MMG Ltd. · HKEX:1208

MMG — Corporate Update (February 2017)

31 slides from MMG's corporate update, February 2017

  1. Slide 1: MMG Corporate Update

    MMG Corporate Update February 2017

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this presentation is intended solely for your personal reference and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organisation/firm) or published, in whole or in part, for any pu

  3. Slide 3: Contents

    Contents 1. MMG Overview 2. Company Highlights 3. Appendix a) 4Q 2016 Production Report b) 1H 2016 Interim Results c) Mineral Resources and Ore Reserves 3

  4. Slide 4: MMG Overview

    MMG Overview  An emerging copper major  Operations in Peru, Africa, Asia and Australia – including the world class Las Bambas asset  Industry leading ramp up at Las Bambas  Headquartered in Melbourne, with dual listing structure on the Hong Kong Exchange and ASX 4

  5. Slide 5: Company Highlights

    Company Highlights 1 Las Bambas is a transformational and world class copper asset 2 Dugald River is one of the largest and high grade zinc development projects globally 3 Access to long-term debt and majority shareholder support – core competitive advantages 4 A history of operational excellence –

  6. Slide 6: 1. MMG Overview

    AA 1. MMG Overview WEMINEESR IVIIVIG

  7. Slide 7: Overview of MMG

    Overview of MMG MMG is a mid-tier global resources company that mines, Shareholder base explores and develops base metals projects around the world. 2.4% China Minmetals Corporation Overview 12.2%  Founded in 2009, MMG is a diversified base metals 11.7% Private investors company with four operating

  8. Slide 8: Overview of portfolio

    Overview of portfolio We have a globally diversified portfolio of base metals producing and development projects HIGH LAKE IZOK LAKE SEPON 2017 production guidance: LAOS HONG KONG 65,000 – 75,000 tonnes of VIENTIANE copper cathode SEPON 2017 C1 guidance: US$1.25 – US$1.40/lb LAS BAMBAS 2017 producti

  9. Slide 9: Emerging base metals player positioned for growth

    Emerging base metals player positioned for growth With the support of our majority shareholder, 2017 copper production guidance1 MMG’s objective is to be valued as one of the Kt, Cu world’s top, mid-tier miners by 2020. 1,600 Overview 1,400 1,200  Continue to squeeze efficiencies from operations 1,

  10. Slide 10: Our values: we mine for progress

    Our values: we mine for progress We place safety at the centre of everything we do Safety performance and we believe that nothing is so important that it cannot be done safely  Safety our first value – TRIF1 of 1.9 per million hours 4.1 worked in 2016 represents lowest yearly TRIF ever recorded 3.0

  11. Slide 11: 2. Company Highlights

    AA “Brouress EMEIVIG 2. Company Highlights

  12. Slide 12: Las Bambas – size, scale and life

    1 Las Bambas – size, scale and life Las Bambas is a transformational world class copper asset 2017 forecast production capability1 Overview Escondida  Largest greenfield copper development in the past PT Freeport 10 years Indonesia  Targeting 2 million tonnes of copper in copper Morenci concentrat

  13. Slide 13: Las Bambas – successful development

    1 Las Bambas – successful development Las Bambas reached 97% of design capacity in 6 months, coming in ahead of schedule and below cost guidance McNulty curve for plant ramp up2 1st year production for greenfield copper project3 (guidance vs actual) 110 350 Type 1 100 Guidance Outcome Type 2 300 90

  14. Slide 14: Las Bambas – low cost position

    1 Las Bambas – low cost position Bottom quartile costs achieved within 6 months progressing towards steady state C1 cost target of Breakdown of 2017 C1 cost guidance US$0.85 – 0.95/lb in 2017 Transport / logistics  Transport logistics chain identified as a key project risk1 US$0.85 – 0.95/lb  All

  15. Slide 15: Dugald River – size, scale and life

    2 Dugald River – size, scale and life At full production Dugald River will be one of the ten largest zinc mines globally 2019 forecast production capability1 Overview Rampura-Agucha  Wholly-owned zinc deposit located in Queensland Red Dog  Highest-grade zinc project currently being developed  Exp

  16. Slide 16: Dugald River – high grade zinc project

    2 Dugald River – high grade zinc project Dugald River is a large, long life and high grade zinc project Grade (%) New Base Case Projects Restarted Base Case Projects 16 New Probable / Possible Projects Restarted Probable / Possible Projects Dairi 14 Dugald River 12 10 Prairie Creek Balmat Restart 8

  17. Slide 17: Long term debt – competitive advantage

    3 Long term debt – competitive advantage A core competitive advantage of MMG remains its access to long-term debt from Chinese banks and Amortisation schedule funding support from its majority shareholder US$ million (CMC1) 6,000  MMG's capital structure has a number of competitive advantages: 5,00

  18. Slide 18: Operational excellence – maximise asset utilisation

    4 Operational excellence – maximise asset utilisation Operating approach is based on improving output Las Bambas Asset Utilisation vs. MSPR by maximising asset utilisation Summary 1449 tpd 1368 tpd 1130 tpd 1130 tpd  Squeeze the assets: operating approach targets consistent improvement in utilisati

  19. Slide 19: Executive team – global experience

    5 Executive team – global experience Chief Executive Officer Chief Financial Officer Chief Operating Officer Mr Jerry Jiao Mr Ross Carroll Mr Marcelo Bastos  Vice-President of China Minmetals  25+ years of experience in the Natural  30+ years mining experience in iron ore, Corporation (CMC) Resou

  20. Slide 20: Why invest in MMG?

    Why invest in MMG?  Las Bambas project delivered with industry leading ramp up. Long life, world top 10 copper mine in the first quartile of the cost curve  Strong growth pipeline – Dugald River zinc mine to commence production in 1H18 and actively pursuing further accretive growth opportunities 

  21. Slide 21: Appendix

    AA “Brouress EMEIVIG Appendix

  22. Slide 22: A. 4Q 2016 Production Report

    AA “Brouress EMEIVIG A. 4Q 2016 Production Report

  23. Slide 23: Key highlights from 4Q 2016 Production Report

    Key highlights from 4Q 2016 Production Report Key highlights 4Q 2016 production summary  Total copper production of 503,510 tonnes in 2016 vs. guidance of 4Q 16 4Q 16 YTD 16 415,000–477,000 tonnes. Zinc production was 119,575 tonnes vs. vs vs vs guidance of 120,000–135,000 tonnes. 4Q 16 4Q 15 3Q 16

  24. Slide 24: Guidance for 2017

    Guidance for 2017 Las Bambas Rosebery Copper – production 420,000 – 460,000 tonnes Zinc – production 65,000 – 72,000 tonnes Copper – C1 costs US$0.85 – 0.95 / lb Zinc – C1 costs US$0.25 – 0.35 / lb Lead – production 18,000 – 25,000 tonnes Kinsevere Copper – production 75,000 – 80,000 tonnes Sepon Co

  25. Slide 25: Kinsevere – sustained improvements

    Kinsevere – sustained improvements  Production up 1% to 80, 650 tonnes of copper cathode in 2016 Financials  2016 was a record year for safety, volume and cost US$ million FY16* FY15 %  Operational efficiencies, stable electricity, increases to mill Revenue 418.1 throughput EBITDA1 131.8  10% of

  26. Slide 26: Sepon – transition to tail of proven Cu resources

    Sepon – transition to tail of proven Cu resources Financials  Transition to lower grade and more complex ores. 2016 US$ million FY16* FY15 % ore milled grades of 3.7% vs. 4.9% in 2015. Revenue 496.9  Focus on operational efficiencies and cost controls to offset higher mining and processing. Copper

  27. Slide 27: Australian Operations

    Australian Operations  Production of 14,142 tonnes of copper in copper concentrate, Financials down 50% on 2015 due to reduced throughput strategy at US$ million FY16* FY15 % Golden Grove (reduced throughput from 1.6 Mtpa to 1 Mtpa to Revenue 422.3 preserve value of the resource while exploration c

  28. Slide 28: C. Mineral Resources & Ore Reserves

    C. Mineral Resources & Ore Reserves

  29. Slide 29: Mineral Resources

    Mineral Resources Copper and zinc Mineral Resources of 16.1Mt and 13.1Mt respectively Mineral Resources – Contained Metal (100% asset basis) As at 30 June 2016 Project Copper Zinc Lead Silver Gold Molybdenum Nickel kt kt kt moz moz kt kt Las Bambas 12,787 189 2.7 352.4 Kinsevere 1,439 Sepon 651 1.4

  30. Slide 30: Ore Reserves

    Ore Reserves Copper and zinc Ore Reserves of 8.8Mt and 3.4Mt respectively Ore Reserves – Contained Metal (100% asset basis) As at 30 June 2016 Project Copper Zinc Lead Silver Gold Molybdenum kt kt kt moz moz kt Las Bambas 7,710 119 2.0 205.2 Kinsevere 577 Sepon 379 Dugald River 2,736 440 36 0.0 Rose

  31. Slide 31: IVEIVIG Prockess”

    IVEIVIG Prockess”

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