MMG (1208) H2 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with EBITDA up 40% to $2,048.7 million and net profit after tax up 200% to $366 million, driven by higher copper prices, increased production, and cost discipline.

• Completed the acquisition and integration of Khoemacau Copper Mine and announced agreement to acquire Anglo American's Nickel Business in Brazil, diversifying the asset base.

• Gearing ratio reduced to a historic low of 41% through proactive debt repayment and a $1.15 billion rights issue.

• Community relations, especially at Las Bambas, stabilized, reducing operational disruptions and enabling record production.

• Safety performance improved, with LTIF at 0.78 and no high-potential incidents in the last seven months.

Financial highlights

• Revenue increased 3% year-over-year to $4,479.2 million; EBITDA margin improved to 46%.

• EBIT rose 86% to $990 million; net profit after tax reached $366 million.

• Operating expenses fell 18% to $2,299.2 million.

• Cash flow from operations was $1,611.9 million; basic earnings per share increased to US 1.53 cents.

• No dividend recommended for the period.

Outlook and guidance

• 2025 copper production guidance: Las Bambas 360,000–400,000 tonnes, Kinsevere 63,000–69,000 tonnes, Khoemacau 43,000–53,000 tonnes.

• Zinc production: Dugald River 170,000–185,000 tonnes, Rosebery 45,000–55,000 tonnes.

• Total capital expenditure for 2025 expected at $1,200–$1,300 million, focused on maintenance, development, and expansion projects.

• C1 cost guidance: Las Bambas $1.50–$1.70/lb, Kinsevere $2.50–$2.90/lb, Khoemacau $2.30–$2.65/lb, Dugald River $0.75–$0.90/lb, Rosebery $0.25–$0.40/lb.

• Nickel Business acquisition to be completed in Q3 2025, with integration and operational improvements planned.