Net loss after tax of US$73.0 million
including a loss of US$81.0 million to equity holders of the Company, primarily attributable to lower commodity prices and lower sales volumes following the community-related disruptions at Las Bambas.
MMG’s net debt increased by US$98.8 million
The higher net debt was primarily attributable to lower operating cash flow due to the inventory build-up at 30 June 2019, with approximately 33,000 tonnes of copper in concentrate stockpiled at Las Bambas.
Las Bambas produced 185,825 tonnes of copper
in copper concentrate; down 16% due to previously disclosed logistics disruptions at MMG Las Bambas. EBITDA of US$541.0 million was 25% below the first half of 2018.
Kinsevere produced 29,002 tonnes of copper cathode
28% lower compared to the first half of 2018 due to challenging mining conditions in the Mashi pit, declining ore feed grade and plant stability issues.
Dugald River recorded an EBITDA of US$52.5 million 82% higher
than the first half of 2018, following commercial production on 1 May 2018. Zinc production of 74,515 tonnes was 11% above the first half of 2018, despite the significant flooding events that impacted the region.
Rosebery produced 39,565 tonnes of zinc in zinc concentrate
EBITDA of US$64.1 million decreased 46% on the first half of 2018, largely due to lower sales volumes across all commodities as a result of lower mined ore grades and lower prices.
MMG expects to produce 450,000–455,000 tonnes of copper and 250,000–270,000 tonnes of zinc in 2019.
Summary
Today we reported MMG’s interim financial results for the six months ended 30 June 2019, producing 215,527 tonnes of copper and 114,080 tonnes of zinc across all operations.
“Our performance in the first half was impacted by logistics challenges at Las Bambas, severe flooding which affected our Dugald River operation and lower commodity prices due to global trade tensions”, said CEO Geoffrey Gao. “In the face of these challenges, I am proud of the hard work and dedication of our people in getting operations back on track.”
The Company reported a net loss after tax of US$73.0 million during the first six months of 2019, including a loss of US$81.0 million attributable to equity holders. This is primarily attributable to lower commodity prices and lower sales volumes following the community-related disruptions at Las Bambas in the first half of 2019.
Net debt increased by $98.8 million, with lower operating cash flow due to the inventory build-up at Las Bambas and Dugald River at 30 June 2019. Approximately 33,000 tonnes of copper in concentrate stockpiled at Las Bambas will be progressively sold down during the second half.
Las Bambas produced 185,825 tonnes of copper in copper concentrate during the half, maintaining stable production when compared to the first half of 2018. Revenue was lower than the first half of 2018 due to lower copper prices and lower sales volumes.
Dugald River continued its strong ramp up, with zinc production of 74,515 tonnes and revenue of US$163.8 million reflecting sales for a full six months of operation compared with two months in the first half of 2018.
Rosebery produced 39,565 tonnes of zinc concentrate during the half and continued its strong and consistent performance in the mine and mill, with volumes for both remaining around one million tonnes on an annual basis.
Kinsevere produced 29,002 tonnes of copper cathode, 28% lower than the first half of 2018. A revised mine plan will see the operation produce 65,000 to 70,000 tonnes of copper cathode in 2019.
“For the second half of 2019 we are focused on achieving our annual production guidance following a challenging first six months and we will drive further cost reduction and efficiency gains across all areas of the business,” Mr Gao said. “As always, our commitment to living our MMG values and placing the safety and wellbeing of our people first will remain our key priorities.”
MMG expects to produce 450,000 to 455,000 tonnes of copper and 250,000 to 270,000 tonnes of zinc in the full year of 2019.