MAC Copper (MTAL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 copper production of 11,320 tonnes at 4.1% grade, with full-year output of 41,128 tonnes, up 14% year-over-year and exceeding guidance midpoint.

• Balance sheet significantly deleveraged, net gearing reduced to 15% as of year-end, and liquidity at US$213M.

• Operational improvements and safety gains drove lowest C1 cash costs under current ownership, with ongoing projects targeting over 50,000 tonnes annual copper production by 2026.

• Reserve life extended to over 10 years, with reserves up 64% and resources up 42% since acquisition; significant organic growth projects underway.

• Operational free cash flow for Q4 2024 was approximately US$30M, with sustaining capex of US$12M for the quarter and US$50M for the year.

Financial highlights

• Q4 2024 C1 cash cost at US$1.66/lb, down 12% sequentially; full-year C1 cash cost at US$1.90–1.92/lb.

• Total cash cost for Q4 2024 was US$2.31/lb; full-year total cash cost was US$2.70/lb.

• Realized copper price for Q4 2024 was US$4.02/lb.

• Cash and cash equivalents increased to US$172M at year-end, with total liquidity at US$213M including undrawn facilities and investments.

• Free cash flow from operations after sustaining capex was US$30M for Q4.

Outlook and guidance

• Pathway established to over 50,000 tonnes annual copper production by 2026, with key projects like ventilation and QTSS Upper development underway.

• 2025 C1 cost forecast to benefit from a ~70% reduction in TC/RC benchmarks and favorable FX movements.

• Updated production guidance and reserve/resource statement expected in February 2025.

• EBITDA margin expected to expand in 2025, building on 2024 underlying margin of ~47%.

• Q2 South Upper development expected to contribute first stoping ore in Q4 2025, potentially adding 1,500+ tonnes of copper per quarter.