MMG (01208) first quarter copper total production was 128,700 tons, an increase of 9% year-on-year.

MMG (01208) announced that in the first quarter of 2026, the total copper production (including electrolytic copper and copper concentrate containing copper) was 128,700 tons, an increase of 9% compared to the same period in 2025. The copper concentrate containing copper production at Las Bambas reached 101,000 tons, a 6% year-on-year increase, primarily due to the improvement in the selection and smelting recovery rate, benefiting from the increase in Ferrobamba pit ore supply and ore grade. The electrolytic copper production at Kinsevere was 16,800 tons, a 44% year-on-year increase, mainly due to the continuous ramp-up of the roasting plant, gas purification, and acid plant (RGA), as well as the progress of bottleneck elimination projects, and continuous efforts to improve power supply stability. The copper concentrate containing copper production at Khoemacau was 10,700 tons, holding steady compared to the same period last year. Although the ore grade in Zone 5 North has improved, the mining volume has decreased due to the lower than planned equipment availability of mining contractors and adjustments in mining sequence, resulting in a decrease in selection quantity and offsetting some of the positive impacts mentioned above. In the first quarter of 2026, the total zinc production was 50,300 tons, a 3% decrease from the same period last year. The zinc concentrate containing zinc production at Dugald River was 41,100 tons, holding steady compared to the same period last year. Despite severe flooding in January and February and subsequent railway transportation interruptions, production was maintained stable due to higher selection processing volume, strong recovery rate, and continuous selection plant optimization measures. The zinc production at Rosebery in the first quarter was 9,159 tons, a 16% year-on-year decrease. However, the zinc equivalent production increased by 8% to 31,300 tons, benefiting from strong by-product contributions, fully offsetting the decrease in zinc production. Both ore mining volume and selection processing volume showed year-on-year growth, reflecting normal operations compared to the same period last year that was disrupted by wildfires. In the first quarter of 2026, MMG produced 32,200 ounces of gold and 2,888,900 ounces of silver, an increase of 24% and 27% respectively compared to the same period last year. Favorable realized prices and strong precious metal production jointly supported by precious metal by-product revenue have played an important role in reducing C1 costs. Therefore, the actual C1 costs for the first quarter of Las Bambas, Khoemacau, Dugald River, and Rosebery were all lower than their respective full-year guidance ranges. The expansion project at Khoemacau is progressing. The project plans to build a new selection plant with an annual processing capacity of 4.5 million tons and extend the mining area to Zone 5 North, Mango, and Zeta northeastern ore deposits, aiming to achieve an annual copper concentrate containing copper production of 130,000 tons (with a silver by-product production of over 4 million ounces). The project held a groundbreaking ceremony in February 2026, key long-lead items have arrived at the site, and construction activities are progressing steadily. The first batch of copper concentrate is expected to be produced in the first half of 2028, and the expansion project is expected to lower the average C1 cost of the mine life to below $1.60 per pound. With the support of continued exploration activities, the company has identified the potential to further expand to an annual production capacity of 200,000 tons of copper concentrate containing copper, and the next stage of pre-feasibility study was initiated earlier this year. All mines performed steadily in the first quarter, and are expected to meet the full-year production guidance. Favorable precious metal prices have significantly helped reduce C1 costs, and MMG will continue to monitor the market environment to seek further cost optimization opportunities. If precious metal prices continue to strengthen, MMG will evaluate and may revise the C1 cost guidance for some mines in subsequent reports, taking into account the impact of the Middle East conflict on commodity prices and the rise in fuel and other input costs.