Hong Kong · Delayed Price · Currency is HKD MMG Limited Earnings Call Transcripts
Fiscal Year 2025
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Record 2025 results with revenue up 39% and net profit up 161% year-on-year, driven by strong metals prices and stable operations. Balance sheet strengthened, CapEx and growth projects prioritized, and first-ever Las Bambas dividend declared.
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Net profit after tax surged over 600% year-on-year to $566 million, with revenue up 47% to $2.8 billion and EBITDA margin reaching 55%. Copper production rose 64%, and the gearing ratio dropped to 33%. Operational risks remain from potential road blockages in Peru.
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Strong production growth in Copper and Zinc is matched by robust sustainability, safety, and community initiatives. New projects and acquisitions, such as Nickel Brasil, support decarbonization and portfolio diversification, while human rights and environmental stewardship remain central.
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Copper production surged 76% year-on-year, driven by strong performance at Las Bambas, Kinsevere, and Khoemacau, while safety remains a key focus amid higher injury rates. Expansion projects and sustainability initiatives are progressing, and a new dividend policy is in place, though distributions await clearing of accumulated losses.
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Q1 2025 saw copper production surge 76% year-over-year, led by Las Bambas and supported by operational stability and improved community relations. Cost optimization and expansion projects remain on track, with financial costs stable and guidance reaffirmed for all major assets.
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The acquisition of a major Brazilian ferronickel business for up to $500 million diversifies operations, strengthens presence in Latin America, and provides significant growth potential. The asset offers low-cost, premium nickel production, strong ESG credentials, and long-term strategic benefits.
Fiscal Year 2024
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EBITDA surged 40% to $2.05B and net profit after tax rose 200% to $366M, driven by strong mine performance, cost reductions, and successful asset integration. Major acquisitions and improved community relations support future growth.
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Fourth quarter and full-year 2024 saw robust copper and zinc production growth, record safety, and operational milestones. Las Bambas and Australian mines exceeded targets, while expansion and feasibility projects at Kinsevere and Khoemacau support future growth.
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Copper production rose 22% year-over-year, led by Las Bambas' record output and strong ramp-ups at Kinsevere and Khoemacau. C1 costs are trending to the low end of guidance, and a major debt restructuring will save $30–$40M in annual interest.
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Focused on sustainable growth, safety, and ESG leadership, the company advanced social investment, updated its sustainability framework, and deepened community engagement. Progress includes reduced injury rates, new biodiversity initiatives, and a robust human rights approach.
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EBITDA rose to $779M in H1 2024, driven by stable production and higher metal prices. Major milestones include the Khoemacau acquisition, a $1.163B rights issue, and progress on key expansion projects. Pro forma gearing ratio dropped to 45%, with strong outlook for copper growth.
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Q2 saw improved safety, a $1.2B rights issue, and strong operational ramp-ups, with Las Bambas and Kinsevere on track for higher 2024–2025 output. Gearing reduced to 44%, and a favorable $557M tax ruling was secured.
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A $1.16 billion rights issue will repay debt and fund the Khoemacau acquisition, reducing gearing to 44% and saving $80 million in annual interest. Production targets for 2024 remain on track, with strong shareholder support and a diversified, low-cost growth pipeline.