First quarter production result for the period ended 31 March 2020
MMG Limited (MMG, the Company) announced its first quarter 2020 production result, producing 91,911 tonnes of copper and 52,957 tonnes of zinc in the three months to 31 March.
MMG’s first quarter copper production was 24 percent down on the prior period, largely impacted by operational challenges and community blockades which temporarily restricted inbound and outbound logistics at Las Bambas. The site faced additional disruptions to mining and production activities due to maintenance requirements and the enactment of Peru’s State of Emergency on 15 March in response to the COVID-19 outbreak in the country.
“The first quarter was very challenging for the entire business but particularly for our largest operation, Las Bambas. With ongoing uncertainty and fluctuations in operating activity due to restrictions imposed in response to COVID-19, we decided to withdraw guidance for 2020. We are continuing to expend considerable effort to ensure that we can return to normal operations at Las Bambas as quickly as possible and will update the market in due course,” MMG CEO Geoffrey Gao said.
Mr Gao addressed the impact from the spread of coronavirus on MMG operations noting that to date the Company has not recorded any cases globally.
“Like the rest of the global community, MMG has been impacted by the spread of coronavirus with cases recorded in each of our host countries. We acted swiftly to implement stringent safety measures to protect our people and communities. Each of our operations has implemented business continuity plans designed to assist in limiting the potential for the virus to spread and to mitigate operational risks and impacts,” said Mr Gao.
“I am pleased that to date we have not had any confirmed cases of COVID-19 in our business. We are committed to doing everything we can to keep our people safe,” he added.
Results at other MMG operations were close to target levels with Dugald River and Rosebery recording zinc production of 52,957 tonnes. Kinsevere’s copper cathode production was 45 percent above the prior comparative period in 2019 at 18,207 tonnes, reflecting the transition back to mining in the Central pit.
Mr Gao said that while the Company expects commodity prices to remain volatile in the near term, it was confident that strong fundamentals for both commodities will prevail.
“MMG continues to maintain the confidence and support of our major shareholder China Minmetals Corporation and we will continue to focus on optimising our business and ensuring that we are well placed to recover quickly as COVID-19 restrictions ease in China and elsewhere.”
