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2022 Fourth Quarter Production Result

MMG Limited (MMG) today released its production result for the fourth quarter of 2022, delivering 85,879 tonnes of copper and 60,394 tonnes of zinc in the three months to 31 December 2022.

MMG Interim CEO, Liangang Li said that all full year 2022 results for production and costs met or exceeded the latest guidance at each MMG operation.

“Despite a challenging year, Las Bambas’ annual production in 2022 was 254,836 tonnes of copper, slightly above the latest guidance of 250,000 tonnes but 12% lower than 2021 following continued community protests which caused an operational shut of more than 50 days.”

“Total copper production (copper cathode plus copper in concentrate) of 305,053 tonnes for the full year 2022 was 10% lower than 2021 mainly due to the impact of community protests.”

“MMG continues to make progress in dialogue processes and the implementation of agreements across the six communities involved in the 2022 site protests, as well as with other communities in its area of influence. While the dialogues are temporarily on hold due to security reasons amid nation-wide unrest, we look forward to progressing discussions once the social unrest dissipates.”

“Achieving a positive, sustainable and enduring agreement remains our priority and is the key to unlocking the next phase of Las Bambas growth through the development of the Chalcobamba deposit.” Mr Li said.

Kinsevere produced 49,070 tonnes of copper cathode in 2022, representing a 2% increase on 2021 results due to higher feed grade after the resumption of mining activity and increased supply of higher-grade 3rd party ores.

Construction of the Kinsevere Expansion Project (KEP), including the transition to the mining and processing of sulphide ores and the commencement of cobalt production continues. Civil works on site are now complete and work to ship long-lead time equipment, detailed engineering for the concentrator and roaster plants as well as earthworks to construct the new tailings dam are all progressing.

Total zinc production of 224,551 tonnes in the full year 2022 was 10% below 2021 mainly due to COVID-19 impacts on workforce availability in early 2022 impacting production at both Dugald River and Rosebery.

As we look ahead to 2023, MMG expects full year copper production to be in the range of 305,000 – 353,000 tonnes, subject to a resolution of the social unrest in Peru and a resumption of stability in concentrate transport logistics. Zinc production is expected to be in the range of 225,000-250,000 tonnes, as we continue to focus on mitigating rising operating and energy costs across the sites.

Please download the full copy of the MMG Fourth Quarter 2022 Production Report.