MMG (1208) Q2 2025 earnings summary

Executive summary

• Q2 copper production reached 140,368 tonnes, up 54% YoY, driven by Las Bambas, Kinsevere and Khoemacau; zinc production rose 12%.

• Las Bambas delivered its second-highest quarterly copper output, supported by higher grades and recovery rates.

• Dugald River recovered from earlier disruptions, while Rosebery output declined on lower grades and equipment reliability issues.

• Safety performance improved, with TRIF at 1.23 and SEEEF at 0.49 per million hours worked.

• Two weeks of protests disrupted Las Bambas concentrate transport, but production continued and shipments resumed progressively.

Financial highlights

• Expected H1 2025 net profit after tax attributable to equity holders was ~$340 million; interim results were scheduled for August 13.

• Las Bambas paid its first dividend since its 2014 acquisition, distributing US$276.5 million to shareholders.

• Improved by-product credits and market conditions supported lower C1 cost guidance at Las Bambas and Rosebery.

Outlook and guidance

• Las Bambas retained FY copper guidance of 360,000–400,000 tonnes; management indicated output could exceed 400,000 tonnes without external disruptions, with H2 production targeted at ~200,000 tonnes.

• Las Bambas C1 cost guidance was revised to US$1.40–1.60/lb; costs could approach the lower end, though H2 logistics standby and social expenses may add pressure.

• 2025 production and C1 cost guidance: Kinsevere 63,000–69,000 tonnes copper and US$2.50–2.90/lb; Khoemacau 43,000–53,000 tonnes copper and US$2.30–2.65/lb.

• 2025 zinc guidance: Dugald River 170,000–185,000 tonnes, with C1 costs of US$0.75–0.90/lb; Rosebery 45,000–55,000 tonnes, with C1 costs of negative US$0.10–0.15/lb.

• Kinsevere’s planned 12 MW diesel generation addition is intended to reduce power disruption; Khoemacau’s 130,000-tonne-per-year expansion feasibility study is underway. Nickel Brazil closing remained subject to regulatory approvals and was expected by year-end.