MMG (1208) H1 2024 earnings summary

Executive summary

• Net profit after tax reached US$79.5 million in H1 2024, reversing a US$24.9 million loss in H1 2023, with profit attributable to equity holders at US$21.1 million versus a US$58.8 million loss last year.

• EBITDA rose 23% year-over-year to US$779 million, with margin improving to 41% from 34%, driven by improved production, higher commodity prices, and the addition of Khoemacau.

• Revenue increased 1% year-over-year to US$1,918.2 million, supported by higher commodity prices despite lower copper sales volumes at Las Bambas.

• Major acquisition of Khoemacau Copper Mine completed in March 2024, followed by a joint venture and oversubscribed rights issue raising US$1,152.2 million.

• Strengthened balance sheet through rights issue, reducing gearing ratio to ~44–45% and delivering annualized interest savings.

Financial highlights

• Operating expenses decreased 15% to US$1,063.2 million, mainly due to favorable inventory changes at Las Bambas and Kinsevere.

• Net cash flow from operations increased 21% to US$515.3 million.

• Total assets rose to US$15,290.3 million, with total equity at US$4,850.2 million as of 30 June 2024.

• Gearing ratio reduced to ~44–45% post-rights issue, but reported at 0.55 at 30 June 2024 due to acquisition financing.

• No interim dividend declared for the period.

Outlook and guidance

• Las Bambas copper production for 2024 expected at the higher end of 280,000–320,000 tonnes, with medium-term target of 350,000–400,000 tonnes and improved C1 cost guidance.

• Kinsevere copper cathode production guidance maintained at 39,000–44,000 tonnes; C1 cost guidance raised to US$3.00–3.35/lb.

• Khoemacau copper production for 2024 forecast at 30,500–40,500 tonnes, ramping up to 60,000 tonnes by 2026 and 130,000 tonnes by 2029.

• Dugald River and Rosebery combined zinc production guidance set at 225,000–250,000 tonnes for 2024.

• Total 2024 capital expenditure expected at US$850–950 million.