MMG(01208): The total copper production in the third quarter was 127,000 tons, a year-on-year increase of 11%.

MMG (01208) announced that in the third quarter of 2025, the total copper production (including copper concentrate and electrolytic copper) was 127,000 tons, an increase of 11% compared to the same period last year. The total zinc production was 58,700 tons, a year-on-year increase of 26%. Las Bambas mine's production in the first half of the year has ranked as the fifth largest copper mine in the world. In the third quarter, the mine produced 102,900 tons of copper concentrate, an increase of 14% compared to the same period in 2024, maintaining a strong production momentum from the second quarter. Chalcobamba and Ferrobamba mines' extraction work remains stable and unaffected by external factors, with high ore grades and recovery rates. Kinsevere mine produced 14,800 tons of electrolytic copper, a 14% increase compared to the same period in 2024, mainly driven by the ongoing ramp-up of the sulfide ore production line at Kinsevere Expansion Project (KEP). Operational continuity in this quarter was hindered by issues with power supply and stability, prompting the mine to procure more diesel generators to mitigate power supply issues. Additionally, the mine is exploring CECEP Solar Energy and battery storage solutions to further address power shortages and frequent power outages. Khoemacau mine produced 9,084 tons of copper concentrate, a 16% decrease compared to the same period in 2024, mainly due to lower ore extraction and ore grades. Ore extraction was affected by the transition of mining contractors, with production expected to increase in the fourth quarter following capacity ramp-up. Ore grades are related to extraction sequences, and the mine is currently enhancing drilling and planning to improve future grades. Dugald River mine produced 48,100 tons of zinc concentrate, a 38% increase compared to the same period in 2024, primarily due to significant improvements in mining and concentration recovery rates driven by operational optimization. Rosebery mine produced 10,600 tons of zinc concentrate, an 8% decrease compared to the same period last year, primarily due to lower zinc concentration in ore extraction sequences. With significant contributions from by-products like gold, silver, and copper, zinc equivalent production reached 27,400 tons. In this quarter, MLB (Minera Las Bambas S.A.)'s shareholder MMG SAM (MMG South America Management Company Limited) distributed a second dividend, amounting to a total of 687 million US dollars (net of withholding tax and related taxes) to MMG and other joint venture partners. MMG received 429 million US dollars, which will be used to repay debts and reduce the company's interest expenses. This move aims to enhance MMG's financial flexibility and support future capital management or growth projects. On October 8, 2025, MMG completed the issuance of a 5 billion US dollars zero-coupon convertible bond due in 2030. After deducting related expenses, commissions, and other costs, the net proceeds amounted to approximately 494 million US dollars. The initial conversion price of the convertible bond is 8.40 Hong Kong dollars per share, and it will mature on October 8, 2030. Adjusted, the convertible bond can be converted into approximately 463 million shares, representing 3.67% of the expanded share capital after conversion. The company has used the net proceeds to refinance existing debts, reducing borrowing costs and saving on interest expenses.