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Second quarter production result for the period ended 30 June 2020

MMG Limited (MMG) today announced its second quarter 2020 production result, producing 77,027 tonnes of copper and 60,114 tonnes of zinc in the three months to 30 June.

“I am pleased that we have continued operating at all of our sites despite the ongoing impacts of the COVID-19 pandemic. We have maintained robust business continuity plans to mitigate operational risks and, most importantly, to ensure the health and safety of our people,” said MMG CEO Geoffrey Gao.

Las Bambas produced 58,378 tonnes of copper in concentrate during the quarter, with the decrease largely attributable to the impacts of COVID-19 restrictions and limited workforce availability. MMG has introduced stringent testing protocols for its Peruvian workforce, with travel to site subject to multiple pre-screening COVID-19 tests for all employees and contractors. This has enabled Las Bambas to remain free of COVID-19 cases and to operate continuously through the period. 

The transport of concentrate from Las Bambas was suspended for much of April, in line with Peruvian Government health guidelines. Concentrate logistics have been operating at close to normal rates since late-May. The molybdendum plant was also successfully re-commissioned after de-bottlenecking works which began in late 2019.

At Dugald River, zinc production of 43,672 tonnes for the second quarter was a 22 percent increase on the prior year comparative period. Improved mining volumes and a record month for stope ore in May, together with a sustained improvement in recoveries, offset the ongoing impact of lower ore grades.

Rosebery produced 16,442 tonnes of zinc, largely due to lower ore grades and the ongoing impacts of seismic events in 2019 that have limited mine flexibility and access to key mining fronts.

Kinsevere copper cathode production of 18,298 tonnes was consistent with the first quarter result and 11% above the comparative period in 2019, reflecting the benefits of a shift back to mining at the Central pit.

“Looking ahead, we will continue to maintain our proactive response to COVID-19, and will work closely with national authorities to protect the health and safety of our employees, host communities and other stakeholders. I am pleased that, to date, no COVID-19 cases have been identified at any MMG operation,” said Mr Gao.

While noting the potential for further impacts and ongoing uncertainty associated with the COVID-19 pandemic, MMG at this stage continues to maintain its full year production and C1 cost guidance for Dugald River, Kinsevere and Rosebery. 

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