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.

• Extended mine life by 67% to at least 11 years (to 2034), with significant reserve and resource growth since acquisition.

• Strengthened balance sheet with a 174% increase in cash to $89 million, 25% reduction in net gearing, and $160 million in interest-bearing liabilities repaid since June 2023.

• Delivered on operational and strategic goals, including extending mine life, increasing production confidence, and maintaining strong community engagement and safety improvements.

• No dividends declared or paid for the period.

Financial highlights

• H1 2024 revenue rose 29% to $182 million compared to H2 2023, driven by higher production and copper prices.

• Underlying EBITDA increased to $91 million (up 5,501% year-over-year), with a 50% margin and 22% increase in sales volumes.

• 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.

• Cash and cash equivalents rose to $89 million as of June 30, 2024, with $70 million in free cash flow generated.

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

Outlook and guidance

• Copper production guidance for 2024 remains at 38,000–43,000 tonnes, with confidence in meeting or exceeding this based on current performance.

• Production expected to exceed 50,000 tonnes per annum by 2026, supported by ventilation project and QTSS Upper development.

• Life-of-mine extended to at least 2034, with ongoing drilling and mine plan updates.

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

• All deposits remain open for further resource expansion, with ongoing drilling.