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Strong production for the December quarter, improved medium term outlook

MMG Limited (MMG) today announced its fourth quarter 2019 production result, reporting production of 451,963 tonnes of copper and 253,520 tonnes of zinc for the full year to 31 December. The result delivers a strong final quarter with 120,571 tonnes of copper in concentrate and 70,813 tonnes of zinc in concentrate produced.

”Total quarterly production of copper, zinc and lead was 3%, 3% and 19% higher respectively than the prior quarter, with improved operational performance across all sites,” said MMG CEO Geoffrey Gao.

Las Bambas produced 99,702 tonnes of copper in copper concentrate during the quarter, 3% higher than the prior period. There have been no significant interruptions along the Las Bambas transport logistics corridor since October 2019, reflecting positive ongoing dialogue between communities, government and the Company. Copper concentrate stocks held at site have progressively reduced.

Las Bambas is now expected to deliver around two million tonnes of copper production in the five-year period from 2021 to 2025. This extends the previous guidance of two million tonnes in the first five years and is significantly above the pre-production mine plan.

Dugald River produced 48,247 tonnes of zinc in concentrate during the fourth quarter, a record for the operation and supported by record mine production, higher mill throughput and improved recoveries. The mill also continued its strong performance, recording the seventh consecutive quarter operating above design capacity.

Kinsevere produced 20,438 tonnes of copper cathode in the fourth quarter, an 11% increase on the previous quarter and prior year comparative period. This was driven by another quarter of record mill throughput assisted by more favourable ore characteristics and improved grades from the Central pit.

Rosebery produced 22,566 tonnes of zinc in zinc concentrate for the quarter and 83,463 tonnes for the full year. Record mining and milling volumes, in excess of one million tonnes for the second consecutive year were the result of a series of operational improvements.

“An improved medium-term outlook for Las Bambas and plant throughput increases at Dugald River present a very positive medium-term production outlook for the business,” said Mr Gao.

In 2020, MMG expects to produce between 418,000 and 445,000 tonnes of copper and between 225,000 and 245,000 tonnes of zinc. C1 unit costs are expected to be broadly in line with or below 2019 levels, with a significant group wide focus on cost and efficiency initiatives.

A significant and successful drilling program continues around existing operating hubs with drilling at Las Bambas confirming the outstanding quality and continuity of the previously reported high-grade intercepts (>1% Cu) at the Chalcobamba Southwest Zone. Drilling at the Mwepu Project in the DRC led to the identification of significant new copper and cobalt oxide mineralisation.

Please download a full copy of the MMG Fourth Quarter 2019 Production Report.

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