MMG Limited (MMG) today reported its interim financial results for the six months ended 30 June 2017.
On revenue growth of 231% to US$1,942.4 million, the Company reported net profit after tax of US$113.7 million, representing a US$206.7 million increase on the corresponding reporting period in 2016. Net debt was reduced by US$868.2 million during the half on the back of strong cash generation.
The result was driven by strong output at Las Bambas with 218,440 tonnes of copper in copper concentrate produced in the first half, and 430,054 produced since July 2016, its first year of commercial operations. Across all operations, MMG produced 290,758 tonnes of copper and 37,519 tonnes of zinc in the first half of 2017.
“Increased copper sales volumes from Las Bambas, higher commodity prices and our pursuit of group-wide efficiencies have contributed to the strong financial result for the first half,” MMG CEO Jerry Jiao said.
“The ramp up of Las Bambas has been an outstanding success. We are committed to further optimising the operation, increasing efficiencies and reducing costs,” added Mr Jiao. “Across MMG we are implementing a number of cost reduction programs, the full benefits of which will be realised from 2018.”
Over the first six months of the year, the Company’s focus has been on reducing debt and further simplifying and optimising the asset portfolio, as MMG prepares to bring its Dugald River zinc project into production this year.
“Since the beginning of the year, we have completed the sale of Golden Grove, Century and Avebury. We have also made significant progress in the construction of Dugald River” said Mr Jiao. “Dugald River is ahead of schedule with production of first concentrate now expected in late 2017, which is well-timed to meet a tightening zinc market.”
Dugald River is expected to rank within the top 10 zinc mines in the world when operational, with annual production of approximately 170,000 tonnes of zinc in zinc concentrate, plus by-products.
MMG anticipates producing 560,000-615,000 tonnes of copper and 65,000-72,000 tonnes of zinc in 2017.
For more information, please view MMG's Interim Results announcement for the six months ended 30 June 2017.