MAC Copper (MTAL) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly copper production of 10,587 tonnes in Q2 2025, a 23% increase quarter-over-quarter, with a copper grade of 4.4% and record daily output of 385 tonnes.

• Operational free cash flow reached $42 million in Q2 2025, up 71% quarter-over-quarter, with a cash balance of ~$102 million at quarter-end.

• Entered into a binding agreement for acquisition by Harmony Gold at $12.25 per share, all cash, with key restructuring agreements executed and regulatory and shareholder approvals pending; vote scheduled for August 29.

• Maintained strong safety performance with no reportable incidents for the year, TRIFR reduced to 6.9, and ongoing community engagement.

• Advanced key growth projects: Ventilation Project (target Q3 2026) and Merrin Mine (first ore Q4 2025), both on track.

Financial highlights

• Liquidity at quarter-end was $196 million, including $102 million in cash and equivalents, with net debt reduced to $123 million.

• C1 cash cost for Q2 2025 was $1.48/lb, a 23% decrease quarter-over-quarter; June C1 cost at $0.94/lb; total cash cost at $2.17/lb.

• Interest costs reduced by $14 million per annum following refinancing; net gearing just over 17% and variable rate at ~6.8%.

• Senior facility at $159 million, revolving facility drawdown at $66 million, and $59 million undrawn at quarter-end.

• Working capital of ~$17 million, reflecting increased concentrate stock and timing of receipts.

Outlook and guidance

• 2025 copper production guidance maintained at 43,000–48,000 tonnes, with grade expected between 3.8% and 4.0%; targeting >50,000 tonnes per annum by 2026.

• Growth and sustaining CapEx tracking to guidance, with major projects scheduled for Q4 2025 and Q3 2026 completion.

• Expect grade to moderate in Q3 but anticipate a strong finish to the year.

• Growth capital expenditure for 2025 projected at $20–25 million; sustaining capital at $40–50 million.

• Merrin Mine development progressing, with first ore targeted for Q4 2025 (not included in 2025 guidance).