Mmg Ltd. · HKEX:1208
Mmg — Bank of America 2020 APAC Resources Virtual Conference
24 slides from Mmg's conference presentation, December 2020
Slide 1: Bank of America 2020 APAC Resources Virtual Conference
Bank of America 2020 APAC Resources Virtual Conference December 2020
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: MMG asset base
MMG asset base Established presence in the key Andean and African copper belts and a world class Australian zinc HIGH business LAKE IZOK CANADA LAKE DUGALD RIVER (100%) LAS BAMBAS (62.5%) CHINA BEIJING 2020 production guidance: 2020 production guidance: 170,000 – 180,00 tonnes of 305,000 – 315,000 t
Slide 4: Safety, Environment and Social Performance
Safety, Environment and Social Performance Safety performance ▪ Safety – Our cornerstone value ▪ Total Recordable Injury Frequency (TRIF) rate of 1.82 for the first half of 2020.1 ▪ Committed to ICMM’s 10 principles of Sustainable Development and Performance Expectations. ▪ Proactively managing the
Slide 5: Comprehensive financial response to COVID-19
Comprehensive financial response to COVID-19 ▪ 2020 has been marked by a high degree of uncertainty and Copper and Zinc price – 2020 YTD extreme volatility. ▪ MMG has proactively responded to the conditions, both operationally and financially. ▪ Key financial initiatives implemented over 2020 includ
Slide 6: Market update
Market update Mined copper supply gap and requirement for new capacity Sustained uplift in the prices of copper and zinc, but short term uncertainty remains 35 Mt Base Case Production Capability 30 Probable Projects ▪ Economic recovery in China and global stimulus continues to 25 Primary Demand supp
Slide 7: Las Bambas
Las Bambas H2 2020 FOCUS Financials ▪ Continuing to work with government, communities and regional leaders to develop meaningful US$ million 1H20 1H19 FY19 community investment proposals strategies to mitigate impacts. Revenue 751.2 902.2 2,013.0 ▪ Maintain COVID-19 safe operation, with return to no
Slide 8: Peru Community Update
Peru Community Update ▪ Peru Southern Road Corridor continues to experience periodic community protests. ▪ Matarani is now world’s largest copper port, shipping 49% of Peru’s production – utilised by Las Bambas, Constancia, Antapaccay, Cerro Verde and development projects Quellaveco and Tia Maria. ▪
Slide 9: Kinsevere
Kinsevere H2 2020 FOCUS Financials ▪ Preparing for next phase of development, including potential sulphide and cobalt circuit, US$ million 1H20 1H19 FY19 subject to feasibility studies – decision expected end of 2020. Revenue 198.5 176.6 406.7 ▪ Regional exploration programs. EBITDA 13.4 8.6 44.8 CO
Slide 10: Dugald River
Dugald River H2 2020 FOCUS Financials US$ million 1H20 1H19 FY19 ▪ Continued de-bottlenecking and optimisation works to deliver stable mine capacity of >2 million tonnes per annum by 2022 – paving the way towards 200kt of annual zinc production. Revenue 120.9 163.8 336.0 EBITDA 9.1 52.5 108.7 ▪ Near
Slide 11: Rosebery
Rosebery H2 2020 FOCUS Financials US$ million 1H20 1H19 FY19 ▪ Increased mine flexibility, maintaining high throughput levels, as the mine goes deeper and stopes become smaller. Revenue 119.4 142.8 272.8 ▪ Ongoing evaluation of options to extend mine life, including resource extension drilling, EBIT
Slide 12: 2020 Q3 Production Report - Summary and Highlights
2020 Q3 Production Report - Summary and Highlights Key highlights ▪ Total copper production of 102,469 tonnes was 33% above the June 2020 quarter, driven by more stable, but still limited workforce availability at Las Bambas. ▪ Despite ongoing COVID-19 impacts on workforce availability, Las Bambas h
Slide 13: Positioned for the next decade of post COVID-19 growth
Positioned for the next decade of post COVID-19 growth China backed strategy Expanding on the most successful China/international resources partnership – more integrated from mine to consumer Strategically diversified portfolio Established position in Andean and Central African copper belts and a st
Slide 14: Appendix
Appendix
Slide 15: The first 10 years – building a great company
The first 10 years – building a great company Cu-equivalent production International footprint Mine life Brownfield development Safety & social opportunities contribution 15
Slide 16: Financial dashboard – 2019 full year
Financial dashboard – 2019 full year Revenue by commodity Revenue by customer location 1% 4%3% 5% China 14% Zinc 6% Copper Japan and Gold 27% Korea 44% Asia (other) Silver Lead Australia Moly 2% Europe 72% 19% 3% Other EBITDA by operating segment Operating expenses (sites) 7% People 8% 7% 3% 15% 7%
Slide 17: Interim Profit & Loss Statement
Interim Profit & Loss Statement 6 months ended 30 June 2020 2019 US$ million US$ million Revenue 1,191.4 1,387.4 Operating expenses (778.0) (726.7) Exploration expenses (8.1) (13.4) Administration expenses (13.6) (11.5) Other income / (expenses) (8.1) 10.9 EBITDA 383.6 646.7 Depreciation and amortis
Slide 18: Full Year Profit and Loss Statement
Full Year Profit and Loss Statement 2019 2018 Year ended 31 December US$ million US$ million Revenue 3,032.3 3,670.2 Operating expenses (1,558.8) (1,862.8) Exploration expenses (37.7) (47.5) Administration expenses (23.3) (35.8) Other income / (expenses) 49.0 27.1 EBITDA 1,461.5 1,751.2 Depreciation
Slide 19: Balance Sheet
Balance Sheet US$ million 30 June 2020 31 Dec 2019 Non-current assets 11,375.1 11,602.5 Current assets – cash and cash equivalents 70.9 217.5 Current assets – other 811.6 845.1 Total assets 12,257.6 12,665.1 Total equity 2,490.9 2,677.9 Non-current liabilities – other 1,551.1 1,625.3 Non-current lia
Slide 20: Statement of Cash Flow
Statement of Cash Flow US$ million - Six months ended 30 June 2020 30 June 2019 Receipts from customers 1,377.6 1,558.6 Payments to suppliers and employees (1,042.6) (1,101.4) Payments for exploration expenditure (8.1) (13.4) Income tax (paid)/ refunded 39.7 (153.8) Net cash generated from operating
Slide 21: MMG overview
MMG overview Overview Broker Coverage ▪ Founded in 2009, MMG is a diversified base metals company with four Broker Name operating mines located across three continents Argonaut Helen Lau ▪ Headquartered in Melbourne (Australia), with a primary listing on the HKEx (1208 HK). BOCI Lawrence Lau ▪ Prima
Slide 22: Mineral Resources
Mineral Resources Copper and Zinc Mineral Resources of 11.3Mt and 11.6Mt respectively Mineral Resources – Contained Metal (100% asset basis) As at 30 June 2020 Copper Project Copper Zinc Lead Silver Gold Cobalt Molybdenum (Acid Soluble) kt Kt kt kt moz moz kt kt Las Bambas 8,982 132 1.9 249 Kinsever
Slide 23: Ore Reserves
Ore Reserves Copper and Zinc Ore Reserves of 6.1Mt and 3.1Mt respectively Ore Reserves – Contained Metal (100% asset basis) As at 30 June 2020 Copper Project Copper Zinc Lead Silver Gold Molybdenum (Acid Soluble) kt kt kt kt moz moz kt Las Bambas 5,631 81 1.3 165 Kinsevere 272 196 Dugald River 2,635
Slide 24: Am ot
Am ot CMM | MINING WITH scoxcz: | PRINCIPLES
MMG — Bank of America 2020 APAC Resources Virtual Conference on 6ix