Earnings Call: Q1 2026

Apr 22, 2026

Earnings release

Summary

Q1 copper production rose 9% YoY, while precious-metal credits helped drive C1 costs below guidance at several mines. Khoemacau expansion and Kinsevere upgrades advanced; elevated metal prices supported margins, with operational risks monitored.

Welcome to MMG Limited's first quarter 2026 production results conference call. Before we begin, please allow me to read the safe harbor statement. The information presented in this call is intended solely for the participating investors and analysts. The audio recording and written transcript are for reference purposes only. MMG has not authorized any third party to distribute the contents of this call. The company and its affiliates assume no responsibility or liability of any kind for any loss arising from the republication, redistribution, or use of any part or all of the content of this call. We would also like to remind you that market conditions involve risk, and investment decisions should be made with due caution. Now I'll pass the time to our management. Good day, everyone. Welcome to MMG Limited's first quarter 2026 production results conference call. Joining us today are members of the company senior management team, including Mr. Zhao Jing Ivo, Chief Executive Officer and Executive Director. Mr. Qian Song, Chief Financial Officer and Executive Director. Mr. Troy Hey, Executive General Manager, Corporate Relations. Mr. Wang Nan, Chief Operating Officer. Ms. Sandra Xiangjun Guan, Interim Executive General Manager, Commercial and Development. Mr. Xia Weiquan, President of Africa Operations. And Mr. Chen Xuesong, President of Las Bambas. I will now hand over to Mr. Zhao Jing Ivo, who will walk you through the company's operating highlights for the first quarter. Following the presentation, the management team will be pleased to take your questions. The moderator will announce the Q&A instructions after the presentation. Mr. Zhao, please go ahead. Thank you, Godfrey. Good morning, good afternoon, everyone. I'm pleased to share an update on MMG's operational performance for Q1 2026. Safety comes first in everything we do. It's a core principle that guides all of our operations. Before turning to our operational highlights, let me briefly touch on our safety performance. In Q1 2026, MMG saw further improvement in its safety performance. The total recordable injury frequency was 1.85 per million hours worked. Significant event with energy exchange frequency was 0.34 per million hours worked. Both metrics improved from the previous quarter, providing a solid foundation for stable operations throughout the period. During the first quarter, we made steady progress across production growth, cost control, project development, and sales. Overall, our results were in line with expectations. Let me now walk you through five key highlights. First highlight, copper growth, zinc resilience, precious metals uplift. The first quarter, our total copper production reached nearly 130,000 tons, up 9% year-on-year. Las Bambas produced over 100,000 tons of copper in concentrate, a 6% increase, with recovery improving to 89.5%. Kinsevere delivered nearly 17,000 tons of copper cathode, up 44% year-on-year, as the sulphide expansion project continued to ramp up. Khoemacau produced nearly 11,000 tons of copper in concentrate, broadly flat compared to the same period last year. Turning to zinc, our two Australian operations continued to demonstrate resilience. Total zinc production for the quarter was about 50,000 tons. Dugald River delivered over 40,000 tons of zinc in concentrate, up 1% year-on-year, with recovery rates remaining above 90%. Rosebery produced about 9,000 tons of zinc in concentrate, while zinc equivalent production exceeded 31,000 tons, up 8% year-on-year. In terms of byproduct precious metals, gold production exceeded 32,000 ounces, up 24% year-on-year, and silver production reached approximately 2.9 million ounces, up 27% year-on-year. The increase in precious metals production continued to have a positive impact on our financial performance. Second highlight, C1 cost beats guidance across the board. Higher byproduct credits from strong precious metal prices, together with continued operational efficiency improvements, drove a reduction in actual C1 costs during the quarter. Las Bambas reported a C1 cost of $0.45 per pound of copper, well below the full year guidance range of $1.2 to $1.4 per pound. Khoemacau delivered $1.25 per pound, below the guidance range of $2 to $2.3 per pound. Kinsevere came in at $2.69 per pound, in line with full year expectations. Dugald River reported $0.77 per pound of zinc, below the guidance range of $0.8 to $0.95 per pound. Rosebery reported -$1.8 per pound of zinc, outperforming the guidance range of -$0.6 to -$0.1 per pound. Should precious metal prices remain at current levels, we will reassess our full year C1 cost guidance across relevant operations, taking into account all production metrics, and provide updates in subsequent reports. Third highlight, our operations held firm despite the complex external landscape. Las Bambas, our flagship asset, took proactive steps ahead of Peru's election year. During the first quarter, the mine maintained stable performance across production, community relations, and logistics, providing solid support to the company's overall results. On production front, Las Bambas delivered over 100,000 tons of copper in copper concentrate, laying a strong foundation for the full year target of 400,000 tons. On sales, thanks to the drawdown of port inventories and stable road logistics, payable copper sold reached about 120,000 tons in the first quarter, significantly exceeding production for the period. On community relations, the Corazón de Las Bambas initiative continued to deepen, helping the mine achieve nearly three years of stable operations, the longest such period in the mine's history. Through the Work for Taxes mechanism, the mine continues to support local public infrastructure, including education projects, further strengthening community trust. Recently, Las Bambas and the local government of Apurímac formally signed an agreement for the improvement of the educational services of the Institución Educativa Integral Erasmo Delgado Vivanco project. With total investment of over 13 million Peruvian soles, project will directly benefit 548 local students. It plans to build 22 new classrooms, a library, and other supporting facilities, equip them with modern teaching materials and furniture, and introduce teaching training programs, systematically improving both teaching conditions and quality. In light of the unique external environment surrounding this year's Peruvian general election, we will continue to closely monitor local political and social developments, maintain proactive engagement with communities and government authorities, and take appropriate steps to ensure operational continuity and achievement of our full year production targets. Fourth highlight: Khoemacau drives operational improvements and advances expansion, strengthening long-term foundation. As mining activities progress to the northern part of Zone 5, Khoemacau's ore milled grade improved to 1.63% in Q1. However, ore supply was constrained during the quarter due to lower than planned mining contractor equipment availability and mining sequence. With new equipment arriving in March, development advance reached 1,004 meters for the month, and we expect ore supply to gradually increase in the coming quarters. On phase 2 expansion, the company held a groundbreaking ceremony in February. Key long lead equipment has arrived on site and early works, including camp construction, road development, land acquisition and recruitment are already underway. Construction of the new process plant is progressing as planned, with first concentrate expected in the first half of 2028. Upon completion of phase 2 project, Khoemacau's annual copper capacity will increase from approximately 50,000 tons to 130,000 tons, with associated silver output exceeding 4 million ounces per year. The mine's life of mine average C1 cost is expected to fall below $1.6 USD per pound of copper. In addition, the company has already initiated a pre-feasibility study for phase 3, targeting 200,000 tons per annum. Khoemacau is one of MMG's core growth engines over the next five years. With a clear project timeline and well-defined cost targets, it will provide strong support for the company's sustainable growth. Fifth highlight: Market tailwinds supported margins and profitability. Although metal prices experienced some volatility during the first quarter, they remained elevated overall, providing strong support to the company's profitability and further highlighting the value advantage of our mining assets. Among base metals, the LME copper price averaged $12,800 USD per ton. Copper concentrate supply remained tight, with spot treatment and refining charges averaging -$79.5 USD per ton. This trend allows mine sites to capture greater value, which benefits our copper business directly. Meanwhile, the average zinc price was $3,240 USD per ton, and spot zinc TC/RCs fell to near zero, providing a favorable environment for our zinc operations. On precious metals, prices remained elevated, with gold averaging $4,875 USD per ounce and silver averaging $84 USD per ounce. The strong precious metals prices not only helped lower C1 costs across our mines, but also directly contributed to higher earnings. Our stable operations, combined with favorable market prices, have further highlighted the value of our asset portfolio and put us on a solid footing to achieve our full year targets. Overall, MMG made steady progress across all key areas in first quarter of 2026. Operational results at each of our mines met and exceeded expectations, laying a solid foundation for the full year. Going forward, our work will remain focused on four key areas. First, continuing to strengthen safety management to safeguard our operations. Second, steadily advancing the Khoemacau Expansion project to reinforce medium to long-term growth. Third, continuously optimizing cost structure to enhance core competitiveness. Fourth, maintaining stable operations across production, community engagement, and logistics at all times, consolidating performance and mitigating operational risk. In closing, I would like to express my sincere gratitude to all MMG employees for their hard work and to our investors for your continued trust and support. That concludes my remarks. My colleagues and I would now be happy to take your questions. Moderator, please open the floor for Q&A. Thank you. Thank you. Ladies and gentlemen, if you would like to ask a question, please press star 1 on your telephone keypad. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. Thank you. If you would like to ask a question, please press star 1 on your telephone keypad. Thank you. Lawrence, please proceed with your question. Hey, Zhao. Can you hear me? Yes, I can. Good. First, congratulations on such a good performance in the first quarter. I have a few small questions I'd like to ask. The first is that we see that the copper content in the concentrate at Las Bambas increased compared to the previous quarters. I would like to understand what the reason for this is. Will this situation continue? 另外，我们也看到金跟银的产量都是明显增加的，增加的比例比铜的比例的上升更大。请问一下，这个情况能够持续吗？还是只是这一段矿非金属的比例比较高？另外关于Kinsevere的，我们一季度还是没有钴的销售，就想请教一下公司现在这方面对未来销售钴的计划是怎样的？最后就想问一下，Kinsevere那边，我们看到一季度的铜的销量是明显低于产量的。想请教一下，这是什么一个情况？那这个情况后续公司是怎么协商的？谢谢。好的，谢谢Lawrence你的 I have several questions. 好。 First question is about Las Bambas. In the first quarter, 好的。 The share of copper concentrate is actually higher in the overall copper volume. It has risen as compared to the past quarters. I would like to know what is the reason behind, and will this be sustainable in the coming period? The second question is, for gold and silver, production volume has risen, and the rise is actually bigger than the growth in copper volume. Will this last in the coming period, or is it only for this period that there is a higher volume for precious metals? The third question is about Kinsevere. In the first quarter, there was no sale of cobalt. What is the company's plan on that? Fourth question, regarding Cobre Alto. In the first quarter, the sale of copper sales volume is smaller than production volume. What is the reason behind that? Thank you. 好，第一个问题请我们拉斯邦巴斯的总裁陈学松先生回答。第二个问题关于Kinsevere钴销售，请我们关总回答。第三个关于Cobre Alto的铜的销量，请夏总回答。好的。首先感谢提问的问题。第一个问题是提到了我们邦巴斯的金矿的品味比较高，以及第二个小问题里面提到的是我们金银产量高。这个主要的原因是因为在一季度，因为我们是双矿共用，第一季度矿石主要来自于Ferrobamba。我们有70%的矿石来自于Ferrobamba，有30%是来自于Chalcobamba。那么Ferrobamba目前这个矿坑，在现在的阶段，它的斑铜含量比例是比较高的。斑铜本身里面的分子式里铜的含量比较高，所以它选出来以后，铜精矿的品味就高一些。其次就是Ferrobamba里面的含高价值的金属金、银、钼的平均也会比Chalcobamba高一些。所以我们一季度这两个金属的产量也会更高一些。再就是我们在一季度也不断地优化我们的选矿药剂和整个的选矿流程，也取得了一个比较好的回收率。以上就是我的回答，谢谢。 Let me answer the first question concerning the concentration of copper concentrate. First of all, because in the first quarter, 70% of the copper was taken from Ferrobamba and only 30% from Chalcobamba. For Ferrobamba mine, because of the composition of the copper extracted, there is higher concentration of copper concentrate as a result, and also the quality of the copper is also higher. That's the situation regarding Ferrobamba. Besides, we have also enhanced our milling and processing arrangement and process. As a result, the overall grade has also been enhanced. Lawrence，关于钴的销售的问题是这样，钴实际上我们已经启动了销售，但是由于在刚果的物流路线比较长，所以我们在一季度实现了我们的钴销售，驶离刚果境内。那么在四月份我们会安排钴的装船，因为从我们的销售条款来看，我们是在装船的时候会确认销售，所以在二季度应该能看到我们钴销售的实现。 Now let me answer your question about sale of cobalt. In fact, we have already started the sales process of cobalt. However, within the territory of Congo, the logistics route is relatively longer. When it comes to cobalt sale, actually it is taking place within the territory of Congo. According to the arrangements and process, in April, we are going to upload the cobalt onto the vessels. When the cobalt is uploaded to the vessels, then sale will be recognized in the books. You will be able to see the sale of cobalt in our financial statements starting the second quarter. 关于Khoemacau销售铜产量低于生产产量的主要原因，是由于今年销售条款的一个改变，从出厂销售变为到中国港的一个销售，所以一部分的产品在路途中。但是随着咱们整个销售结构的一个变化，销售量会逐渐地赶上我们主要的产量。 Then the next question is about Khoemacau. Why is it that the sales volume of copper is lower than the production volume? This is because of a change of the sales conditions this year. As a result, some of the products are still on the route or on transit. We are now catching up in terms of the sales rhythms and very soon we will be able to see the volume of sales catching up with production volume. 谢谢。我有一个跟进的小问题，刚才关于Las Bambas里面提到Ferrobamba跟Chalcobamba两个矿区构成。那就想请教一下，我们今年全年有没有大概的两个矿区矿石的构成呢？ Just now you mentioned the difference in composition of the mine between Ferrobamba and Chalcobamba of Las Bambas. This year, for the whole year, do you have the mine composition of these 2 mines please? 好的，Lawrence，其实全年的采矿计划，我们大概Ferrobamba的占比在56%，Chalcobamba的占比在44%。正如刚才也介绍的一季度的Chalcobamba矿坑贡献了更多的矿石，可以看到您提到的金银的产量，包括铜的品味都有所提升。这个主要是取决于我们的采矿顺序，所以全年的基本上还是大的来说就是一半一半这样的一个占比。 This year, for the whole year, the breakdown is like this: for Ferrobamba it is 56%, Chalcobamba 44%. As a result, in the first quarter, as mentioned earlier, the share of Ferrobamba is bigger than Chalcobamba. As a result, the production volume of both silver and gold has increased. At the same time, the grade of the copper also improved. Right now, it is roughly at a 50/50 proportion. 好，谢谢郑总。谢谢管理层。暂时没有其他问题了。谢谢。我们下一个提问是来自华林的Jingshan Feng，请开始您的提问。谢谢。好的。郑总好，各位领导好。我是华林的原材料分析师，冯秉山Jimmy。首先恭喜公司取得了很亮眼的一季度产量报告，也很高兴看到公司披露了C1成本的数据，很多矿都是非常超预期的。我这边有几个问题，我就一个一个问吧。第一个问题，我是想请教一下Tri关于Las Bambas和秘鲁大选的问题，那我就直接用英文来提问吧。So my first question is for Tri about the Peruvian presidential elections and Las Bambas. From the perspective of corporate relations, I would like to ask Tri, do you have any latest updates on the Peruvian presidential election? How to assess whether the election would affect Las Bambas operation? This is my first question, and I will ask one by one. Thanks. First of all, congratulations on your very good results. And you have also done a good job in relation to C1 cost. Actually, your results have exceeded expectations. 我第一个问题，就是关于Las Bambas和秘鲁的大选的。所以我想了解一下，关于秘鲁大选方面，有没有一些最新的消息或者资料？那个大选的情况会不会影响你们Las Bambas的运营呢？谢谢。 Thank you for the question. Let me just take a step back. The elections were something we were looking out to from late last year. We have set the site up very well to deal with any disruptions, and so far the result has been very good. The site continues to operate. We have no significant disruptions from the current election process. The process itself has gone through the first round. There has been some electoral difficulties, and that count will take longer. But I think most people are expecting that there will be a runoff election somewhere in the day around June 7. I am sorry, sir. Hello, can you move closer to the microphone? Because your line is very blurred. I cannot hear you clearly. Sure, is that any better? Yes, it is now much better. Can you repeat your answer? Sure. I said the Thus far, we have seen no significant impact from the election process on Las Bambas operations. We are watching the development of elections closely. The first round has been held. Due to some electoral difficulties, we do not have an outcome, but we expect that somewhere in mid-May, and that will most likely lead to a follow-up election runoff in about June 7th. The focus in Las Bambas is very much on making sure we are prepared for any delays that may come, but as in so far, we have not seen any impact. Also to work with whichever new government forms. The experience we have had since 2014 is that even when there are periods of significant uncertainty or disruption because of political change, the institutions in Peru are strong, our relationships are well-developed, and our increasingly strong working understanding with communities means that, especially over the last three years, we have had largely uninterrupted operations at Las Bambas, including keeping our logistics chain open and our concentrate flowing. We see this election continuing through the mid-year. We are working really hard to prepare for anything that might happen. So far so good, and we hope that the election delivers a clear outcome and Peru can return to a clearly bit more stable political leadership. Just to your question, even where there has been times of political uncertainty, I think Las Bambas has shown its ability to work very closely with the government, and Peru has shown the strength of institutions that have kept the mining industry turning over. Thanks for the question. 我回答你的问题，关于这个大选的情况。首先我们没有看到任何重大的影响对于我们这个Las Bambas的运营。我们一直都非常紧密地来观看这个发展。那么在第一轮方面，我们看到初步的时候，之前有一些电力设施方面的困难，但是我们都一直在跟进了。那我们会一直跟进这个大选的情况，一直到6月7日。然后我们也不断努力地去确保不会有任何的问题，尽管可能出现一些延迟，我们都不断努力去确保我们已经准备好，让这个影响可以最小化。但是一直以来到目前为止，我们还没有看到一些重大的影响。那么至于有新政府上场的话，尽管自从2014年之后，有时候有一些政治上的一些不明确的时候，我们还能保持我们不断运营的状况不受影响，因为我们的存货方面保持得良好，而且我们跟政府方面的关系也保持良好。我们一直在社区当中，也继续做很多社区关系改善的一些工作。所以过去三年来，在我们Las Bambas的运营方面，完全没有看到任何的中断或者影响，可以说是一直到目前为止都是良好的。那么当然我们希望很快可以看到清楚的大选的结果，然后我们可以看到这个政治的局面恢复稳定。但是我要强调一点，尽管会出现任何的政治上的不明确的情况都好，我们仍然是能够维持我们稳定的运营，因为我们还是能够跟政府非常紧密地合作的。谢谢。 Okay, thanks. That is very clear. 我第二个问题是想请教一下关于Las Bambas的C1成本，一季度确实也是比较低。我想问一下咱们在一季度有没有什么一次性的因素，或者说以及后续的季度有没有什么一次性的因素？如果我们想要来预判后续的一个C1成本的话，是不是主要就看咱们的副产品的一个credit来做预判？因为季度产量大概也是全年计划的1/4，也是符合预期的。所以如果后续的产量差不多这个水平的话，我们C1成本有没有什么其他一次性因素，除了副产品的影响之外，这个怎么来预判？我想请教一下，谢谢。 My second question is related to Las Bambas C1 cost. In the first quarter, the C1 cost was low, and in the first quarter, behind this low C1 cost, was there some one-off factor? In the future, will there be other one-off factors contributing to the low C1 cost? Also in C1 cost, some factors are related to byproducts. Basically, in the first quarter, production volume is in line with expectation, and we believe that if production volume is going to continue for the full year in this similar pattern, then the numbers will be within expectation. I would like to know what will be the overall situation and your projection in relation to the volume as well as the byproducts. Thank you. [Foreign language] 谢谢Jimmy。你的分析是对的，我赞成。一季度在Las Bambas的副产品抵扣方面没有其他的。能听得到吗？可以听见。好的，你的分析是对的。除了副产品的价格影响因素之外，目前我们看不到其他的影响Q1成本的因素。谢谢。 My answer is your analysis is correct. In the first quarter, apart from the price of byproducts, there was no other factor affecting C1 cost. 谢谢钱总。这个我可否跟进一下，咱们在后续的季度里边有没有什么一次性的因素会影响到C1成本，除了正常的副产品抵扣这些？ In the coming quarters, will there be other one-off factors or events that may affect C1 cost apart from this impact in relation to byproducts? Jimmy，我相信你隐含的问题就是员工利润分享的问题，这个不会影响到C1的表现，所以答案是还是没有进一步的影响。 I believe you are asking about the employee or staff profit sharing arrangement. Well, there is no impact from this on C1 cost. My conclusion is that there is no other factor that may cause an impact on C1 cost. 好的，谢谢钱总，很清楚。然后最后一个问题是想问一下，因为中东冲突了之后，整个油价有一些上涨，然后柴油也有一些地方有一些短缺。我想问一下，对于咱们各个矿山来说，一个是成本上升的一个影响是怎么样的，还有一个就是目前整个柴油的供应情况大概如何？这个是我最后一个问题。谢谢。 My last question is, now that there is a conflict in the Middle East and oil price has risen and there is also shortage in diesel. With the cost increase, will that affect your mine operations? At the same time, how is the diesel supply situation, please? Thank you. 请关总回答一下这个问题。 Hey Jimmy，我想分开两个部分。一个是柴油供应的安全性，从我们现在的库存以及我们的合同安排来讲，各个矿山我们都没有看到一个柴油供应近期的风险。那当然肯定我们还需要密切关注中东事态的一个进展，但是短期看，我们不认为有供应的风险。那另外一块就是燃油的价格，当然最近其实市场波动也是比较大的，那从我们油品消耗在我们成本中的占比，实际上我们现在看到它的占比相对会比较小，那肯定价格还是会有一些负面影响。但是如果从我们矿山成本构成来看，在我们地下矿山，基本上油品的成本是占2%到3%这样一个水平，那可能露天矿山会占比大一点，大概在10%到11%左右，所以肯定会有一些影响。但是现在我们看，因为它的本身构成相对比较低，所以影响应该是相对比较小的。谢谢。 Let me comment first of all on the security of diesel supply. Well, in the near term period, we do not see any risk arising from diesel supply, but we will continue to watch the situation in the Middle East. Then there is also the fuel price situation. Recently there was quite big international volatility in fuel price. But when it comes to the share of oil consumption or oil related consumption in our overall matrix, well of course there is some price impact. However, because the overall share of oil consumption in our total matrix is relatively small. For instance, in a low price product, the share is only 2%-3%, and in other different products, its share is also only 10%-11%. Overall speaking, its share in percentage is rather small in our overall total. The impact as a result is also small to us. 好的，谢谢关总。谢谢各位领导。我没有其他问题了，然后也期待公司上半年有一个业绩靓丽表现。我没有其他问题，谢谢。 Thank you management. I do not have further questions. I look forward to very good results in your first half. Thank you. 谢谢。我们下一个提问是来自Bank of America的Miriam Chan，请开始您的提问，谢谢。赵总，各位领导，你们好，我是美银美林的分析师陈怡君Miriam。那首先非常恭喜公司一季度取得一个非常好的运营业绩。我有几个问题，第一个想问一下，就是last time看到一季度的铜销量是高于产量的，主要是来自港口库存的回落。那我想请问一下，现在港口跟我们在途的库存的水平是如何？然后后面的季度销量的话是否会更加接近这个产量的水平？然后我第二个问题是想问一下金塞维尔这一边的硫酸的情况，因为也看到现在中东的情况持续，那想问一下，我们现在硫酸的供应，像采购那一方面是什么情况？然后后面会不会因为硫酸有机会对我们铜的产量会有一个影响？另外想问一下，硫酸现在对我们单位成本的占比是如何？大概成本的敏感度是怎么样？然后第三个问题想问一下关于科马考那边，刚刚领导也有提到，就是一季度有一些承包商的设备的使用的限制，这个情况在三月有改善。那我想问一下，如果二季度来看，这个产量大概改善的幅度会是怎么样的？我就是这三个问题，谢谢。 Congratulations on your very good first quarter results. First question is about Las Bambas. In the first quarter, copper sales volume is bigger than production volume. This is because of a decline in port inventory. Right now, how much is the situation regarding port inventory? In the future, are you going to see sales volume gradually be more or less the same as production volume? Second question is about Kinsevere. Regarding the supply of sulphides, and also procurement of sulphides, now that the Middle East conflict situation is continuing, in the future, will there be impact on your copper production volume arising from sulphide supply and sulphide procurement? How much is the share of sulphide cost? How is the cost sensitivity in this regard? The third question is about Khoemacau. In the first quarter, there were some restriction in relation to the use of contractor equipment. How is the situation now in the second quarter? Do you think that your production volume can gradually up as you said earlier? Thank you. 好，谢谢。前两个问题请关总回答一下，第三个问题请夏总回答，谢谢。 Miriam，这样，关于Las Bambas的铜销售，其实第一季度的销售量超过产量，主要是源于就像你刚才提到的，我们在港口，年底之前的这样的一个库存，那么在一季度，这部分库存实际上已经完全消化掉了。那从二季度开始，大的方向肯定是我们的销量会逐渐地接近产量。那当然，因为有一个时间差，所以肯定我们会有一小部分库存，但是这是我们正常的在矿山和港口，由于我们的发运的安排导致的一个正常的库存，不会造成一个大的产量和销量的一个差异。这是第一个问题。第二个问题，就是关于硫酸的供应，那硫酸的使用可能只对我们的Kinsevere矿山的生产实际上有相对比较重要的影响。但是随着我们的Kinsevere改扩建项目的完成，实际上我们自己有了自己的制酸的能力。那从目前我们制酸能力和我们的消耗来看，总体来讲，我们可以自己满足大约75%的硫酸的用量，所以一定程度上，硫酸的供应和硫酸价格对我们的成本影响会相对有限。那当然这一部分确实随着硫酸价格的上涨，肯定还是有影响的。那这一块我们也会通过，因为本身我们还有一小部分硫磺的库存，还有后续可能从我们管理的角度，供应链管理的角度，也会去跟我们的供应商谈一些其他储存的安排，使我们的供应安全能够得到进一步的保证。那先回答到了。 Let me answer your first two questions. For the first question, it is about the sales of copper at Las Bambas. In the first quarter, it is true that sales volume is bigger than production volume. That is because of the inventory at the port. Then gradually in the first quarter, it has been digested in relation to the port inventory. In the second quarter, we expect that the sales volume will gradually be more or less the same with production volume. There will be a time gap for sales volume to gradually move to the same level as production volume. As a result, there would be a small amount of inventory remaining. This is a normal situation about inventory. We do not see that there will be a big difference between production volume and sales volume. The second question is about Kinsevere and also sulphuric acid. It is true that sulphuric acid would cause big impact to our Kinsevere operation. However, we have already gradually built up our own capability in terms of sulphuric acid consumption. As a result, right now with our self-supporting capability, we are able to satisfy 75% of our use of sulphuric acid and consumption amount of sulphuric acid. The sulphuric acid supply and sulphuric acid price will only cause limited impact on our cost. Of course, if there is an increase in sulphuric acid price, there will still be some impact on us. However, we already have some sulfur inventory, and we are talking with the suppliers to try to make sure that we can actually stabilize the sulphuric acid supply. So that we can minimize the impact on our overall operations. 第三个问题，关于科马考产量的情况。一季度的确科马考受到了我们社会可预见性的问题，导致产量降低。从4月份开始，随着经常性新的采矿设备的到货，我们把决定的产量逐渐提上来了。所以在二季度我们也会看到铜金矿产量的逐渐提升。也就是说二季度也会受到社会可预见性的影响，但是随着新设备到货，我们会逐渐地和我们的预期，包括质量持平，有这么一个向上的趋势。谢谢。 Regarding copper production volume. It is true that in the first quarter, it has been impacted by equipment availability. As a result, production volume has come up. In April, we had already seen the equipment coming to place for mining. As a result, production volume has started to pick up. In the second quarter, we believe that there would be an increase in production volume of copper concentrate. So it would be subject to the availability of the equipment. But overall speaking, the trend is an upward one. 好的，谢谢关总和夏总的解答，非常清楚。我没有其他问题了，谢谢。谢谢。下一个提问是来自中信证券的涂耀廷，谢谢。好的，各位管理层领导好。我是中信证券的金属行业分析师涂耀廷。也非常高兴看到我们昨天晚上发布的QPR也是非常超预期。我这边主要是有三个问题想请教一下各位领导。第一个问题就是关于可能刚刚也有同行朋友也提到过，我们看到一季度的包括Las Bambas在内的诸多矿山C1成本都表现得非常的超预期。刚刚也听赵总和钱总介绍了，可能主要还是由于副产品的收益这部分带来的影响是占主导因素的。那么我就想请教一下，刚刚领导也提到了，可能是因为一季度的Ferrobamba的占比是偏高的，那么全年可能相对来说还是有我们自己的整体的一个比例的规划。那么我就想请教一下，关于全年的贵金属这块的产品的产量的指引，会不会有一些大概的一个更加明确的指引？这是第一个问题。第二个问题的话，就是我们看到这次生产报告的一个比较大的产量方面的亮点，其实铜的增量主要还是来源于Chalcobamba矿山，也贡献了很大的增量。那么就想请教一下各位领导，关于Chalcobamba矿山的包括电力供应，还有产能爬坡，有没有一些更新的一个进度和细节能跟我们大家分享？那我就主要问两个问题。谢谢各位领导。 First of all, congratulations about last night's report on QPR, which is bigger than expectation. It is very good. My first question is in relation to C1 cost in the first quarter. So I think as mentioned earlier, C1 cost has actually been better than expectation, including the Las Bambas mine. This is mainly because of the gain or use from by-product. And you also mentioned just now that the share of Ferrobamba is bigger in Q1. Now I want to know for the whole year, what is the production volume guidance for precious metals? My second question is related to Kinsevere. For the increase in copper volume, the contribution from Kinsevere was quite big. My question is related to electricity supply and also your production capacity ramp-up. Can you give more details on these two points? Thank you. 我回答您的第一个问题，耀廷，谢谢提问。关于您提到这个贵金属产量，其实我们的整个采矿顺序也好，都是围绕着我们的主产品，就是我们的铜和锌进行的。对于贵金属产量指引，我们目前是没有给这个情况，还是参照我们公布的主产品的指引来看。第二个问题，我请夏总回答一下，关于这个Quellaveco的电力和产能的情况。 Let me first answer your first question in relation to precious metals. So you just asked for guidance on production volume of precious metals. In fact, we have not disclosed or reported on guidance of precious metal production volume. However, since this is closely related to our core products of copper and zinc, if you can refer to our production volume guidance of copper and zinc, then you will be able to somewhat tell production about precious metals. 第二个问题，关于Kinsevere产量的提升，主要取决于我们现场采取的系列提案，比如说我们湿法冶金厂电积车间，我们更换了之前那些老旧的阴极板和阳极板，大概在一季度完成了70%左右，所以对产量有一个贡献。另外，贝州是三厂，产能爬坡也表现良好。阴极铜产量贡献从2025年每个月2000余吨提升到现在的3000吨左右。第三，电网的供电质量也得到了明显的改善。2026年的一季度相比于2025年四季度，停电次数大幅度减少，减少了60%左右，停电时长也降低了50%。这一系列的因素导致我们第三个矿山在一季度产量比预算要好于预期。所以我们全年金塞维尔的产量这一块还是坚持我们年初制定的预算水平。谢谢。 Now let me comment on production volume at Kinsevere. Production volume has increased. That is because we have put in place a number of solutions on site, including replacement and also overhaul of some old and broken-down equipment. So in the first quarter, basically we have already completed 70% of the on-site solutions and arrangements. That is why there is going to be contribution to the production volume. In relation to the production ramp up, so far we have seen quite satisfactory performance. There is an increase from 2,000 tons to 3,000. In terms of power grid, again we have seen improvement. Comparing Q1 2026 and Q4 2025, there is already an improvement of around 80 kilowatt hours. In the first quarter, we believe that production volume has been better than expected. Production volume has also achieved the budgeted or expected level set at the beginning of the year. 好的，谢谢各位领导的解答。我再追问一个小问题，就是我们去年Las Bambas的Ferrobamba和Chalcobamba的两个矿的占比大概是怎样的一个情况？谢谢。 My question is regarding the breakdown in share between Ferrobamba and Chalcobamba of Las Bambas last year. 好的，耀平，我回答一下您这个问题吧。去年也基本维持着一半一半的供应。谢谢。 Last year the breakdown was around 50/50. Thank you. 好的，我这边没有别的问题了。感谢赵总和夏总的解答。谢谢。 No more question, thank you. 谢谢。下一个提问是来自Barclays的Shao Kangqi，开始您的提问。谢谢。各位领导好。首先恭喜公司获得非常良好的经营业绩。然后我想请教一下关于Khoemacau这个20万吨的预可研就已经开始了。我想了解一下这个时间表大概是怎么样，从预可研到正式的可研，到最终的投资决定，大概这个时间表是怎么样？如果20万吨的扩产决定要上的话，这个时间表是不是一定要等到这个13万吨的扩产完工了以后，就是说2028年的上半年的时候才能开始？还是说一起进行的可能性也存在？这个是我第一个问题。谢谢。 Congratulations on your very good results. My question is about Khoemacau. So there is a 200,000 ton of pre-research volume. I would like to know the timetable from the pre-research stage all the way to the formal research stage to making final decisions. If there is indeed the production of 200,000 tons being put in place. Well, actually in terms of timing, do you need to wait for the completion of the 130,000 tons that would be roundabout at around first quarter in 2028. Is that the timeline? Thank you. 这个问题请关总来回答一下。谢谢。好的。Grace，是这样的，其实从我们的投资决策来看，我们还是要分阶段来做项目的研究和投资审批。那么今年我们启动了预可研，其实下一阶段是到可研。这个研究工作还是需要一个正常的工作时间。从目前来看，我们是希望明年的上半年可以通过预可研的审批的阶段，转移到可研的阶段。从目前来看，即使我们推动得比较快，可能还是要到2028年左右才能够完成我们的可研的审批。当然有一些工作，如果从我们建设来讲，有一些工作，比如说一些基础的道路的建设，可能能作为我们早期工作的一部分提前开展。但是大规模的建设，包括我们的投资决策，还是要等到我们的可研完成之后，才能够实质的推动。所以从另外一个角度来看这个问题，一方面我们要按照我们的投资的流程和研究的流程来工作，那实际上也间接地说明，其实我们推动一个新的项目的开发是不容易的。那么从整个全球供应端的角度，其实也不是说大家都非常容易地能够把我们的产能提上去。从时间表方面，提前的可能性是有的，但是如果从我们实质研究的角度，这个可能性也是相对小低一点的。 Let me answer your question in relation to the timetable. First of all, in terms of our investment and research, we have to follow established rhythm and it has to be done in phases. First of all, for this year, we will be working on the pre-feasibility stage. Next year in the first half, we hope to be able to get approval for the pre-feasibility so that we can get into the stage where we can really start to do research. In 2028, we believe that at that time we will be able to get the approval process done for the research. That is the possibility to do research. Basically when it comes to some fundamental infrastructure, for example, the building of roads, we can advance our work on that a little bit. In terms of investment, we really have to wait till the approval of research for us to start the investment stage. Basically we have to follow all the investment and research processes. You can say that it is really not easy to introduce and start new projects. That is the reason why it is not easy to increase production volume. In terms of timetable, there is the possibility of advancing the overall works and progress, but such possibility will be rather small. 谢谢观众。然后第二个问题，我想请教一下Nickel Brazil现在进展大概怎么样？时间表还需要等到今年年底吗？ My next question is about the project Nickel Brazil. How is the progress so far? Is it true that it has to wait till the end of this year? 好，Chris，你接着回答Nickel Brazil的问题。现在这个交易还是在欧盟审批的过程当中，当然最近还是有一些进展。我们也按照欧盟的要求提供了大部分文件，现在还有一些小部分的问题，我们也在工作过程当中，应该很快可以提交。那么确实，从欧盟审批的时间表，我们现在也很难预计。但是按照欧盟的工作时间，第二阶段的审批，预计整个的工作时间不会超过90天，所以应该是有四个月左右的时间。那么在这个过程当中，我们和英美资源还是配合得非常好，而且我们双方也都是致力于尽最大的努力，去尽快地能够争取到欧盟的这样一个审批。那么从时间表的角度，确实现在很难给出一个准确的时间，但是从我们双方配合努力的角度，我们还是有信心尽可能地去推动欧盟审批能够尽快完成。So concerning Nickel Brazil, first of all, the deal has to be approved by EU. Recently we saw some progress. We have already submitted some documents and we are also working on some outstanding questions. It is very difficult to predict the timetable, but based on our experience and observation of EU's practice, the work may take longer than 90 days, but we are now working with our counterparts. We are trying our best to expedite the overall procedure and approval process, but it is very difficult to predict an exact time as to when the whole process can be completed. Overall speaking, we are making a lot of efforts to expedite the whole process. Thank you. 明白，好的，谢谢。谢谢。我们下一个提问是来自国联证券的张雨晴，请开始您的提问，谢谢。好的。金总，各位领导好，我是国联证券研究分析师张雨晴。首先恭喜公司取得佐合贝的生产营业执照。这边小问题跟进一下吧，因为很多问题前面也都提过了。那么第一个就是关于刚刚镍矿交割的进展，我再追问一下，一个刚刚说第二阶段不超过90天的时间，就是我不太清楚整个交割的流程，经过了EU的审批之后，是不是就已经可以直接完成交割了？这个是第一个，就是关于镍矿交割的一个小的追问。第二个就是关于我们的财务，因为你现在现金流应该是非常好的，包括一季度还多卖2万吨的库存，这是整个港口的销售。那么过去两年的话，我们一直是在做一些债务的偿还。那么今年的话，在债务偿还和分红上的话，整体计划是怎么分配的？这是第二个问题，谢谢。 Congratulations on your very good results. Many of my questions have been asked earlier by other participants. Now I have two more questions to ask. The first question is about Nickel Brazil. Just now I heard that there is the 90-day timing in relation to the overall process. Is it true that after getting approval from EU, then there can be the completion or settlement of the Nickel Brazil transaction? My second question is about your financial situation. Now you enjoy quite good cash flow, especially after selling out some inventory in the first quarter. In the past two years, you focused a lot on debt repayment. In the coming period, what will be the share between debt repayment and dividend payouts? Thank you. 依希你好，关于第一个问题，就是90天，我稍微再澄清一下。这个90天是欧盟进行二阶段审批的一个最长的工作时间。那么从交割的角度，实际上我们所有的其他的交割前置条件都已经满足了。如果我们能够获得欧盟的审批的话，交割应该是可以很快进行的。谢谢。 Okay, regarding the 90 days, let me clarify the situation. 90 days is the maximum period for the second stage of EU approval process. For the other settlement conditions, those had already been satisfied. Now we are only waiting for approval from EU. Once EU gives approval, then settlement of the deal can take place. Thank you. 那个钱总回答一下，谢谢。谢谢。公司在现有经营良好的表现之下，应该也是会取得不错的现金流。公司会继续地去做好当前的日常经营，完成我们在手的扩产项目，在此基础上改善负债情况，更多的是公司结构上的变化。总额上，其实公司的现有的杠杆率已经降到了30%附近，并不是前些年那么紧迫的负债的偿债的要求了。从结构上，我们会更多地考虑从邦巴斯向尚德分红，然后用于科马考的开支。在此基础上，我们会尽快地解决分红的技术障碍，也就是香港上市中心逻辑层面的net increase的问题。如果今年的现金流能够保持现在的情况下，争取在2026年底解决这样的一个技术障碍，使得公司具备向股东分红的条件。然后我们在公司董事会会经过评估，考虑向五矿资源股东派发股息的问题。 Now let me answer the question in relation to our financials. First of all, our operation was in good shape, so that is why we enjoy quite good cash flow. Right now what we need to do is continue to do a good job with our operations and to complete all our mine expansion projects. These are related to structural changes. In fact, our leverage ratio has already improved. Right now we are at around 30%, so we are no longer in the situation in the past few years when we need to focus a lot on debt repayment. When it comes to the work that we need to do, first of all, there are several potential uses of our cash flow, including dividend payments and also the Khoemacau CapEx. But right now we have to work on solving all the technical obstacles in relation to the payment of dividends. We believe that at the end of 2026, we may be able to solve the technical obstacles, and then we will have the condition to make payments of dividends to our shareholders. But we have to look at the situation at that time in making decision as to dividend payments. Thank you. 好的，谢谢。我这边没有其他问题了，感谢各位领导的回复，谢谢。 No other questions, thank you. 谢谢。我们最后一个提问是来自中金公司的柯梦文。请开始您的提问，谢谢。好的。赵总、宋总，各位五矿的管理层领导好，我是中金公司有色金属分析师何曼文。首先，公司一季度生产运营实现开门红，我这边就三个小问题跟公司做一个最后的请教。第一个就是关于科马考矿山成本的一个细节上的追问，我们也看到了它Q1的成本其实是大幅低于年度指引的。可能除了副产品白银的价格比较高的一个原因，就是想请教是否还有其他的影响因素？那也是便于我们去做全年的一个模型的假设。这第一个小问题。第二个就是关于金塞维尔电力的一个追问，关于目前矿山的电力结构的一个情况，以及光伏储能的建设情况的这边的一个更新。第三个就是一个关于战略规划的问题了，我们其实也取得了相当于是十五五的一个开门红。所以也想请公司是否方便分享一下，关于公司自身的这边十五五规划的一个情况。我主要就三个问题，谢谢。 Congratulations on your first quarter results. My first question is about Khoemacau. In the first quarter, Khoemacau cost was relatively smaller than your annual guidance. That was because of high price of silver. Apart from this, are there other factors leading to such decline in cost? My second question is about Kinsevere electricity. What is the electricity structure? Also, what is the latest update in relation to photovoltaic energy storage? The question is that now you enjoyed a surge or an increase in your revenue, does your company have any 15th Five Year Plan? Thank you. 好的，第一个问题请钱总回答一下，第二个问题请夏总回答一下，我来回答第三个问题。谢谢。谢谢。Khoemacau一季度的成本低于指引，主要因素就是副产品的抵扣，单纯银一项就可以造成$1每磅铜的抵扣效果，其他变化不是很大，谢谢。 Regarding the cost of Khoemacau, in the first quarter, coal was lower than guidance. This is mainly because of credit from byproducts. Only this sector has already made contribution of around USD 1 per pound. Other than that there is no other impacting factor. 第二个问题关于金塞维尔电力供应一季度稳定的问题，我们现在的储能项目预计是在二季度末完成建设，并在三季度投入使用。这样的话，有了我们的备用电源，就能够更加提升我们的运营质量，增强电网整体的稳定性。谢谢。 Your question about electricity supply in Kinsevere. Basically, at the end of the second quarter, we will be able to complete the building and construction of the related facilities project and we believe that it will commence operation in the third quarter. As a result, our overall operating quality can improve and there would be more stable electricity supply for Kinsevere mine. 好的，我来回答一下您的第三个问题，关于公司的战略。其实我们的战略长期以来一直是比较稳定的，包括你也知道，五矿资源一直属于一个成长型的公司。我们的增长路径基本上还是按照我们以前公布过的，一个是内生式的增长，一个是战略性的组合式的增长。内生式的增长就包括现在所有的这些扩产、优化现有的资产，包括扩建的项目、瓶颈消除的项目、资源转储等等工作，推动邦巴斯、科马考矿山等实现一个可持续的增长。战略的重组还是通过一些并购或者更广义的一些合作伙伴的结构，评估这些增长机会。所有的这些举措都会严格按照我们这个资本纪律，还有这个战略的结合原则，来确保我们的增长这个长期为股东创造一个长期的价值，而且也跟五矿集团的这个十五五的战略规划，也是跟他们的目标也是相匹配的。补充一点，就是我们今年新加了一个叫做科技创新的支柱，这个支柱主要是在未来的这五年当中，给予我们的矿山在降本增效、安全各个方面，是能够给予一部分动能的输入。谢谢。 Let me answer your last question about company strategy. First of all, as you know, our strategy has been stable for the long term. Our company is a growth style company. Basically in terms of growth, there are two major avenues. There is organic growth as well as strategic growth. For organic growth, basically we are expanding our production, we are optimizing and improving our assets and we are removing bottlenecks in our production and we are also increasing. We hope that we can increase our production capacity and production volume in a sustainable way. When it comes to strategic growth, basically it includes M&A and also our collaboration with our strategic partners. All these will be carried out according to our strategy and our plan with discipline. All these are done in order to improve our long term shareholders value. In fact, our strategies are well aligned with our parent company's 15th Five Year Plan strategy. This time we have added a new pillar about technology and innovation. By including this new pillar, we will be hoping to reduce costs, improve efficiency, and also to improve our safety dimension. Thank you. 好的，感谢赵总、夏总、钱总的回答，非常清楚，我们也期待在科技的加持下，五矿迎来这个战略的发展。谢谢。 Thank you very much for the answer. We do look forward to the contribution of technology and innovation to your improvements in operations and results. Thank you. 谢谢，现在把时间交给管理层。谢谢。好的，感谢大家抽出时间参加本次会议。会议到此结束。如果您有任何其他的问题，请联系我们的投资者关系团队。再次感谢大家，再见。 Thank you very much for joining this conference call. If you have further questions, please feel free to contact IR department. Thank you. 谢谢大家出席电话会议，会议到此结束。再见。 Call is concluded here. Thank you.