MMG (1208) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 copper production rose 76% year-over-year to over 118,000 tonnes, led by Las Bambas, Kinsevere, and Khoemacau, despite severe weather at Khoemacau.

• Las Bambas contributed over 95,000 tonnes, a 71% increase, with record ore mined, higher grades, and improved community relations.

• Kinsevere produced nearly 12,000 tonnes of copper cathode, up 19% year-over-year, with expansion ramping up as planned.

• Zinc production in Australia declined 13% year-over-year due to bushfires, flooding, and maintenance, but recovery rates remained strong.

• Safety metrics worsened, with TRIF at 2.40 and energy exchange frequency at 1.08 per million hours, both higher than last quarter.

Financial highlights

• Las Bambas copper concentrate production up 71% year-over-year to 95,728 tonnes; sales exceeded 100,000 tonnes in Q1, aided by inventory clearance.

• Kinsevere copper cathode output increased 19% year-over-year to 11,612 tonnes; cobalt production ceased.

• Khoemacau produced 10,610 tonnes of copper in concentrate, up 4% sequentially.

• Cost optimization efforts ongoing, with C1 and C3 costs expected to decline as production scales and byproduct values rise.

• Financial costs remain stable compared to H2 last year, with leverage ratio declining and improved bank credit conditions.

Outlook and guidance

• 2025 production and cost guidance unchanged; Las Bambas production expected at 360,000–400,000 tonnes, Kinsevere 63,000–69,000 tonnes, Khoemacau 43,000–53,000 tonnes.

• Las Bambas production could reach the upper end of guidance if no nationwide disruptions occur; cost per ton to decrease with higher output.

• Kinsevere to reach designed capacity by end of June, with diesel power as backup; annual guidance remains unchanged.

• Khoemacau expansion to 60,000 tonnes by 2026–2027 and 130,000 tonnes by 2028, with C1 cost projected at $1.55/lb at full capacity.

• Zinc assets expected to recover in Q2 and remain on track for 2025 guidance.