MMG announced its production results for the first quarter of 2026. Total copper production, comprising both cathode copper and copper contained in concentrate, reached 128,700 tonnes, representing a 9% increase compared to the same period in 2025.
At the Las Bambas operation, copper contained in concentrate production totaled 101,000 tonnes, a 6% year-on-year increase. This improvement was primarily driven by higher metallurgical recovery rates, which benefited from increased ore supply and improved ore grades from the Ferrobamba pit.
The Kinsevere mine produced 16,800 tonnes of copper cathode, a significant 44% increase compared to the prior year period. This strong performance was attributed to the continued ramp-up and debottlenecking of the roaster, gas cleaning, and acid plant (RGA), alongside ongoing efforts to enhance power supply stability.
Copper contained in concentrate production from the Khoemacau mine was 10,700 tonnes, consistent with the previous year's level. While ore grades from the Zone 5 North area improved, this positive impact was partially offset by lower mining volumes due to delayed equipment arrival from the mining contractor and adjustments to the mining sequence, which subsequently led to reduced mill throughput.
Total zinc production for the first quarter of 2026 was 50,300 tonnes, a 3% decrease from the previous year. The Dugald River mine produced 41,100 tonnes of zinc contained in concentrate, matching the prior year's output. Despite severe flooding in January and February and subsequent rail transport disruptions, production remained stable, supported by higher mill throughput, strong recovery rates, and ongoing plant optimization initiatives.
Zinc production from the Rosebery operation was 9,159 tonnes for the quarter, down 16% year-on-year. However, zinc equivalent production increased by 8% to 31,300 tonnes, as strong by-product contributions fully compensated for the decline in zinc output. Both ore mining volumes and mill throughput increased compared to the previous year, reflecting a return to normalized operations this quarter compared to the bushfire-affected period a year ago.
In the first quarter of 2026, MMG produced a total of 32,200 ounces of gold and 2.8889 million ounces of silver, representing increases of 24% and 27%, respectively, over the same period last year. Favorable realized prices combined with robust precious metals production meant that by-product revenue from precious metals played a significant role in reducing C1 costs. Consequently, the actual C1 costs for Las Bambas, Khoemacau, Dugald River, and Rosebery during the quarter were all below their respective full-year guidance ranges.
The Khoemacau expansion project is progressing. The project involves constructing a new 4.5 million tonne per annum processing plant and extending mining activities to the Zone 5 North, Mango, and Northeast Zeta deposits. The target is to achieve an annual production rate of 130,000 tonnes of copper contained in concentrate, accompanied by over 4 million ounces of silver per year. A ground-breaking ceremony was held in February 2026, key long-lead equipment has arrived on site, and construction activities are advancing steadily. First concentrate production is anticipated in the first half of 2028. The expansion is expected to reduce the mine's average life-of-mine C1 cost to below USD 1.60 per pound.
Supported by ongoing exploration activities, the company has identified potential for a further expansion to an annual production capacity of 200,000 tonnes of copper contained in concentrate. A pre-feasibility study for this next phase was initiated early this year.
All operations maintained stable production during the first quarter and are expected to achieve their full-year production guidance. Favorable precious metal prices have significantly aided C1 cost reduction. MMG will continue to monitor market conditions to seek further cost optimization opportunities. Should strong precious metal prices persist, MMG will assess and potentially revise the C1 cost guidance for some operations in subsequent reports, while also considering factors such as the impact of Middle East conflicts on commodity prices and increases in fuel and other input costs.
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