Slide 1: MMG 2024 Interim Results
14 August 2024 MMG 2024 Interim Results
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
Slide 3: Overview
Overview First Half of 2024 in review Financial results Strategy and outlook Questions and answers
Slide 4: 2024 first half in review
2024 first half in review CAO Liang Chief Executive Officer
Slide 5: Safety – our first value
Safety – our first value SEEE-F1 2019 1.86 2020 1.68 2021 0.99 2022 0.94 2023 1.14 H1 24 1.22 1. SEEE-F = Significant Events with Energy Exchange Frequency Rate per million hours worked TRIF2 TRIF MMG TRIF ICMM 3 Significant Event - Improvement Plan 4.5 4.5 4.7 Risk management 4.3 3.9 3.4 Critical C
Slide 6: First half 2024 highlights
First half 2024 highlights Improved financial Strengthening balance sheet performance whilst delivering growth EBITDA ↑ US$779.0 million Strengthened Delivering Increased by 23% YoY balance sheet growth Accelerating Portfolio Expansion Net Operating Established Chalcobamba Cash Inflows Khoemacau JV
Slide 7: Asset base and operations update
Asset base and operations update Kinsevere (100%) Location: DRC Las Bambas (62.5%) Mineral Resources by Commodity (CuEq, 100% basis)4 2024 production guidance: Location: Peru 39,000 - 44,000 tonnes of copper 2024 production guidance 6% cathode (100% basis): 9% Copper Zinc 2024 Copper C1 guidance: 28
Slide 8: Khoemacau acquisition completion and JV establishment
Khoemacau acquisition completion and JV establishment JV establishment – step toward balance sheet management Khoemacau asset highlights C1 cost post-expansion1 Near-term expansion2 to JV US$1.55/lb ~130 ktpa Cu Partner High-grade mine with attractive Delivered through increased financial metrics, b
Slide 9: Rights Issue
Gearing ratio Rights Issue 50% 60% 55% 45% Reduced gearing and stronger capital base Source of funds US$ million Rights Issue 1,163 Dec Post Jun Post Pro forma gearing 2023 (actual) Khoe- macau 2024 (actual) Rights Issue (pro forma) ratio of ~45% Use of funds US$ million Repayment of short term Khoe
Slide 10: Las Bambas: dialogue tables in parallel with Chalcobamba ramp-up
Las Bambas: dialogue tables in parallel with Chalcobamba ramp-up "Las Bambas and MMG are establishing positive parameters around their roles in and for society in the district." — Danielle Martin, Co-Chief Operating Officer and Director of Social Performance, ICMM June 2024 Huancuire Community Discu
Slide 11: Kinsevere Expansion Project
Photo: Sulphide concentrator in construction Kinsevere Expansion Project Construction Sulphide circuit On track Commenced commissioning Plant capacity Higher production 80kt of Cu & 4-6kt of Co Driving C1 costs down 11
Slide 12: Executing our copper growth pipeline
Executing our copper growth pipeline ✓ Well progressed growth opportunities to expand exposure to copper ✓ Become a low-cost top 10 copper producer Near Term Growth Mid Term Growth ~ 640 Kinsevere Expansion Khoemacau Production Las Bambas Khoemacau Expansion Project Ramp-Up Expand to Expand to 80 kt
Slide 13: Financial results
Financial results QIAN Song Chief Financial Officer
Slide 14: Financial performance
Financial performance Summary Income Statement 2024 2024 SIX MONTHS ENDED 30 JUNE (US$ M) vs. 2023 Revenue 1,918.2 1% EBITDA 779.0 23% Profit for the year 79.5 419% EBITDA margin 41% 20% Net cash generated 515.3 21% from operating activities US 0.23 Basic earnings per share cents 14
Slide 15: Las Bambas
Las Bambas Good progress on Chalcobamba ramp-up One of the world’s largest copper mines with near term organic growth optionality Production expected to Six Months Ended 30 June 1H 2024 1H 2023 CHANGE % FAV/(UNFAV) significantly improve from H2 2024 Production metrics Ore mined 24,793 kt 21,374 kt 1
Slide 16: Kinsevere
Kinsevere Ore mined volume ↑26% Growing to be a ~100kt copper equivalent mine once expansion project fully ramped up Accelerated mining Six Months Ended 30 June 1H 2024 1H 2023 CHANGE % FAV/(UNFAV) activities Production metrics at Sokoroshe II Ore mined 1,600 kt 1,273 kt 26% Oxide ore mined 1,427 kt
Slide 17: Khoemacau
Khoemacau First time inclusion of Khoemacau production One of the globally highest quality new copper mines with attractive financial metrics post-expansion Ramp up to 60 ktpa Cu Six Months Ended 30 June 1H 2024 since 22 March 2024 by 2026 Production metrics Ore mined 756 kt Ore milled 745 kt H1 202
Slide 18: Dugald River
H1 2024 Zinc Dugald River production ↑38% vs H1 2023 A world top 10 producing Zn mine with a >20yr mine life Facilitating maintenance works CHANGE % Six Months Ended 30 June 1H 2024 1H 2023 FAV/(UNFAV) for SAG mill in August Production metrics Ore mined 909 kt 614 kt 48% Ore milled 885 kt 653 kt 35%
Slide 19: Rosebery
H1 2024 Zinc Rosebery production ↑31% vs H1 2023 Continues to deliver after almost 90 years of operations Highest zinc recovery Six Months Ended 30 June 1H 2024 1H 2023 CHANGE % since 2017 FAV/(UNFAV) Production metrics Ore mined 519 kt 442 kt 17% Ore milled 518 kt 441 kt 18% Improved profitability
Slide 20: MMG’s commitment to debt reduction
MMG’s commitment to debt reduction MMG total borrowings (US$M)2 and gearing ratio MMG debt repayment schedule1 (US$M) 2,500 CDB $1.05bn Acquisition Loan 10,000 74% 73% 80% Total borrowings Gearing ratio MLB 18 Yr Project Facility Pre-payment achieved / to 70% 2,000 be achieved through a CMN Sharehol
Slide 21: Capital expenditure outlook
Capital expenditure outlook 150-200ktpa Cu production uplift by brownfield projects 2024 capital expenditure guidance US$850 M – US$950 M Capital efficiency <US$10,000/t annual capacity Capital Intensity of Copper Developments1 Las Bambas: Bubble size = Avg. CuEq production = KEP US$400 M - US$450 M
Slide 22: Strategy and outlook
Strategy and outlook CAO Liang Chief Executive Officer
Slide 23: Create a sustainable mining company for a low carbon future
Create a sustainable mining company for a low carbon future Great Portfolio of Copper Assets Continuously Generate Cash and in Two Major Copper Belts Drive Economic and Social Progress Reduce Debt International copper business as a core through local, regional and national contributions A model that
Slide 24: Q&A MMG 2024 Interim Results
Q&A MMG 2024 Interim Results
Slide 25: Appendix
Appendix
Slide 26: EBITDA waterfall
EBITDA waterfall Other Revenue Operating cost variances Notes: 1. Other variance includes Khoemacau acquisition and integration expenses, FX, corporate costs, exploration costs, etc. 2. Operating Expenses including operating costs and stock movements. 3. Price variances include mark-to-market adjust
Slide 27: NPAT waterfall
NPAT waterfall Revenue Operating cost D&A Other items Notes: 1. Price variances include mark-to-market adjustments on open sales contracts and the impacts of commodity hedging. 27
Slide 28: Anticipated profitability improvement in H2
Anticipated profitability improvement in H2 H2 2024 estimation based on the 2024 annual guidance net of H2 2024 illustrative free cash flow H1 actual production Total Group Guidance US$M Copper Las Bambas Kinsevere Khoemacau Copper H2 Copper Production (t) (mid-point Copper EBITDA 1,130 of 2024 guid
Slide 29: Khoemacau: 4,040km2 land holding across Kalahari Copper Belt
Khoemacau: 4,040km2 land holding across Kalahari Copper Belt Expansion potential Current exploration and development pipeline Exploration target Discoveries Resource and PEA2 PFS2 Production Full geological potential not yet unlocked Initial drilling has intersected high- High priority targets grade
Slide 30: 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. 2050 estimated increase from 2020 AET New electric Solar / Power devices & Grid 1.5-degree MMG portfolio scenario vehicles wind power energy stora
Slide 31: Trend toward zero emissions
Trend toward zero emissions Commitment Scope 1 and Scope 2 Scope 3 Commitment to a goal of net We have set an interim, 2030 target of Further focus on working with our supply zero carbon emissions by 2050. reducing greenhouse gas (GHG) emissions chain to identify and drive emissions by 40%, from a 2
Slide 32: Las Bambas: Corazon Program Implementation
Las Bambas: Corazon Program Implementation 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 Model Chain 32
Slide 33: Profit to MMG equity holders
Profit to MMG equity holders 2024 Las Bambas NPAT up by 79%: NPAT attributable to equity holders (US$M) 2024 2023 vs. • Reduced interest expenses mainly resulting from decreased debt 2023 balances Profit after tax - Las Bambas 62.5% interest 100.2 56.1 79% • Lower sales volume compared to H1 2023 wh
Slide 34: Earnings sensitivity to commodity price & FX
Earnings sensitivity to commodity price & FX High earnings and cash flow leverage to copper and zinc prices 2024 EBIT Impact (US$m) Sensitivity (No Hedging) Copper US$/lb $0.10/lb / ($0.10/lb) 79/(79) Zinc US$/lb $0.10/lb / ($0.10/lb) 41/(41) Lead US$/lb $0.10/lb / ($0.10/lb) 9/(9) Gold US$/oz $100/
Slide 35: Financial dashboard
Financial dashboard Revenue by Commodity Revenue by Customer Discharge Port China 1.5% 3.6% 0.1% 3.8% 4.7% 0.0% Dem. Rep. Congo 5.8% Copper 4.6% 7.4% Zinc Australia 2.6% Lead 8.4% South Korea 11.7% Gold Botswana Silver Japan 9.8% 71.6% Molybdenum 64.4% Chile Cobalt Philippines EBITDA by Operating Se
Slide 36: Historical production performance
Historical production performance Las Bambas – Copper in Copper Concentrate (kt) Dugald River – Zinc in Zinc Concentrate (kt) 190 178 180 173 175 454 170 320 147 152 385 383 330 311 290 302 280 255 2016 2017 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 Guidance Guidance Kins
Slide 37: Profit & loss statement
Profit & loss statement SIX MONTHS ENDED 30 JUNE 2024 US$ M 2023 US$ M Change % Fav/(Unfav) Revenue 1,918.2 1,896.2 1% Operating expenses (1,063.2) (1,257.1) 15% Exploration expenses (27.2) (25.0) (9%) Administration expenses (16.2) (3.3) (391%) Khoemacau acquisition and integration expenses (20.2)
Slide 38: Balance sheet
Balance sheet US$ M AS AT 30 June 2024 US$ M AS AT 31 December 2023 US$ M Non-current assets 13,580.4 10,505.7 Current assets 1,709.9 1,395.1 Total assets 15,290.3 11,900.8 Total equity 4,850.2 4,312.0 Non-current liabilities – other 2,951.6 2,011.8 Non-current liabilities – borrowings 5,319.0 3,375
Slide 39: Statement of cash flow
Statement of cash flow SIX MONTHES ENDED 30 JUNE 2024 US$ M 2023 US$ M Receipts from customers 2,040.8 1,719.3 Payments to suppliers and employees (1,430.2) (1,217.6) Payments for exploration expenditure (27.2) (22.5) Income tax paid (54.8) (35.6) Net settlement of commodity hedges (13.3) (18.0) Net
Slide 40: MMG overview
MMG overview Shareholder Base1 Broker Name Founded in 2009 Citi Jack Shang and Jimmy Feng 11.68% HSBC Howard Lau BOCI Research Lawrence Lau 10.18% Headquarters in Melbourne and Goldman Sachs Joy Zhang Beijing Morgan Stanley Hannah Yang 10.65% DBS Bank Lee Eun Young A diversified metals company Globa
Slide 41: Mineral resources
Mineral resources Project Copper (kt) Zinc (kt) Lead (kt) Silver (moz) Gold (moz) Molybdenum (kt) Cobalt (kt) MMG Mineral Resources Contained Metal (100% Asset Basis) as at 30 June 2023 1 Las Bambas 7,600 120 2 200 Kinsevere 1,102 36 Dugald River 76 6,700 900 42 0.03 Rosebery 39 1,400 450 59 0.7 Hig
Slide 42: Ore reserves
Ore reserves Project Copper (kt) Zinc (kt) Lead (kt) Silver (moz) Gold (moz) Molybdenum (kt) Cobalt (kt) MMG Ore Reserves Contained Metal (100% Asset Basis) as at 30 June 20231 Las Bambas 4,900 76 1.0 130 Kinsevere 741 20 Dugald River 2,200 340 26 Rosebery 9 290 120 16 0.18 Sokoroshe II 47 11 Total
Slide 43: Thank you
Thank you