MAC Copper (MTAL) H2 2024 earnings summary

Executive summary

• Achieved record copper production of 41,128 tonnes in 2024, up 14% year-over-year and above guidance midpoint, with operational cash flows of $117 million and a 3.9% grade.

• Reserve life extended to 12 years, with contained copper in reserves at 545kt (3.4% Cu) and a new 173kt (7.3% Zn) zinc resource identified for extraction via Merrin Mine.

• Enterprise value just over $1 billion, liquidity at $213 million, and net gearing reduced to 15%.

• Strategic growth projects underway, including Main/Merrin Mine and ventilation upgrades, targeting over 50kt copper per annum by 2026.

• All mined material since last statement replaced, with modest increases in both resources and reserves.

Financial highlights

• Revenue rose 114% to US$341m in 2024; underlying EBITDA up 277% to US$168m with a 49% margin.

• Statutory net loss after tax of $70 million, impacted by $81 million in non-cash fair value movements and $78 million in depreciation.

• Free cash flow from operations after sustaining CapEx was $121 million; free cash flow after all capex and debt repayments was $63 million.

• C1 cash cost for the year at $1.92/lb, improving to $1.66/lb in Q4; total cash cost $2.70/lb.

• Cash and equivalents at $172 million, up over 400% year-over-year.

Outlook and guidance

• 2025 copper production guidance: 43,000–48,000 tonnes at 3.8–4.0% Cu; 2026: 48,000–53,000 tonnes at 3.6–3.8% Cu.

• Pathway to over 50,000 tonnes of copper production by 2026, supported by Main/Merrin Mine and mine efficiency.

• Merrin Mine copper and zinc production targeted to commence in Q4 2025, leveraging new tolling agreements.

• March quarters expected to be seasonally weakest; 2025 March quarter forecasted to be down sequentially.

• Sustaining CapEx for 2024/2025 guided at $40-50 million, with $20-25 million in growth capital for ventilation and mine projects.