalized resources company equipped with global vision and in-depth industrial consolidation capability by leveraging on its advanced management philosophy and team advantages.

III. PREPARATION BASIS OF THE FINANCIAL STATEMENTS

1. Basis of preparation

The Group implements the Accounting Standards for Business Enterprises issued by the Ministry of Finance (including the new and amended Accounting Standards for Business Enterprises issued in 2014) and the relevant regulations. The Group also discloses related financial information in accordance with Preparation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on Financial Reports (2014 Amendment). In addition, the financial statements also include the relevant disclosures required by the Hong Kong Companies Ordinance and the Listing Rules of the Hong Kong Stock Exchange.

2. Going Concern

The Group has performed the evaluation on its ability to continue as a going concern for the six months from 30 June 2017, and no matters or conditions that may cast significant doubts on its ability to continue as a going concern are found. Therefore, the financial statements have been prepared on a going concern basis.

China Molybdenum Co., Ltd. 47

IV. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

There is no change of the Company in accounting policies and accounting estimates compared with the last period.

V. TAXATION

1. Major categories of taxes and tax rates

Category of tax	Basis of tax computation	Tax rate
VAT (note 1)	The Company is registered for Value-Added Tax	Output VAT on sales is calculated at
	(“VAT”). Value-added tax on sales is paid after	17% on revenue according to the
	deducting input VAT on purchases.	relevant requirement of tax laws.
		Gold related products are exempt
		from VAT.
City maintenance and construction tax	Actual turnover tax	7 percent for taxpayers in urban
		districts of cities, 5 percent for
		taxpayers in towns, and 1 percent for
		taxpayers in other areas.
Enterprise income tax	The income tax provision is calculated based on	See below tables
	the accounting results for the year upon certain
	adjustments in accordance with the relevant
	tax laws
Price adjustment fund	Actual turnover tax	(note 2)
Resource tax	Raw ore production or sales volume of	6.5%, 11% collection on ad valorem
	concentrate	basis (note 3)
Mineral resources compensation fee	Mineral sales revenue for the period	Note 2
Educational surcharge	Actual turnover tax	3%
Regional educational surcharge	Actual turnover tax	2%
Australia goods and services tax	Amount of the income from rendering of goods	10% of the sales price of goods o
(“GST”)	and services in Australia less the deductible	services
	purchase cost. It is not required to pay goods
	and services tax for export goods and the
	refund policy of goods and services tax is also
	applicable.
Australia mining royalty	Royalty of mineral resources can be levied by	4% ex-mine value
	volume or by price. If levied by volume, the
	royalty will be levied per the unit of exploited
	minerals. If levied by price, it will be levied
	per 4% of the total value or the sales price of
	exploited minerals.
Brazil social contribution tax and goods	Brazil local social contribution tax (PIS &	The social contribution tax is 9.25% of
circulation tax	CONFINS) and the goods circulation tax (ICMS)	the sales price of goods or services.
	are applicable to AANB and AAFB, of which	The goods circulation tax is 4%–18%
	the tax basis is the balance of income from	of the sales price of goods or
	rendering of goods and services in Brazil less	services. The tax rates imposed by
	the deductible costs. It is not required to pay	the local states of Brazil are different.
	social contribution tax and goods circulation
	tax for export goods.
DRC VAT	VAT of the Democratic Republic of the Congo	The output VAT is calculated at 16%
	(“DRC”) is applicable to TFM.	of the sales amount calculated in
		accordance with the relevant tax
		provisions.

48 2017 INTERIM REPORT

• Note 1: In accordance with the Cai Hui [2016] No. 22 Notice on the Accounting Guidelines on Value Added Tax (hereinafter referred to as “Notice No. 22”) issued by the Ministry of Finance on 3 December 2016, “Business Tax and Surcharge” in the income statement shall be adjusted to “Tax and Surcharge” upon the full implementation of replacing business tax with VAT; the amount of this account includes the consumption tax, city maintenance and construction tax, resource tax, education surcharge and property tax, land use tax, travel tax, stamp duty and other related taxes and fees incurred in operating activities.

• Note 2: Pursuant to the Notice on Matters Related to Disposal of Fund Concerning Charges for Rare Earth, Tungsten and Molybdenum (Cai Shui [2015] No. 53) issued by the Ministry of Finance and State Administration of Taxation, the rate of mineral resources compensation fees in respect to rare earth, tungsten and molybdenum shall be decreased to zero on and after 1 May 2015 on a national basis and collection of price adjustment fund in respect to rare earth, Tungsten and Molybdenum shall be ceased.

• Note 3: Pursuant to the Notice on Implementation of the Reform of Resource Tax of Rare Earth, Tungsten and Molybdenum Featured by Price-based Tax Calculation and Collection (Cai Shui [2015] No. 52) issued by the Ministry of Finance and State Administration of Taxation, the implementation of calculation and collection of molybdenum resources tax shall be changed from volume-based tax to price-based tax on and after 1 May 2015. The applicable rate of Tungsten resources tax is 6.5%. The applicable rate of molybdenum resource tax is 11%.

Name of tax entities	Income tax rate
The Company and its domestic subsidiaries	25%
China Molybdenum (Hong Kong) Company Limited	16.5%
CMOC Co., Ltd	16.5%
CMOC Mining Pty Limited	30%
CMOC Mining Services Pty. Limited	30%
CMOC Sales & Marketing Limited	20%
Copebras Indústria Ltda, Niobras Mineração Ltda	34%
CMOC BRASIL SERVICOS ADMINISTRATIVOS E PARTICIPACOES LTDA.	34%
The subsidiaries of the Group established in Bermuda and the British Cayman Islands.	0%
TFM	30%

China Molybdenum Co., Ltd. 49

2. Tax Incentive

Pursuant to the “Notice of Publishing the Directory of Enterprise Income Tax Rebates for Enterprises with Comprehensive Utilization of Resources” (Cai Shui [2008] No. 117) jointly issued by the Ministry of Finance, the State Administration of Taxation and the National Development and Reform Commission on 28 August 2008, powdered Tungsten (scheelite concentrates) the product of company is produced by using industrial wastes and are thus able to enjoy a favorable tax policy of a reduction of 10% on total taxable income.

Pursuant to the “Circular of the National Development and Reform Commission, the Ministry of Finance and the State Administration of Taxation concerning Printing and Distributing the Administrative Measures for the Determination of Resources Comprehensive Utilization Encouraged by the State (Fa Gai Huan Zi [2006] No. 1864) on 7 September 2006, on 1 July 2009, the Company was awarded a certificate by Henan Development and Reform Committee for producing powdered Tungsten (scheelite concentrates), an act that was recognized as utilizing industrial waste. The certificate was valid from 1 July 2009 to 30 June 2013. On 26 June 2013, in accordance with the Notice from Henan Development and Reform Committee in relation to the issuance of List of Enterprises in Henan Province Engaging in Comprehensive Unitization of Resources in 2013 (First Batch), List of Enterprises Producing New Types of Wall Materials in 2013 (First Batch) and List of Enterprises Entitled to the Reissuance of Certificates Due to Name Change (Yu Fa Gai Huan Zi [2013] No. 862) issued by Henan Development and Reform Committee, the certificate for recognizing the foregoing industrial product of the Company as a way of comprehensive unitization of resources which was supported by the National government was renewed. The renewed certificate is valid from 1 July 2013 to 30 June 2015. On 10 May 2015, the Decision of the State Council on Cancelling Non-Administrative Licensing Approval Items (Guo Fa [2015] No. 27) cancelled the recognition process of enterprise of comprehensive utilization of resources. However, the company sold powdered Tungsten (scheelite concentrates) is still within the scope of Directory of Enterprise Income Tax Rebates for Enterprises with Comprehensive Utilization of Resources. Therefore, the company still recognized 90% of sales of powdered Tungsten (scheelite concentrates) to taxable income during 1 July 2015 to 31 December 2016.

Pursuant to the “Notice of Recognition of the 2014 First Batch of New and High Technology Enterprises in Henan Provinces” (Yuke [2015] No. 19) dated 25 February 2015, jointly issued by the Science and Technology Department of Henan Province, Finance Department of Henan Province, State Tax Bureau of Henan Province and Provincial Tax Bureau of Henan Province, the Company has passed the re-examination for new and high technology enterprises, the certificate number is GF201441000001. Therefore, according to the provisions of Article 28 “Enterprise Income Tax Law of the People’s Republic of China”, the applicable income tax rates of the Company during 1 January 2014 to 31 December 2016 are 15%.

50 2017 INTERIM REPORT

VI. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(All notes are presented in Ten Thousand Renminbi Yuan Unless Defined Separately)

1. Cash and Cash Equivalents

Cash and Cash Equivalents
Item	30 June 2017	31 December 2016
Cash	156.93	112.02
Bank deposits	1,128,859.18	841,908.78
Other cash and bank
balances	125,271.55	155,001.61
Total	1,254,287.66	997,002.41
Including: total amount deposited abroad	335,644.49	336,429.30

As of 30 June 2017, other cash and bank balances include structured bank deposit and guarantee deposit, in which the structured bank deposit is RMB740,000,000.00 (31 December 2016: RMB400,000,000.00) and the guarantee deposit of bank acceptances is RMB250,000,000.00 (31 December 2016: RMB450,000,000.00), the loan guarantee deposit is RMB232,500,000.00 (31 December 2016: RMB630,000,000.00), the special deposit for mine environmental restoration and management is of RMB30,215,500.00 (31 December 2016: RMB20,016,000.00), and the letter of credit deposit is Nil (31 December 2016: RMB50,000,000.00).

The structured bank deposits has maturity period of less than one year and interest rate ranges from 3.6% to 5.15%. The abovementioned structured deposits cannot be withdrawn till its maturity.

1. Financial Assets Measured at Fair Value through Profit or Loss

Item	30 June 2017	31 December 2016
Forward foreign exchange contract(note)	3,806.90	5,559.90
Total	3,806.90	5,559.90

Note: Gain or loss arising from changes in the fair value of the forward exchange contract not designated as hedging instrument are recognised in profit or loss immediately.

China Molybdenum Co., Ltd. 51

3. Notes Receivable

• (1) Disclosure of notes receivables by categories

Item	30 June 2017	31 December 2016
Bank acceptances	124,066.38	81,823.76
Commercial acceptances	13,150.00	13,262.40
Total	137,216.38	95,086.16

• (2) Notes receivable pledged at the end of the period

Notes receivable pledged at the end of the period
Item	Amount pledged at 30 June 2017
Bank acceptances	935.00
Total	935.00

As of 30 June 2017, the notes receivable of RMB9,350,000.00 were used for loan pledge.

• (3) Notes receivable endorsed or discounted but outstanding at the end of the period in the balance sheet

	Amount	Amount not
	derecognized at	derecognized at
Item	30 June 2017	30 June 2017
Bank acceptances	21,876.44	–
Commercial acceptances	–	–
Total	21,876.44	–

Since major risks including the interest rate risks related to such bank acceptance as well as the remuneration have been substantially transferred to the bank or another party, the Group ceased to recognize discounted or endorsed bank acceptances. At of 30 June 2017, the Group has no commercial acceptances discounted which have not yet expired.

52 2017 INTERIM REPORT

4. Account Receivables

(1) Disclosure of accounts receivable by categories

Category 30 June 2017 Book Value Bad Debt Provision Carrying value Amount Proportion Amount Ratio of the provision (%) (%)	31 December 2016 Book Value Bad Debt Provision Carrying value Amount Proportion Amount Ratio of the provision (%) (%)
Accounts receivable that are individually significant and for which bad debts are provided for individually 60,110.38 30.14 3,318.00 5.52 56,792.38 Accounts receivables for which bad debt are provided based on credit risk characteristics portfolio 8,753.16 4.39 1,389.73 15.88 7,363.43 Accounts receivable that are not individually significant and for which bad debts are provided 130,593.10 65.47 – – 130,593.10	52,269.27 34.64 3,318.00 6.35 48,951.27 6,666.01 4.42 1,389.73 20.85 5,276.28 91,953.17 60.94 – – 91,953.17
Total 199,456.64 / 4,707.73 / 194,748.91	150,888.45 / 4,707.73 / 146,180.72

The subsidiaries of the Group located in PRC and Australia consider the single item with book value more than RMB5,000,000.00 as individually significant and assess bad debt provision individually for these items; bad debt provision for other items that are not individually significant of these subsidiaries is made in accordance with the combination of credit risk characteristics. Bad debt provision for subsidiaries situated in Brazil and DRC is made by specific identification method.

Entity		Accounts receivable	30 June 2017 Bad debt Provision Ratio of the Proportion	30 June 2017 Bad debt Provision Ratio of the Proportion	Reason for bad debt provision
Entity	A	845.93	422.96	50.00	Bad debt risk
Entity	B	2,464.92	2,464.92	100.00	Bad debt risk
Entity	C	1,954.47	430.12	22.01	Bad debt risk
Total		5,265.32	3,318.00	/	/

China Molybdenum Co., Ltd. 53

Details of account receivables for which bad debts are provided using aging analysis as follows:

Aging			Accounts receivable	30 June 2017 Bad debt provision	Ratio of the proportion
Within	2	years	7,363.43	–	–
Above	2	years	1,389.73	1,389.73	100.00
Total			8,753.16	1,389.73	15.88

(2) Top five account receivable balances by debtors as of period end

			Proportion of
			the amount
	Relationship		to the total	Closing
	with the		account	balance of bad
Name of Entity	Company	Amount	receivable	debt Reserve
			(%)
Entity D	Third Party	57,777.47	28.97	–
Entity E	Third Party	10,193.69	5.11	–
Entity F	Third Party	9,614.41	4.82	–
Entity G	Third Party	8,915.10	4.47	–
EntityH	Third Party	8,812.78	4.42	–
Total		95,313.45	47.79	–

The prices of the main products of the Group’s subsidiaries, such as Cathode Copper and Cobalt hydroxide, are tentatively determined at the time of delivery. The temporary price is usually based on the monthly average spot price of Copper and Cobalt at the London Metal Exchange, and finalized one month later after delivery.

54 2017 INTERIM REPORT

5. Prepayments

(1) Aging analysis of prepayments as follows:

Aging 30 June 2017 Amount Proportion (%)	31 December 2016 Amount Proportion (%)
Within 1 year 31,009.97 99.69 1 to 2 years 34.73 0.11 2 to 3 years 19.86 0.06 Above 3years 41.48 0.14	29,462.77 99.68 38.86 0.13 12.21 0.04 43.37 0.15
Total 31,106.04 100.00	29,557.21 100.00

• (2) Top five prepayment balances based on debtors as of period end:

			Proportion	Proportion
	Relationship		of the amount
	with the		to the total
Name of Entity	Company	Amount	prepayments
				(%)
Entity F	Third Party	16,982.66		54.60
Entity I	Third Party	2,435.61		7.83
Entity J	Third Party	1,740.52		5.60
Entity K	Third Party	1,297.34		4.17
EntityL	Third Party	485.82		1.56
Total		22,941.95		73.76

6. Interests Receivable

(1) Disclosure of interests receivable by categories

Item	30 June 2017	31 December 2016
Time deposits	1,507.81	1,673.68
Entrusted loans	720.05	2,375.60
Total	2,227.86	4,049.28

China Molybdenum Co., Ltd. 55

7. Other Receivables

(1) Disclosure of other receivables by categories

Category 30 June 2017 Book Value Bad Debt Provision Carrying value Amount Proportion Amount Ratio of the provision (%) (%)	31 December 2016 Book Value Bad Debt Provision Carrying value Amount Proportion Amount Ratio of the provision (%) (%)
Other receivables that are individually significant and for which bad debts are provided for individually 8,292.39 9.49 1,177.89 14.20 7,114.50 Other receivables for which bad debt are provided based on credit risk characteristics portfolio 6,854.18 7.85 1,302.58 19.00 5,551.60 Other receivables that are not individually significant and for which bad debts are provided 72,212.71 82.66 – – 72,212.71	6,639.01 5.67 1,177.89 17.74 5,461.12 3,974.76 3.39 1,302.58 32.77 2,672.18 106,570.63 90.94 – – 106,570.63
Total 87,359.28 / 2,480.47 / 84,878.81	117,184.40 / 2,480.47 / 114,703.93

The subsidiaries of the Group located in PRC and Australia consider the single item with the book value more than RMB5,000,000.00 as individually significant, and access bad debt provision individually for this items; bad debt provision for other items that are not individually significant of these subsidiaries is made in accordance with the combination of credit risk characteristics. Bad debt provision for subsidiaries situated in Brazil and DRC is made by specific identification method.

Other receivables that are individually significant and for which bad debts are provided for individually at the end of the period

Other receivables	Other	Closing Bad debt	balance Ratio of the	Reason for bad
(By company)	receivables	provision	Proportion	debt provision
EntityM	2,195.09	1,177.89	53.66	Bad debt risk
Total	2,195.09	1,177.89	/	/

56 2017 INTERIM REPORT

Details of other receivables for which bad debts are provided using aging analysis as follows:

Aging			Other receivables	30 June 2017 Bad debt provision	Ratio of the Proportion
Within	2	years	5,551.60
Above	2	years	1,302.58	1,302.58	100
Total			6,854.18	1,302.58

(2) Provision for bad debts made, recovered or reversed for the period

Bad debt reserve for the period amounts to RMB0 and the withdrawn or reversed bad debt reserve totals RMB0.

(3) Other receivables by nature

Nature of item	30 June 2017	31 December 2016
Refund of land-transferring fee receivable	700.00	700.00
Guarantee deposit	801.00	1,065.72
Compensation receivable	–	22,978.81
Deductible Brazil social contribution tax	11,763.60	10,587.94
DRC VAT refund	59,214.65	62,697.30
Acquisition consideration refund	–	7,127.77
Others	14,880.03	12,026.86
Total	87,359.28	117,184.40

• (4) Top five other receivables balances based on debtors as of period end:

end:
				Proportion of	Closing
	Relationship			the amount	balance of
	with the	Closing		to the total	bad debt
Name of company	Company	Balance	Aging	balance (%)	provision
DRC VAT refunds receivable	Third Party	59,214.65	Within 2 years	67.78
Brazil’s federal government	Third Party	11,763.60	Within 2 years	13.47
Entity M	Third Party	2,195.09	More than
			2 years	2.51	1,177.89
Entity R	Third Party	1,409.00	Within 2 years	1.61
England’s Federal Revenue	Third Party	1,232.26	Within 2years	1.41
Total	/	75,814.60	/		–

China Molybdenum Co., Ltd. 57

8. Inventories

(1) Disclosure of inventories by categories

Item 30 June 2017 Gross balance Provision Carrying value	31 December 2016 Gross balance Provision Carrying value
Current: Raw materials 202,245.37 200.52 202,044.85 Work-in-progress 198,852.53 198,852.53 Finishedgoods 117,127.60 209.50 116,918.10	226,194.21 312.04 225,882.16 160,527.03 160,527.03 122,021.99 154.43 121,867.56
Subtotal 518,225.50 410.02 517,815.48	508,743.23 466.47 508,276.76
Non-current: Raw materials(note) 436,369.07 2,090.16 434,278.91 Consumptive biological assets 4,027.33 – 4,027.33 Subtotal 440,396.40 2,090.16 438,306.24	424,854.93 2,119.85 422,735.07 4,226.71 – 4,226.71 429,081.64 2,119.85 426,961.79
Total 958,621.90 2,500.18 956,121.72	937,824.87 2,586.32 935,238.55

Note: Raw materials include: The sulphide ore exploited and reserved in Australian Northparkes Copper and gold business. According to the estimation of the management, it is expected that these ore material reserves will not be sold before the end of 2024, the mining period of E48 mine shaft. Therefore, the amount is presented as non-current assets;

Low-grade ores were produced from DRC Copper-Cobalt mine, ore recovery process is further demanded in the future; the management estimates that these ores will not be ready for sales within one year, so it will be presented as non-current assets.

(2) Changes in provision of inventory

		Increases for the period	Increases for the period	Decreases for the period	Decreases for the period
	Opening			Reversal		Closing
Item	balance	Provision	Others	or write-off	Others	balance
Raw materials(note)current	312.04		–	105.68	5.84	200.52
Raw materials(note)
non-current	2,119.85		–	–	29.69	2,090.16
Finishedgoods	154.43	568.32	–	513.25	–	209.50
Total	2,586.32	568.32	–	618.93	35.53	2,500.18

Note: “Others” in the decreases for the period of raw materials refer to differences of foreign currency translation.

58 2017 INTERIM REPORT

• (3) Finished and unsettled assets under construction contracts at the end of the period:

							Foreign
			Increase in			Decrease	exchange
		Opening	business	Increase for	Changes in	for	translation	Closing
Item	Quantity	balance	combination	the period	fair value	the period	losses	balance
Eucalyptus forest in	2,978
Brazil	hectares	4,226.71				46.39	-152.99	4,027.33

9. Non-current Assets Due within One Year

Item	30 June 2016	31 December 2016
Interests receivable due within one year	18,488.44
Wealth managementproducts due within oneyear	55,000.00
Total	73,488.44

10. Other Current Assets

Other Current Assets
Item	30 June 2017	31 December 2016
Wealth management products of banks	127.51	20,452.26
Other wealth management products by non-banking
financial institutions	–	10,148.04
Loan to third party	19,916.50	19,000.00
Prepayment of enterprise income tax	725.58	3,790.38
Prepayment of VAT	2,974.63	9,965.78
Prepayment of electricity charge (note 1)	10,474.33	11,021.51
Others	7,041.56	5,481.29
Total	41,260.11	79,859.26

Note 1: The amount receivable is due from Société Nationale d’Electricité which is provided by the subsidiary of the Group in DRC. According to the agreement, the amount will be settled by electricity bill when the company actually uses electricity. The current part is the portion expected to be settled over the next 12 months.

11. Available-for-sale Financial Assets

(1) Details of available-for-sale financial assets

Item 30 June 2017 Carrying balance Provision Carrying value	31 December 2016 Carrying balance Provision Carrying value
Equity instruments： 288,955.98 288,955.98 Measured at fair value 196,521.71 196,521.71 Measured at cost 92,434.27 92,434.27	300,060.25 300,060.25 202,848.20 202,848.20 97,212.05 97,212.05
Total 288,955.98 288,955.98	300,060.25 300,060.25

China Molybdenum Co., Ltd. 59

• (2) Available-for-sale financial assets measured at fair value at the end of the period

of the period
			Equity
	Target Asset		shares
Category of available-	Management		of listed	Partnership
for-sale financial assets	Plans	Fund shares	companies	shares	Total
Cost of equity instruments/
amortized cost of debt
instruments	176,346.89	5,055.31	10,000.00	42,000.00	233,402.20
Fair value	140,003.51	4,518.20	10,000.00	42,000.00	196,521.71
Changes of fair value included in
other comprehensive income		-537.11			-537.11
Impairment	-29,114.98	–	–	–	-29,114.98

• (3) Available-for-sale financial assets measured at cost at the end of the period

		Carrying	balance		Provision	Proportion of	Cash
						shareholding	dividends
	Opening	Increases for	Decreases		At the end Opening Increases Decreases At the end	in the	for the
Investee	balance	the period	for the	period	of the period balance for the period for the period of the period	investee (%)	period
Equity of unlisted Entity A (note 1)	40,000.00	0.00		0.00	40,000.00	5.30%
Equity investment of partnership
entity C	5,000.00	0.00	5,000.00		0.00
Equity investment of partnership
entity E (note 2)	46,020.49	0.00		0.00	46,020.49	N/A
Equity investment of partnership
entity F (note 2)	4,883.97	0.00		145.13	4,738.84	25.39%
Equity of unlisted Entity G (note 1)	888.47	0.00		26.40	862.07	3.45%
Equity of unlisted Entity H (note 1)	418.63	787.49		393.75	812.37	2.21%
Others	0.49	0.00		0.00	0.49
Total	97,212.05	787.49	5,565.28		92,434.26	/

Note 1: Refers to the equity of unlisted companies, which the Group does not have control (including common control) or significant influence on. At the end of the period, such equity instrument is measured at cost, as it does not have a quoted market price, and the fair value cannot be reliably measured.

• Note 2: Refers to equity of limited liability partnership companies, in which the Group participates in as a limited partner. The Group does not have control (including common control) or have significant influence on these investees. Such equity instrument is measured at cost, as it does not have a quoted market price, and the fair value cannot be reliably measured.

60 2017 INTERIM REPORT

12. Long-term Equity Investments

					Investment	Changes increase/(decrease)	Changes increase/(decrease)
					income
					determined	Adjustment		Declared				Closing
					under	to other	Other	cash	Provision for			balance of
		Opening	Additional	Decreased	equity	comprehensive	changes	dividends	impairment		Closing	provision for
Unit	under investment	Balance	investment	investment	method	income	in equities	orprofits	losses	Other	balance	impairment
I.	Joint ventures
	Luoyang High Tech Molybdenum &
	Tungsten Materials Co., Ltd.
	(“High-Tech”) (note 1)	8,876.23			-617.83						8,258.40	–
	Xuzhou Huanyu Molybdenum Co.,
	Ltd. (“Huan Yu”)(note 2)	103,179.34			-2,611.20						100,568.15	–
	Subtotal	112,055.57			-3,229.03						108,826.55
II.	Associates
	Luoyang Yulu Mining Co., Ltd.
	(“Yulu Mining”) (note 3)	6,962.95			4,850.22			3,680.00			8,133.16
	Caly Nanomoly Development, Inc.
	(“Nanomoly Development”)
	(note 4)	–			0.00			–
	Luoyang Shenyu Molybdenum
	Co., Ltd (“Luoyang Shenyu”)
	(note 5)	131.41			0.00			–			131.41
	Subtotal	7,094.36			4,850.22			3,680.00			8,264.57	–
Total		119,149.93			1,621.20			3,680.00			117,091.12	–

China Molybdenum Co., Ltd. 61

• Note 1: On 27 January 2016, the Company entered into an equity transfer agreement with another shareholder of “High-Tech”, and the Company invested RMB531,163.62 to acquire a 0.25% equity in “High-Tech” held by “High-Tech”. Upon completion of the equity transaction, the Company holds 50.25% equity in “High-Tech” and continues to control “High-Tech” with another shareholder.

• Note 2: Huan Yu, a joint venture of the Group, holds 90% of stake in Luoyang Fuchuan Mining Co., Ltd. (“ Fuchuan ”). Meanwhile, the Group holds indirectly by its subsidiary, Fu Kai, 10% of stake in Fuchuan. Therefore, the Group holds directly and indirectly by Huanyu 55% of stake in Fuchuan in total.

The mining rights of Shangfanggou Mine is legally owned by Fuchuan, but there were disputes in its mining. During the 2012, the production and operation of those disputing parities were all suspended. According to the notification issued by Luoyang Municipal People’s Government in March 2013, Fuchuan and the disputing party reached an intent of acquisition and the disputing party agreed to leave the Shangfanggou Mine. Fuchuan was undergoing preparation for resumption of the production as of the date of this report.

According to the agreement with local government, the local government is entitled to 8% of the dividend rights of Fuchuan. Thus, according to equity method, the Group actually holds 47% of the profit or loss of Fuchuan.

• Note 3: According to the result of Yulu Mining’s 2007 annual general meeting, both investors would share the net profit at the ratio of 1:1 since 2008. Therefore, the Group holds 40% equity interest in Yulu Mining but recognizes investment income of 50% out of its net profit.

• Note 4: The Group holds 40% of Nanomoly Development’s equity and accounts investment therein based on equity method. In accordance with Articles of Association of Nanomoly Development, the Group does not assume any additional liabilities for additional loss. Up the end of the current year, the Group has decreased its investment in Nanomoly Development to zero.

• Note 5: In 2016, the Company entered into a collaboration agreement with a third party, and the Company invested RMB1.5 million by way of intangible assets and the counterparty invested RMB8.5 million of cash to establish Luoyang Shenyu. Meanwhile, the Company appointed a director and a supervisor to Luoyang Shenyu and due to its important influence, it is accounted as an associate.

There are no significant limits on the Group’s ability to transfer cash to these investees regarding long-term equity investments.

All investees of the Group’s long-term investments are unlisted entities.

62 2017 INTERIM REPORT

13. Fixed Assets

(1) Fixed assets

					Electronic
		Buildings			equipment,
		and	Machinery	Transport	fixture and
Item		architectures	equipment	equipment	furniture	Total
I.	Original carrying amount:
	1. Opening balance	1,147,575.31	1,934,751.97	19,563.07	15,615.90	3,117,506.25
	2. Increases for the period	24,441.95	10,812.94	123.14	42.38	35,420.41
	(1) Purchase	2,741.62	3,069.99	90.31	44.64	5,946.56
	(2) Transfer from construction
	in progress	2,720.63	1,138.04	10.39		3,869.06
	(3) Increase in business
	combination					–
	(4) Differences in foreign
	currency translation	18,979.70	6,604.91	22.44	-2.26	25,604.79
	3. Decreases for the period	683.83	308.74			992.57
	(1) Disposal or retirement	683.83	308.74			992.57
	4. Closing balance	1,171,333.43	1,945,256.17	19,686.21	15,658.28	3,151,934.09
II.	Accumulated depreciation
	1. Opening balance	223,966.00	138,490.31	13,837.75	13,525.54	389,819.60
	2. Increases for the period	55,853.19	97,388.86	672.89	134.23	154,049.17
	(1) Provision	43,075.54	93,114.53	664.64	135.66	136,990.37
	(2) Differences in foreign
	currency translation	12,777.65	4,274.33	8.25	-1.43	17,058.80
	3. Decreases for the period	2,679.89	-249.82			2,430.07
	(1) Disposal or retirement	2,679.89	-249.82			2,430.07
	4. Closing balance	277,139.30	236,128.99	14,510.64	13,659.77	541,438.70
III.	Impairment provision
	1. Opening balance		394.52			394.52
	2. Increases for the period
	(1) Provision
	3. Decreases for the period
	(1) Disposal or retirement
	4. Closing balance		394.52			394.52
IV.	Carrying amount
	1. Closing carrying amount	894,194.13	1,708,732.66	5,175.57	1,998.51	2,610,100.87
	2. Opening carrying amount	923,609.31	1,795,867.14	5,725.32	2,090.36	2,727,292.13

China Molybdenum Co., Ltd. 63

(2) Temporarily idle fixed assets

	Original
	carrying	Accumulated	Impairment	Carrying
Item	amount	depreciation	provision	amount
Closing balance –
machinery equipment	1,648.56	1,149.36	394.52	104.68

14. Construction in Progress

(1) Details of construction in progress

		30 June 2017		31 December 2016
	Carrying	Impairment Carrying	Carrying	Impairment	Carrying
Item	balance	provision amount	balance	provision	amount
Luchanggou tailing pond project
of No. 2 Ore Processing Plant	875.78	875.78	690.39		690.39
Tailing pond project of No. 3 Ore
Processing Plant	68.77	68.77	27.53		27.53
Liushuigou tailing pond
replacement project	266.76	266.76	1,425.07		1,425.07
30,000 tonne/day open-pit
mining project	151.53	151.53	108.69		108.69
Ore-crushing system
transformation project of No.3
Ore Processing Plant	2,748.85	2,748.85	88.62		88.62
Molybdenum project in East
Gobi, Hami, Xinjiang	7,503.34	7,503.34	7,503.34		7,503.34
Northparkes E48 mine northern
extension project	747.19	747.19	671.58		671.58
Northparkes E26 underground
mine development project	204.22	204.22	135.29		135.29
Australian tailing storage project	62.85	62.85	64.22		64.22
AANB smelting process
improvement	9,011.25	9,011.25	7,629.59		7,629.59
AANB tailing dam heightening
project	23,802.02	23,802.02	24,061.68		24,061.68
Others	38,352.58	38,352.58	27,129.90		27,129.90
Total	83,795.14	83,795.14	69,535.90		69,535.90

64 2017 INTERIM REPORT

(2) Changes in significant construction in progress during the period

								Amount			Including:
								injected		Amount	Amount
				Transfer	Other	Differences		as a		of ac	of interest	Interest
			Increases	to fixed	decreases	in foreign		proportion		cumulated	capitalisation	capitalisation
	Budget	Opening	for the	assets for	for the	currency	Closing	of budget		capitalized	for the	rate for	Capital
Name of project	amount	balance	period	the period	period	translation	balance	amount	Progress	interest	period	the period	sources
								(%)				(%)
Luchanggou tailing pond
project of No. 2 Ore													Funds
Processing Plant	34,388.60	690.39	185.39				875.78	47.00					in hand
Tailing pond project of No. 3													Funds
Ore Processing Plant	5,000.00	27.53	41.24				68.77	80.00					in hand
Liushuigou tailing pond													Funds
replacement project	13,000.00	1,425.07	401.13		1,559.44		266.76	99.00					in hand
30,000 tonne/day open-pit													Funds
mining project	20,000.00	108.69	61.29	18.45			151.53	100.00					in hand
Ore-crushing system
transformation project of													Funds
No.3 Ore Processing Plant	5,486.00	88.62	2,660.23				2,748.85	100.00					in hand
Molybdenum project in East													Funds
Gobi, Hami, Xinjiang	284,900.00	7,503.34					7,503.34	3.00					in hand
Northparkes E48 mine northern													Funds
extension project	18,168.59	671.58	91.77			-16.16	747.19	93.00					in hand
Northparkes E26 underground													Funds
mine development project	15,779.67	135.29	72.10			-3.17	204.22	81.00					in hand
Australian tailing storage													Funds
project	14,503.94	64.22	0.14			-1.51	62.85	99.00					in hand
ANB tailing dam heightening													Funds
project	10,078.07	7,629.59	1,560.51			-178.85	9,011.25	36.00					in hand
NB smelting process													Funds
improvement	24,975.97	24,061.68	308.96			-568.62	23,802.02	100.00					in hand
													Funds
Others	N/A	27,129.90	15,745.98	3,850.61	480.49	-192.18	38,352.60	N/A					in hand
Total		69,535.90	21,128.74	3,869.06	2,039.93	-960.49	83,795.16	/	/			/	/

China Molybdenum Co., Ltd. 65

15. Intangible Assets

(1) Details of intangible assets

			Land
Item			use rights	Mining rights	Others	Total
I.	Original carrying amount
	1.	Opening balance	52,157.35	2,493,789.35	4,258.97	2,550,205.67
	2.	Increases for the period	1,040.68	1,705.49	516.59	3,262.76
		(1) Purchase	1,040.68	402.06	565.03	2,007.77
		(2) Internal research and
		development
		(3) Increase in business
		combination
		(4) Transfer from
		construction in
		progress
		(5) Differences in foreign
		currency translation		1,303.43	-48.44	1,254.99
	3.	Decreases for the period			1,116.00	1,116.00
		(1) Disposal			1,116.00	1,116.00
	4.	Closing balance	53,198.03	2,495,494.84	3,659.56	2,552,352.43
II.	Accumulated amortization
	1.	Opening balance	8,514.47	90,297.41	1,262.39	100,074.27
	2.	Increases for the period	971.99	152,768.34	781.01	154,521.34
		(1) Provision	971.99	151,610.08	800.78	153,382.85
				1,158.26	-19.77	1,138.49
	3.	Decreases for the period
		(1) Disposal
	4.	Closing balance	9,486.46	243,065.75	2,043.40	254,595.61
III.	Impairment provision
	1	Opening balance
	2 . Increases for the period
		(1) Provision
	3	Decreases for the period
		(1) Disposal
	4	Closing balance
IV.	Carrying amount
	1	Closing carrying amount	43,711.57	2,252,429.09	1,616.16	2,297,756.82
	2	Opening carrying amount	43,642.88	2,403,491.94	2,996.58	2,450,131.40

At the end of the period, the proportion of intangible assets arising from the Company’s internal research and development to intangible asset balances was zero.

66 2017 INTERIM REPORT

16. Goodwill

(1) Original carrying amount of goodwill

Investee or item leading to the goodwill	Opening balance	Increases for the period Increase in business combination	Decreases for the period Differences in foreign currency translation	Closing balance
Phosphorus business
in Brazil(Note)	111,480.36		2,595.29	108,885.07
Total	111,480.36		2,595.29	108,885.07

(2) Goodwill impairment provision

Allocation of goodwill to an asset group

The Group uses business segments as its primary segment for reporting segment information. For the purpose of impairment testing, goodwill has been allocated to asset group by the Group. The carrying amount of goodwill allocated to an asset group and related impairment provision as at 30 June 2017 were as follows:

		Impairment
	Cost	provision	30 June 2017
Asset group – Phosphorus
business in Brazil	108,885.07	–	108,885.07

The recoverable amount of the asset group of phosphorus business in Brazil is determined according to the present value of the expected future cash flows. Future cash flows are determined based on the financial budget of the next five years approved by the management and based on the production life of available reserves and future mining plans, and a discount rate of 13.5% is used. As products sold under the phosphorus business are denominated by USD and settled by BRL, the management holds the inflation risks faced by relevant business in the course of operation are mainly incurred by the inflation in the currency context of US dollar. Therefore, the inflation rate used to infer the cash flow from the asset group after 5 years is 3% (in the currency context of US dollar). Presumable from the characteristics of upstream mineral prices and costs, it is subject to minor impact of inflation, and the management believes, such forecast method is reasonable.

China Molybdenum Co., Ltd. 67

The key assumptions for calculating the present value of future cash flows for the above asset group as at 30 June 2017 are as follows:

Key assumptions

Consideration of the management

On the basis of the realized average gross margin in the year before the budget year, appropriately modify the average gross margin according to the changes in the expected efficiency Budget gross margin and the fluctuation of metal market price. The discount rate used is the pre-tax discount rate that reflects Discount rate the specific risk of related asset group. Consider the expected price index for the operating Inflation of raw material price environment in the budget year.

The discount rate used is the pre-tax discount rate that reflects the specific risk of related asset group. Consider the expected price index for the operating environment in the budget year.

The data of key assumptions of the sales price, discount rate, raw material price inflation used in the above asset group are consistent with the external information.

17. Long-term Deferred Expenses

Item	Opening balance	Increases for the period	Amortization amount for the period	Other decreases	Closing balance
Relocation compensation
(note 1)	5,630.35		318.25		5,312.10
Geological Museum project
(note 2)	2,760.00		30.00		2,730.00
Others	3,134.39	5,458.80	1,205.07		7,388.12
Total	11,524.74	5,458.80	1,553.32		15,430.22

Note 1: The Company paid the relocation compensation fees to the villagers around the areas of tailing dams.

Note 2: According to the Geological Museum use right agreement signed by Luanchuan Finance Bureau and the Company on 18 December 2012, the Company would be allocated with 2,000 square meters showroom area in the Geological Museum from 1 January 2013 for a term of 50 years to promote and exhibit the Company’s product.

68 2017 INTERIM REPORT

18. Deferred Tax Assets/liabilities

(1) Deferred tax assets before offset

	30 June 2017	30 June 2017	31 December	2016
	Deductible temporary	Deferred	Deductible temporary	Deferred
Item	difference	tax assets	difference	tax assets
Asset impairment provision	28,441.30	8,724.17	42,883.92	12,739.29
Unrealized profit from
internal transaction	9,777.86	2,444.47	14,876.77	4,019.05
Deductible losses	64,269.76	16,067.44	67,157.74	17,411.68
Differences in inventory
costs	12,537.86	3,761.36	17,726.35	5,317.90
Deferred income of
government grant	1,865.03	279.75	8,762.80	2,003.23
Net accrued and unpaid
expenses	166,193.17	48,762.45	238,382.75	68,582.86
Exchange rate impact of
non-monetary items	46,091.46	13,816.54	83,435.79	28,368.17
Retirement of fixed assets
without filling	1,195.38	179.31	2,340.34	351.05
Others	1,577.04	236.56	2,085.35	621.35
Total	331,948.86	94,272.05	477,651.81	139,414.58

(2) Deferred tax liabilities before offset

	Closing Taxable temporary	balance Deferred	balance Deferred	Opening Taxable temporary	balance Deferred
Item	difference	tax liabilities		difference	tax liabilities
Accrued interest income	54,075.85		8,442.04	43,295.02	6,525.17
Exchange rate impact on
non-monetary items
(note)	180,285.07	61,296.93		75,244.01	25,582.96
Differences in depreciation
of fixed assets	1,234,656.08	370,396.82		1,250,409.48	376,845.59
Profit or loss arising from
change of fair value	1,879.27		281.89	5,182.12	1,157.22
Adjustment to the fair value
of assets in business
combination not involving
enterprises under
common control	1,831,048.51	571,818.45		2,292,023.99	687,607.20
Others	–		–	13,250.49	3,997.10
Total	3,301,944.78	1,012,236.13		3,679,405.11	1,101,715.24

Note: The functional currency of AANB is USD, and AANB uses BRL for tax declaration and settlement for operating activities in Brazil. As the historical exchange rate is used for recognition and subsequent measurement of non-monetary items of inventories and fixed assets, which results in timing difference between the tax base and carrying amount of non-monetary items, the Company accordingly recognizes the timing difference as a deferred tax asset/liability.

China Molybdenum Co., Ltd. 69

(3) Net amount of deferred tax assets or liabilities after offset：

	Offset amount	Net Closing	Offset amount	Net Opening
	at the end of	balance	at the beginning	balance
	the period	after offset	of the period	after offset
Deferred tax assets	55,063.03	39,209.02	96,202.45	43,212.14
Deferred tax liabilities	55,063.03	957,173.10	96,202.45	1,005,512.79

(4) Details of unrecognized deferred tax assets

Item	30 June 2017	31 December 2016
Deductible temporary difference	11.28	71.78
Deductible tax losses	9,550.63	6,817.87
Total	9,561.91	6,889.65

• (5) Deductible tax losses, for which no deferred tax assets are recognised, will expire in the following years

Year	30 June 2017	31 December 2016
2017	424.58	424.58
2018	498.13	498.13
2019	719.37	719.37
2020	1,011.35	1,011.35
2021	4,164.43	4,164.43
2022	2,732.76	–
Total	9,550.62	6,817.86

70 2017 INTERIM REPORT

19. Other Non-current Assets

Other Non-current Assets
Item	30 June 2017	31 December 2016
Prepayments for land (Note 1)	865.99	865.99
Time deposit more than one year (Note 2)	129,471.94	141,864.93
Prepayment for water charges (Note 3)	6,300.00	6,300.00
Structured deposit more than one year		30,000.00
Wealth management bank product due after more
than one year (Note 4)	25,000.00	80,000.00
Deductible social contribution tax (Note 5)	10,369.57	10,618.47
Amount due from TFM minority shareholders (Note 6)	29,439.41	29,029.96
Amount receivable from Société Nationale d’Electricité of DRC
(Note 7)	121,531.48	122,435.28
Prepayment for income tax (Note 8)	34,446.47	37,907.24
Prepayments of farmland occupation tax (Note 9)	2,595.90	2,595.90
Land acquisition compensation due from government (Note 10)	13,878.27	14,359.59
Compensatory assets	7,792.17	19,693.73
Borrowings due from Bohai Harvest (Note 11)	67,697.76	69,771.78
Litigation guarantee (Note 12)	7,170.65	7,543.99
Others	1,114.82	2,052.76
Total	457,674.43	575,039.62

Note 1: The Group made prepayment for land transfer charges and relevant tax charges.

• Note 2: This amount included principal of RMB1,097,962,500 (31 December 2016: RMB1,097,962,500) and interest of RMB196,756,900 (31 December 2016: RMB320,686,800), among which, the principal of RMB797,962,500 of 5-year time deposit was pledged to secure USD127,500,000.00 (equivalent to RMB967,711,500.00) long-term borrowings of CMOC Mining Pty Limited and the principal of RMB300,000,000.00 was the Company’s general time deposit.

Note 3: Refers to the water charges pre-paid by Xinjiang Luomu.

Note 4: Principle-protected wealth management product plan purchased by the Group from financial institutions in China which will be matured in July 2018, with a yield of 5.24%. The management of the Group is in view that the exposure with respect to the Group’s interest in the wealth management product plans is no significantly different from their carrying amount.

• Note 5: AANB and AAFB apply the social contribution tax of Brazil. The tax base is the balance of the income from sales of goods and rendering of services in Brazil less the deductible costs. As export goods are not required to pay the social contribution tax and goods circulation tax, the Company did not record any tax credit at the end of the year. The social contribution tax is levied by the Brazil’s federal government, so the tax credit can be used to deduct the enterprise income tax levied by the federal government without expiry date. The portion of tax credit to be deductible within one year is accounted for as other receivables by the Group.

China Molybdenum Co., Ltd. 71

• Note 6: Refers to the borrowings to Gécamines. As at 30 June 2017, the principal amount of loan to Gécamines by TFM is USD30,000,000.00 (equivalent to RMB203,232,000.00) with the interests receivable of USD13,456,900 (equivalent to RMB91,162,200). The applicable interest rate for the loan is determined according to the 1-year Libor interest rate plus 6%. Interests receivables will be deducted from the dividends to Gécamines in the future.

• Note 7: Refers to loan to Société Nationale d’Electricité (“ SNEL ”) by TFM. The applicable interest rate for the loan is determined by 1-year Libor interest rate plus 3%, which will be settled by electricity charges payable in the future.

• Note 8: Refers to the enterprise income tax prepaid by TFM, and the Company expects that the relevant tax cannot be deducted within one year.

• Note 9: The land occupation tax prepaid by the Group for the land to be used in the future as tailing pond of its mine.

• Note 10: The amount held by AAFB receivable from the state government of San Paulo, Brazil, which is the remaining payment suspended by the local government for disagreement proposed by it. Related issues are currently in the litigation stage, the management of the Group, based on the information and opinion of external lawyers, believes that the relevant funds can be recovered.

• Note 11: USD100 million loan provided by the Group to BHR Newwood Investment Management Limited (“ BHR ”) in this year as security deposit underlying a bank guarantee for BHR’s acquisition of 24% indirect interests in TFM. The loan is interest-free.

• Note 12: Certain legal proceedings relating to tax, labour and civil affairs arising in the course of business of the AANB and AAFB. Some of these proceedings require the submission of litigation collateral at the request of the court. The deposit is restricted from use and the interest is calculated at the Brazilian benchmark interest rate during this period. After litigation ends in the future, according to the results, the company can call back the deposit or settle the litigation by the deposit.

20. Short-term Borrowings

(1) Categories of short-term borrowings

Categories of short-term borrowings
Item	30 June 2017	31 December 2016
Secured borrowings		80,677.31
Credit loans	480,235.50	356,566.04
Total	480,235.50	437,243.35

Statement on categories of short-term borrowings:

As at the end of the period, there were no outstanding short-term borrowings of the Group that were overdue.

72 2017 INTERIM REPORT

21. Financial Liabilities Measured at Fair Value through Profit or Loss

Item	30 June 2017	31 December 2016
1. Forward foreign exchange contracts (Note 1)		2,377.27
2. Forward commodity contract and gold lease liabilities
measured at fair value (Note 2)	388,565.66	275,206.53
3. Contingent consideration for the acquisition of
copper/cobalt business in DRC(Note 3)	51,001.61	4,560.38
Total	439,567.27	282,144.18

• Note 1: Changes in the fair value of the forward foreign exchange contracts that are not due and are not designated as hedging instrument are recognised in profit or loss for the period immediately.

• Note 2: The Group entered into a gold commodity lease agreement with the bank for financing purpose. According to agreement, the Group leased gold from the bank, which was permitted to be sold to third parties during the lease period, and the Group was obliged to return gold with same quality and weight to the bank when the lease expired. The Group manages its risk exposure to the gold return obligation with same quality and weight under the gold lease agreement, in order to avert the risk arising from changing fair value of such a held-for-trading financial liability caused by the fluctuation of gold market price, by using gold forward contract. The gold return obligation of the Group and the corresponding forward gold contracts are designated as financial liabilities measured at fair value through profit or loss.

• Note 3: It refers to the contingent consideration for the Group’s acquisition of the copper/cobalt business in DRC, which is measured at fair value at the end of the period.

22. Notes Payable

Notes Payable
Category	30 June 2017	31 December 2016
Commercial acceptances
Bank acceptances	31,750.00	66,000.00
Total	31,750.00	66,000.00

As at the end of the period, there was no notes payable that were overdue.

China Molybdenum Co., Ltd. 73

23. Accounts Payable

(1) Details of accounts payable

Details of accounts payable
Item	30 June 2017	31 December 2016
Payables for purchase of goods	72,447.88	63,817.77
Others	16,602.38	10,333.06
Total	89,050.26	74,150.83

(2) Significant accounts payable aging more than one year

Aging analysis on accounts payable is set out as follows:

Item	30 June 2017	31 December 2016
Within 1 year	87,671.46	72,754.02
1 to 2 years	483.29	417.26
Over 2years	895.52	979.55
Total	89,050.26	74,150.83

24. Receipts in Advance

(1) Details of receipts in advance

Details of receipts in advance
Item	30 June 2017	31 December 2016
Sales ofgoods	23,087.90	5,186.75
Total	23,087.90	5,186.75

74 2017 INTERIM REPORT

25. Employee Benefits Payable

(1) Details of employee benefits payable：

			Increases	Decreases
		Opening	for the	for the	Closing
Item		balance	period	period	balance
I.	Short-term compensation	28,302.32	96,212.80	92,378.71	32,136.41
II.	Retirement benefits – defined
	contribution plans	3,906.96	15,556.10	17,758.38	1,704.68
III.	Termination benefits
IV.	Other benefits due within one
	year
Others		3,272.94	664.13	592.24	3,344.83
Total		35,482.22	112,433.03	110,729.33	37,185.92

(2) Details of short-term compensation:

Item			Opening balance	Increases for the period	Decreases for the period	Closing balance
I.	Wages, bonuses, allowances and
	subsidies		27,201.75	88,453.43	84,590.81	31,064.37
II.	Staff welfare		29.03	992.08	1,021.11	–
III.	Social security contributions		6.00	2,050.70	2,056.70	–
	Including:	B asic medicare insurance	3.43	1,667.88	1,671.31	–
		Work injury insurance	2.31	282.72	285.03	–
		Maternity insurance	0.26	85.33	85.59	–
		M edicare insurance
		covering critical illness	0.00	14.77	14.77	–
IV.	Housing funds		0.97	4,179.88	4,180.85	–
V.	Labour union	and employee education
	fund		1,064.57	536.71	529.24	1,072.04
Total			28,302.32	96,212.80	92,378.71	32,136.41

China Molybdenum Co., Ltd. 75

(3) Details of defined contribution plans

						Increases	Increases		Decreases	Decreases
			Opening				for the		for the			Closing
	Item		balance				period		period			balance
	1. Basic pension insurance		3,906.27				15,336.87		17,611.47			1,631.67
	2. Unemployment insurance		0.69				219.23		146.91			73.01
	3. Corporate annuity payment
	Total		3,906.96				15,556.10		17,758.38			1,704.68
	Taxes Payable
	Item						30 June 2017			31	December 2016
	Enterprise income tax of PRC						-3,602.80					-5,757.99
	Enterprise income tax of Australia								1,873.41			588.86
	Enterprise income tax of Brazil								5,937.08			2,317.15
	Enterprise income tax of DRC						77,108.25					–
	VAT						-3,412.09					254.37
	Individual income tax								1,929.63			5,366.75
	City maintenance and construction tax								-195.48			-249.02
	Resources tax								2,889.60			2,474.77
	Price adjustment fund											0.97
	Educational surcharge								-115.76			-224.29
	Others								1,180.35			1,014.55
	Total						83,592.19					5,786.12
	Interests Payable
	Item						30 June 2017			31	December 2016
	Interests payable on medium-term notes with periodic payments
	of interest and return of principal at maturity						11,345.32					10,700.60
	Interests of bank borrowings								7,213.34			7,667.82
	Total						18,558.65					18,368.42

26. Taxes Payable

27. Interests Payable

76 2017 INTERIM REPORT

28. Dividends Payable

Dividends Payable
Item	30 June 2017	31 December 2016
Luanchuan Chengzhi Mining Co., Ltd. (note)	531.97	531.97
Luanchuan Taifeng Industry and Trading Co., Ltd. (note)	662.31	662.31
Luanchuan Hongji MiningCo., Ltd.(note)	1,594.30	1,594.30
Total	2,788.58	2,788.58

Note: Minority shareholders of subsidiaries of the Group.

29. Other Payables

(1) Other payables by nature

Item	30 June 2017	31 December 2016
Project fund	19,682.04	19,219.05
Government compensation		69,508.74
Loyalty due to Gécamines (note 1)	3,387.30	12,228.89
Service and transportation expenses	8,372.76	8,536.67
Electricity charge compensation due to SNEL	6,774.40	6,937.00
Production progress payment due to Gécamines	932.16	3,468.50
Deposits, security deposits, and advances	1,841.04	3,173.42
Service fees payable	4,562.96	2,806.20
Resource expenses payable	1,353.62	2,779.66
Land compensation	992.74	1,706.98
Others	4,040.24	11,312.47
Total	51,939.26	141,677.58

Note 1: Gécamines charges a monthly loyalty fees to TFM for providing technical support and management consult services. According to the mining rights agreement between TFM and the DRC government, loyalty shall be calculated and paid at 2% of the adjusted sales revenue for the Group’s business in DRC.

China Molybdenum Co., Ltd. 77

(2) Other significant payables aging more than one year

		Reason for amount
Item	Closing balance	outstanding or unrealized
Individual M	1,017.52	Current account is outstanding
		Land compensation is paid step by
Land compensation fee	992.74	step
Total	2,010.26	/

30. Non-Current Liabilities Due within One Year

	Item	30 June 2017	31 December 2016
	Long-term borrowings due within one year	85,584.77	56,708.01
	Bonds payable due within one year	200,000.00	200,000.00
	Long-term payables due within one year
	Deferred income to be realized within one year	741.72	741.73
	Payables for exploration right in Hami, Xinjiang	1,000.00	1,000.00
	Total	287,326.49	258,449.74
	Other Current Liabilities
	Item	30 June 2017	31 December 2016
	Short-term bonds payable	200,000.00	250,000.00
	Acquisition transaction cost		11,489.31
	Other accrued expenses	11,240.94	9,400.41
	Total	211,240.94	270,889.72

31. Other Current Liabilities

78 2017 INTERIM REPORT

Changes in short-term bonds payable:

						Issuing		Interests	Closing	Premium and
					Opening	in this	Interest based	paid during	interests	discount	Payment	Closing
Name of bonds	Par value	Issuance date	Bonds term	Issue amount	balance	period	on par Value	the year	payable	amortization	in this period	balance
16 Luanchuan Molybdenum
CP001 (note 1)	50,000.00	26 February 2016	One year	50,000.00	50,000.00			1,594.36			50,000.00
16 Luanchuan Molybdenum
SCP001 (note 2)	100,000.00	19 October 2016	270 days	100,000.00	100,000.00		2,087.67		2,087.67			100,000.00
16 Luanchuan Molybdenum
SCP002(note 3)	100,000.00	1 November 2016	270 days	100,000.00	100,000.00		2,152.49		2,152.49			100,000.00
Total	/	/	/	250,000,00	250,000,00		4,240.16	1,594.36	4,240.16		50,000.00	200,000.00

• Note 1: As at 26 February 2016, the Company issued the 2016 first tranche of short-term financing bonds with a total of a nominal value amount of RMB500 million with a coupon rate of 3.18%.

• Note 2: As at 19 October 2016, the Company issued the 2016 first tranche of super-short-term financing bonds with a total of a nominal value amount of RMB1,000 million with a coupon rate of 3.00%.

• Note 3: As at 1 November 2016, the Company issued the 2016 second tranche of super-short-term financing bonds with a total of a nominal value amount of RMB1,000 million with a coupon rate of 3.26%.

32. Long-term Borrowings

(1) Categories of long-term borrowings

Categories of long-term borrowings
Item	Closing balance	Openingbalance
Secured borrowings	1,762,970.59	1,797,206.74
Unsecured and non-guaranteed loans	569,098.57	597,189.26
Long-term borrowings due within oneyear	-85,584.77	-56,708.01
Total	2,246,484.40	2,337,687.99

Statements to categories of long-term borrowings:

Borrowings obtained by the Group are through pledge of time deposits and equity of subsidiaries, including:

In September 2016, CMOC LUXEMBOURG S.À.R.L (hereinafter referred to as “ CMOC LUXEMBOURG ”) and CMOC BRASIL SERVICOS ADMINISTRATIVOS E PARTICIPACOES LTDA (hereinafter referred to as “ CMOC BRASIL ”), the subsidiaries of the Group, obtained a total of USD900 million (equivalent RMB6.2 billion) acquisition syndicated loan for the payment of the consideration of acquisition of the Brazil Niobium-Phosphorus business, which will be repaid by the agreed instalments during the period from 14 September 2018 to 14 September 2023, with interest rates ranging from 3-month USD Libor + 1.8% to 3-month USD Libor + 2.75%; the Group pledged the 100% equity interest in CMOC LUXEMBOURG to the Bank of China Luxembourg branch and provide a joint guarantee. According to the agreement between the Group and the banks of syndicate loans, the Group should fulfil a series of requirements of financial indicators, if breach these covenants, the loans will be required to repay immediately.

China Molybdenum Co., Ltd. 79

In November 2016, CMOC DRC LIMITED (hereinafter referred to as “ CMOC DRC ”), a subsidiary of the Group, obtained a total of US $1.59 billion (equivalent to RMB11 billion) acquisitions syndicated loan for the payment of the consideration of acquisition of the DRC Copper-Cobalt business, which will be repaid by the agreed instalments during the period from 15 March 2018 to 15 November 2023, with interest rates ranging from 3-month USD Libor + 1.7% to 3-month USD Libor + 2.2%; the Group pledged the 100% equity interest in CMOC DRC to the bank and provided a joint guarantee. According to the agreement between the Group and the banks of syndicate loans, the Group should fulfil a series of requirements of financial indicators, if breach these covenants, the loans will be required to repay immediately.

Other statements: including rate range:

As at 30 June 2017, the annual interest rates for the above mentioned borrowings ranged from 1.50% to 4.5125% (31 December 2016: 0.9% to 4.5125%). As at 30 June 2017, there was no outstanding long-term borrowings of the Group in due but not paid.

33. Bonds Payable

(1) Bonds payable

Bonds payable
Item	Closing balance	Openingbalance
Medium-term notes	200,000.00	200,000.00
Total	200,000.00	200,000.00

• (2) Changes in bonds payable: (preference share, perpetual bonds, and other financial investment excluded)

(2) Changes in bonds payable: (preference share, perpetual bonds, and other financial investment excluded)	(2) Changes in bonds payable: (preference share, perpetual bonds, and other financial investment excluded)
Name of bonds Par value Issuance date Bonds term Issue amount Opening balance Issue in theperiod Interest based on par value Premium and discount amortization Payment in the period Amount due within oneyear Closing Balance
12 CMOC MTN1 200,000.00. 2 August 2012 5 years 200,000.00 200,000.00 8,986.74 200,000.00 16 Luanchuan Molybdenum MTN1 200,000.00 17 March 2016 5 years 200,000.00 200,000.00 2,358.58 200,000.00
Total	/ / / 400,000.00 400,000.00 11,345.32 200,000.00
34.	Provisions Item Openingbalance Closing balance Reasons
	Rehabilitation and asset abandonment cost (Note 1) 94,803.63 94,657.85 Litigation and disputes (Note 2) 80,975,74 85,852.11
	Total 175,779.37 180,509.96 /

80 2017 INTERIM REPORT

• Note 1: The Group has the obligation of rehabilitation, environmental restoration and related assets dismantling with respect to environmental impact caused by mineral production and development activities. Future economic benefits outflow generated from the above obligations to the best estimate of the management of the Group is recognized as provision upon discounting. The above estimate is determined based on the industry practices and the current local laws and regulations, and significant changes in related laws and regulations may have a material impact on the Group’s estimate.

• Note 2: The Group’s niobium/phosphorus business in Brazil is facing with a series of local litigations related to tax, labour and other civil cases in the course of operation. When the relevant litigations are likely to lose and result in economic benefits outflow, the management of the Group estimates the amount of potential economic benefits outflow and makes corresponding provisions.

35. Other Non-current Liabilities

Other Non-current Liabilities
Item	Closing balance	Openingbalance
Deferred income of land grant fee refund (note 1)	1,535.73	1,574.48
Deferred income of research and development expenses
subsidy (note 2)	300.00	300.00
Deferred income of demonstration base project subsidy (note 2)	6,187.83	6,888.33
Long-term service leave (note 3)	4,854.42	4,327.87
Borrowings payable to a third party and related deferred
income (note 4)	36,958.86	36,958.86
Service fees payable to a third party (note 5)	5,920.97	6,063.08
Production progress fee payable to Gécamines	6,774.40	6,937.00
Long-term payment obligation based on 24% interests
in TFM (note 6)	753,780.90
Others	1,526.63	1,535.64
Deferred income released within 1year	-369.52	-741.73
Total	817,470.22	63,843.53

• Note 1: It refers to land grant fee refund received by the Group, which is included in deferred income and amortised on straight-line over the period of the land use rights.

• Note 2: It includes special funds for major science and technology programs of Henan Province, special funds for mineral resources conservation and comprehensive utilization, subsidies for central mineral resources comprehensive utilization demonstration base received by the Group. These subsidies are planned for key technology research in floating and deep processing of molybdenum-tungsten ore, which will be recognized in the deferred income, and recognized as the current non-operating revenue when relevant technology research costs are incurred in the future.

• Note 3: It is related liabilities accrued for the annual leave and long-term service leave accrued for employees of overseas subsidiaries of the Group. The portion expected to be paid within 12 months is accounted in employee benefits payable.

• Note 4: They are long-term borrowings from a third party in this year with a term of ten years and an annual interest rate of 0.4%. The impact of discounting relevant amounts is recognized as deferred income.

• Note 5: It refers to long-term salary for employees payable to a third-party service agency named Mining Overseas Service Company (“ MOSCO ”). MOSCO is a wholly-owned subsidiary of Freeport, which provides TFM with agency payment services for the salaries and expenses of foreign employees. According to the transition arrangements between the Company and Freeport, MOSCO will continue to provide TFM with such services during the transition period.

• Note 6: On 20 April 2017, BHR completed the acquisition of the 100% interests in Lundin Shell Company from THL. BHR indirectly owns 24% interests in TFM. BHR has entered into a cooperation agreement with the Company, to award the Company with exclusive right to purchase the 24% TFM indirect interests from BHR. According to cooperation arrangements under the agreement, upon completion of acquiring the minority interests from BHR, the Company shall consolidate the 24% interests in TFM. Thereafter, the company recognized payment obligations to BHR’s shareholders or upper-level investors.

China Molybdenum Co., Ltd. 81

36. Share Capital

								Changes for the period (+,一)	Changes for the period (+,一)	Changes for the period (+,一)	Changes for the period (+,一)	Changes for the period (+,一)
										Capitalisation
						Issuance				of surplus
			Openingbalance			of new shares		Bonus issue		reserve		Others			Sub-total		Closing balance
	Total amount of shares			1,688,719.87													1,688,719.87
	Capital Reserve
								Increases for				Decreases for
	Item					Openingbalance				theperiod		theperiod			Closing balance
	Capital premium
	(share premium)					1,072,030.66										1,072,030.66
	Other capital reserve									817.69							817.69
	Total					1,072,030.66				817.69						1,072,848.35

37. Capital Reserve

Other statements include increases/decreases for the period and change reasons:

Increase in capital reserve generated from equity transactions occurred in the period.

38. Other Comprehensive Income

Item		Opening balance	Actual amount before income tax in the period	Less: Amount previously included in other comprehensive income transferred into profit or loss	Amount for the period Less: income tax expense	After-tax amount attributable to the parent company	After-tax amount attributable to minority shareholder	Closing balance
I.	Other comprehensive income to be reclassified into
	the profit or loss subsequently	28,285.43	-63,703.57			-27,930.47	-35,773.09	354.95
	Including: The shares of other comprehensive income
	to be reclassified subsequently to profit
	or loss by the investee under the equity
	method
	Changes in fair value of
	available-for-sale financial assets	-371.17	-165.93			-165.93		-537.10
	Gains or losses arising from reclassification of held-
	to-maturity investments to available-for-sale
	financial assets
	Effective portion of profit or loss on cash flow hedge
	Exchange difference on translation of financial
	statements in foreign currency	28,656.60	-63,537.64			-27,764.54	-35,773.09	892.05
Total	of other comprehensive incomes	28,285.43	-63,703.57			-27,930.47	-35,773.09	354.95

82 2017 INTERIM REPORT

39. Special Reserve

		Increases for	Decreases for
Item	Openingbalance	theperiod	theperiod	Closing balance
Safety production expense	857.01	4,989.79	5,199.46	647.34
Total	857.01	4,989.79	5,199.46	647.34

40. Surplus Reserve

Surplus Reserve
	Opening	Increases for	Decreases for	Closing
Item	balance	theperiod	theperiod	balance
Statutory surplus reserve	84,009.89			84,009.89
Total	84,009.89			84,009.89

41. Retained Earnings

		For the	For the
Item		period	priorperiod
Retained profit at ending of prior period before adjustment		350,878.86	298,697.68
Adjusted retained profit at beginning of period (Add +, Less –)		–	–
Retained profit at the end of the period after adjustment		350,878.86	298,697.68
Add:	Net profit attributable to owners of the
	company for the period	83,513.87	51,190.63
Less:	Statutory surplus reserve	–	–
	Discretionary surplus reserves	–	–
	Provisions for ordinary risks	–	–
	Common stock dividends payable	59,105.19	42,218.00
	Ordinary shares dividends converted to shares	–	–
Retained profit at the end of the period		375,287.54	307,670.31

42. Operating Revenue and Operating Costs

	Amount for the period	Amount for the period	Amount for the	prior period
Item	Revenue	Cost	Revenue	Cost
Principal operating activities	1,156,585.61	745,109.67	218,395.63	135,376.01
Other operating activities	8,908.45	7,049.28	7,589.53	5,418.60
Total	1,165,494.06	752,158.95	225,985.16	140,794.61

China Molybdenum Co., Ltd. 83

43. Taxes and Surcharges

Taxes and Surcharges
	Six Months Ended 30 June
Item	2017	2016
Business tax	2.41	157.07
City maintenance and construction tax	836.29	740.50
Educational surcharge	521.90	440.76
Resource tax	11,844.23	6,910.22
Others	1,057.04	293.00
Total	14,261.87	8,541.55

44. Selling Expenses

Selling Expenses
	Six Months Ended 30 June
Item	2017	2016
Salary, bonus and allowances	954.65	189.63
Transportation costs	3,477.10	2,747.14
Entertainment expenditures	46.28	53.31
Traveling expense	174.82	37.52
Market consulting fee	4,443.21
Tax	76.38	51.75
Others	946.84	655.14
Total	10,119.28	3,734.49

45. Administrative Expenses

Administrative Expenses
	Six Months Ended 30 June
Item	2017	2016
Salary, bonus and allowances	14,939.21	4,919.68
Depreciation and amortization	2,318.43	1,875.55
Audit fees	721.83	215.23
Consulting and agency fees	12,837.32	1,541.14
Entertainment expenditures	669.22	358.38
Technology development fees	3,328.33	3,778.60
Others	11,525.53	5,433.94
Total	46,339.87	18,122.52

84 2017 INTERIM REPORT

46. Financial Expenses

	Six Months Ended 30 June	Six Months Ended 30 June
Item	2017	2016
Interest expenses on bonds	12,512.67	10,186.74
Discount interest of notes	826.68	1,145.54
Bank loans interest expenses	71,739.97	8,391.19
Including: the interest expense of bank loads due within 5 years
Total interest expenses:
Less: Capitalised interest expenses
Less: Interest income	-29,806.17	-22,061.55
Exchange differences	33,459.55	4,501.85
Less: Capitalised exchange differences
Others	13,880.82	6,735.98
Total	102,613.52	8,899.75

47. Assets Impairment Loss

		Six Months Ended 30 June	Six Months Ended 30 June
Item		2017	2016
I.	Bad debt loss		906.33
II.	Impairment loss of inventories	568.32	1,127.57
III.	Fixed assets impairment loss		119.39
Total		568.32	2,153.29

48. Gains/(losses) on Changes of Fair Value

	Six Months Ended 30 June	Six Months Ended 30 June
Source resulting ingains on change in fair value	2017	2016
1. G ains (losses) on change in fair value of forward
foreign exchange contract	624.27	3,277.43
2. Gains (losses) on gold lease measured at fair value
and change in fair value of forward contract		220.85
3. Gains on change in fair value of consumable biological assets
4. Change in fair value of contingent consideration for
the acquisition of copper/cobalt business in DRC	-33,225.54
Total	-32,601.27	3,498.28

China Molybdenum Co., Ltd. 85

49. Investment Income

Investment Income
	Six Months Ended 30 June
Item	2017	2016
Income from long-term equity investments under equity method	1,621.19	395.42
Investment income from bonds and wealth investment product	2,937.60	6,215.52
Investment loss on disposal of available-for-sale financial assets		8,887.76
Derivatives not designated as hedging instruments		-1,550.56
Total	4,558.79	13,948.14

50. Non-operating Revenue

	Six Months Ended 30 June	Six Months Ended 30 June	Amount for
			non-regular
Item	2017	2016	profit and loss
Gains on disposal of non-current assets	19.41	2.65	19.41
Including: Gains on disposal of fixed assets	19.41	2.65	19.41
Government grants	538.40	319.47	538.40
Others	31.84	31.86	31.84
Total	589.65	353.98	589.65

Government grants in profit or loss

			Related to
	Six Months Ended 30 June		assets/related
Subsidy item	2017	2016	to income
Deferred income-subsidies for low-grade	350.24		Related to assets
Scheelite demonstration project
Subsidies of foreign investment		300.00	Related to income
Land reclamation subsidy	142.64		Related to assets
Others	45.52	19.47
Total	538.40	319.47	/

86 2017 INTERIM REPORT

51. Non-operating Expenses

Non-operating Expenses
			Amount for
	Six Months Ended 30 June		non-regular profit
Item	2017	2016	and loss
Total losses on disposal of non-current
assets	481.27	14.63	481.27
Including: Losses on disposal of fixed
assets	481.27	14.63	481.27
External donations	2,194.22	1,703.29	2,194.22
Others	299.50	275.25	299.51
Total	2,974.99	1,993.17	2,975.00

52. Income Tax Expenses

• (1) Income tax expenses

	Six Months Ended 30 June	Six Months Ended 30 June
Item	2017	2016
Current income tax expenses for the period	94,515.40	4,989.92
Deferred tax expenses	-25,978.16	4,400.02
Difference arising on settlement of income tax for the
previous years	3,522.42
Total	72,059.66	9,389.94

• (2) Reconciliation of Income tax expense to accounting profit is as below:

Item	Amount for theperiod
Total profit	209,004.43
Income tax expenses based on statutory applicable tax rate	38,094.77
Impact of the different tax rates applicable to subsidiaries	31,785.43
Impact of adjustment to previous years’ income tax
Impact of non-taxable income	-2,598.17
Impact of non-deductible cost, expenses and losses	-333.26
Impact of the utilization of tax losses of unrecognized deferred tax assets for
the previous period
Impact of deductible temporary differences or deductible losses of
unrecognized deferred tax assets for the period	770.98
Impact of goodwill from business combination not involving enterprises under
common control
Differences arising on settlement of income tax for the previous year	3,522.63
Impact of taxation on non-monetary items	817.28
Others
Income tax expenses	72,059.65

China Molybdenum Co., Ltd. 87

53. Other Comprehensive Income

Please refer to the notes to the Consolidated Income Statement for details

54. Cash Flow Statement

(1) Cash received relating to other operating activities

	Six Months Ended 30 June	Six Months Ended 30 June
Item	2017	2016
Receipts of compensation and penalties.	–	58.16
Receipts of interest income	8,441.44	7,675.61
Government grants	538.40	3,155.92
Others	4,715.74	4,761.45
Total	13,695.58	15,651.14

(2) Cash paid relating to other operating activities

Six Months Ended 30 June Item 2017 2016	Six Months Ended 30 June Item 2017 2016
Payments for consulting fee, technology development fee and transportation fee, etc. 5,441.52 Payments of donations and penalties, etc. 1,754.16 Payments of bank charges, etc. 5,291.28 Payments of compensation fees, vegetation recovery fees and others 2,170.32 Payments of M&A service charges 17,301.33 Others 20,500.28	2,823.88 1,703.00 1,044.72 – – 6,116.25
Total 52,458.89	11,687.85

(3) Cash received relating to other investing activities

	Six Months Ended 30 June
Item	2017	2016
Others	2,631.51
Total	2,631.51

88 2017 INTERIM REPORT

(4) Cash paid relating to other investing activities

Cash paid relating to other investing activities	Cash paid relating to other investing activities
Six Months Ended 30 June Item 2017 2016
Loan to third party 8,286.74	53.72
Total 8,286.74	53.72

(5) Cash received relating to other financing activities

	Six Months Ended 30 June	Six Months Ended 30 June
Item	2017	2016
Cash receipts for gold leases business	154,552.61	107,071.96
Total	154,552.61	107,071.96

(6) Cash paid relating to other financing activities

Six Months Ended 30 June Item 2017 2016	Six Months Ended 30 June Item 2017 2016
Cash paid for gold leasing business 37,193.78 Commission charge related to gold leasing business 7,147.18 Commission charge related to issue of letter of guarantee for loan business 990.14 Commission charge related to bond operation. – Other 4,517.52	91,439.27 2,293.28 2,245.52 2,300.00 –
Total 49,848.62	98,278.07

China Molybdenum Co., Ltd. 89

1. Supplementary Information to Cash Flow Statement

2. (1) Supplementary information to cash flow statement

				Six Months Ended 30 June	Six Months Ended 30 June
	Supplementary Information			2017	2016
	1. Reconciliation of net profit to cash flows from
	operating activities:
	Net Profit			136,944.77	50,156.24
	Add:	Impairment provision for assets		568.32	2,153.29
		Depreciation of fixed assets, depreciation of
		oil and gas assets and depreciation of
		productive biological assets		136,990.37	27,128.04
		Intangible asset amortization		153,382.85	5,087.96
		Amortization of long-term deferred expenses		1,553.32	1,353.54
		Loss on disposal of fixed assets, intangible
		attests and other long-term investments		461.86	–
		Loss/(gain) on change in fair value		32,601.27	-3,498.28
		Financial expenses		107,401.64	8,899.75
		Investment loss		-4,558.79	-13,948.14
		Decrease in deferred tax assets		4,003.13	3,463.96
		Increase in deferred tax liabilities		-48,339.69	–
		Decrease in inventories		-20,883.19	12,622.31
		Decrease in operating receivable items		-62,422.11	-39,400.61
		Increase in operating receivable items		-11,677.96	15,891.02
		Other		-77,884.64	-16,413.33
		Net cash flow from operating activities		348,141.15	53,495.75
	2. Net changes in cash and cash equivalents:
	Closing amount of cash			1,129,016.10	1,234,368.69
	Less:	Opening amount of cash		842,020.81	898,216.23
	Add: Closing amount of cash equivalents.			-	–
	Less:	Opening amount of cash equivalents.		-	–
	Net increase in cash and cash equivalents			286,995.29	336,152.46
Cash		and cash equivalents
	Item			30 June 2017	31 December 2016
	I. Cash			1,129,016.10	842,020.81
	Including: Cash on hand			156.93	112.03
		Bank deposits always available for payment		1,128,859.17	841,908.78
	II. Cash	equivalents
	Including: bond investments due with in 3 months
	III. Closing Amount of cash and cash equivalents			1,129,016.10	842,020.81
	Including: restricted cash and cash equivalents of
		the parent company or subsidiaries of
		the Group

(2) Cash and cash equivalents

90 2017 INTERIM REPORT

56. Notes to Statement of Changes in Owners Equity

Description of “Other” items for the adjustment to the closing balance in the previous year and the amount of adjustment and other matters:

57. Foreign Currency Monetary Item

(1) Foreign currency monetary item:

		Closing balance
		of foreign		Closing balance of
Item		currency	Exchange rate	RMB equivalent
Cash and	bank balances
Including:	USD	5,866.23	6.7744	39,775.15
	EUR	1,911.35	7.7496	14,843.99
	EUR	2.90	0.8679	2.51
	RMB	37.68	1.0000	37.68
	CAD	116.14	5.2144	605.46
	AUD	1,619.38	5.2099	8,436.80
	BRL	23,717.58	2.0505	48,632.86
	GBP	3.30	8.8144	29.50
	ZAR	2,137.40	0.5182	1,107.51
	SGD	0.30	4.9135	1.46
Short-term borrowings
Including:	USD
	EUR
	HKD
	RMB
	RMB
Long-term	borrowings
Including:	USD
	EUR	23,800.00	7.7496	184,314.78
	HKD
	RMB
	RMB
Other non-current liabilities due within
one year
	EUR	1,400.00	7.7496	10,837.55

China Molybdenum Co., Ltd. 91

58. Government Grant

1. Basic information on government grant

			Amount through
Category	Amount	Reported item	profit or loss
Deferred income of subsidy	350.24	Non-operating revenue	350.24
for low-grade scheelite
demonstration project
Land reclamation subsidy	142.64	Non-operating revenue	142.64
Others	45.52	Non-operating revenue	45.52
Total	538.40	Non-operating revenue	538.40

VII. INTERESTS IN OTHER ENTITIES

1. Equity of Subsidiaries

2. (1) Constitution of subsidiaries

	Main
	business	Place of	Nature of	Shareholding	ratio(%)	Acquisition
Name of the subsidiary	site	incorporation	business	Direct	Indirect	method
China Molybdenum Refining Co., Ltd.	China	Luanchuan,	Refining and sales of	100.00	–	Investment Establishment
		Henan	mineral products
China Molybdenum Tungsten Sales and Trading	China	Luanchuan,	Sales of mineral	100.00	–	Investment Establishment
Co., Ltd.		Henan	products
Luoyang Dachuan Molybdenum Tungsten	China	Luanchuan,	Processing and sales	100.00	–	Investment Establishment
Technology Co., Ltd.		Henan	of mineral products
Luoyang Mudu International Hotel Co., Ltd.	China	Luoyang,	Hotel	100.00	–	Investment Establishment
		Henan
China Molybdenum Tungsten Co., Ltd	China	Luanchuan,	Refining and sales of	100.00	–	Investment Establishment
		Henan	mineral products
China Molybdenum (Hong Kong) Company	Hong Kong,	Hong Kong	Sales of mineral	100.00	–	Investment Establishment
Limited	China		products
China Molybdenum Metal Material Company	China	Luoyang,	Processing and sales	100.00	–	Investment Establishment
Limited		Henan	of mineral
Xinjiang Luomu Mining Co., Ltd	China	Xinjiang	Purchase and sales	70.00	–	Investment Establishment
			of mineral
China Molybdenum Sales Co., Ltd.	China	Luanchuan,	Sales of mineral	100.00	–	Investment Establishment
		Henan	products
CMOC Co., Ltd	Hong Kong,	Hong Kong	Investment & Holding	100.00	–	Investment Establishment
	China
CMOC Mining Pty Limited	Australia	Australia	Mining, processing	–	100.00	Investment Establishment
			and sales of mineral
			products
CMOC Mining Services Pty. Limited	Australia	Australia	Mining services	–	100.00	Investment Establishment
Luochuan Huqi Mining Company Limited	China	Luanchuan,	Refining and sales of	100.00	–	Investment Establishment
		Henan	mineral products
Luanchuan Fu Kai Trading Co., Ltd.	China	Luanchuan,	Purchase and sales	100.00	–	Investment Establishment
		Henan	of molybdenum and
			tungsten related
			products

92 2017 INTERIM REPORT

	Main
	business	Place of	Nature of	Shareholding	ratio(%)	Acquisition
Name of the subsidiary	site	incorporation	business	Direct	Indirect	method
Luanchuan Qixing Mining Company Limited	China	Luanchuan,	Refining and sales of	90.00	–	Investment Establishment
		Henan	mineral products
Luanchuan Furun Mining Co., Ltd	China	Luanchuan,	Refining and sales of	100.00	–	Investment Establishment
		Henan	mineral products
Luanchuan County Dadongpo Tungsten &	China	Luanchuan,	Refining and sales of	51.00	–	Investment Establishment
Molybdenum Co., Ltd.		Henan	mineral products
Luanchuan County Jiuyang Mining Co., Ltd.	China	Luanchuan,	Refining and sales of	51.00	–	Investment Establishment
		Henan	mineral products
Luanchuan County Sanqiang Molybdenum	China	Luanchuan,	Refining and sales of	51.00	–	Investment Establishment
& Tungsten Co., Ltd.		Henan	mineral products
Luoyang Mudulihao Business Co., Ltd.	China	Luoyang,	HOTEL MANAGEMENT	–	100.00	Investment Establishment
		Henan
Schmoke (Shanghai) International Trading Co., Ltd.	China	Shanghai	Import and export	100.00	–	Investment Establishment
			of goods and
			technology
CMOC Mining USA LTD	America	America	Consultancy	–	100.00	Investment Establishment
Shanghai Ruichao Investment Co., Ltd.	China	Shanghai	Consulting and	–	100.00	Investment Establishment
			corporate planning
			and management
Schmocker (Tibet) International Trading Co., Ltd	China	Tibet	Consulting and asset	–	100.00	Investment Establishment
			management and
			sales
Upnorth Investment Limited	China	BVI	Investment holding		100.00	Investment Establishment
Beijing Yongbo Resources Investment holding	China	Beijing	Consulting and asset	100.00	–	Investment Establishment
Co., Ltd.			management and
			sales
Luoyang Yuehe Properties Co., Ltd	China	Luoyang	Consulting, asset	100.00	–	Investment Establishment
			management
Molybdenum Congo	Hong Kong	Hong Kong	Mining services	–	100.00	Investment Establishment
CMOC Sales & Marketing Limited	UK	London	Mining services and	–	100.00	Investment Establishment
			sales
CMOC LUXEMBOURG	Luxembourg	Luxembourg	Investment holding	–	100.00	Investment Establishment
CMOC BRAZIL	Brazil	Brazil	Investment holding	–	100.00	Investment Establishment
Tibet Zhaoxu Venture Capital Investment Co., Ltd.	China	Tibet	Consulting, business	–	100.00	Investment Establishment
			planning,
			management
Long March No.1 Investment Limited	Hong Kong	Hong Kong	Investment holding	–	100.00	Investment Establishment
Bandra Investment Limited	China	BVI	Investment holding	–	100.00	Investment Establishment
Copebras Indústria Ltd.	Brazil	Brazil	Mining and processing	–	100.00	Business combination not
						involving enterprises
						under common control
Niobras Mineração Ltda.	Brazil	Brazil	Mining and processing	–	100.00	Business combination not
						involving enterprises
						under common control
CMOC International DRC Holdings Limited	Bermuda	Bermuda	Investment holding	–	100.00	Business combination not
						involving enterprises
						under common control
TFHL	Bermuda	Bermuda	Investment holding	–	70.00	Business combination not
						involving enterprises
						under common control
TFM	DRC	DRC	Mining and processing	–	80.00	Business combination not
						involving enterprises
						under common control
Purveyors South Africa Mine Services CMOC	The Republic	The Republic of	Transportation	–	100.00	Business combination not
	of South	South Africa				involving enterprises
	Africa					under common control

China Molybdenum Co., Ltd. 93

1. Transactions that Result in Change of Owners’ Equity in Subsidiaries without Losing Control

2. (1) Impact of transactions on non-controlling interests and equity attributable to owners of the parent company:

Unit: 0’000 Yuan Currency: RMB

		24% equity of
		TFM held by BHR
Acquisition costs/disposal considerations
－Debt assumed		785,666.59
－Fair value of non-cash assets
Total acquisition costs/disposal considerations		785,666.59
Less: Share in subsidiaries’ net assets based
on acquired/disposed net assets proportion		786,484.28
Balance		-817.69
Including: Capital reserve adjusted		-817.69
Surplus reserve adjusted
Retained profit adjusted

Note: According to the cooperation agreement entered into between the Group and the shareholders of BHR, the Group granted the shareholders of BHR a put option in respect of the 24% equity of TFM held by BHR as well as the right to purchase the relevant assets. Since the Group enjoys variable return on the 24% equity of TFM based on the arrangement under the agreement, the Group has recognized such matter as an equity transaction.

1. Equity in Joint Ventures and Associates

2. (1) Significant joint ventures and associates

Unit: 0’000 Yuan Currency: RMB

						Accounting methods
Name of the joint venture	Major place	Place of	Nature of	Shareholding	ratio(%)	of joint ventures
or associate	of business	incorporation	business	Direct	Indirect	and associates
Luoyang High Tech Molybdenum &	Luoyang, Henan	Luoyang, Henan	Processing and sales of	50.25%	–	Equity method
Tungsten Materials Co., Ltd			minerals products
Xuzhou Huanyu Molybdenum Co., Ltd.	Xuzhou, Jiangsu	Xuzhou, Jiangsu	Investment	50.00%	–	Equity method
Luoyang Yulu Mining Co., Ltd.	Luoyang, Henan	Luoyang, Henan	Refining and sales of	40.00%	–	Equity method
			minerals products
Luoyang Shenyu Molybdenum Co., Ltd	Luoyang, Henan	Luoyang, Henan	Refining and sales of	15.00%	–	Equity method
			minerals products

94 2017 INTERIM REPORT

(2) Main financial information of significant joint ventures

Unit: 0’000 Yuan Currency: RMB

	Closing balance/Amount for the period	Closing balance/Amount for the period	Opening balance/Amount for the prior period	Opening balance/Amount for the prior period	Opening balance/Amount for the prior period
	High-tech	Huan Yu	High-tech		Huan Yu
Current assets	6,599.25	21,881.02	7,332.98		21,484.45
Including: cash and cash equivalents	712.93	614.85	456.80		611.45
Non-current assets	12,152.14	44,978.82	12,889.55		269,856.35
Total assets	18,751.39	66,859.84	20,222.53		291,340.80
Current liabilities	1,388.71	12,537.15	2,470.07		8,324.88
Non-current liabilities	–	80,000.00	–		80,000.00
Total liabilities	1,388.71	92,537.15	2,470.07		88,324.88
Non-controlling interests					-1,657.58
Total equity interest attributable to parent
company	17,362.68	-23,464.74	17,752.46		204,673.50
Net assets shares calculated by percentage
of shareholding	8,681.34	-11,732.37	8,876.23		102,336.75
Adjusted items	–	–	–		842.59
Carrying amount in the investment of
associates	8,681.34	-11,732.37	8,876.23		103,179.34
Fair value of the joint venture investment
with public offer	N/A	N/A	N/A		N/A
Operating revenue	4,569.51	0.52	7,649.96		20.36
Financial expenses	-2.40	1,997.01	19.94		3,993.57
Income Tax Expense	–	–	–		–
Net Profit	-1,229.51	-5,556.41	-2,720.75		-10,528.68
Discontinued operation net profit	–	–	–		–
Other comprehensive income	–	–	–		–
Total comprehensive income	-1,229.51	-5,556.41	-2,720.75		-10,528.68
Dividends received from joint ventures for
the period	–	–	–		–

China Molybdenum Co., Ltd. 95

(3) Main Financial Information of Significant Associates

Unit: 0’000 Yuan Currency: RMB

Yulu Mining	Closing balance/ Amount for theperiod	Opening balance/ Amount for thepriorperiod
Current assets	17,712.96	13,010.74
Non-current assets	5,787.80	6,087.46
Total assets	23,500.76	19,098.20
Current liabilities	4,915.01	2,802.88
Non-current liabilities	350.00	400.00
Total liabilities	5,265.01	3,202.88
Non-controlling interests	–	–
Total equity interest attributable to parent company	18,235.74	15,895.31
Net assets shares calculated by percentage of shareholding	7,294.30	6,358.13
Adjusted items	–	604.82
Carrying amount in the investment of associates	7,294.30	6,962.95
Fair value of the joint venture investment with public offer	N/A	N/A
Operating revenue	14,223.04	30,092.73
Net profit	6,829.08	14,193.92
Discontinued operation net profit	–	–
Other comprehensive income	–	–
Total comprehensive income	6,829.08	14,193.92
Dividends received from associates for the period	3,680.00	7,825.00

4. Significant Joint Ventures

				Shareholding	Shareholding
	Main			proportion/entitled
	business	Place of	Nature of	shares	(%)
Name ofjoint control operation	site	registration	business	Direct	Indirect
Nothparkes Joint Venture	Australia	Australia	Exploitation of			80
			copper and
			gold mines

96 2017 INTERIM REPORT

VIII. THE RISK RELEVANT FOR FINANCIAL INSTRUMENTS

The Group’s major financial instruments include cash and bank equivalents, held-for-trading financial assets, accounts receivable, notes receivable, other receivables, other current assets, other non-current assets, available-for-sale financial assets, held-for-trading financial liabilities, accounts payable, notes payable, other payables, borrowing and bonds payables and etc. The risks associated with these financial instruments as well as risk management policies adopted by the Group to reduce the risks are as below. The Group’s management to manage and monitor the risk exposure to ensure the above risks is controlled in a limited scope.

1. The Goal and Policy of Risk Management

The main business of the Group is mining. The Group only sells self-produced products. In the long run, natural hedge operating in various ways help safeguard and stable earnings and cash flow. Hedging can be made by the financial derivatives or other forms of syntheses not used for such purpose. The Group does not buy or issue derivative financial instruments for the purpose of trading or speculating; nor to conduct such trades or speculative holding through the investment in associates.

The goal of the Group engaged in risk management is to balance between risks and benefits, to keep the impact of risks on the Group at the lowest level, and to maximize the interests of shareholders and other investors of equity. Based on such risk management goal, the Group’s basic strategy of risk management is to determine and analyze all kinds of risks faced by the industry, set up appropriate bottom line to management risk, timely supervise various risks in a reliable way, and control them in a limited range.

1.1 Market risk

1.1.1. Foreign exchange risk

Foreign exchange risk refers to the risk of loss due to changes in exchange rate. This Group’s foreign exchange risk is mainly associated with USD, HKD, EUR, CAD, RMB, BRL, GBP, CDF and AUD. The main business activities of domestic subsidiaries of the Group use RMB for quoting price and settling account. The subsidiaries in Australia of the Group mainly use AUD/USD for quoting price and settling account. The Group’s niobium and phosphates businesses in Brazil mainly use USD and BRL for quoting price and settling account. The Group’s copper and cobalt businesses in Democratic Republic of Congo mainly use USD and CDF for quoting price and settling account. As a result, the risk exposure of the Group due to exchange rate changes is not big. Foreign currency trading is investing and financing activities of domestic and Hong Kong subsidiaries using USD, EUR and JPY for quoting price and settling account, the operating activities of subsidiaries in Australia, which adopt USD as functioned currency and use AUD for settling account, the operating activities of subsidiaries in Brazil, which adopt USD as functioned currency and use BRL for settling account, and the operating activities of subsidiaries in Democratic Republic of Congo, which adopt USD as functioned currency and use CDF for settling account.

China Molybdenum Co., Ltd. 97

On 30 June 2017, the financial assets and financial liabilities as described in the table below are balance of USD, HKD, AUD, EUR, CAD, RMB, BRL, GBP and CDF (already being converted into RMB). All the other financial assets and financial liabilities of the Group use recording currency for quoting price and settling account. The foreign exchange risk due to such assets and liabilities of foreign currency balance may impact the business performance of this Group.

Item	30 June 2017	31 December 2016
USD
Cash and cash equivalents	39,775	4,813
Short-term borrowings	(88,447)
Sub-total	39,775	(83,634)
HKD
Cash and cash equivalents	3	19
Short-term borrowings
Sub-total	3	19
AUD
Cash and cash equivalents	8,437	3,075
Sub-total	8,437	3,075
EUR
Cash and cash equivalents	14,844	18,848
Short-term borrowings
Long-term borrowings	(184,315)	(168,620)
Sub-total	(169,471)	(149,772)
CAD
Cash and cash equivalents	606	600
Sub-total	606	600
RMB
Cash and cash equivalents	38	155
Sub-total	38	155
BRL
Cash and cash equivalents	48,633	19,675
Sub-total	48,633	19,675

98 2017 INTERIM REPORT

Item 30 June 2017	31 December 2016
GBP Cash and cash equivalents 30	17
Sub-total 30	17
CDF Cash and cash equivalents –	31,882
Sub-total –	31,882
ZAR Cash and cash equivalents 1,108	–
Sub-total 1,108	–
SGD Cash and cash equivalents 2	–
Sub-total 2	–
Total -70,839	-177,983

The Group closely monitors the effect of exchange rate changes on its foreign exchange, and avoids foreign exchange risk through acquisition of appropriate forward foreign exchange contracts.

The following table details the sensitivity of this Group to 10% of the change of foreign exchanges rate from recording currency of related group entities (including: RMB, USD, HKD and BRL) to other foreign currencies. Internal reports to senior management adopt such ratio of 10% which represents the estimation of the management on the possible changes of foreign exchange rate. The Group’s foreign exchange risk sensitivity analysis on the report date is based on the changes occurred on the settlement date and throughout the whole reporting period. Positive refers to the pre-tax profit increase registered by companies using RMB as recording currency due to foreign currency appreciation of RMB against the USD, HKD and EUR bank loans. Negative refers to the pre-tax profit decrease registered by companies using HKD as recording currency due to foreign currency appreciation of HKD against the USD and RMB Cash and bank balances, and companies using USD as recording currency due to foreign currency appreciation of USD against the AUD, HKD, EUR, CAD, RMB, BRL, GBP and CDF assets and liabilities. If the recording currency of our group depreciate when exchange these foreign currencies, it will have opposite impact on pre-tax profit. The impact from current forward foreign exchange contracts has not been taken into consideration in the following sensitive analysis.

China Molybdenum Co., Ltd. 99

Unit: 0’000 Yuan Currency: RMB

		Amount for the period	Amount for the period	Amount for the	Amount for the	prior period	prior period
			Impact on				Impact	on
		Impact	shareholder’s	Impact		shareholder’s
Item	Change of exchange rate	onprofit	equity	on profit			equity
Entities which are denominated in RMB
Pre-tax profit and equity	Depreciation of 10% of USD
	against RMB	(1,077)	(1,077)	8,132			8,132
	Depreciation of 10% of HKD
	against RMB
	Depreciation of 10% of EUR
	against RMB	6,975	6,975		–			–
Entities which are denominated in HKD
Pre-tax profit and equity	Depreciation of 10% of USD
	against HKD	(2,900)	(2,900)	(931)			(931)
	Depreciation of 10% of CAD
	against HKD	(61)	(61)
	Depreciation of 10% of RMB
	against HKD			(4,553)			(4,553)
Entities which are
denominated in USD
Pre-tax profit and equity	Depreciation of 10% of AUD
	against USD	(844)	(844)	(308)			(308)
	Depreciation of 10% of HKD
	against USD	–	–		(4)			(4)
	Depreciation of 10% of EUR
	against USD	9,972	9,972	19,965			19,965
	Depreciation of 10% of CAD
	against USD	–	–		–			–
	Depreciation of 10% of RMB
	against USD	4	4	(102)			(102)
	Depreciation of 10% of BRL
	against USD	4,863	4,863		–			–
	Depreciation of 10% of GBP
	against USD	3	3		–			–
	Depreciation of 10% of CDF
	against USD	–	–		–			–
	Depreciation of 10% of JPY
	against USD	–	–	5,000			5,000
	Depreciation of 10% of ZAR
	against USD	111	111		–			–
	Depreciation of 10% of SGD
	against USD				–			–

The management of the Group believes that closing foreign currency risk cannot reflect the annual foreign exchange risk. Sensitivity analysis cannot reflect inherent foreign currency risk.

100 2017 INTERIM REPORT

1.1.2. Risk of interest rate

The Group’s fair value interest rate risk of financial instruments relates primarily to fixed-rate bank borrowings. The Group currently does not have an interest rate hedging policy in accordance with the management consider the risk exposure related to fair value interest rate is low.

The Group the risks of financial instruments cash flow changes due to interest rate changes are mainly associated with the floating interest rate of bank loans. The Group pays close attention to the impact of interest rate changes to this Group’s cash flow fluctuation risk.

Interest rate risk sensitivity analysis is based on the following assumptions:

• Market interest rate changes affect the interest income or expenses of financial instruments with a floating interest rate;

• Based on the market interest rates of balance sheet date, to calculate the fair value changes of derivatives and other financial assets and liabilities by discounted cash flow approach.

On the basis of the above assumption, in the case of other variables are constant, the pre-tax impact of the probable reasonable change of interest rates on profit and loss and equity is as follows:

Unit: 0’000 Yuan Currency: RMB

		Amount	for the year	Amount for the prior year	Amount for the prior year	Amount for the prior year
			Impact on		Impact on
		Impact on	shareholder’s	Impact on	shareholder’s
Item	Change of interest rate	profit	equity	profit		equity
Floating rate	Increase 50 base points of
	interest rate	-4448	-4448	-1312		-1312
Floating rate	Decrease 50 base points of
	interest rate	4448	4448	1312		1312

1.2. Credit risk

The Group’s liquidity is deposited in high credit rating bank, so the credit risk of the liquidity is low.

China Molybdenum Co., Ltd. 101

1.3. Liquidity risk

In the management of liquidity risk, the Group maintains and monitors the cash and cash equivalents deemed sufficient by the management so as to meet the operation requirements of the Group and reduce the impact of cash flow. The management of the Group monitors the usage of bank loans and compliance of loan covenant.

According to the term to maturity of non-discounted and remaining contract obligations, the financial liabilities held by the Group are analyzed as below:

Unit: 0’000 Yuan

==> picture [391 x 16] intentionally omitted <==

----- Start of picture text -----

Amount for the period Within 1 year. 1 to 2 years. 2 to 5 years Total
----- End of picture text -----

Borrowing		480,235.50		614,650.77		811,182.08		1,906,068.35
Held-for-trading financial
liabilities at fair value through
profit or loss		439,567.27		–		–		439,567.27
Notes payable		31,750.00		–		–		31,750.00
Accounts payable		89,050.26		–		–		89,050.26
Dividends payable		2,788.58		–		–		2,788.58
Other payables		68,395.09		–		–		68,395.09
Non-current liabilities due within
one year		287,326.48		–		–		287,326.48
Other current liabilities		211,240.93		–		–		211,240.93
Bondspayable		–		–		200,000.00		200,000.00
Total		1,610,354.11		614,650.77		1,011,182.08		3,236,186.96
Amount for thepriorperiod		Within 1year.		1 to 2years.		2 to 5years		Total
Borrowing		436,741.90		36,471.60		282,358.00		755,571.50
Held-for-trading financial liabilities
at fair value through profit or
loss		163,635.90		–		–		163,635.90
Notes payable		83,000.00		–		–		83,000.00
Accounts payable		16,735.80		–		–		16,735.80
Dividends payable		45,006.60		–		–		45,006.60
Other payables		24,761.10		–		–		24,761.10
Non-current liabilities due within
one year		1,000.00		–		–		1,000.00
Other current liabilities		103,905,60		–		–		103,905,60
Bonds payable		18,320.00		218,320.00		208,440.00		445,080.00
Other non-current liabilities		–		–		–		–
Total		893,106.90		254,791.60		490,798.00		1,638,696.50

102 2017 INTERIM REPORT

IX. DISCLOSURE OF FAIR VALUE

1. The Closing Fair Value of Assets and Liabilities Measured at Fair Value

Unit: 0’000 Yuan Currency: RMB

Item Closing fair value Fair value measurement in the first level Fair value measurement in the second level Fair value measurement in the third level
	Total
I. Continuous fair value measurement (I) Financial assets at fair value through profit or loss – 3,806.90 – 1. Held-for-trading financial assets – 3,806.90 – (3) Derivative financial assets – 3,806.90 – (II) Available-for-sale financial assets – – 196,521.71 1. Debt instrument investment – – 2. Equity instrument investment – – 196,521.71 (III) Biological assets – – 4,027.33 1. Consumptive biological assets – – 4,027.33 2. Productive biological assets – 8,863.35 – The total assets measured continuously at fair value – 12,670.25 200,549.04 Liabilities formed by gold lease measured in fair value – 386,638.04 – Contingent consideration at fair value – – 51,001.61 The total liabilities measured continuously at fair value – 386,638.04 51,001.61	3,806.90 3,806.90 3,806.90 196,521.71 196,521.71 4,027.33 4,027.33 8,863.35 213,219.29 386,638.04 51,001.61 437,639.65

1. Continual and Non-Continual Second Level Fair Value Measurement Items, Qualitative and Quantitative Information of The Valuation Techniques and Significant Parameters Adopted

Items that are continuously measured at the second level of fair value are liabilities arising from forward foreign exchange contracts, gold forward contracts and the embedded derivatives financial instrument contained in accounts receivable. The discounted cash flow as its fair values was applied as a basis in the valuation. The main input values include forward foreign exchange quotations and discount rates of similar projects in banks, observable prices of related investment portfolios, the closing prices of related commodity and forward quoted prices.

1. Continual and Non-Continual Third Level Fair Value Measurement Items, Qualitative and Quantitative Information of The Valuation Techniques and Significant Parameters Adopted

Items that are continuously measured at the third level of fair value are consumable biological assets, available-for-sale financial assets and contingent consideration. The fair value of consumable biological assets is measured based on the prices of same kind wood, the growth period of related tree and the discounting of the subsequently input and maintenance fee. The fair value of available-for-sale financial assets is according to the valuation report provided by third-party financial institutions which is based on the comparable market investment prices and discounted future cash flow or valued by the management. The fair value of contingent consideration is based on the corresponding commodity prices calculated by Monte Carlo model.

China Molybdenum Co., Ltd. 103

X. RELATED PARTIES AND CONNECTED TRANSACTIONS

1. Parent Company of the Company

Unit: 0’000 Yuan Currency: RMB

				Proportion of	Proportion of
				the Company’s	the Company’s
				ownership	voting power
	Place of	Nature of	Registered	interest held	held
Name of the parent	registration	business	capital	by the parent	by the parent
				(%)	(%)
Cathay Fortune Corporation	Shanghai	Investment	18,181.82	31.58	31.58
		management

Information about the parent of the Company

On 12 January 2014, the Company received the Notice of Change of Control Rights of Luoyang Luanchuan Molybdenum Group Co., Ltd. from the shareholders Cathay Fortune Corporation (“ CFC ”) and Luoyang Mining Group Co., Ltd. (“ LMG ”), notifying that CFC increased its shareholding H shares of the Company in the secondary market through its wholly-owned subsidiary, Cathy Fortune Investment, incorporated in Hong Kong. Upon completion, CFC and its persons acting in concert totally hold 1,827,706,322 shares of the Company (approximately 36.01% of the total share capital of the Company), surpassing 1,776,593,475 shares (approximately 35.00% of the total share capital of the Company) held by the original largest shareholder LMG, and become the Company’s largest shareholder. CFC and LMG exchanged views on the change of control of the Company. LMG confirmed that it no longer had control over the Company and had no intention to increase its shareholding in the Company. Therefore, the controlling shareholder of the Company changed to CFC.

The de facto controller of the Company is CFC. As of 30 June 2017, CFC actually holds 5,333,220,000.00 shares of the Company, accounting for 31.58% of the total share capital of the Company.

104 2017 INTERIM REPORT

3. Associates and Joint Ventures of the Company

Other associates or joint ventures which have transactions with the Group in the period or in previous period are as follows:

previous period are as follows:
Associates orjoint ventures	Relationship with the Company
High-Tech	Joint Ventures
Fuchuan	Joint Ventures
Yulu Mining	Associates
Luoyang Shenyu	Associates

4. Other Related Parties

Other Related Parties
Other relatedparties	Relationship with the Company
LMG (Note1)	other
CFC (Note1)	other
Gécamines (Note2)	other
SNEL (Note2)	other

Note 1: LMG and CFC are the corporate shareholders of the Group.

Note 2: Gécamines is a minority shareholder of one of the Group’s subsidiaries, and SNEL is a state-owned enterprise in the DRC. The Group completed the acquisition of the copper and cobalt businesses in the DRC in 17 November 2016, and Gécamines, a minority shareholder of TFM, has become a related party to the Group since the date on which the acquisition was completed. As Gécamines, a minority shareholder of TFM, is a state-owned enterprise in the DRC, SNEL, a state-owned enterprises controlled by the government of the DRC, is also regarded as a related party. The government of the DRC may hold indirect interests in various companies, and such interests, when combined with other indirect interests, may be deemed as related parties to the Group under circumstances where the Group is not aware of the situation. Nonetheless, the Group believes that these financial statements have disclosed and presented the major related party transactions of TFM relating to the government of the DRC.

5. Related Party Transactions

(1) Related parties’ transaction of selling and purchasing goods and rendering and receiving labor services

Information on purchasing goods/receiving labor services

Unit: 0’000 Yuan Currency: RMB

	Details of related	Amount		Amount
Relatedparty	party transaction	for theperiod	for thepriorperiod
High-Tech	Product procurement	27.35		–
Gécamines	Technical support	4,950.68		N/A
SNEL	Electricity service	12,048.67		N/A

China Molybdenum Co., Ltd. 105

(2) Compensation for key management personnel

Unit: 0’000 Yuan Currency: RMB

Six Months Ended 30 June Item 2017 2016	Six Months Ended 30 June Item 2017 2016
Compensation for key management personnel 100.5	107.6

6. Amounts Due from/to Related parties

(1) Receivable Item

Unit: 0’000 Yuan Currency: RMB

Item Relatedparty 30 June 2017 31 December 2016 Carrying balance Bed debt provision Carrying balance Bed debt provision	Item Relatedparty 30 June 2017 31 December 2016 Carrying balance Bed debt provision Carrying balance Bed debt provision
Other receivables High-Tech Prepayments Fuchuan Other current assets SNEL 10,474.33 Other non-current assets Gécamines 29,439.34 Other non-current assets SNEL 121,531.48	11,021.51 29,029.96 122,435.28

(2) Payable Item

Unit: 0’000 Yuan Currency: RMB

Item	Relatedparty	30 June 2017	31 December 2016
Other payables	Fuchuan	964.17	972.10
Other payables	SNEL	6,774.40	6,937.00
Other payables	Gécamines	4,319.46	85,206.13
Accounts payable	SNEL	4,052.71	3,865.99
Other non-current
liabilities	Gécamines	6,774.40	6,937.00

106 2017 INTERIM REPORT

XI. COMMITMENTS AND CONTINGENCIES

1. Significant Commitments

Significant external commitments, nature and amount thereof as at the balance sheet date

(1) Capital commitments

Unit: Thousand Yuan Currency: RMB

	30 June 2017	31 December 2016
Contracted but not recognised in the financial statements:
–Commitment for acquisition and construction
of long-term assets	211,287	207,821
–Commitment for external investment	527,240	527,634
Total	738,527	735,455

(2) Operating lease commitments

Till the balance sheet date, the information on irrevocable operating lease contracts that have been signed by the Group with foreign parties are as follows:

	Unit: Thousand Yuan Currency: RMB	Unit: Thousand Yuan Currency: RMB
	30 June 2017	31 December 2016
Minimum lease payment under irrevocable operating
First year after the balance sheet date	20,303	21,147
Second year after the balance sheet date	18,282	19,149
Third year after the balance sheet date	17,142	18,282
Fourth year after the balance sheet date	28,439	17,142
Subsequentyears	–	16,890
Total	84,166	92,610

China Molybdenum Co., Ltd. 107

2. Segment Information

(1) Determination basis and accounting policies for segment reporting

In prior years, management divided the Group’s business into five operating segments, namely Molybdenum and Tungsten related products, gold and silver related products, electrolytic lead, Copper and gold-related products and others on the basis of the Group’s internal organization structure, management requirements and internal reporting system. During the year, the Group completed two significant asset acquisitions. In order to reflect the operation of the Group in a more reasonable way, the Company divided the Group’s business into six operating segments, namely, Molybdenum & Tungsten related products in China, Copper & gold related products in Australia, Niobium and Phosphorus related products in Brazil, and Copper and Cobalt related products in the DRC and others; the Group’s management evaluates the operating results of these segments regularly, in order to determine the allocation of resources and assess their performance.

These reporting segments are determined on the basis of internal management and reporting system. Information of segment reporting are disclosed according to segment accounting policies and measurement standards, the measurement basis of which are consistent with the accounting and measurement basis of financial statements.

108 2017 INTERIM REPORT

(2) Reporting segment’s financial information

Unit: Thousand Yuan Currency: RMB

==> picture [476 x 47] intentionally omitted <==

----- Start of picture text -----

Molybdenum Niobium & Copper &
& Tungsten Copper & Phosphorus Cobalt Inter-
related gold related related related Unallocated segment
Item products products products products Others item eliminations Total
----- End of picture text -----

Operating revenue
External revenue	1,731,034	838,644	2,150,472	6,760,884	173,906	–	11,654,940
Inter-segment revenue
Total segment operating
revenue	1,731,034	838,644	2,150,472	6,760,884	173,906	–	11,654,940
Total operating revenue in
the statements	1,731,034	838,644	2,150,472	6,760,884	173,906	–	11,654,940
Operating Costs	899,156	574,352	1,734,844	4,196,233	117,005	–	7,521,590
Business tax and
surcharges	114,227	28,392	–	–	–	–	142,619
Selling expenses	10,732	29,948	13,603	46,909	–	–	101,192
Administrative expenses	–	4,368	198,846	11,982	–	248,203	463,399
Financial expenses	–	37,532	163,793	279,522	–	545,288	1,026,135
Assets impairment loss	–	755	261	-1,057	–	5,724	5,683
Add: Gains (losses) on
change in fair value	–	–	–	-316,521	–	-9,491	-326,012
Investment income	–	–	–	–	–	45,588	45,588
Segment operating profit	706,920	163,298	39,124	1,910,774	56,901	-763,119	2,113,898
Operating profit in
financial statements	706,920	163,298	39,124	1,910,774	56,901	-763,119	2,113,898
Add: Non-operating
revenue	–	–	–	–	–	5,897	5,897
Less: Non-operating
expenses	–	822	3,516	4,875	–	20,536	29,749
Total profit	706,920	162,476	35,608	1,905,899	56,901	-777,759	2,090,045
Less: Income tax expense	62,486	85,663	-51,128	623,576	–	–	720,597
Net profit	644,434	76,812	86,736	1,282,324	56,901	-777,759	1,369,448

(3) Specialty reasons if the Company has no reporting segments or cannot disclose the total assets and liabilities of each reporting segment

China Molybdenum Co., Ltd. 109

XII. NOTES TO MAJOR ITEMS OF FINANCIAL STATEMENTS OF PARENT COMPANY

(Presented in Ten Thousand Renminbi Yuan Unless Defined Separately)

1. Accounts Receivable

(1) Disclosure of accounts receivable by categories:

			30 June 2017		Carrying		31	December 2016		Carrying
	Book	value	Bad debt	provision Provision	amount	Book	value	Bad debt provision Provision		amount
Category	Amount	Proportion	Amount	proportion		Amount	Proportion	Amount	proportion
		(%)		(%)			(%)		(%)
Accounts receivable
that are individually
significant and for which
bad debts are provided
for individually	73,257.75	99.29	422.96	0.58	72,834.79	74,548.01	99.26	422.96	0.57	74,125.05
Accounts receivables
for which bad
debt are provided
based on credit risk
characteristics portfolio	527.50	0.71	377.50	71.56	150.00	554.68	0.74	377.50	68.06	177.18
Accounts receivable that
are not individually
significant and for which
bad debts are provided
for individually
Total	73,785.25	100.00	800.46	1.08	72,984.79	75,102.69	100.00	800.46	1.07	74,302.23

The Group recognises accounts receivable of over RMB5 million as accounts receivable that are individually significant.

Accounts receivable that are individually significant and for which bad debts are provided for individually at the end of the period:

Accounts receivable	Accounts	30 Bad debt	June 2017 Provision	Reason for
(by entity)	receivable	provision	proportion	proportion
				exposed to risk
EntityA	845.93	422.96	50.00	of recoverability
Total	845.93	422.96	/	/

110 2017 INTERIM REPORT

• (2) Top five accounts receivable balances based on debtors as of period end

			Proportion of
			the amount to	Closing
	Relationship		the total	balance of
	with the		account	bad debt
Name of entity	Company	Amount	receivable	reserve
			(%)
Entity N	Controlled	29,342.88	39.77
	Subsidiary
Entity O	Controlled	20,146.81	27.30
	Subsidiary
Entity F	Third Party	9,614.41	13.03
Entity P	Controlled	8,505.41	11.53
	Subsidiary
EntityQ	Third Party	845.93	1.15	422.96
Total		68,455.43	92.78	422.96

2. Other Receivables

(1) Disclosure of other receivables by categories:

			30 June 2017					31 December 2016
	Book value		Bad debt provision Provision			Book value		Bad debt provision Provision
Category	Amount	Proportion	Amount	proportion	Carrying value	Amount	Proportion	Amount	proportion	Carrying value
		(%)		(%)			(%)		(%)
Other receivables that are
individually significant and for
which bad debts are provided
for individually	531,037.68	99.02	1,177.89	0.22	529,859.79	560,294.12	99.61	1,177.89	0.21	559,116.23
Other receivables for which bad
debt are provided based on
credit risk characteristics
portfolio	5,228.89	0.98	1,176.64	22.50	4,052.25	2,205.37	0.39	1,176.64	53.35	1,028.73
Other receivables that are not
individually significant and for
which bad debts are provided
for individually
Total	536,266.57	/	2,354.53	/	533,912.04	562,499.49	/	2,354.53	/	560,144.96

China Molybdenum Co., Ltd. 111

Other receivables that are individually significant and for which bad debts are provided for individually at the end of the period:

Other receivables (by entity) Other receivables	Closing balance	Closing balance
	Bad debt provision	Provision proportion	Reason for proportion
EntityM 2,195.09	1,177.89	53.66	Bad debt risk /
Total 2,195.09	1,177.89	/

Details of account receivables for which had debts are provided using aging analysis as follows:

Aging			Other receivables	30 June 2017 Bad debt provision	Provision proportion
Within	2	years	4,052.25
Above	2	years	1,176.64	1,176.64	100
Total			5,228.89	1,176.64

112 2017 INTERIM REPORT

3. Long-term Equity Investments

		30 June 2017			31 December 2016
					Provision for
		Provision for			impairment
Item	Book value	impairment	Carrying value	Book value	provision	Carryingvalue
Investment in
subsidiaries	1,599,771.21	–	1,599,771.21	1,598,491.21		1,598,491.21
Investment in associates
andjoint ventures	91,989.88	–	91,989.88	93,493.11		93,493.11
Total	1,691,761.09		1,691,761.09	1,691,984.32		1,691,984.32

(1) Investment in subsidiaries

		Increases for	Decreases for		Provision for	Closing
Investee entity	Openingbalance	theperiod	theperiod	Closing balance	theperiod	balance
Ye Lian	563.83			563.83
Da Chuan	1,750.00			1,750.00
Xiao Shou Mao Yi	200.00			200.00
Dadongpo	3,348.37			3,348.37
Jiu Yang	1,702.89			1,702.89
San Qiang	3,339.70			3,339.70
International Hotel	21,000.00			21,000.00
Wu Ye	10,000.00			10,000.00
Hong Kong				–
Metal Material	65,000.00			65,000.00
Fu Run	880.32			880.32
Xinjiang Luomu	98,000.00			98,000.00
Huqi	990.00			990.00
Fu Kai	26,152.00			26,152.00
Sales Company	5,000.00			5,000.00
Qi Xing	4,696.36			4,696.36
Hong Kong
CMOC (Note 1)	1,301,867.73			1,301,867.73
Schmocke	50,000.00			50,000.00
BeijingYongBo	4,000.00	1,280.00		5,280.00
Total	1,598,491.20	1,280.00		1,599,771.20

Note 1: RMB63,000,000.00 (31 December 2015: RMB63,000,000.00) is the fair value arising from financial guarantee the Company providing to a long-term bank borrowings amounting to USD139.5 million (31 December 2015: USD179.5 million) of CMOC Mining Pty Limited, a wholly-owned subsidiary of CMOC Hong Kong. RMB110,000,000.00 (31 December 2015: Nil) is the fair value arising from the Company providing financial guarantee for USD900 million (31 December 2015: Nil) syndicated long-term borrowings to CMOC Luxembourg and CMOC Brazil whose 100% equity are held by CMOC Hong Kong, the Company’s wholly-owned subsidiary; RMB308,000,000.00 (31 December 2015: Nil) is the fair value arising from the Company providing financial guarantee for USD1.59 billion (31 December 2015: Nil) syndicated long-term borrowings to CMOC DRC LIMITED, whose 100% equity is held by CMOC Hong Kong, the Company’s wholly-owned subsidiary.

China Molybdenum Co., Ltd. 113

(2) Investment in associates and joint ventures

				Investment	Changes for the period	Changes for the period
				income	Adjustment		Declared				Closing
				determined	to other	Other	cash	Provision for			balance of
	Opening	Additional	Decreased	under equity	comprehensive	changes in	dividends	impairment		Closing	impairment
Investee entity	balance	investment	investment	method	income	equities	profits	losses	Others	balance	provision
I. Joint ventures
Luoyang High Tech
Molybdenum & Tungsten
Materials Co., Ltd.
(“High-Tech”)	8,876.23			-617.83						8,258.40
Xuzhou Huanyu Molybdenum
Co., Ltd. (“Huan Yu”)	77,522.52			-2,055.62						75,466.90
Sub-total	86,398.75			-2,673.45						83,725.30
II.Associates
Luoyang Yulu Mining Co.,
Ltd. (“Yulu Mining”)	6,962.95			4,850.22			3,680.00			8,133.17
Caly Nanomoly Development,
Inc. (“Nanomoly
Development”)
Luoyang Shenyu Molybdenum
Co., Ltd (“Luoyang
Shenyu”)	131.41									131.41
Sub-total	7,094.36			4,850.22			3,680.00			8,264.58
Total	93,493.11			2,176.77			3,680.00			91,989.88

4. Operating Revenue and Operating Cost

		Six Months Ended	30 June
	2017		2016
Item	Revenue	Cost	Revenue	Cost
Principal operating	133,318.80	57,811.40	112,638.10	53,694.68
Other operating	3,006.40	3,191.70	2,410.12	2,490.70
Total	136,325.20	61,003.10	115,048.22	56,185.38

114 2017 INTERIM REPORT

5. Investment Income

Investment Income
	Six Months Ended 30 June
Item	2017	2016
Income from long-term equity investments under cost method
Income from long-term equity investments under equity method	2,176.77	892.09
Investment income from disposal of long-term equity investments
Investment income during the holding of financial assets at fair
value through profit or loss		6,215.52
Investment income from disposal of financial assets at fair value
through profit or loss	2,575.83	-1,550.57
Investment income during the holding of held-to-maturity
investments
Investment income during the holding of available-for-sale
financial assets
Investment income from disposal of available-for-sale financial
assets
Gains on revaluing the remaining equity at fair value after loss of
control
Total	4,752.60	5,557.04

XIII. SUPPLEMENTARY INFORMATION

1. Return on Net Asset and Earnings per Share (“EPS”)

	The Weighted
	average rate of
	return on net	EPS
Profit during the reporting period	assets	Basic EPS	Diluted EPS
	(%)
Net profit attributable to ordinary shareholders	4.43	0.05	N/A
Net profit excluded non-recurring profit or loss
attributable to ordinary shareholders	6.09	0.07	N/A

China Molybdenum Co., Ltd. 115

CORPORATE INFORMATION

DIRECTORS

Executive Directors

Li Chaochun (Chairman) Li Faben

Non-Executive Directors

Ma Hui (Vice Chairman) Yuan Honglin Cheng Yunlei

Independent Non-Executive Directors

Bai Yanchun Cheng Gordon Xu Shan

Supervisors

Kou Youmin (Chairperson of the Supervisory Committee) Zhang Zhenhao Wang Zhengyan

BOARD COMMITTEES

Strategic Committee

Li Chaochun (Chairman) Li Faben Bai Yanchun Yuan Honglin

Nomination Committee

Bai Yanchun (Chairman) Li Chaochun (Vice Chairman) Xu Shan Cheng Gordon

BOARD SECRETARY

Yue Yuanbin (appointed on 3 March 2017)

REGISTERED OFFICE IN THE PRC

North of Yihe, Huamei Shan Road Chengdong New District, Luanchuan County Luoyang City, Henan Province, the PRC

PRINCIPAL PLACE OF BUSINESS IN THE PRC

North of Yihe, Huamei Shan Road Chengdong New District, Luanchuan County Luoyang City, Henan Province, the PRC

Remuneration Committee

Bai Yanchun (Chairman) Cheng Gordan Yuan Honglin

Audit Committee

Xu Shan (Chairman) Cheng Gordan Yuan Honglin

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Level 54, Hopewell Centre, 183 Queen’s Road East Hong Kong

LEGAL REPRESENTATIVE

Li Chaochun

AUTHORIZED REPRESENTATIVES

Li Chaochun Ho Siu Pik

116 2017 INTERIM REPORT

COMPANY SECRETARY

Ho Siu Pik (FCS, FCIS)

ENQUIRY DEPARTMENT OF THE COMPANY

Office of the Board of Directors

I N F O R M A T I O N E N Q U I R Y TELEPHONE NO. OF THE COMPANY

STOCK CODE

Stock code of A share: 603993 (Listed on 9 October 2012) Stock code of H share: 03993 (Listed on 26 April 2007)

PRINCIPAL BANKERS

1. Industrial and Commercial Bank of China Limited 2. Agricultural Bank of China Limited

2. China Construction Bank Corporation

3. Bank of China Limited

4. China Minsheng Banking Corp., Ltd.

5. China CITIC Bank Corporation Limited

(+86) 379 6865 8017

SHANGHAI A SHARE REGISTRAR

China Securities Depository and Clearing Company Limited, Shanghai Branch 36/F, China Insurance Building No. 166 Lujiazui Road East Pudong New Area Shanghai, the PRC

HONG KONG H SHARE REGISTRAR

Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor, Hopewell Centre 183 Queen’s Road East, Wanchai, Hong Kong

1. China Development Bank Corporation 8. Ping An Bank Co., Ltd.

AUDITOR

Deloitte Touche Tohmatsu Certified Public Accountants LLP

LEGAL ADVISORS

As to Hong Kong law:

YTL & CO. Suite 1905, Tower 2, Lippo Centre 89 Queensway Hong Kong

As to PRC law:

PLACES OF LISTING

Place of listing of A share – The Shanghai Stock Exchange Place of listing of H share – The Stock Exchange of Hong Kong Limited

NAME OF THE STOCK

China Molybdenum Co., Ltd. (CMOC)

Llinks Law Offices 19/F, One Lujiazui 68 Yin Cheng Road Middle Shanghai, the PRC

WEBSITE

www.chinamoly.com

China Molybdenum Co., Ltd. 117

DEFINITIONS

“CMOC” or the “Company” or “We”

洛陽欒川鉬業集團股份有限公司 (China Molybdenum Co., Ltd.*), a joint stock company incorporated in the PRC with limited liability, the A Shares and H Shares of which are listed on the SSE and the Hong Kong Stock Exchange, respectively

the “Group”	the Company and its subsidiaries
“Directors”	Directors of the Company
“Board of Directors”	Board of Directors of the Company
“Supervisors”	Supervisors of the Company
“Board of Supervisors”	Board of Supervisors of the Company
“CFC”	Cathay Fortune Corporation, a controlling shareholder of the Company
“Cathay Hong Kong”	Cathay Fortune Investment Limited, a wholly-owned subsidiary of the CFC
“LMG”	Luoyang Mining Group Co., Ltd., the second largest controlling shareholder of the
	Company
“Guohong Group”	Luoyang Guohong Investment Group Co., Ltd., holding 100% equity interests of LMG,
	a related party of the Company
“Sales company”	Luomu Group Sales Co., Ltd., a wholly-owned subsidiary of the Company
“Yongning Gold & Lead”	Luoyang Yongning Gold & Lead Refining Co., Ltd.
“Dadongpo”	Luanchuan County Dadongpo Tungsten & Molybdenum Co., Ltd., a controlled
	subsidiary of the Company
“Xinjiang Luomu”	Xinjiang Luomu Mining Co., Ltd., a controlled subsidiary of the Company
“Huqi”	Luanchuan Huqi Mining Company Limited*, a wholly-owned subsidiary of the
	Company
“Huanyu”	Xuzhou Huanyu Molybdenum Co., Ltd., a joint venture of the Company
“Hong Kong CMOC”	CMOC Limited(洛陽鉬業控股有限公司), a wholly-owned subsidiary of the Company
	registered in Hong Kong
“Niobium/Phosphates Mine in Brazil” a mine located in Brazil, which is owned by Hong Kong CMOC, a subsidiary of the
	Company registered in Hong Kong
“High-Tech”	Luoyang High Tech Molybdenum & Tungsten Materials Co., Ltd., a joint venture of the
	Company
“Yulu Mining”	Luoyang Yulu Mining Co., Ltd., a non wholly-owned subsidiary of the Company
“Luxembourg SPV”	CMOC Luxembourg S.a.r.l., a wholly-owned subsidiary established by Hong Kong
	CMOC registered in Luxembourg

118 2017 INTERIM REPORT

“Sandaozhuang Mine”,	a large molybdenum/tungsten mine located in Lengshui Town, Luanchuan County,
“Sandaozhuang Molybdenum/	Henan Province, the mine where the Company is carrying out major mining work at
Tungsten Mine”	present
“Shangfanggou Mine”	a large molybdenum mine located in Lengshui Town, Luanchuan County, Henan
	Province, which is owned by Fuchuan Mining, a controlled subsidiary of Xuzhou
	Huanyu which is a joint venture of the Company
“Xinjiang Mine”	a large molybdenum mine located in East Gobi, Hami, Xinjiang, which is owned by
	Xinjiang Luomu, a controlled subsidiary of the Company
“NPM” or “NPM Copper/Gold Mine”	copper-gold mine in Northparkes, situated at northwest of the town of Parkes in New
or “Northparkes Copper/Gold	South Wales, Australia, 80% equity of which was held by CMOC MINING PTY LIMITED
Mine”	as the manager, a wholly-owned subsidiary of the Company registered in Australia
“Tenke Copper/Cobalt Mine”	Tenke Fungurume Copper/Cobalt Mine located in DRC
or “DRC Copper/Cobalt Mine”
“Schmocker”	Schmocker (Shanghai) International Trading Co., Ltd. (施莫克（上海）國際貿易有限公司),
	a wholly-owned subsidiary of the Company
“SSE”	the Shanghai Stock Exchange
“Hong Kong Stock Exchange”	The Stock Exchange of Hong Kong Limited
“Hong Kong Listing Rules”	The Rules Governing the Listing of Securities on the Hong Kong Stock Exchange
“Hong Kong”	the Hong Kong Special Administrative Region of the PRC
“PRC” or “China”	the People’s Republic of China, which for the purpose of this report only, excludes
	Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan
“DRC” or “Congo (DRC)”	the Democratic Republic of the Congo
“CSRC”	the China Securities Regulatory Commission
“H Share(s)”	Ordinary shares that are issued to foreign investors with the approval of the CSRC
	and listed on the Stock Exchange, and denominated in RMB, and subscribed and
	transacted in Hong Kong dollar
“A Share(s)”	Ordinary shares that are issued to domestic investors and qualified foreign investors
	with the approval of the CSRC and listed on the SSE, and denominated, subscribed
	and transacted in RMB
“RMB”	Renminbi, the lawful currency of the PRC
“USD”	United States dollars, the lawful currency of the United States of America
“AUD”	Australian dollars, the lawful currency of the Commonwealth of Australia
“BRL”	Brazilian Real, the lawful currency of Brazil
“Pound”	Imperial unit of weight; 1 pound approximately equals to 453.592g

China Molybdenum Co., Ltd. 119

“Ounce” the unit of measurement specially used in the trading of gold and other precious metal commodity “MB” Metal Bulletin, a newspaper based in Britain “MW” Metals Weekly, a magazine based in the United States “APT” ammonium paratungstate “BHR” BHR Newwood Investment Management Limited, a company incorporated in BVI “TFM” Tenke Fungurume Mining S.A., a public limited company governed by DRC laws “THL” Tenke Holdings LTD., an exempted company located in Bermuda “Lundin Shell Company” Lundin DRC Holdings Ltd., a company incorporated in Bermuda

120 2017 INTERIM REPORT

By Order of the Board China Molybdenum Co., Ltd.* Li Chaochun Chairman

Luoyang City, Henan Province, the People’s Republic of China, 26 August 2017

As at the date of this announcement, the Company’s executive directors are Messrs. Li Chaochun and Li Faben; the non-executive directors are Messrs. Ma Hui, Yuan Honglin and Cheng Yunlei; and the independent non-executive directors are Messrs. Bai Yanchun, Xu Shan and Cheng Gordon.

• For identification purposes only