MMG Limited (MMG) (1208.HK) today released its second quarter production results reporting good results for the company, particularly in copper.
MMG’s Golden Grove operation in the Western Australia’s mid-west reported a solid end to the first half of the year too.
In accordance with the mine plan, copper production decreased 16% or 1,228 tonnes compared to the second quarter 2013, as Golden Grove focuses on zinc production in 2014.
Production of zinc concentrate was 48% higher respectively than the first half 2013, due to higher throughput and an increased zinc feed grade of 14.4% in the first half 2014 compared to 10.5% in first half 2013.
MMG Golden Grove General Manager said that the Golden Grove processing plant operates by alternating between copper and zinc production depending on the mine plan and ore availability, and moving forward zinc would be the site’s primary focus.
"Copper production is expected to decrease compared to 2013 as stockpiles are run down and the mine plan moves underground to target higher grade zinc," Mr Malan said.
"While we turn our attention to zinc moving forward, the excellent performance on copper oxide processing over the last month of the quarter was very pleasing and if the site can continue to perform efficiently like that for the remainder of the year, we look forward to positive results in the second half."
Copper and zinc C1 costs for the first half 2014 were US$2.89/lb and US$0.19/lb respectively. Guidance has been reviewed and MMG expects to produce 26,000–29,000 tonnes of copper in copper concentrate and 45,000–50,000 tonnes of zinc in zinc concentrate in 2014. C1 costs are expected to be US$2.45–US$2.65/lb for copper and US$0.25–US$0.30/lb for zinc in 2014.
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Edward (Ted) Woodruff
Senior Advisor – Stakeholder Relations
Mobile: +61 0407 434 329