Slide 1: MMG Annual Results 2023
MMG Annual Results 2023 6 March 2024
Slide 2: Disclaimer
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Slide 3: Overview
Overview Year in review Financial results Strategy and outlook Questions and answers
Slide 4: Year in review
Year in review LI Liangang Chief Executive Officer (Interim)
Slide 5: Safety – our first value
Safety – our first value Remembering the Dugald River Incident in February 2023: the importance of our commitment to safety above all else SEEE-F1 TRIF2 TRIF MMG 4.7 TRIF ICMM ICMM3 2019 1.86 4.5 4.5 4.3 3.9 2020 1.68 3.4 3.2 2.9 2.9 2.7 2021 2.4 2.3 0.99 2.1 1.9 2.0 1.6 1.4 1.3 2022 0.94 1.2 1.1 1.
Slide 6: 2023 highlights
2023 highlights Copper production All sites met or ↑14% outperformed the Zinc production latest production ↓9% & C1 guidance Revenue Operation cash flow ↑34% ↑122% NPAT Net Debt Reduction US$122.1 M US$783.6 M First cobalt production Early works started at Kinsevere at Chalcobamba 6
Slide 7: EXCO update
EXCO update CFO retirement New EGM Operations Role Expanded EGM Corporate Relations Ross Carroll to retire on 6 March 2024, with Integration of group operational Troy Hey to oversee legal and company a transition period until 1 July 2024. accountability with excellence and risk secretary functions a
Slide 8: Las Bambas: restoring stability and building community partnerships
Las Bambas: restoring stability and building community partnerships 1 2 3 4 5 Corazon Program Fuerabamba Stable Concentrate Huancuire Early works at Implementation Community Transportation Community Progress Chalcobamba starts New social Collaboration Ensured consistent Advanced Early works started
Slide 9: Kinsevere Expansion Project
Photo: Sulphide concentrator in construction Kinsevere Expansion Project First Production of Cobalt Hydroxide Sulphide processing system ongoing Q4 2023 Construction on track Production at full capacity Higher production and cobalt credits ~80kt of Cu & 4-6kt of Co Driving C1 costs down 9
Slide 10: Khoemacau – exceptionally good strategic fit
Khoemacau – exceptionally good strategic fit C1 cost post-expansion1 Near-term expansion2 to US$1.55/lb ~130 ktpa Cu High-grade mine with attractive financial Delivered through increased processing metrics, bottom half of cost curve capacity and additional mining fronts Low-capital intensity3 Long-l
Slide 11: Financial results
Financial results Ross Carroll Chief Financial Officer
Slide 12: Financial performance
Financial performance Summary Income Statement 2023 2023 YEAR ENDED 31 DECEMBER (US$ M) vs. 2022 Revenue 4,346.5 34% EBITDA 1,461.9 (5%) Profit for the year 122.1 (50%) EBITDA margin 34% Net cash generated 1,849.9 122% from operating activities US 0.10 Basic earnings per share cents 12
Slide 13: EBITDA waterfall
EBITDA waterfall Notes: 1. Other variance includes FX, corporate costs, exploration costs, etc. 2. Operating Expenses including operating costs and stock movements. 3. Price variances include mark-to-market adjustments on open sales contracts and the impacts of commodity hedging. 13
Slide 14: MMG debt portfolio
MMG debt portfolio MMG Debt Repayment Schedule1 (US$M) MMG total borrowings (US$M)2 and gearing ratio as of 31 December 1,600 CMN Shareholder Loan 8000 74% 73% Total borrowings 80% Gearing ratio 70% DRM $450m 5 Yr Loan 56% 1,200 6000 55% 60% MLB 18 Yr Project Facility 50% 50% 800 4000 40% 30% 400 20
Slide 15: Capital expenditure outlook
Capital expenditure outlook Capital Expenditure Capital Intensity of Copper Developments1 1000 US$M Bubble size = Avg. CuEq production = Khoemacau Expansion 30,000 = KEP Capital Intensity (US$/t CuEq) = Chalcobamba Expansion 750 20,000 500 10,000 250 0 0 2017 2018 2019 2020 2021 2022 2023 2024e 0 2,
Slide 16: 2024 earnings sensitivity to commodity price & FX
2024 earnings sensitivity to commodity price & FX High earnings and cash flow leverage to copper and zinc prices Sensitivity EBIT Impact (US$M) Copper US$/lb $0.10/lb / ($0.10/lb) 71/(71) Zinc US$/lb $0.10/lb / ($0.10/lb) 43/(43) Lead US$/lb $0.10/lb / ($0.10/lb) 8/(8) Gold US$/oz $100/oz / ($100/oz
Slide 17: Las Bambas
Las Bambas Copper Production ↑19% One of the world’s largest copper mines with near term organic growth optionality CHANGE % Year Ended 31 December 2023 2022 FAV/(UNFAV) Record high annual mill Production metrics throughput Ore mined 46,429 kt 43,179 kt 8% Ore milled 52,872 kt 44,043 kt 20% Sales Or
Slide 18: Kinsevere
Kinsevere Copper Production ↓11% Growing to be a ~100kt Copper Equivalent mine once expansion project fully ramped up CHANGE % Reducing reliance on Year Ended 31 December 2023 2022 FAV/(UNFAV) lower margin third- Production metrics party ore in H2 Ore mined 1,726 kt 3,100 kt (44%) Oxide ore mined 68
Slide 19: Dugald River
Zinc Production Dugald River ↓12% A world top 10 producing Zn mine with a >20yr mine life CHANGE % Operation suspension Year Ended 31 December 2023 2022 FAV/(UNFAV) 34 Days Production metrics Ore mined 1,651 kt 1,873 kt (12%) Safe return to Ore milled 1,660 kt 1,844 kt (10%) stable operations with O
Slide 20: Rosebery
Ore Mined Rosebery ↑4% Rosebery continues to deliver after almost 90 years of operations CHANGE % Mine Productivity Year Ended 31 December 2023 2022 FAV/(UNFAV) ↑ Production metrics Ore mined 922 kt 886 kt 4% Ore milled 918 kt 897 kt 2% Operating expenses Ore milled grade – Zn 6.5% 6.7% (2%) ↓3% Rec
Slide 21: Strategy and outlook
Strategy and outlook LI Liangang Chief Executive Officer (Interim)
Slide 22: Strategic Pathways
Deliver on our strategy Our purpose Our mission Our vision Our ambition Strategy Grow and diversify our We mine to create to create a leading resource, production We mine for wealth for our people, international mining and value, by leveraging host communities company for a low carbon Chinese and in
Slide 23: MMG assets base & 2024 guidance
MMG assets base & 2024 guidance Kinsevere (100%) Location: DRC Las Bambas (62.5%) 2024 production guidance: 39,000 - 44,000 tonnes of copper Location: Peru cathode 2024 production guidance (100% 2024 Copper C1 guidance: basis): US$2.80 – US$3.15/lb 280,000 - 320,000 tonnes of copper in copper concen
Slide 24: MMG growth opportunities
MMG growth opportunities Well progressed growth opportunities to expand exposure to copper and become a Top 10 listed copper producer Near Term Growth Mid Term Growth Further growth options being studied at all of our existing sites and at our Khoemacau Kinsevere Las Bambas Khoemacau Izok project Aq
Slide 25: Q&A MMG 2023 Annual Results
Q&A MMG 2023 Annual Results
Slide 26: Appendix
Appendix
Slide 27: Products for a changing world
Products for a changing world The metals we mine are uniquely positioned with a portfolio of base metals assets that are critical to a low carbon future. Notes: 1. AET: Accelerated Energy Transition 2. Data source: Wood Mackenzie reports and MMG estimates 27
Slide 28: Net zero carbon emissions
Trend toward zero emissions Commitment Commitment to a goal of Net zero carbon emissions net zero carbon emissions by 2050. 2050 Scope 1 and Scope 2 We have set an interim, 2030 target of reducing greenhouse gas (GHG) emissions by 40%, from a 2020 baseline. Scope 3 Further focus on working with our
Slide 29: Las Bambas: Corazon Program Implementation
Las Bambas: Corazon Program Implementation Corazón Program Engagement Social Management Build Leadership Financial Approval Model Governance processes Capacities Social Challenges Processes and Alternatives of Social Investment Land Purchase and Logistics Transport Shared Value Model Agreements Mode
Slide 30: NPAT waterfall
NPAT waterfall Notes: 1. Price variances include mark-to-market adjustments on open sales contracts and the impacts of commodity hedging. 30
Slide 31: 2024 illustrative 'spot' EBITDA & FCF
2024 illustrative ‘spot’ EBITDA & FCF Based on the Mid-Point of 2024 Guidance Illustrative Free Cash Flow Copper Las Bambas Kinsevere Total Copper Group Guidance US$M Total Copper Sales (t) 3 300,000 41,500 Copper EBITDA 1,284.7 Payable % 2 96.67% 100% Zinc EBITDA 191.7 Total Copper Payable (t) 290,
Slide 32: Profit to MMG equity holders
Profit to MMG equity holders 2023 NPAT attributable to equity holders (US$M) 2023 2022 vs. Las Bambas NPAT up by 59%: 2022 More copper and molybdenum sales with stable logistics from March 2023 Profit after tax - Las Bambas 62.5% interest 188.6 118.4 59% Profit/(loss) after tax – Other continuing op
Slide 33: Financial dashboard
Financial dashboard Revenue by Commodity Revenue by Customer Discharge Port 2%2% 5% 4% 6% 1% China 5% Copper 2% 9% South Korea Zinc 8% Dem. Rep. Congo Lead 6% Australia Gold Philippines Silver Chile 76% Molybdenum 74% Other EBITDA by Operating Segment (US$M) Operating Expenses (by Nature) 11% People
Slide 34: Historical production performance
Historical production performance Las Bambas – Copper in Copper Concentrate (kt) Dugald River – Zinc in Zinc Concentrate (kt) 190 178 180 173 175 454 170 320 152 385 383 147 330 311 290 302 280 255 2016 2017 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Guidance Guidance Kins
Slide 35: Profit & loss statement
Profit & loss statement YEAR ENDED 31 DECEMBER 2023 US$ M 2022 US$ M Change % Fav/(Unfav) Revenue 4,346.5 3,254.2 34% Operating expenses (2,814.1) (1,682.6) (67%) Exploration expenses (49.6) (30.8) (61%) Administration expenses (12.9) (16.0) 19% Net other (expense)/income (8.0) 10.6 (175%) EBITDA 1,
Slide 36: Balance sheet
Balance sheet US$ M AS AT 31 December 2023 US$ M AS AT 31 December 2022 US$ M Non-current assets 10,505.7 10,875.6 Current assets 1,395.1 1,659.9 Total assets 11,900.8 12,535.5 Total equity 4,312.0 4,228.5 Non-current liabilities – other 2,011.8 2,142.1 Non-current liabilities – borrowings 3,075.8 4
Slide 37: Statement of cash flow
Statement of cash flow YEAR ENDED 31 DECEMBER 2023 US$ M 2022 US$ M Receipts from customers 4,605.3 3,402.1 Payments to suppliers and employees (2,621.8) (2,319.9) Payments for exploration expenditure (4) (30.8) Income tax paid (79.1) (268.0) Net settlement of commodity hedges (4.9) 48.7 Net cash ge
Slide 38: MMG overview
MMG overview Overview Broker Coverage Broker Name Founded in 2009 Headquarters in Melbourne and Beijing Citi Jack Shang and Jimmy Feng HSBC Howard Lau A diversified metals company BOCI Research Lawrence Lau Four operating mines in Australia, Peru and DRC Goldman Sachs Joy Zhang MMG’s flagship asset
Slide 39: Mineral resources
Mineral resources Copper and Zinc Mineral Resources of 9.7Mt and 10.5Mt Respectively Mineral Resources Contained Metal (100% Asset Basis) as at 30 June 2023 Project Copper (kt) Zinc (kt) Lead (kt) Silver (moz) Gold (moz) Molybdenum (kt) Cobalt (kt) Las Bambas 7,600 120 2 200 Kinsevere 1,100 36 Dugal
Slide 40: Ore reserves
Ore reserves Copper and Zinc Ore Reserves of 5.7Mt and 2.5Mt Respectively Ore Reserves Contained Metal (100% Asset Basis) as at 30 June 2023 Project Copper (kt) Zinc (kt) Lead (kt) Silver (moz) Gold (moz) Molybdenum (kt) Cobalt (kt) Las Bambas 4,900 76 1.0 130 Kinsevere 741 20 Dugald River 2,200 340
Slide 41: Thank you
Thank you