MMG Limited (MMG, the Company) today released its 2024 Interim Results.
Key highlights:
- Total Recordable Injury Frequency (TRIF) of 2.44 per million hours worked for the first half of 2024.
- Improved EBITDA of US$779 million representing a 23% increase compared to the same period in 2023.
- Net cash flow from operations of US$515 million, representing a 21% increase on the 2023 result.
- Stronger balance sheet following the completion of a Rights Issue in July, with estimated gearing reduced to 45%, the lowest since the acquisition of Las Bambas.
- Completion of the acquisition of the Khoemacau mine in Botswana, one of the highest quality copper mines globally in the emerging, highly prospective Kalahari Copper Belt.
MMG CEO Mr CAO Liang commented:
“The Company delivered a strong EBITDA result and increased cash flow from operations due to stable production across our sites and higher metal prices. Overall, our sites are tracking well with performance in line with or exceeding our updated 2024 guidance. We are now well placed to deliver a stronger second half.”
“Thanks to our investments and progress on key strategic projects at Las Bambas, Kinsevere and Khoemacau, we have a strong copper growth pipeline. With well-established global trends helping to ensure that demand for our metals remains robust, MMG is well placed in terms of near and mid-term growth opportunities.”
Despite continued investment in the Kinsevere Expansion Project and the acquisition of Khoemacau, MMG reduced gearing and risk through an equity raise of US$1,163 million and the establishment of the Khoemacau joint venture. As a result, MMG’s proforma gearing ratio has achieved a record low since the acquisition of Las Bambas and is now estimated at 45%.
In terms of expansion projects, at Las Bambas ores were shipped from the Chalcobamba pit to the processing plant for the first time in the second quarter. Stable concentrate transportation continues alongside constructive dialogue with local communities, regional authorities and the Government of Peru. This included reaching definitive agreements with the Fuerabamba community and agreements with local governments along the southern corridor and operations area. The team also advanced discussions with the Huancuire community. Whilst at Kinsevere, the construction of the Kinsevere expansion project is progressing smoothly, with mechanical completion anticipated by the end of 2024.
Our Las Bambas operation, one of the world’s largest copper mines, generated an EBITDA of $590 million for the first half of the year. With production set to ramp up in the next six months. Kinsevere improved performance and generated a positive EBITDA of US$41 million. This was bolstered by accelerated mining activities at Sokoroshe II, aimed at reducing reliance on expensive, high-grade third-party ores, and stronger copper prices during the reporting period.
Khoemacau contributed US$34 million in EBITDA for the first half of 2024 (from 22 March 2024). MMG is fully committed to supporting the ramp-up of Khoemacau to achieve an annual production of 60,000 tonnes of copper by 2026. And then completing planned expansion to 130,000 tonnes by 2028. During this period of increasing production, continuous improvement in the asset’s profitability is expected.
For MMG’s Australian operations, Dugald River achieved an EBITDA of US$80 million in the first half, an increase of 404% compared to 2023. This growth was primarily due to significantly higher sales volumes, reduced treatment charges, and the rise in prices of zinc, lead, and silver. The goal is to further enhance profitability through continuous operational improvement initiatives at Dugald River. Rosebery recorded an EBITDA of US$68 million, a 92% increase from the first half of 2023. As a polymetallic mine that generates significant revenue from by-products such as gold and silver, Rosebery’s profits were buoyed by the robust prices of these precious metals.
Please download the full copy of the 2024 Interim Results report here.
Media enquiries
Felicity Watson
+61 408 108 516
felicity.watson@mmg.com