MMG (01208) expects that the unaudited profit for the fiscal year 2025 may be negatively impacted by impairment expenses.

MMG (01208) announced that, in the process of preparing the financial statements for the fiscal year ending 2025, a review is being conducted on the recoverable amount of various projects and operations. The review has shown several signs of impairment in the Kinsevere operation, including: Cobalt sales restrictions in the Democratic Republic of Congo, leading to the cobalt processing plant being in continuous maintenance mode; Electricity-related production challenges affecting the daily operations and capacity expansion processes of the expansion projects; Capacity expansion and operational challenges; and Financial system uncertainties, including additional tax rates and fees, and the deductibility of value-added tax. The Board believes that the unaudited profit for the fiscal year 2025 could be negatively impacted by impairment expenses (impairment amount of approximately pre-tax USD 280 million to USD 300 million). This impairment is only related to the operations at the Kinsevere mine site and is sensitive to potential changes in assumptions. The Board hereby informs the company's shareholders and potential investors that after recognizing the impairment mentioned above, the company expects to achieve unaudited post-tax net profit attributable to equity holders of approximately USD 500 million to USD 520 million for the year ending December 31, 2025. The Board emphasizes that this impairment is an accounting-related adjustment and a non-cash item, therefore it will not have any impact on the company's cash flow. This unaudited significant profit is attributed to the outstanding operational performance of the Las Bambas and Dugald River mine sites, as well as the positive impact of the increase in copper and precious metal prices. However, aside from impairment, certain operational challenges and financial transactions have had a negative impact on the company's performance, including power supply disruptions at the Kinsevere mine site, continued cobalt export restrictions, and hedging losses in the fiscal year 2025.