MAC Copper (MTAL) H1 2024 earnings summary

Executive summary

• Achieved record copper production of 19,650 tonnes and revenue of $182 million in H1 2024, with underlying EBITDA of $91 million and a 50% margin, reflecting strong operational performance and higher copper prices.

• Mine life extended by 67% to at least 11 years (to 2034), with significant reserve and resource growth and reaffirmed production guidance.

• Significant deleveraging and balance sheet strengthening, including a 174% increase in cash to $89 million and $160 million in interest-bearing liabilities repaid since June 2023.

• No dividends declared or paid for the period.

Financial highlights

• Revenue of $182 million, up 29% from the preceding half and 881% year-over-year, driven by higher copper prices and sales volumes.

• Underlying EBITDA reached $91 million, up 112% from H2 2023 and 5,501% year-over-year, with a 50% margin.

• Statutory net loss after tax of $102 million, mainly due to $109 million in non-cash fair value adjustments on financial instruments and copper price movements.

• Free cash flow from operations totaled $70 million, and cash and cash equivalents increased to $89 million as of June 30, 2024.

• C1 cash cost achieved at $2.08/lb for H1 2024, with May–June costs around $1.60/lb.

Outlook and guidance

• 2024 copper production guidance maintained at 38,000–43,000 tonnes, with confidence in meeting or exceeding this target and a three-year plan to exceed 50,000 tonnes per annum by 2026.

• Mine life extended to at least 2034, with ongoing drilling and mine plan updates.

• Q3 expected to be slightly weaker than Q2 due to stope scheduling, but Q4 anticipated to be strong.

• All deposits remain open for further resource expansion.