Wedoany.com Report on Mar 18th, HBIS Resources, which had just sent a positive signal to the market about the smooth ramp-up of its Phase II copper production capacity, now faces a severe test from an act of nature on its path to resuming operations.

On the evening of March 17, HBIS Resources disclosed the latest progress announcement regarding the resumption of underground mining operations at its South African subsidiary. The announcement indicates that due to the impact of the most severe flooding disaster since 2000, the underground copper mining production of Palabora Copper (Proprietary) Limited (PC) under the company was forced to completely suspend operations.

According to the latest announcement noted by a reporter from the *National Business Daily*, the progress of resuming operations at the mining area is currently diverging: although Phase I copper production has completed drainage and resumed operations, it is still running at a low capacity. Meanwhile, Phase II copper production, which is the main future supply source with a designed capacity of 11 million tons per year, is still undergoing drainage due to its deeper location and is expected to be completed in early April.

Against the backdrop of international copper prices fluctuating at highs above 100,000 yuan per ton, a two-month suspension of copper operations will undoubtedly have an adverse impact on the company's annual production and sales plans. However, a fortunate aspect amidst the misfortune is that the approximately 100 million tons of magnetite stockpiled on the surface at the company's site were not affected by the disaster. Production and shipping for this segment are currently proceeding normally. This "cash cow" business, which contributes over 60% of the company's revenue, may become the sole "ballast stone" to hedge against this sudden risk and support the full-year performance.