Record Quarterly Production and Record Low Cash Cost
MAC Copper Limited (NYSE: MTAL; ASX:MAC)
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Figure 1 - CSA Copper Mine Recordable
Injuries by Quarter (Graphic: Business Wire)
MAC Copper Limited ARBN 671 963 198 (NYSE: MTAL; ASX: MAC), a
private limited company incorporated under the laws of Jersey,
Channel Islands (“MAC” or the “Company”) is pleased
to release its December 2024 quarterly activities report (“Q4
2024” or “December quarter”).
HIGHLIGHTS
Record quarterly production of 11,320 tonnes at a 4.1% Cu
grade
- Material improvement in TRIFR to 10.9 in Q4 2024 from a TRIFR
of 14.2 recorded in Q3 2024
- Strongest quarterly production under MAC’s ownership beating
the previous record set in Q2 2024
- 11,320 tonnes of copper produced for Q4 2024 (an 11% increase
QoQ) at a grade of 4.1% Cu
- C1 of US$1.66/lb1 for Q4 2024 decreased by 12% (US$1.90/lb in
Q3 2024), driven by increased production, continued improved cost
management and operational efficiencies
- 41,128 tonnes of copper produced in 2024 (above the mid-point
of 2024 production guidance) and an increase of 14% compared to
20232 with an average grade of 3.9% and a C1 of US$1.92/lb for the
year
- 2025 C1 forecast to be positively impacted by3:
- a circa 70% reduction in TC/RC benchmarks (~US$0.16/lb impact)
and
- operational costs benefits due to the lower A$:US$ exchange
rate (+/-1 US$ cent = US$0.03/lb)
Targeting copper production of >50ktpa by 2026
- Growing copper production by ~23% by 20264 with key projects
delivering the further step change
- Ventilation project – work well underway, advancing with
completion targeted by Q3 2026
- QTS South Upper – development commenced in Q4 2024, ore mining
expected to commence from Q4 2025
Generating material operational free cash flow
- Operational free cash flow for Q4 2024 of ~US$30M (~A$48M)
including sustaining capex
- Sustaining capital expenditure of ~US$12M for Q4 2024 and
~US$50M for 2024
Increased liquidity and balance sheet strength
- Raised US$103M (A$150M5) (before costs) at A$18.00 per CDI as
announced on 9 October 2024
- Cash and cash equivalents of ~US$172M (~A$276M) after repayment
of ~US$8.3M in senior debt principal
- Liquidity of US$213M (~A$340M) includes ~US$6.5M of outstanding
QP receipts, ~US$5.6M of unsold concentrate and the Polymetals
(“POL”) investment as at 31 December 2024
- POL announced it secured financing to fund it’s mine restart by
mid-2025 – the value of MAC’s investment in POL has increased to
A$6.4M, up more than 125% since its initial investment.
- Reached agreement with Sprott to repay Mezzanine debt early at
MAC’s option from 1 January 2025
ESG UPDATE
Safety
Achieved a Total Recordable Injury Frequency Rate (TRIFR) of
10.9 in Q4 2024 which is a material improvement from an average
TRIFR of 14.2 in Q3 2024. This was a positive end to 2024 with no
recordable injuries recorded for the quarter.
Total incidents recorded have also reduced significantly during
the quarter with increased awareness from extensive training and
coaching as well as increased leadership field safety interactions
which is having a beneficial effect on safety.
Figure 1 - CSA Copper Mine Recordable Injuries by
Quarter6
Sustainability Report
MAC recognizes the importance of our environmental, social and
governance responsibilities and that sustainability strategies more
broadly is integral to the way we operate and essential to the
accomplishment of our goals.
As a result, in 2024 MAC completed a materiality assessment and
stakeholder analysis to identify the key environmental, social and
governance issues material to the business and important to our
stakeholders.
To this end, we will be publishing our inaugural annual
sustainability report at the same time as our annual report in Q1
2025 which will provide an overview of our material ESG topics, a
summary of current performance and an outline of future activities
and initiatives to improve our reporting and disclosures over time.
The contents of the sustainability report are not intended to be
incorporated by reference into our annual report or in any other
report or document we file or furnish with the Securities and
Exchange Commission, and any reference to the sustainability report
is intended to be an inactive textual reference only.
Regulatory
Progress continues toward submission of the CSA Annual
Rehabilitation Report due in April 2025. There have been no
reportable environmental incidents during the December 2024 quarter
and no reportable environmental incidents for 2024.
Construction activities on the Stage 10 embankment raise have
been ongoing in the December 2024 quarter. Works on foundation
preparation and development of the key trench within the West Mound
have begun. West Mound works are planned for completion in Q1 2025
prior to progressing to the East Mound construction.
PRODUCTION AND COST SUMMARY
Table 1 – Production and cost summary (unaudited)
Units
Q1 2024
Q2 2024
Q3 2024
Q4 2024
QoQ Change (%)
Full year 2024
Copper Production
Tonnes
8,786
10,864
10,159
11,320
11.4%
41,128
Sustaining capital
US$ million
$13.0
$12.8
$12.5
$12.4
(0.8%)
$50.7
Cash cost (C1)1
US$/lb
$2.15
$2.022
$1.90
$1.66
(12.4%)
$1.92
Total cash cost3
US$/lb
$3.17
$2.72
$2.71
$2.31
(14.9%)
$2.70
Group Net Debt4
US$ million
$253
$232
$232
$132
(42.9%)
$132
MAC Copper Limited’s CEO, Mick McMullen, said:
“As a result of our team’s focus on safety,
it gives me great pleasure to be able to report that we closed the
financial year with a TRIFR of 10.9. This is a material improvement
on the previous quarter and represents the heightened awareness and
focus of our people benefiting from extensive training and coaching
with increased field safety leadership interactions as well.
Nothing is more important than the health and well-being of our
people, and the communities we are proud to be a part of; safety
culture takes time to take effect, and we are now seeing this show
up in our TRIFR.
Our CSA Copper Mine operational team
delivered another record quarterly production volume for the
December quarter, achieving copper production of 11,320 tonnes
which is an increase of 11.4% over the September quarter. It was
also pleasing to see that our C1 reduced by 12.4% quarter on
quarter to a record low under MAC ownership of US$1.66/lb. Higher
grade stopes at the CSA Copper Mine continue to form a large
proportion of our annual production and played a key role again
during the quarter, with milled copper grade achieved of 4.1%.
This also marks an excellent end to the 2024
year with the CSA Copper mine producing 41,128 tonnes of copper at
a low C1 cost of US$1.92/lb, with 2024 production above the
mid-point of the production guidance range previously announced
with a strong finish to the year.
Furthermore, we have established the platform
to grow our Copper production by a further ~23% to over 50,000
tonnes of copper production per annum by 2026 as our growth
projects including the expansion of the mine to include QTS South
Upper and the Ventilation project are brought online Q4 2025 and Q3
2026 respectively.
We will provide updated production guidance
when we report our revised R+R at the end of February 2025.
As announced on 9 October 2024, MAC raised
approximately A$150 million (approximately US$103 million) (before
costs) at an issue price of A$18.00 per New CDI. The placement was
well supported with support from new and existing institutional and
sophisticated investors both in Australia and offshore, which is a
testament to the high-quality nature of the CSA Copper Mine.
Proceeds of the Placement together with the potential to repay the
Mezzanine in H1 2025 will enable MAC to simplify and de-lever the
balance sheet further. We thank all shareholders for their
continued support.
The operational performance delivered to date
confirms the CSA Copper Mine as a high-quality, free cash flow
generating, long life copper asset with capital growth projects
unlocking further significant growth in production by 2026. The
performance of the site team throughout 2024 has showcased just
what this mine can do when operations perform the way we know it
can, and the Board and I would like to express our thanks to the
entire team for yet another strong performance.
MAC is positioned for growth and further
operational improvements to drive costs down from what is already a
highly competitive cost position. We have some exciting growth
opportunities in the upper parts of the mine and as our drilling
continues to expand the mineralized footprint we are pushing the
Capital Vent Project hard to unlock our mining potential at the
lower levels of the mine.”
OPERATIONAL AND COST UPDATE
Table 2 - Quarterly Operational Performance of the CSA Copper
Mine (unaudited)
CSA Copper Mine Metrics
(unaudited)
Units
Q1 2024
Q2 2024
Q3 2024
Q4 2024
QoQ % variance
2024
U/g development – Capital
Metres
466
449
735
464
(37%)
2,114
U/g development – Operating
Metres
703
611
359
449
25%
2,121
Rehab
Metres
246
113
145
246
69%
751
Total development
Metres
1,415
1,173
1,239
1,159
(7%)
4,986
Ore Mined
Tonnes
256,031
271,469
238,937
285,613
20%
1,052,050
Tonnes Milled
Tonnes
260,297
266,936
260,953
284,490
9%
1,072,676
Copper grade processed
%
3.5%
4.2%
4.0%
4.1%
2%
3.9%
Copper Recovery
%
97.6%
97.9%
97.2%
97.9%
1%
97.7%
Copper Produced
Tonnes
8,786
10,864
10,159
11,320
11%
41,128
Silver Produced
Ounces
102,182
134,072
112,299
114,019
2%
462,572
Copper Sold
Tonnes
8,112
12,984
10,244
8,987
(12%)
40,326
Achieved Copper price11
US$/lb
3.87
4.41
4.18
4.18
0%
4.19
Achieved Copper price
(including hedging)
US$/lb
3.81
4.24
4.04
4.02
(0%)
4.06
Mining Cost
US$/t Mined
$95.7
$91.9
$85.9
$75.2
(12%)
86.9
Processing Cost
US$/t Milled
$25.7
$31.9
$26.3
$25.7
(2%)
27.4
G+A Cost
US$/t Milled
$33.1
$25.6
$27.5
$24.9
(9%)
27.7
Total Operating Cost
US$/t milled
$154.6
$149.3
$139.6
$125.8
(10%)
142.0
Development Cost
US$/metre
$15,478
$9,330
$12,825
$12,633
(2%)
12,625
Capital Expenditure12
US$ million
$13.0
$12.8
$12.5
$12.4
(1%)
50.6
Tonnes Milled per employee
t/employee
184
186
174
191
10%
187
Mining
US$/lb prod
1.27
1.04
0.92
0.86
(6%)
1.01
Processing
US$/lb prod
0.35
0.36
0.31
0.29
(4%)
0.32
General and Admin
US$/lb prod
0.44
0.28
0.32
0.28
(11%)
0.33
Treatment and refining
US$/lb prod
0.17
0.26
0.23
0.19
(18%)
0.22
Work in Progress inventory
US$/lb prod
(0.14)
0.03
0.02
0.00
(118%)
(0.02)
Freight and other costs
US$/lb prod
0.17
0.21
0.24
0.15
(38%)
0.19
Silver Credits
US$/lb prod
(0.10)
(0.16)
(0.14)
(0.11)
(21%)
(0.13)
C1 Cash Cost
US$/lb prod
2.15
2.0213
1.90
1.66
(12%)
1.92
Leases
US$/lb prod
0.08
0.07
0.07
0.06
(16%)
0.07
Inventory WIP
US$/lb prod
0.14
(0.03)
(0.02)
0.00
(118%)
0.02
Royalties
US$/lb prod
0.13
0.13
0.20
0.08
(60%)
0.14
Sustaining capital
US$/lb prod
0.67
0.53
0.56
0.50
(11%)
0.56
Total Cash Cost
US$/lb prod
3.17
2.72
2.71
2.31
(15%)
2.70
Total Revenue
US$ millions
66.0
120.0
87.5
74.9
(27%)
348.4
Unless stated otherwise all references to dollar or $ are in
USD.
Q4 2024 demonstrated consistent mining processes that delivered
above 10kt of copper production for three consecutive quarters.
Production further benefited from a grade of 4.1% for Q4 2024 with
copper grade for the month of December 2024 recorded at 4.52%. The
grade achieved continues to demonstrate the high-quality ore body
present at CSA mine.
The double lift stope extraction method was again successfully
deployed during Q4 2024 after being implemented in the previous
quarters, resulting in less mining dilution achieved with stronger
grades and less total ore tonnes for the same metal. Total ore
mined of ~286kt is around a 20% increase quarter on quarter,
together with the higher grade processed leading to higher copper
production.
Figure 2 - CSA Copper Mine Quarterly Copper Production
(tonnes)
The average received copper price after hedge settlements was
slightly lower compared with the prior quarter with Q4 2024 at
US$4.02/lb, compared to US$4.04/lb for Q3 2024, with the average
spot copper price over the December quarter at ~US$4.16/lb.
In addition, the average A$:US$ exchange rate of ~US$65 cents
for Q4 2024 declined by ~2.5% compared to Q3 2024 to ~US$67 cents
which also marginally improved our US$ reported C1 cost, with the
A$:US$ exchange rate further weakening to ~US$62 cents by the end
of 2024.
C1 cash costs decreased by ~12% quarter on quarter from
US$1.90/lb in the September quarter to US$1.66/lb for Q4 2024. The
higher production tonnes, as detailed above, resulted in a positive
impact to C1 costs of approximately US$0.19/lb, whilst the overall
cost variance had a positive impact of approximately
US$0.05/lb.
Figure 3 - CSA Copper Mine C1 Cash Costs14 - US$/lb
produced
MAC management continues to implement additional productivity
measures to further reduce C1 costs as is evident in the declining
C1 achieved over the course of 2024, as depicted above. Q4 2024
reflects a 23% drop in C1 as compared to the March quarter of
US$2.15/lb which is a strong result given general cost trends
within the copper industry that many of our peers are
experiencing.
Figure 4 provides an illustration of tonnes milled per employee
which increased ~10% quarter on quarter in line with increased ore
processed which also drove down the mining unit rate per tonne by
around 12%.
Figure 4 - CSA Mine Tonnes Milled per Employee
Figure 5 - CSA Mine Mining Unit Rate US$/t
Apart from copper production, the largest driver of C1 costs is
the mining unit rate as mining accounts for approximately 60% of
total site operating costs.
Mining unit rates are trending down with better cost control
initiatives implemented combined with additional tonnes mined in Q4
2024. Capital metres decreased as focus shifted to extracting ore
for Q4 2024.
Figure 6 - CSA Copper Mining Development Costs
US$/metre
Figure 7 - CSA Copper Mine Capital Development metres
Processing costs per tonne milled decreased slightly in December
2024 quarter. Tonnes processed for the quarter were 285kt (a 9%
increase quarter on quarter) at recovery rate of 97.8%.
G&A unit rates decreased in the current quarter
predominately driven by the increase in ore processed.
Figure 8 - CSA Copper Mine Processing Unit Rate US$/t
Figure 9 - CSA Copper Mine Site G+A Unit Rate US$/t
As seen in Figure 10, sustaining capital spend (including
capitalized development) decreased slightly over the quarter.
Sustaining Capital costs during the quarter included diamond
drilling, stage 10 TSF works and primary vent rises.
Figure 10 - CSA Copper Mine Site Sustaining Capital
US$M
TREASURY UPDATE
Cash position, liquidity and debt facilities
The Company’s unaudited cash holding at the end of Q4 2024 was
~US$172 million or ~A$276 million for an unaudited net debt
position of ~US$132 million or 15% net gearing.
The increase in cash position at quarter end is largely driven
by the cash generated by operations of ~US$42 million or ~A$69
million with an equity raise completed on 9 October 2024 amounting
to US$103 million (~A$150 million) (before costs).
There were ~$14.5 million of cash received for copper
concentrate sold to Glencore on 23 December 2024 for which we
received the cash but will not account for as revenue until early
January 2025.
The unaudited cash position also reflects another ~US$8.3
million repaid on the Senior Debt Facility at the end of the
quarter, ~US$8.1 million in interest payments for the Senior debt
(US$3.4 million) and Mezzanine facility (US$4.7 million).
As of 31 December 2024, the pro-forma liquidity was ~US$213
million (~A$340 million) which includes cash of ~US$172 million
(A$213 million), US$25 million (A$40 million) undrawn revolving
facility, ~US$16 million (A$28 million) of outstanding Quotational
Period receipts, unsold concentrate and the strategic investment
held in POL at valuation as at 31 December 2024 of ~A$6.4 million
(~US$4 million).
Sprott Mezzanine Facility Early Repayment
As announced on 17 December 2024, MAC Copper Limited has agreed
amendments with Sprott Private Resource Lending || (Collector-2),
LP (“Sprott”) to permit early repayment of its Mezzanine facility.
This amendment underscores our commitment to the ongoing
simplification and de-leveraging of our balance sheet.
The agreement allows MAC Copper to repay the Mezzanine from 1
January 2025 onwards instead of 15 June 2025 onwards.
MAC Copper will make a decision regarding earlier repayments
based on its cash balance and financial forecasts in H1 2025 which
will be communicated to the market once determined.
FX Impact on OPEX
Given MAC is dual listed in Australia and the US, our financial
performance is affected by movements in A$:US$ exchange rate with
site costs predominantly Australian dollar based.
Results provided over 2024 were compiled at an average A$:US$
exchange rate of ~US$66cents, with a high of ~US$69cents noted in
September 2024. At the end of 2024 we note that the Australian
dollar has dropped to ~US$62cents.
As an estimate, utilising 2024 unaudited results as a baseline,
the impact of a US$1 cent movement on the A$:US$ exchange rate
would have an impact of ~US$2.7M on total operating costs, being a
~US$0.03/lb impact on C1.
TC/RC renegotiated pricing
Benchmark Treatment Charge and Refining Charge (“TC/RC”) pricing
has been renegotiated and a new benchmark set for 2025, as such,
from 1 January 2025 Copper refining charges will decrease by
>70% to approximately US$21/t for the TC and US$0.21/ refined lb
of copper for the RC.
Using 2024 unaudited results as a base, the impact of this
reduction amounts to ~US$14.6 million per annum in savings equating
to a reduction in C1 cost of ~US$0.16/lb year on year.
The impact of this change on the proforma 2024 results would be
to reduce the 2024 C1 to ~US$1.76/lb from US$1.92/lb based on the
new 2025 pricing if it was to be applied to 2024 (proforma C1 for
Q4 2024 would be ~US$1.52/lb).
Figure 11 – Q4 2024 Cash flow waterfall (US$M)
Hedging
In adherence to our Debt Facility Agreement, MAC Copper
previously implemented a hedging program covering the period to
June 2026. During the quarter, the Company delivered 3,105 tonnes
of copper into the hedge book at a price of US$3.72/lb. A summary
of our open hedge positions as at 31 December 2024 is included
below.
Table 3 – Hedge position
Copper
2025
2026
Total
Future Sales (t)
12,420
5,175
18,595
Future Sales ($/t)
3.72
3.72
3.72
PROJECTS AND EXPLORATION UPDATE
Pathway to >50,000 tonne per annum of copper
production
The CSA mine is already benefiting from productivity
improvements initiated under MAC ownership such as double stope
lifts and other operational efficiencies noted in previous
announcements aimed at reducing waste and ensuring efficient
delivery of ore. To further progress towards becoming a 50ktpa+
producer two key projects have been identified as detailed below.
Both projects are designed to deliver on our strategic goal of
uplifting production to 50kpta+ and unlock the full potential of
the CSA mine.
Projects updates
Ventilation project update
The Capital Vent Upgrade Project is designed to support
increased mining activity to 1.7Mtpa, improving access to lower
mine levels and ensuring operational longevity beyond the current
reserve life. The project remains a key enabler for sustained
production growth at CSA.
Total spend in Q4 was US$3.0 million, with 233m of development
completed. Progress continued on establishing access to the first
raise bore location, additional geotechnical drilling was
completed, and procurement of ventilation fans advanced.
The project is progressing well, with development successfully
integrated into existing operations. Early works in high-activity
mining areas have supported a structured ramp-up, ensuring
alignment with operational priorities. The slowest development
rates are in the early stages of the project as development
interacts with existing mining, and as development moves out away
from the operations development rates are picking up as
planned.
Development is progressing well across multiple levels, with
stripping, rehabilitation, and fan installations underway to
enhance infrastructure and support operational efficiency. Key
design enhancements and coordinated planning have optimised
integration with active mining zones. Work will continue in 2025 to
finalise critical infrastructure and further expand ventilation
capacity in alignment with the long-term mine plan.
QTS South Upper update
The QTSSU deposit presents an opportunity for incremental copper
production at CSA Mine, representing an additional mining area not
currently connected to the mine, located approximately 150m below
the surface. Drilling to upgrade this deposit from resource to
reserve has been completed, with ore mining expected to commence by
Q4 2025.
Total spend in Q4 was US$0.6 million, primarily allocated to
project startup and equipment costs.
The first development cut was taken in the December quarter,
marking a significant milestone in the project's progression.
All key project team members are now in place, and the
installation of new services from the surface has been
completed.
The underground substation has been installed, and
back-stripping activities are underway in preparation for the
secondary fan installation.
Development will continue throughout Q1 2025 as the project
ramps up.
CONFERENCE CALL DETAILS
The Company will host a conference call and webcast to discuss
the Company’s fourth quarter 2024 results on Tuesday, January 28,
2025 at 5:00 pm (New York time) / Wednesday, January 29, 2025 at
9:00 am (Sydney time).
Details for the conference call and webcast are included
below.
Webcast Participants can
access the webcast at the following link
https://event.choruscall.com/mediaframe/webcast.html?webcastid=D8OmknEn
Conference Call For
expedited access to the call, participants should register at
https://dpregister.com/sreg/10195707/fe3e823b2f and avoid the call
queue. Alternatively, if you prefer to speak with an operator, dial
one of the numbers below and request the operator connect to the
MAC Copper Limited call.
Toll Free Dial In:
1-833-816-1269
Australia:
+1-800-822-994
Replay A replay of the webcast will be available for
three months via the webcast link above and or by visiting the
Events section of the company’s website.
This report is authorised for release by the Board of
Directors.
ABOUT MAC COPPER LIMITED
MAC Copper Limited (NYSE: MTAL) is a company focused on
operating and acquiring metals and mining businesses in high
quality, stable jurisdictions that are critical in the
electrification and decarbonization of the global economy.
Estimates of Mineral Resources and Ore Reserves and
Production Target
This release contains estimates of Ore Reserves and Mineral
Resources as well as a Production Target. The Ore Reserves, Mineral
Resources and Production Target are reported in MAC’s ASX
Announcement dated 23 April 2024 titled ‘Updated Resource and
Reserve Statement and Production Guidance’ (the R&R
Announcement). The Company is not aware of any new information or
data that materially affects the information included in the
R&R Announcement, and that all material assumptions and
technical parameters underpinning the estimates or Ore Reserves and
Mineral Resources in the R&R Announcement continue to apply and
have not materially changed. The material assumptions underpinning
the Production Target in the R&R Announcement continue to apply
and have not materially changed. It is a requirement of the ASX
Listing Rules that the reporting of ore reserves and mineral
resources in Australia comply with the JORC Code. Investors outside
Australia should note that while exploration results, mineral
resources and ore reserves estimates of MAC in this presentation
comply with the JORC Code, they may not comply with the relevant
guidelines in other countries and, in particular, do not comply
with (i) National Instrument 43-101 (Standards of Disclosure for
Mineral Projects) of the Canadian Securities Administrators; or
(ii) the requirements adopted by the Securities and Exchange
Commission (SEC) in its Subpart 1300 of Regulation S-K. Information
contained in this presentation describing mineral deposits may not
be comparable to similar information made public by companies
subject to the reporting and disclosure requirements of Canadian or
US securities laws.
Forward Looking Statements
This release includes “forward-looking statements.” The
forward-looking information is based on the Company’s expectations,
estimates, projections and opinions of management made in light of
its experience and its perception of trends, current conditions and
expected developments, as well as other factors that management of
the Company believes to be relevant and reasonable in the
circumstances at the date that such statements are made, but which
may prove to be incorrect. Assumptions have been made by the
Company regarding, among other things: the price of copper,
continuing commercial production at the CSA Copper Mine without any
major disruption, the receipt of required governmental approvals,
the accuracy of capital and operating cost estimates, the ability
of the Company to operate in a safe, efficient and effective manner
and the ability of the Company to obtain financing as and when
required and on reasonable terms. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
which may have been used by the Company. Although management
believes that the assumptions made by the Company and the
expectations represented by such information are reasonable, there
can be no assurance that the forward-looking information will prove
to be accurate.
MAC’s actual results may differ from expectations, estimates,
and projections and, consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions (or the negative versions of such words or expressions)
are intended to identify such forward- looking statements. These
forward-looking statements include, without limitation, MAC’s
expectations with respect to future performance of the CSA Copper
Mine. These forward-looking statements involve significant risks
and uncertainties that could cause the actual results to differ
materially from those discussed in the forward-looking statements.
Most of these factors are outside MAC’s control and are difficult
to predict. Factors that may cause such differences include, but
are not limited to: the supply and demand for copper; the future
price of copper; the timing and amount of estimated future
production, costs of production, capital expenditures and
requirements for additional capital; cash flow provided by
operating activities; unanticipated reclamation expenses; claims
and limitations on insurance coverage; the uncertainty in Mineral
Resource estimates; the uncertainty in geological, metallurgical
and geotechnical studies and opinions; infrastructure risks; and
other risks and uncertainties indicated from time to time in MAC’s
other filings with the SEC and the ASX. MAC cautions that the
foregoing list of factors is not exclusive. MAC cautions readers
not to place undue reliance upon any forward-looking statements,
which speak only as of the date made. MAC does not undertake or
accept any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements to reflect
any change in its expectations or any change in events, conditions,
or circumstances on which any such statement is based.
More information on potential factors that could affect MAC’s or
CSA Copper Mine’s financial results is included from time to time
in MAC’s public reports filed with the SEC and the ASX. If any of
these risks materialize or MAC’s assumptions prove incorrect,
actual results could differ materially from the results implied by
these forward-looking statements. There may be additional risks
that MAC does not presently know, or that MAC currently believes
are immaterial, that could also cause actual results to differ from
those contained in the forward-looking statements. In addition,
forward-looking statements reflect MAC’s expectations, plans or
forecasts of future events and views as of the date of this
communication. MAC anticipates that subsequent events and
developments will cause its assessments to change. However, while
MAC may elect to update these forward-looking statements at some
point in the future, MAC specifically disclaims any obligation to
do so, except as required by law. These forward-looking statements
should not be relied upon as representing MAC’s assessment as of
any date subsequent to the date of this communication. Accordingly,
undue reliance should not be placed upon the forward-looking
statements.
Non-IFRS financial information
MAC’s results are reported under International Financial
Reporting Standards (IFRS), noting the results in this report have
not been audited or reviewed. This release may also include certain
non-IFRS measures including C1, Total Cash costs and Free Cash
Flow. These C1, Total Cash cost and Free Cash Flow measures are
used internally by management to assess the performance of our
business, make decisions on the allocation of our resources and
assess operational management. Non-IFRS measures have not been
subject to audit or review and should not be considered as an
indication of or alternative to an IFRS measure of financial
performance.
C1 Cash Cost
C1 costs are defined as the costs incurred to produce copper at
an operational level. This includes costs incurred in mining,
processing and general and administration as well freight and
realisation and selling costs. By-product revenue is credited
against these costs to calculate a dollar per pound metric. This
metric is used as a measure operational efficiency to illustrate
the cost of production per pound of copper produced.
Total Cash Cost
Total cash costs include C1 cash costs plus royalties and
sustaining capital less inventory WIP movements. This metric is
used as a measure operational efficiency to further illustrate the
cost of production per pound of copper produced whilst incurring
government-based royalties and capital to sustain operations.
Free Cash Flow
Free cash flow is defined as net cash provided by operating
activities less additions to property, plant, equipment and mineral
interests. This measure, which is used internally to evaluate our
underlying cash generation performance and the ability to repay
creditors and return cash to shareholders, provides investors with
the ability to evaluate our underlying performance.
____________________________________________
1 See “Non-IFRS financial information” and refer to table 2 for
reconciliation of C1 Cash Cost 2 Comparing 2024 CSA Copper Mine
production to the total 2023 production (including production
pre-MAC ownership) 3 Using 2024 unaudited results as a base, the
impact of this reduction amounts is noted as an impact if these
TC/RC and exchange rate movements were to be applied to these
unaudited 2024 results 4 Comparing 2024 actuals and mid-point of
current 2026 production guidance range 5 Placement proceeds
converted into US$ based on an A$:US$ exchange rate of 0.6869,
representing the average exchange rate for the week from 30
September to 4 October 2024 (inclusive) 6 Industry TRIFR source:
Mine Safety performance report 2022-2023, Resource regulator
Department of Regional NSW 7 See “Non-IFRS Information” and refer
to table 2 for reconciliation of C1 Cash Cost 8 Q2 2024 adjusted
post finalisation of half year accounts with additional freight and
TC/RCs included accrued for recognition of June pre-sales 9
Excludes corporate costs from parent entity. See “Non-IFRS
financial information” and refer to table 2 for reconciliation of
Total Cash Cost. 10 Senior Debt + Mezzanine Facility – Cash and
cash equivalents (excluding streams) 11 Realised provisional sales
price excluding hedging impact 12 Sustainable capex 13 Q2 2024
adjusted post finalisation of half year accounts with additional
freight and TCRCs included accrued for recognition of June
pre-sales 14 See “Non-IFRS Information” and refer to table 2 for
reconciliation of C1 Cash Cost
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128823702/en/
Mick McMullen Chief Executive Officer MAC Copper Limited
investors@metalsacqcorp.com
Morné Engelbrecht Chief Financial Officer MAC Copper
Limited
Grafico Azioni MAC Copper (NYSE:MTAL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni MAC Copper (NYSE:MTAL)
Storico
Da Gen 2024 a Gen 2025
