MMG: Total copper production in the third quarter was 127,000 tons, an increase of 11% year-on-year

According to the announcement from MMG (01208), in the third quarter of 2025, the total copper production (including copper concentrate and electrolytic copper) was 127,000 tons, an increase of 11% compared to the same period last year. The total zinc production was 58,700 tons, a year-on-year increase of 26%. The Las Bambas mine's production in the first half of the year has ranked it as the fifth largest copper mine in the world. In the third quarter, the mine produced 102,900 tons of copper concentrate, a 14% increase compared to the same period in 2024, continuing the strong production momentum from the second quarter. The mining operations at the Chalcobamba and Ferrobamba pits remained stable and were not affected by any external factors. The grade and recovery rate of the ore dressing remained at a high level. The Kinsevere mine produced 14,800 tons of electrolytic copper, a 14% increase compared to the same period in 2024, mainly driven by the ramp-up of the sulfide ore production line from the Kinsevere Expansion Project (KEP). The continuity of operations this quarter was constrained by issues related to power supply and its stability. The mine is currently in the process of procuring more diesel generators to alleviate the power supply issues. Additionally, the mine is exploring solar and battery storage solutions to further address power shortages and frequent outages. The Khoemacau mine produced 9,084 tons of copper concentrate, a 16% decrease compared to the same period in 2024, primarily due to a decline in ore extraction volume and ore grade. The ore extraction volume was affected by the transition of mining contractors, and it is expected that the related capacity ramp-up in the fourth quarter will boost production. The ore grade is related to the mining sequence, and the mine is currently strengthening its tunneling efforts and plans to advance intensified drilling to improve future grades. The Dugald River mine produced 48,100 tons of zinc concentrate, a 38% increase compared to the same period in 2024, mainly due to significant improvements in mining and ore dressing recovery rates driven by operational optimization. The Rosebery mine produced 10,600 tons of zinc concentrate, an 8% decrease compared to the same period last year, primarily due to a reduction in the zinc ore dressing grade related to the mining sequence. With significant contributions from by-products such as gold, silver, and copper, the zinc equivalent production reached 27,400 tons. In this quarter, MLB (Minera Las Bambas S.A.)'s shareholder MMG SAM (MMG South America Management Company Limited) distributed the second dividend, paying a total of USD 687 million (net of withholding tax and related taxes) to MMG and other joint venture shareholders. Among them, MMG received USD 429 million, which will be used to repay debts to reduce the company's interest expenses. This move helps enhance MMG's financial flexibility and supports future capital management or growth projects. On October 8, 2025, MMG completed the issuance of USD 500 million zero-coupon convertible bonds due in 2030. After deducting related fees, commissions, and other expenses, the net proceeds were approximately USD 494 million. The initial conversion price of the convertible bonds is HKD 8.40 per share and will mature on October 8, 2030. Upon adjustment, the convertible bonds can be converted into approximately 463 million shares of common stock, accounting for 3.67% of the expanded share capital after conversion The company has used the net proceeds to refinance existing debt, thereby reducing borrowing costs and saving on interest expenses