MMG (1208) Q4 2024 TU earnings summary

Executive summary

• Achieved record copper and zinc production in 2024, with copper output up 15% and zinc up 8% year-over-year, driven by Las Bambas, Australian mines, and the inclusion of Khoemacau, surpassing guidance at key sites.

• Safety performance improved, with a record low injury frequency, TRIF at 1.52 in Q4 (down from 1.92 in Q3), and no high potential injuries in the past seven months.

• Significant operational milestones included record production at Las Bambas, expansion progress at Kinsevere, and the acquisition and integration of Khoemacau.

• Mineral Resources and Ore Reserves increased across all five mines, notably from Khoemacau acquisition and Las Bambas exploration.

• Kinsevere expansion completed mechanically in September 2023, with ramp-up underway to boost future copper cathode output.

Financial highlights

• Total copper production (cathode and concentrate) reached 399,758 tonnes in 2024, up 15% year-over-year.

• Las Bambas delivered 322,912 tonnes of copper in 2024, a 7% increase year-over-year, with C1 costs at US$1.51/lb, benefiting from higher by-product credits and lower costs.

• Kinsevere's copper production rose 1% year-over-year to 44,597 tonnes, aided by the new sulfide circuit and improved power supply, with C1 costs at US$3.26/lb.

• Khoemacau contributed 30,961 tonnes of copper since its acquisition in March 2024, with C1 costs at US$2.54/lb.

• Dugald River and Rosebery mines posted 8% and 9% year-over-year zinc production growth, respectively, with record recovery rates and Rosebery C1 costs at -US$0.10/lb.

Outlook and guidance

• 2025 copper production guidance: Las Bambas 306,000–400,000 tonnes, Kinsevere 63,000–69,000 tonnes, Khoemacau 43,000–53,000 tonnes, with Khoemacau feasibility study underway to expand annual output to 130,000 tonnes by 2028.

• 2025 zinc production guidance: Dugald River 170,000–185,000 tonnes, Rosebery 45,000–55,000 tonnes; Rosebery zinc equivalent 110,000–125,000 tonnes.

• C1 cost guidance for 2025: Las Bambas US$1.50–1.70/lb, Kinsevere US$2.50–2.90/lb, Khoemacau US$2.30–2.65/lb, Dugald River US$0.75–0.90/lb, Rosebery US$0.25–0.40/lb.

• Kinsevere full ramp-up expected by Q2–Q3 2025.

• Khoemacau expansion construction targeted for 2026, with first production in 2028.