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Solid result amid a challenging quarter, set for growth

MMG Limited (MMG) today released its production result for the fourth quarter of 2021, delivering 76,994 tonnes of copper and 61,397 tonnes of zinc in the three months to 31 December.

Annual copper production for the full year 2021 was 339,682 tonnes and total zinc production was 249,767.

“The final quarter of 2021 presented several challenges which impacted our copper production, most notably the extended community blockade at Las Bambas and lower grades at Kinsevere. Zinc production was 2% higher than 2020 with continuing strong  production at both Australian assets,” said MMG interim CEO Liangang Li.

Mr Li said the Company is taking a proactive approach to managing community relations in Peru and remains committed to engaging in dialogue with a number communities along the logistics corridor.

“Our focus remains on pursuing constructive and peaceful dialogue with local communities together with the Government of Peru. Finding enduring solutions to these challenges will ensure that Las Bambas can maintain its significant contribution to the local region and the Peruvian economy,” he added.

Annual production at Las Bambas was 290,097 tonnes of copper in copper concentrate 7% lower than 2020 due to lower grades and community roadblocks which led to a two-week shutdown of the mine in December.

Kinsevere produced 48,017 tonnes of copper cathode for the full year of 2021, a result that was 33% lower than 2020 due to the suspension of mining activity. Early works on the Kinsevere Expansion Project have continued with the Company anticipating the project’s approval in the first quarter of 2022.

Dugald River and Rosebery produced 180,313 tonnes and 69,454 tonnes of zinc respectively. On a zinc equivalent basis, Dugald River exceeded 200,000 tonnes for the second consecutive year. Rosebery’s production was 157,482 tonnes, 11% higher than 2020.

Mr Li said that the Company’s focus in 2022 remains on growing its existing portfolio with Las Bambas and Kinsevere remaining the primary focus.

“As de-carbonisation efforts continue to intensify the demand for our products will continue to rise and we are committed to driving organic growth opportunities across our portfolio. Our primary targets remain the Chalcobamba development in Peru and the Kinsevere Expansion Project, with outcomes on both expected this year.”

Remarking on his recent appointment as interim CEO, Mr Li noted that while 2021 presented challenges both operationally and in managing the ongoing impact of COVID-19, the business was in good shape to drive success in 2022.

“In 2021 MMG delivered strong operational, safety and financial performance. This offers us a solid foundation for growth in 2022. Across the business we are committed to creating value for our shareholders, communities and our people,” he added.

Please download the full copy of the MMG Fourth Quarter 2021 Production Report.