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Solid March quarter on accelerating Dugald River ramp-up

MMG Limited (MMG) today announced its first quarter 2018 production result producing 127,751 tonnes of copper and 47,138 tonnes of zinc in the three months to March.

The Dugald River zinc operation accelerated its commissioning and ramp-up activities during the first quarter,  producing approximately 28,500 tonnes of zinc in zinc concentrate.

“The ramp up of Dugald River has been outstanding to date – the project remains ahead of schedule and on track to be delivered under budget”, CEO Jerry Jiao said. “We expect to achieve commercial production during the second quarter of 2018.”

Las Bambas copper in copper concentrate production was 87,056 tonnes, which is 22% down on the previous corresponding period, but in line with previous guidance.  This was due to a localised geotechnical issue deferring higher grades ores to subsequent periods.

“Despite the lower production this quarter at Las Bambas, grades and production rates are expected to improve for the remainder of 2018, resulting in annual production of between 410,000 and 430,000 tonnes of copper.”

MMG’s other copper assets performed well during the March quarter with Kinsevere producing 19,986 tonnes of copper cathode. Sepon delivered its strongest production quarter in more than 12 months, producing 20,304 tonnes of copper cathode, a 20% improvement on the previous corresponding period.

“Our Kinsevere operation is on track to deliver around 80,000 tonnes in 2018, which will be its fourth consecutive year at these levels. this will be an outstanding achievement and further demonstrates MMG’s track record of strong and stable operating performance in the region.

“MMG remains in active consultation with DRC Government and industry peers with respect to the DRC Mining Code. The Mining Industry Group seeks the clear recognition of the stability clause that provides security of investment rights for a period of 10 years post the date of the amendment to the code.  In addition, in order to address government concerns on contributions from existing mining operators, a modified ‘sliding scale’ of royalty payments has been proposed that  would guarantee a larger share of revenue for the DRC government at higher commodity prices.”

MMG expects to produce 560,000 to 590,000 tonnes of copper and 190,000 to 220,000 tonnes of zinc in 2018.

Please download a full copy of the MMG First Quarter 2018 Production Report.