MMG(01208): KHOEMACAU expansion project approved

MMG (01208) announced that the feasibility study for the major expansion project of the Khoemacau Copper Mine in Botswana has been approved and construction has officially commenced. The project aims to increase annual production capacity to 130,000 tons of copper concentrate, with annual production of associated silver exceeding 4 million ounces. The project will include extending the mining area to the north of zone 5, Mango, and the northeast of Zeta orebodies, as well as constructing a new processing plant with an annual capacity of 4.5 million tons. This expansion will increase the total processing capacity of the mine to over 8 million tons per year. The total capital expenditure for the project is estimated to be around USD 900 million (including expenditures up to 2026). The expansion project is expected to produce the first batch of copper concentrate in the first half of 2028. The expansion project is expected to optimize the average C1 cost within the mine life to below $1.60 per pound, significantly lower than the actual C1 cost of $2.05 per pound for the six-month period ending on June 30, 2025. This expansion is a strategic initiative aimed at enhancing the long-term profitability and production capacity of the company's copper asset portfolio. Looking ahead, continuous exploration activities in the Khoemacau mine area have identified further potential for expansion, with the possibility of increasing annual production capacity to 200,000 tons of copper. The company plans to initiate a pre-feasibility study for the next phase of expansion in 2026.