MMG releases 2024 First Quarter Production Report
MMG Limited (MMG, the Company) yesterday 23rd April released its First Quarter Production Report for the three months ended 31 March 2024, producing 67,129 tonnes of copper and 59,247 tonnes of zinc.
This follows the completion of the acquisition of the Khoemacau mine for an effective Enterprise Value of US$ 1,875 million, last month.
This important acquisition aligns to MMG’s vision of creating a leading international mining company for a low carbon future and will create meaningful long-term value for MMG shareholders.
MMG Interim CEO Liangang Li, noted:
“Total copper production was 3% below the prior corresponding period. Copper production at Las Bambas fell by 4% this was due to the mining sequence accessing low-grade sectors as part of the development of Phase 05 of the Ferrobamba pit, to access higher-grade sectors in the third and fourth quarters, as well as consuming low-grade stockpiled ores.
Pleasingly, at Las Bambas, the five Huancuire community companies working at Chalcobamba have had their contracts extended to the end of the year.
MMG machinery and personnel are now working alongside the community companies on development activities at the Chalcobamba pit.
Meanwhile, discussions with the Huancuire community continued to progress as we work with the community towards an enduring agreement for the development of the Chalcobamba deposit.
Kinsevere’s production saw a 6% decline from the previous comparable period, attributed to a reduced reliance on expensive, high-grade third-party ores, which was compensated by an increased supply from mining at the Sokoroshe II pit.
The construction of the Kinsevere Expansion Project (KEP), which includes the transition to the mining and processing of sulphide ore and the commencement of cobalt production, remains on track. Various improvement measures have been initiated to support the ramp-up of cobalt production going forward.
Zinc production of 59,247 tonnes was 93% above the prior corresponding period in 2023 when operations at Dugald River was suspended for 34 days following a fatal incident and Rosebery production was impacted by the bushfire incident and lower workforce availability.
The acquisition of Khoemacau will support our broader strategy to increase our copper production through the Chalcobamba development in Peru and the completion of the Kinsevere Development Project.
Khoemacau Mine is a rare, high-grade copper producing asset with a planned expansion that will leverage existing skills and infrastructure at a low capital intensity and in the bottom half of the global cost curve.
This will be a cornerstone asset for MMG with a mine life in excess of 20 years. The 4,040 km2 of tenements across the highly prospective, emerging Kalahari Copperbelt provides significant upside potential.
Production data for Khoemacau has been included in the report for the first time, with a 9-day period starting from 23 March, contributing 1,075 tonnes.
Looking ahead for the remainder of 2024, Mr Li said that the Company will continue to maintain its focus on operational performance while also looking to drive a growth across the portfolio.
The integration of Khoemacau, together with our growth plans for our existing operations, will ensure that we will drive increased production in 2024 and beyond.
