MMG Fourth quarter 2020 production results

January 25, 2021

MMG Limited (MMG) today released its production result for the fourth quarter of 2020, delivering 113,155 tonnes of copper and 70,420 tonnes of zinc in the three months to 31 December.

“I am pleased to report that MMG delivered strong operational performance across all sites during the final quarter of 2020. We set new benchmarks at Las Bambas for mining performance, Kinsevere for milling performance and Dugald River for both metal production and recovery, demonstrating the strength of our operational teams,“ said MMG CEO Geoffrey Gao.

Mr Gao went on to state that “the Company has continued to successfully manage its response to the COVID-19 pandemic across all operations, with a focus on the risks of exposure to MMG people and contractors, in often challenging circumstances.”

MMG’s largest operation, Las Bambas, produced 95,236 tonnes of copper in copper concentrate in the December quarter, 13% higher than the prior quarter on the back of higher grades. Increased workforce capacity, now in excess of 90%, enabled the site to achieve a quarterly mining record. Full year copper production was down 19% on 2019, with COVID-19 impacts on workforce availability the largest impact.

Kinsevere produced 17,479 tonnes of copper cathode during the quarter. This was in line with expectations driven by the processing of lower grade stockpiled and third-party ore following the suspension of mining from September. The site’s full year production of copper cathode was 72,007 tonnes, representing a 6% improvement on the full year 2019.

Dugald River delivered record quarterly production, producing 52,446 tonnes of zinc in the qurter, up 14% on the third quarter. The result was supported by record recoveries, with work to optimise mining and milling performance throughout 2020 yielding a 4% increase on 2019 results and record full year production of 177,704 tonnes.

During the final quarter of 2020, Rosebery delivered its strongest quarterly performance for the year producing 17,974 tonnes of zinc. Production for the full year exceeded the upper range of guidance at 67,393 tonnes. This was a strong result, achieved despite restricted access to key mining areas for much of 2020 due to prior year seismic events.

“As we look to 2021 and beyond, the outlook for MMG is positive. We expect a return to higher production volumes at Las Bambas from 2022 and continued strength in the performance of Dugald River. We also continue to focus on the next phase of Kinsevere’s development and potential mine life extension at Rosebery. MMG is well positioned to benefit from stronger price trends for our core commodities and the global economic recovery as it gathers pace,” Mr Gao said.

In 2021, MMG expects to produce between 360,000 and 390,000 tonnes of copper and between 240,000 and 260,000 tonnes of zinc.