MAC Copper (MTAL) Q4 2024 earnings summary

Executive summary

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

• Delivered on operational and financial targets, including safety improvements with TRIFR dropping to 10.9 in Q4 2024 and no recordable injuries.

• Balance sheet significantly de-levered, net gearing reduced to 15% as of December 31, 2024, and liquidity at US$213M.

• Operational improvements and organic growth projects underway, supporting a clear pathway to >50ktpa copper production by 2026.

• Mine life extended to over 10 years, with reserves up 64% and resources up 42% since CSA acquisition.

Financial highlights

• Q4 2024 C1 cash cost at US$1.66/lb, down 12% sequentially; full-year C1 averaged US$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 pro-forma liquidity of US$213M including undrawn facilities.

• Free cash flow from operations after sustaining CapEx was ~US$30M for Q4 2024.

Outlook and guidance

• Pathway established to >50ktpa copper production by 2026, with key projects underway including ventilation and QTSS Upper development.

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

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

• Organic growth focus, with first stoping ore from Q2 South Upper targeted for Q4 2025.

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