MAC Copper (MTAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 copper production was 8,644 tonnes at a 4.1% grade, down from Q4 2024 due to mine sequencing, but production guidance for 2025 is maintained at 43,000–48,000 tonnes with expectations of a stronger Q2.

• Major growth projects, including Merrin Mine (targeting first ore in Q4 2025) and a ventilation project (completion Q3 2026), are progressing and expected to drive production above 50,000 tonnes per annum by 2026.

• Major refinancing completed, reducing average debt cost by ~30% to 6.84–6.85%, extending maturities to March 2028, and providing a repayment holiday until September/October 2025.

• Safety performance improved, with TRIFR trending down to 9.9 for Q1 2025 and no reportable environmental incidents.

• Free cash flow from operations after sustaining CapEx was around $30 million for the quarter, with liquidity of $153 million and $75 million cash on hand at quarter-end.

Financial highlights

• C1 cash cost for Q1 2025 was $1.91/lb, with March dropping to as low as $1.45–$1.49/lb due to higher volumes and improved grades.

• Realized copper price for Q1 2025 was $4.04/lb (net of hedges).

• Total cash cost for Q1 2025 was $2.47/lb.

• Net debt at end of March was $150 million, with pro-forma liquidity of $153 million and $75 million cash.

• Revenue for Q1 2025 was $70.3 million, down 6% from Q4 2024.

Outlook and guidance

• 2025 copper production guidance remains at 43,000–48,000 tonnes, with grades between 3.8%–4.1%.

• Targeting over 50,000 tonnes annual copper production in 2026, with Merrin Mine and ventilation project as key contributors.

• Growth CapEx for 2025 expected at $20–25 million, sustaining CapEx at $40–50 million.

• 2025 C1 cost outlook benefits from ~70–74% reduction in TC/RC benchmarks and favorable AUD:USD exchange rate.

• Interest savings of ~$14 million per annum expected from refinancing.