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Copper strong in MMG first quarter

16 Apr 2014 08:30 AMMedia Release

MMG Limited (MMG) (1208.HK) delivered record copper performance in the first quarter 2014, led by a strong performance from Kinsevere.

“Kinsevere was a standout performer in the first quarter,” said MMG Chief Executive Officer Mr Andrew Michelmore. “Not only did Kinsevere report a record quarter of production, processing and sales, it also cut its reliance on diesel with cheaper electricity available from the power grid.”

MMG reported that reliance on diesel dropped from an average of 57% for 2013 to approximately 37% for the first quarter.

“While we are very pleased to report a reduction in the reliance of high cost diesel for Kinsevere, there are still many factors that may influence grid power availability in the short term,” said Mr Michelmore. “We are not changing our cost guidance for Kinsevere at this stage.”

MMG’s Golden Grove operation reported a 28% increase in copper concentrate production during the first quarter due to the mine plan’s focus on copper, predominantly from the open pit.

Sepon also demonstrated a solid performance in the first quarter producing 22,787 tonnes of copper cathode, 2% lower than the previous record quarter.

Total zinc production for the first quarter of 133,929 tonnes of contained metal in concentrate was lower than the previous period due to reduced mine plan optionality at Century.

Century first quarter production was impacted by persistent seasonal wet weather and lower availability of higher grade ore due to wall instability above Stage 8.

“MMG will continue to closely monitor these movements as mining is completed at Stage 8,” said Mr Michelmore. “Based on the current mine plan assuming full accessibility, mining of Stage 8 will be completed in the fourth quarter of 2014 before focusing entirely on Stage 10 mining leading up to closure of the open pit.”

Queensland Operations will focus on maximising value in the lead-up to the closure of Century’s open pit next year - working in parallel with the trial stoping program currently underway at Dugald River.

“The trial stoping program will involve ore extraction from 27 various transverse and longitudinal stopes at a maximum width of 30 metres,” said Mr Michelmore. “This trial will help us determine the optimal stope size for the underground mine given the complexities identified at Dugald River and provide practical mining experience and valuable input towards the future of Queensland Operations,” he said.

MMG’s annual production and cost guidance is unchanged with MMG on track to deliver 173,000–186,000 tonnes of copper and 600,000–625,000 tonnes of zinc this year.

“MMG’s first quarter performance continues to demonstrate our strong operational focus,” said Mr Michelmore. “We look forward with great confidence to completing our recently agreed acquisition of Las Bambas and bringing this exciting copper asset into our operating portfolio.“

MMG announced on 14 April 2014 that, together with joint venture partners CITIC Metal Co., Ltd. and Guoxin International Investment Corporation Limited, it had entered into a Share Purchase Agreement with GlencoreXstrata to acquire the Las Bambas project in Peru for US$5.85 billion.

PRODUCTION RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2014

                                                                                                           

         1Q14

    

     1Q14

 

         1Q14

 vs

 

vs 

   

 1Q13

     

 4Q13

COPPER CATHODE (tonnes)
Kinsevere

  16,848

21% 

 

4%

Sepon

  22,787

11% 

 

-2% 

Total

  39,635

15% 

 

1% 

         
COPPER (contained metal in concentrate, tonnes)            
Golden Grove

 8,834

 12%

 

 28%

Rosebery

 615

 149%

 

 -25%

Total

 9,449

 16%

 

 23%

         
ZINC (contained metal in concentrate, tonnes)
Century

 112,693

 7%

 

 -21%

Golden Grove

 -

 -100%

 

 -100%

Rosebery

 21,236

 12%

 

 -20%

Total

 133,929

 5%

 

 -27%

         
LEAD (contained metal in concentrate, tonnes)
Century

 12,560

 85%

 

-22% 

Golden Grove (HPM)

 -

 -100%

 

-100%

Rosebery

 5,984

 11%

 

 -16%

Total

 18,544

 49%

 

 -25%

         

For further information download the full MMG First Quarter Production Report 2014 (PDF, 835 KB).

Download this media release as a pdf.

- Ends -

Media enquiries:

English language
Kathleen Kawecki   
Senior Group Communications Advisor 
T +61 3 9288 0996   
M +61 400 481 868   
kathleen.kawecki@mmg.com

Chinese language
Christine Chan
T +852 2801 6090
M +852 6173 9039
E christine@corporatelink.com.hk  

Investor enquiries:

Colette Campbell
Group Manager Investor Relations  & Communications
T +852 2216 9610 (Hong Kong)
T +61 3 9288 9165 (Australia)
M +61 422 963 652
E colette.campbell@mmg.com 

Maggie Qin
Manager Stakeholder Relations China
T +852 2216 9603 (Hong Kong)
T +61 3 9288 0818 (Australia)
M +61 411 465 468
E maggie.qin@mmg.com

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