MMG (01208) has issued an announcement stating that, during the preparation of the company's financial statements for the fiscal year ending 2025 (FY2025), a review of the recoverable amounts of various projects and operations is underway. This review has identified several indicators of impairment at the Kinsevere operation, including: • Sales restrictions on cobalt ore from the Democratic Republic of Congo, resulting in the cobalt processing plant remaining in a state of care and maintenance; • Power-related production challenges affecting the routine operations and ramp-up progress of the expansion project; • Difficulties associated with capacity ramp-up and operational performance; and • Uncertainty in the fiscal regime, encompassing additional tax rates and levies, as well as the deductibility of value-added tax. The Board of Directors believes that the unaudited profit for FY2025 may be adversely affected by an impairment charge (estimated to be approximately $280 million to $300 million pre-tax). This impairment relates solely to the operations of the Kinsevere mine and is sensitive to reasonably possible changes in assumptions. The Board hereby informs the Company's shareholders and potential investors that, following the aforementioned impairment provision, the Company expects to report an unaudited net profit after tax attributable to equity holders of approximately $500 million to $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; consequently, it will not have any impact on the Company's cash flow. This significant unaudited profit is primarily driven by the outstanding operational performance of the Las Bambas and Dugald River mines, coupled with the positive impact of high copper and precious metal prices. However, aside from the impairment, certain operational challenges and financial transactions have also negatively impacted the company's performance. These include power supply disruptions at the Kinsevere mine, the continued implementation of cobalt export restrictions, and hedging losses incurred during FY2025.
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