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MMG : FIRST QUARTER PRODUCTION REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2021
MMG : FIRST QUARTER PRODUCTION REPORT FOR THE THREE MONTHS ENDED 31 MARCH
About this update from Mmg Ltd.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . MMG LIMITED 五礦資源有限公司 (Incorporated in Hong Kong with limited liability) (STOCK CODE: 1208) FIRST QUARTER PRODUCTION REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2021 This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited (Listing Rules) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The board of directors (Board) of MMG Limited (Company or MMG) is pleased to provide the First Quarter Production Report for the three months ended 31 March 2021. The report is annexed to this announcement. By order of the Board MMG Limited GAO Xiaoyu CEO and Executive Director Hong Kong, 22 April 2021 As at the date of this announcement, the Board comprises eight directors, of which one is an executive director, namely Mr Gao Xiaoyu; four are non-executive directors, namely Mr Guo Wenqing (Chairman), Mr Jiao Jian, Mr Zhang Shuqiang and Mr Xu Jiqing;and three are independent non-executive directors, namely Dr Peter William Cassidy, Mr Leung Cheuk Yan and Mr Chan Ka Keung, Peter. MMG First Quarter Production Report 2021 1 2021 FIRST QUARTER PRODUCTION REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2021 1Q21 1Q21 1Q21 YTD21 YTD21 VS 1Q20 VS 4Q20 VS YTD20 Copper (cathode, tonnes) 12,490 -31% -29% 12,490 -31% Kinsevere Total 12,490 -31% -29% 12,490 -31% Copper (contained metal in concentrate, tonnes) 64,401 -12% -32% 64,401 -12% Las Bambas Rosebery 437 14% -1% 437 14% Total 64,838 -12% -32% 64,838 -12% Total Copper 77,328 -16% -32% 77,328 -16% Zinc (contained metal in concentrate, tonnes) 49,049 38% -6% 49,049 38% Dugald River Rosebery 19,350 11% 8% 19,350 11% Total 68,399 29% -3% 68,399 29% Lead (contained metal in concentrate, tonnes) 5,675 33% -25% 5,675 33% Dugald River Rosebery 6,751 19% 10% 6,751 19% Total 12,426 25% -10% 12,426 25% Molybdenum (contained metal in concentrate, tonnes) 1,123 804% -15% 1,123 804% Las Bambas Total 1,123 804% -15% 1,123 804% KEY POINTS Total recordable Injury Frequency (TRIF) for the first quarter 2021 was 0.79 per million hours worked. This represents an improvement on the full year 2020 TRIF of 1.38. COVID-19 remains a significant health risk and priority for our employees and community. While the situation in Australia is stable, DRC and Peru are experiencing high levels of community transmission. Operations continue with strict health and hygiene controls in place. Total copper production of 77,328 tonnes was in line with plan despite being below prior periods. This was primarily due to lower ore grades reflecting the current phase of the Las Bambas mine plan and the processing of stockpiled ore at Kinsevere. MMG First Quarter Production Report 2021 2 Higher production rates for both Las Bambas and Kinsevere are expected in the second half of 2021 and full year copper production guidance is maintained at between 360,000 and 390,000 tonnes. Total zinc production of 68,399 tonnes was 29% above the prior corresponding period as both Dugald River and Rosebery benefited from higher ore grades and strong operational performance. Full year zinc production guidance is maintained at between 240,000 to 260,000 tonnes. Fewer road disruptions allowed Las Bambas to reduce inventory on site from around 65,000 tonnes of copper in concentrate to around 37,000 tonnes over the quarter. Work continues to complete Government permitting and community discussions in advance of commencing development of the Chalcobamba pit at Las Bambas. Significant development of the pit is still expected to commence in the second quarter of 2021. Positive results continue to be achieved at drilling programs around existing operating hubs. MMG's positive outlook is underpinned by strong fundamentals for our core commodities and organic growth across the portfolio, with strong medium-term outlook for Las Bambas and Dugald River, anticipated approval of the next phase of development at Kinsevere, and the potential for mine life extension at Rosebery. COMMODITY PRICES, MARKETING AND SALES COMMODITY PRICES, MARKETING AND SALES QUARTER-AVERAGE QUARTER CLOSE 1Q21 4Q20 1Q20 1Q21 4Q20 1Q20 Metal Price 3.86 3.25 2.56 4.01 3.51 2.18 Copper (US$/lb) Gold (US$/oz) 1,796 1,875 1,583 1,688 1,891 1,607 Lead (US$/lb) 0.92 0.86 0.84 0.89 0.89 0.78 Molybdenum (US$/lb) 11.32 9.01 9.64 11.05 10.03 8.43 Silver (US$/oz) 26.26 24.39 16.90 24.00 26.49 13.93 Zinc (US$/lb) 1.25 1.19 0.97 1.27 1.24 0.85 Sources: zinc, lead and copper: LME cash settlement price; Molybdenum: Platts; gold and silver: LBMA. Commodities continued to perform strongly in Q1 2021 with the expectation that stimulus measures by governments around the world as well as the transition towards electrification and renewable energy will drive base metal demand over the coming years. The copper price reached 9-year highs during the quarter, with China's stimulus expected to spur demand over 2021, while economies outside of China begin to recover with the roll-out of COVID-19 vaccines and the US dollar remaining under pressure. The spot copper concentrate market remained tight, with treatment charges continuing to fall during the quarter. Spot market prices trended below US$30/3.00 cents compared to the annual TC/RC benchmark price of US$59.5/5.95 cents, showing that appetite from Chinese smelters is strong. Investor sentiment for zinc and lead is also positive, with rising infrastructure spending and manufacturing activity expected to lead to stronger zinc and lead consumption. Spot zinc and lead concentrate treatment charges continued their downward trajectory during the March quarter, with new COVID related lockdowns in South America early in the quarter re-enforcing the concentrate supply risks. The supply of domestic concentrate in China has also reduced with several major zinc/lead mines in Inner Mongolia MMG First Quarter Production Report 2021 3 reportedly shut as part of China's efforts to reduce energy usage and carbon emissions. The reduction in availability of domestic concentrate in a climate of metal price strength has combined to increase the competition among Chinese smelters for imported concentrates. As a result, spot zinc and lead concentrate treatment charges have traded below US$70/dmt and US$90/dmt respectively. Reflecting the current market tightness which is expected to continue over the coming year, it was reported that Teck Resources settled 2021 annual zinc concentrate benchmark treatment charges with Korea Zinc and Glencore at US$159/dmt, with no price participation. This is a significant reduction from the 2020 annual zinc concentrate benchmark of US$299.75/dmt. PROVISIONAL PRICING The following table provides a summary of the metal that was sold but which remains provisionally priced at the end of July 2021 and the month that final average pricing is expected to occur at the time of final invoicing. OPEN PRICING AT 1 APRIL 2021 APR-21 MAY-21 JUN-21 JUL-21 TOTAL Copper (tonnes) 161 16,307 36,729 34,729 87,452 Gold (ounces) 7,710 1,703 1,626 586 11,624 Molybdenum (pounds) 378 137 515 Silver (ounces) 495,007 325,180 123,836 36,257 980,280 Zinc (tonnes) 14,438 14,438 OPERATIONS LAS BAMBAS LAS BAMBAS 1Q21 1Q21 1Q21 YTD21 YTD21 vs 1Q20 vs 4Q20 VS YTD20 Copper (tonnes) 64,401 -12% -32% 64,401 -12% Molybdenum (tonnes) 1,123 804% -15% 1,123 804% First quarter operational performance Copper production of 64,401 tonnes was in line with plan but below prior periods largely due to lower ore grade from mining in the current phase of the Ferrobamba pit (0.6% vs. 0.8% in the pcp), processing of some stockpiled ore, and lower mill recovery (84.5% vs. 87.8% in the pcp) due to the less favourable ore characteristics. Sequential improvement in copper production is expected for the remainder of 2021, initially from increased mining volumes and higher grades from the Ferrobamba pit in the second quarter, followed by the contribution of higher-grade ores from the Chalcobamba pit in the second half of 2021. Increased Molybdenum production against the prior year comparative period reflected the successful continuation of the ramp-up of the Molybdenum plant following de-bottlenecking works which completed in June 2020. Peru is currently impacted by a significant "2 nd wave" of COVID-19 infections peaking at similar levels of community transmission as mid-2020. Las Bambas continues to provide support to regional communities and maintain strict health protocols for employees and contractors. MMG First Quarter Production Report 2021 4 Onsite workforce levels at Las Bambas are now approximately 90% of normal, with expanded COVID safe accommodation options available at site and in local communities. These measures enabled ongoing stable operations with mill throughput levels in line with the level achieved in the second half of 2020. Community and Transport Logistics Update Fewer road disruptions in the March quarter allowed transport operations to run at capacity for longer periods, resulting in inventory levels on site reducing from around 65,000 tonnes of copper in concentrate to around 37,000 tonnes over the quarter. This stockpiled inventory was worth approximately US$330 million at quarter end and all steps will be taken to clear these stocks as soon as possible over the second quarter of 2021. Peru has experienced a period of high political instability since late 2020, with the impeachment of the incumbent President and the resignation of his replacement in November 2020. With national elections now underway, this instability is anticipated to continue with the outcome of the election not known until June 2021. Outlook In line with prior guidance, full year production for 2021 is still expected to be between 310,000 and 330,000 tonnes of copper in copper concentrate and C1 cost guidance remains at US$1.10-1.20/lb. Formal permitting of the Chalcobamba pit continues to be delayed by COVID-19 impacts and the general political situation in Peru. It is now expected this will be received during the second quarter of 2021, with the Company also continuing to take steps to progress community engagement in the area. This is with an expectation of commencing significant development of the pit during the second quarter, to be followed by mining of first ore shortly thereafter. Following the development of Chalcobamba, investment in mine fleet and the third ball mill, it is expected that production will increase to an average of 400,000 tonnes over the subsequent four-year period (2022-2025). KINSEVERE KINSEVERE 1Q21 1Q21 1Q21 YTD21 YTD21 vs 1Q20 vs 4Q20 VS YTD20 Copper Cathode (tonnes) 12,490 -31% -29% 12,490 -31% First quarter performance Kinsevere produced 12,490 tonnes of copper cathode in the first quarter of 2021, in line with plan and 31% lower than the prior corresponding period. As previously advised, mining activity was temporarily suspended at Kinsevere, with feed to the mill during the quarter coming largely from existing ore stockpiles and third parties. The planned lower grade nature of stockpiled ore was the key reason for lower production volumes. Mill throughput was 2% below the prior corresponding period, mainly due to the processing of uncrushed scats to supplement feed grade. Outlook In line with prior guidance, copper cathode production for 2021 is expected to be in the range of 50,000 to 60,000 tonnes, with C1 costs between US$2.15 and US$2.25/lb. This reflects a mine plan that assumes the Company will ramp up mining activity of the remaining oxide reserves over the remainder of 2021 and 2022 and proceed with a transition to the mining and processing of sulphide ores in future years. This next phase of Kinsevere development will extend Kinsevere's mine life, see a return to higher copper production volumes in future years and add cobalt production to MMG's portfolio. A decision to proceed with this project remains subject to MMG Board approval. Due to ongoing project optimisation work and local regulatory considerations, a decision on this is now expected during the second quarter of 2021. MMG First Quarter Production Report 2021 5 MMG will continue to invest in regional exploration programs focusing on proving up discoveries within a 50- kilometre radius of the Kinsevere mine. DUGALD RIVER DUGALD RIVER 1Q21 1Q21 1Q21 YTD21 YTD21 vs 1Q20 vs 4Q20 VS YTD20 Contained metal in concentrate Zinc (tonnes) 49,049 38% -6% 49,049 38% Lead (tonnes) 5,675 33% -25% 5,675 33% First quarter performance Dugald River produced 49,049 tonnes of zinc in zinc concentrate for the first quarter, 38% higher than the prior corresponding period, due to higher ore milled (13%), higher zinc feed grade (15%) and higher recovery (6%). The higher grades are due to improvements in mining performance and better extraction methods to reduce waste, as well as mine sequencing. This work to reduce waste, improve the stability of the underground environment and improve sequencing will continue into the second quarter as new sections of the mine are developed to ensure a steady feed of ore to the mill. An ongoing focus on mill performance and processing circuit optimization resulted in another new record for recovery during the first quarter. This continued the trend of steady improvement in overall site performance since commissioning in mid-2018. Outlook In line with prior guidance, Dugald River is expected to produce between 180,000 and 190,000 tonnes of zinc in zinc concentrate during 2021. Anticipated C1 costs of US$0.70/lb - US$0.75/lb reflect the lower prevailing TC's in 2021, partially offset by the higher A$/US$ exchange rate. Dugald River continues to target sustained delivery of annual mine capacity of two million tonnes and by 2022, zinc production approaching 200kt per annum. ROSEBERY ROSEBERY 1Q21 1Q21 1Q21 YTD21 YTD21 vs 1Q20 vs 4Q20 VS YTD20 Contained metal in concentrate Zinc (tonnes) 19,350 11% 8% 19,350 11% Lead (tonnes) 6,751 19% 10% 6,751 19% Copper (tonnes) 437 14% -1% 437 14% First quarter performance Rosebery produced 19,350 tonnes of zinc in zinc concentrate and 6,751 tonnes of lead in lead concentrate during the first quarter of 2021. This represented an 11% and 19% improvement in zinc and lead production compared to the prior corresponding period, mainly due to higher milled ore grades following sequencing changes made towards the end of 2020 that temporarily transitioned mining activity to higher grade stopes. Production of copper, gold and silver was also higher by 14%, 31% and 23% respectively compared to the prior corresponding period. MMG First Quarter Production Report 2021 6 Outlook In line with prior guidance, MMG expects to produce between 60,000 and 70,000 tonnes of zinc in zinc concentrate in 2021. C1 costs are estimated at US$0.00-0.10/lb, with this range remaining sensitive to by-product metal production and price. These ranges reflect the ability of the Company to continue efficiently operating the mine and maximizing output. This is despite longer term grade declines and higher costs associated with operating at depth. Resource extension and near mine exploration drilling continued during the first quarter of 2021. Results continue to indicate further extensions to the resource and the Company will further pursue its investigation of options to extend the life of the mine, together with studies into sustainable longer-term tailings management options. GEOSCIENCE AND DISCOVERY Las Bambas Drilling completed at Las Bambas during the first quarter of 2021 focused on the Chalcobamba Southwest Zone and continues to extend and confirm the previously reported, near surface skarn and porphyry copper mineralisation (Figure 1). These drill holes were performed as part of an on-going drilling program for hydrogeological, geotechnical and sterilisation purposes that intersected mineralisation. The current drill locations limit the ability to test all targets and the opportunity to confirm the true width of mineralisation. Drilling will continue from the current platforms until new drilling locations are permitted, which is anticipated by second quarter of 2021. Figure 1 . Outline of Las Bambas Mining Concessions highlighting the location of Reserves and Resources as well as the Chalcobamba Southwest Zone exploration area. Kinsevere In the first quarter of 2021, exploration activities continue to focus on the development of the satellite copper oxide deposits and a prospect testing stage project within a roughly 50km radius of the Kinsevere Mine ("RAD50) that may be suitable for economic exploitation and processing at the Kinsevere plant, and one regional project at prospect testing stage. MMG First Quarter Production Report 2021 7 Exploration work to date consists of data analysis, interpretation, review and planning for the 2021 field season in the two projects at resource delineation stage including Sokoroshe II and Mwepu; and the two projects at prospect testing stage including Shandwe and Tshangalele. The Sokoroshe II satellite orebody has combined Indicated and Inferred oxide and sulphide Mineral Resources of 3.2mt @1.9 % Cu and 0.46% Co. 2,500 metres of DD drilling has been planned to delineate the extension of the southern orebody. The southern orebody is cobalt rich and expected to be material to the overall Sokoroshe II Cu and Co Mineral Resource. Figure 2 . DRC Exploration Projects Dugald River The wet season limited field activity during the first quarter of 2021, with work focusing primarily on preparation for the 2021 drilling program. As previously disclosed, recent near mine drilling programs suggest parts of the zinc mineralized zones are wider than previously modelled. This remains subject to ongoing study but underpins a growing expectation that Dugald River's mine life could be extended, or production volumes increased over future years. Rosebery For the first quarter of 2021, in-mine drilling activities continued to focus on resource conversion and resource extension drilling. Resource conversion programs performed to expectation, targeting mineralisation in the U Lens and the JRS lens cluster (shown in Figure 3). Resource Extension programs are also displaying good success and are ongoing at the V South, H, and P Lenses. Drilling of the Y North Target ceased during the quarter, following thinner- than-expected mineralization intercepts. Additional Resource Extensions programs will commence in the V North and North Deeps targets in coming months. These programs are targeting additional mineral extensions down-dip and to the north of previously mined zones. MMG First Quarter Production Report 2021 8 Figure 3: Rosebery Mine - Looking West, showing Lens locations and significant intercepts. Assay information (where available) are shown as red discs, otherwise significant intercepts are taken from descriptive logs (shown in orange). CORPORATE UPDATE 2021 FINANCIAL RESULTS UPDATE MMG announced its 2020 financial results on 4 March 2021. 2020 financial performance was impacted by lower zinc prices, the effects of COVID-19 and community disruptions on Las Bambas sales volumes. This was offset by improved Kinsevere output, record operational performance at Dugald River, higher copper and precious metal prices and lower financing costs. Net Cash Flow from Operating Activities increased by 19% to US$1,358.2 million, supporting a reduction in borrowings of US$453.3 million. Net loss after tax attributable to equity holders was US$64.7 million - an improvement on 2019. LAS BAMBAS TAX UPDATE On 19 February 2021, MMG announced that Minera Las Bambas S.A. (MLB) had received assessment notices in connection with audits undertaken in respect of the 2015 tax year (2015 Assessment) in the amount of approximately US$149 million and for the remainder of the 2014 tax year (2014 Supplementary Assessment) in the amount of US$13 million. The 2015 Assessment and the 2014 Supplementary Assessment are based upon the same interpretation of the Peruvian Income Tax Law (PITL) by SUNAT as the 2014 Initial Assessment (announced on 3 August 2020) in relation to tax withheld on fees paid by MLB under certain loans for part of the 2014 tax year, that MLB, MMG and MMG's ultimate controlling shareholder China Minmetals Corporation (CMC) are related to the Lenders because of certain alleged links between (a) MLB, MMG and CMC and the Chinese State on the one hand and (b) the Lenders and the Chinese State on the other hand. MLB disagrees with this interpretation and the application of the PITL by SUNAT. MLB has appealed the 2014 Initial Assessment and the 2014 Supplementary Assessment, and intends to appeal the 2015 Assessment, and not to pay the assessed amounts to SUNAT pending resolution of the appeals. We note that appeals in the Peruvian Judiciary System can take many years to resolve. Considering MLB's proposed appeals and the advice of the Group's tax and legal advisers, the Company does not intend to recognise a liability in its consolidated financial statements for any assessed amount. -ENDS- MMG First Quarter Production Report 2021 9 CORPORATE DETAILS MELBOURNE OFFICE Level 23, 28 Freshwater Place Southbank Victoria 3006, Australia T +61 3 9288 0888 HONG KONG OFFICE Unit 1208, 12/F, China Minmetals Tower 79 Chatham Road South, Tsimshatsui, Kowloon, Hong Kong T +852 2216 9688 POSTAL ADDRESS GPO Box 2982, Melbourne, Victoria, 3001, Australia MMG LIMITED EXECUTIVE COMMITTEE GAO Xiaoyu, Chief Executive Officer and Executive Director Ross CARROLL, Chief Financial Officer LI Liangang, Executive General Manager - Australia and Commercial Troy HEY, Executive General Manager - Corporate Relations WEI Jianxian, Executive General Manager - Americas SHARE REGISTRAR Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong IMPORTANT DATES 20 May 2021 - Annual General Meeting For details please contact Corporate Affairs below. INVESTOR AND MEDIA ENQUIRIES Brent WALSH Head of Corporate Development T +61 3 9284 4170 E [email protected] Maggie QIN Head of Corporate Affairs T +61 3 9288 0818 E [email protected] Chinese Language: Sandra GUAN General Manager Stakeholder Relations T +852 2 216 9608 M +86 138 0133 6818 E [email protected] MMG First Quarter Production Report 2021 10 APPENDIX - GUIDANCE 2021 GUIDANCE SUMMARY 2021 GUIDANCE 2020 ACTUAL Las Bambas 310,000 - 330,000 tonnes 311,020 tonnes Copper - production Copper - C1 costs US$1.10 - US$1.20 / lb US$1.00 / lb Dugald River 180,000 - 190,000 tonnes 177,704 tonnes Zinc - production Zinc - C1 costs US$0.70 - US$0.75 / lb US$0.70 / lb Kinsevere 50,000 - 60,000 tonnes 72,007 tonnes Copper - production Copper - C1 costs US$2.15 - US$2.25 / lb US$1.81 / lb Rosebery 60,000 - 70,000 tonnes 67,393 tonnes Zinc - production Zinc - C1 costs US$0.00 - US$0.10 / lb US$0.01/ lb MMG First Quarter Production Report 2021 11 APPENDIX - PRODUCTION RESULTS LAS BAMBAS QUARTER ENDED YEAR-TO-DATE MAR 2020 JUN 2020 SEP 2020 DEC 2020 MAR 2021 MAR 2021 MAR 2020 Ore mined - copper tonnes 9,600,874 10,734,366 17,547,304 20,117,301 13,850,211 13,850,211 9,600,874 Ore milled - copper tonnes 9,898,899 12,643,970 12,206,629 9,898,899 9,815,438 12,826,088 12,206,629 Waste movement tonnes 35,696,212 30,803,477 34,793,489 35,254,426 35,696,212 36,191,289 35,254,426 COPPER Ore mined - grade % 0.87 0.70 0.68 0.71 0.57 0.57 0.87 Ore milled - grade % 0.84 0.70 0.76 0.86 0.63 0.63 0.84 Recovery % 87.8 85.6 87.9 86.5 84.5 84.5 87.8 Production Copper concentrate tonnes 199,411 179,692 244,328 269,420 196,436 196,436 199,411 Grade % 36.77 32.49 34.42 35.35 32.78 32.78 36.77 Containing tonnes 73,319 58,378 84,086 95,236 64,401 64,401 73,319 Sales Total concentrate sold tonnes 217,013 179,394 229,626 277,498 216,773 216,773 217,013 Payable metal in product sold tonnes 76,262 58,373 76,037 93,594 70,426 70,426 76,262 GOLD & SILVER Payable metal in product sold - gold Payable metal in product sold - silver oz 24,654 15,455 13,520 24,654 17,808 14,944 13,520 oz 1,146,899 964,886 877,350 1,146,899 729,607 1,251,480 877,350 MOLYBDENUM Production Molybdenum concentrate tonnes 273 1,156 2,461 2,777 2,387 2,387 273 Grade % 45.55 47.41 47.97 47.33 47.05 47.05 45.55 Contained metal produced tonnes 124 548 1,180 1,315 1,123 1,123 124 Sales Total product sold tonnes 200 539 2,056 2,686 2,506 2,506 200 Payable metal in product sold tonnes 93 252 982 1,282 1,183 1,183 93 MMG First Quarter Production Report 2021 12 KINSEVERE QUARTER ENDED YEAR-TO-DATE MAR 2020 JUN 2020 SEP 2020 DEC 2020 MAR 2021 MAR 2021 MAR 2020 Ore mined - copper tonnes 383,158 625,164 917,287 0 20,075 20,075 383,158 Ore milled - copper tonnes 565,148 628,813 613,888 641,004 552,631 552,631 565,148 Waste movement tonnes 2,355,250 3,480,273 2,937,685 0 0 0 2,355,250 COPPER Ore mined - grade % 2.87 2.66 2.28 0.00 3.81 3.81 2.87 Ore milled - grade % 3.35 3.15 3.03 2.82 2.37 2.37 3.35 Recovery % 94.0 95.5 95.8 96.4 95.5 95.5 94.0 Production Contained metal produced - tonnes 18,207 18,298 18,022 17,479 12,490 12,490 18,207 cathode Sales Total product sold - cathode tonnes 17,874 18,036 17,650 17,228 12,278 12,278 17,874 Payable metal in product sold - tonnes 17,874 18,036 17,650 17,228 12,278 12,278 17,874 cathode MMG First Quarter Production Report 2021 13 DUGALD RIVER QUARTER ENDED YEAR-TO-DATE MAR 2020 JUN 2020 SEP 2020 DEC 2020 MAR 2021 MAR 2021 MAR 2020 Ore mined tonnes 462,570 483,165 541,796 495,458 449,772 449,772 462,570 Ore milled tonnes 443,378 504,255 481,540 529,499 501,149 501,149 443,378 ZINC Ore mined - grade % 9.97 10.28 10.91 11.00 11.65 11.65 9.97 Ore milled - grade % 9.56 10.00 10.89 11.23 11.02 11.02 9.56 Recovery % 83.8 86.6 87.9 88.2 88.8 88.8 83.8 Production Zinc concentrate tonnes 72,846 89,468 93,829 105,701 97,715 97,715 72,846 Grade % 48.74 48.81 49.11 49.62 50.20 50.20 48.74 Containing tonnes 35,505 43,672 46,081 52,446 49,049 49,049 35,505 Sales Total product sold tonnes 83,429 95,636 88,723 103,878 89,069 89,069 83,429 Payable metal in tonnes 33,881 39,036 36,469 43,187 37,355 37,355 33,881 product sold LEAD Ore mined - % 1.63 1.71 1.94 2.22 1.86 1.86 1.63 grade Ore milled - grade % 1.55 1.69 1.95 2.22 1.81 1.81 1.55 Recovery % 62.2 65.3 68.2 64.8 62.5 62.5 62.2 Production Lead tonnes 7,622 10,395 11,488 14,378 10,267 10,267 7,622 concentrate Grade % 56.11 53.58 55.72 52.86 55.28 55.28 56.11 Containing tonnes 4,277 5,569 6,401 7,601 5,675 5,675 4,277 Sales Total product tonnes 10,431 10,213 10,029 13,724 9,933 9,933 10,431 sold Payable metal in tonnes 5,735 5,234 5,366 6,966 5,091 5,091 5,735 product sold SILVER Ore milled - grade g/t 66.95 56.69 46.18 55.26 47.94 47.94 66.95 Payable metal in oz 343,156 372,328 361,338 506,364 371,518 371,518 343,156 product sold MMG First Quarter Production Report 2021 14 ROSEBERY QUARTER ENDED YEAR-TO-DATE MAR JUN SEP 2020 DEC MAR MAR MAR 2020 2020 2020 2021 2021 2020 Ore mined tonnes 221,522 237,379 265,771 266,453 246,416 246,416 221,522 Ore milled tonnes 234,415 238,232 264,427 242,644 228,317 228,317 234,415 ZINC Ore mined - grade % 8.91 7.82 7.84 8.75 8.67 8.67 8.91 Ore milled - grade % 8.60 8.13 7.19 8.77 9.88 9.88 8.60 Recovery % 86.6 84.9 81.6 84.5 85.7 85.7 86.6 Production Zinc concentrate tonnes 32,363 30,277 28,845 33,578 36,629 36,629 32,363 Grade % 53.93 54.30 53.82 53.53 52.83 52.83 53.93 Containing tonnes 17,452 16,442 15,525 17,974 19,350 19,350 17,452 Sales Total product sold tonnes 31,744 35,796 29,771 36,801 29,798 29,798 31,744 Payable metal in product tonnes 14,817 16,644 13,661 17,048 13,619 13,619 14,817 sold LEAD Ore mined - grade % 3.31 3.19 3.54 3.12 3.12 3.12 3.31 Ore milled - grade % 3.20 3.23 3.27 3.46 3.68 3.68 3.20 Recovery % 75.5 66.6 73.4 73.1 80.3 80.3 75.5 Production Lead concentrate tonnes 9,155 8,613 10,148 10,145 11,515 11,515 9,155 Grade % 61.90 59.45 62.60 60.45 58.63 58.63 61.90 Containing tonnes 5,666 5,120 6,353 6,133 6,751 6,751 5,666 Sales Total product sold tonnes 5,912 11,260 8,441 12,227 6,606 6,606 5,912 Payable metal in product tonnes 3,426 6,498 4,812 7,050 3,828 3,828 3,426 sold MMG First Quarter Production Report 2021 15 ROSEBERY (continued) MAR QUARTER ENDED DEC MAR YEAR-TO-DATE JUN SEP MAR MAR 2020 2020 2020 2020 2021 2021 2020 Ore mined tonnes 221,522 237,379 265,771 266,453 246,416 246,416 221,522 Ore milled tonnes 234,415 238,232 264,427 242,644 228,317 228,317 234,415 COPPER Ore mined - grade % 0.24 0.20 0.24 0.31 0.34 0.34 0.24 Ore milled - grade % 0.25 0.23 0.22 0.28 0.34 0.34 0.25 Recovery % 64.6 63.4 61.1 64.1 56.9 56.9 64.6 Production Copper concentrate tonnes 2,143 2,019 2,085 2,576 2,580 2,580 2,143 Grade % 17.95 17.39 17.32 17.08 16.95 16.95 17.95 Containing tonnes 385 351 361 440 437 437 385 Sales Total product sold tonnes 1,557 3,367 1,932 2,405 2,799 2,799 1,557 Payable metal in product tonnes sold 271 584 316 391 460 460 271 OTHER METALS Ore milled - gold Ore milled - silver Recovery - gold Production Gold doré Containing - gold Containing - silver Sales Gold doré sold Payable metal in product sold - gold Payable metal in product sold - silver g/t 1.4 1.8 1.5 1.6 1.6 1.6 1.4 g/t 113.4 125.8 120.7 128.7 129.8 129.8 113.4 % 23.6 22.7 23.0 28.0 6.7 6.7 23.6 oz 3,026 4,837 4,664 5,484 4,433 4,433 3,026 oz 1,816 2,767 2,774 3,279 2,372 2,372 1,816 oz 993 1,428 1,775 1,941 1,218 1,218 993 oz 3,447 6,369 4,812 3,447 2,426 4,416 4,812 oz 5,980 11,604 9,949 8,943 8,145 8,145 5,980 oz 408,630 942,791 607,605 783,856 534,252 534,252 408,630