MMG (1208) Capital Raise summary

Rights Issue, Capital Structure, and Funding Strategy

• Announced a $1.16 billion (HK$9,079 million) rights issue at HK$2.62 per share, a 31.4% discount, with two rights shares for every five held.

• Proceeds will repay $611 million short-term funding, $200 million shareholder loan, $341 million revolving credit, and support ongoing mine development.

• Minmetals, holding 67.49%, committed to full entitlement; remaining shares underwritten by major banks.

• Joint venture with CNIC for Khoemacau: MMG retains 55%, CNIC 45%; $500 million proceeds repay short-term acquisition loan.

• Rights issue and JV proceeds reduce gearing to approximately 44% pro forma.

Financial Performance and Outlook

• Gearing ratio reduced from 50% to approximately 44% post-transaction, with net debt/EBITDA maintained around 3.0x.

• Annualized interest cost savings of about $80 million expected.

• 2023 revenue $4,346.5 million (+34%), EBITDA $1,461.9 million (–5%), profit $122.1 million (–50%).

• Net cash from operations $1,849.9 million; capex guidance for 2024 is $900 million–$1,040 million.

• Updated debt repayment profile includes a seven-year $1.05 billion China Development Bank loan.

Growth, Operations, and Portfolio

• Portfolio now 70% copper by resources, targeting top-10 global copper producer status.

• 2024 production guidance: Las Bambas 280,000–320,000t copper; Khoemacau 30,500–40,500t copper, expansion to 130,000tpa; Kinsevere 39,000–44,000t copper, expansion to 80,000tpa copper and 4–6ktpa cobalt by 2025.

• Expansion at Kinsevere and integration of Khoemacau progressing on schedule.

• Enhanced geographic diversification with assets in Botswana, Peru, DRC, and Australia.

• Low capital intensity growth pipeline and bottom-half operating costs.