MMG (1208) Q3 2024 TU earnings summary

Executive summary

• Achieved 22% year-over-year and 26% sequential growth in copper production, totaling 114,664 tonnes in Q3 2024, led by Las Bambas, Kinsevere, and Khoemacau.

• Las Bambas delivered its strongest quarter since 2021, producing over 90,000 tons of copper concentrate.

• Safety performance improved across all sites, with TRIF dropping to 1.92 and SEEEF to 0.40 per million hours worked.

• Major milestones included early operation at Chalcobamba pit and mechanical completion of Kinsevere Expansion Project.

• Zinc production declined 22% year-over-year due to unplanned maintenance at Dugald River, but is expected to recover.

Financial highlights

• Net profit after tax for H1 2024 was US$79.5 million, reversing a net loss of US$24.9 million in H1 2023.

• Net cash flow from operations reached US$515.3 million, up 21% year-over-year.

• Rights Issue completed in July 2024 raised US$1,152.2 million, 2.8 times oversubscribed.

• C1 cost guidance remains unchanged, with Las Bambas and Rosebery expected at the low end of their ranges.

• Restructured $1.8B project facility, reducing interest costs by at least 1.5%, saving $30–$40M annually.

Outlook and guidance

• Las Bambas 2024 production guidance set at the higher end of 280,000–320,000 tonnes, with Q4 annualized run rate over 400,000 tonnes.

• Kinsevere copper cathode guidance maintained at 39,000–44,000 tonnes for 2024, ramping up sulfide plant.

• Khoemacau copper production guidance for 2024 is 30,500–40,500 tonnes.

• Zinc production at Dugald River and Rosebery expected to stabilize after maintenance-related declines; Dugald River guidance lowered to 160,000–175,000 tonnes, Rosebery unchanged at 50,000–60,000 tonnes.

• C1 cost guidance for Las Bambas and Rosebery expected at lower end of respective ranges.