MMG (1208) H2 2023 earnings summary

Executive summary

• Copper production rose 14% and zinc production 9%; revenue increased 34% to US$4,346.5M, while profit for the year fell 50% to US$122.1M.

• Operating cash flow increased 122% to US$1,849.9M; net debt was reduced by US$783.6M.

Financial highlights

• Revenue was US$4,346.5M vs. US$3,254.2M in 2022; EBITDA was US$1,461.9M, down 5% YoY.

• EBIT fell 29% to US$531.7M; profit before tax fell 59% to US$189.6M; profit for the year declined 50% to US$122.1M.

• Net cash generated from operating activities rose to US$1,849.9M from US$832.1M; basic EPS was US$0.10 cents.

• Profit attributable to equity holders was US$9.0M vs. US$172.4M in 2022; Las Bambas’ 62.5% interest contributed US$188.6M, up 59%.

Outlook and guidance

• 2024 production guidance: Las Bambas copper concentrate 280–320kt; Kinsevere copper cathode 39–44kt; Dugald River zinc concentrate 175–190kt; Rosebery zinc concentrate 50–60kt.

• 2024 C1 cost guidance: Las Bambas US$1.60–1.80/lb copper; Kinsevere US$2.80–3.15/lb copper; Dugald River US$0.70–0.85/lb zinc; Rosebery US$0.10–0.25/lb zinc.

• 2024 capital expenditure guidance is US$800–900M, including US$400–450M at Las Bambas and US$250–300M for Kinsevere’s new plant.

• Kinsevere expects first sulphide-ore production in H2 2024; expansion targets ~80kt copper and 4–6kt cobalt at full capacity.