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Release of 2023 Interim Report

MMG Limited (MMG, the Company) today released its 2023 interim result.

While we continue to strive to improve our safety-focused culture, in a tragic start to the year two people, employed through our mining contractor Barminco at Dugald River mine, tragically lost their lives after a light vehicle they were travelling in fell into a stope on 15 February 2023.

MMG Chief Executive Officer, Liangang Li said, “At MMG, our first value is safety. The tragic incident is a reminder to do everything we can to promote a safe workplace and culture – to look after each other so that every person returns safely home to their friends and family.”

As reported in the interim result announcement for the first half, MMG achieved a significant increase in net cash flow from operations, totalling US$425.6 million, representing growth of 216% compared to the first half of 2022.

Revenue increased by US$488.2 million (35%) for the period, primarily driven by higher sales volumes from Las Bambas, which more than offset the impact of lower copper and zinc prices.

Despite this, MMG recorded a net loss after tax of US$24.9 million, including a loss of US$58.8 million attributable to equity holders of the Company. The first half EBITDA of US$635.8 million experienced a 2% decrease compared with the first half of 2022.

Across our operations, Las Bambas produced 139,594 tonnes of copper in the first half of 2023, 38% above the first half of 2022. Concentrate transportation has remained stable since the removal of roadblocks in March, supported by the State of Emergency implemented by the government of Peru and in place for the remainder of the period.

Kinsevere produced 21,641 tonnes of copper cathode, a 2% decrease from the prior comparable period. The construction of the cobalt plant is on track, with the majority of the structural and mechanical installation completed by the end of June. First cobalt production is expected in the second half of 2023.

Dugald River produced 57,374 tonnes of zinc in the first half of 2023, which is 28% lower than the production in the first half of 2022.  The site was impacted after operations were suspended for 34 days following the fatal incident in February,

Rosebery produced 23,102 tonnes of zinc in zinc concentrate and 8,637 tonnes of lead in lead concentrate during the first half of 2023, representing a 2% and 7% decline from the prior corresponding period respectively.

“As we look ahead to the rest of 2023, MMG will continue its focus on a strong safety-first culture, maintaining stable operations, and careful cost management and capital allocation in a volatile global economic environment.”

“We remain committed to progressing our growth projects in Las Bambas and Kinsevere. The Las Bambas team is working hard to reach enduring agreements for the development of the Chalcobamba deposit with the Huancuire community. We remain hopeful that the development can commence by the end of 2023.”

We are also committed to growth through the development of our existing portfolio as well as actively evaluating external opportunities.” Mr Li said

Please download a full copy of the MMG 2023 Interim Results here.