Mmg Ltd Ord

Hello, everyone, and thank you for joining MNG's 2025 Fourth Quarter Production Report Teleconference. Before we begin, I would like to remind you that today's discussion may include forward-looking statements and other information intended exclusively for participating investors. The materials provided, including any audio or written transcripts of this call, are for reference purposes only. M&G has not authorized any third party to reproduce, distribute, or disseminate the contents of this meeting. Neither the company nor its affiliates accept any responsibility or liability for any use, distribution, or reliance on all or any part of this remark made during today's discussion. Please be advised that financial markets inherently involve risks. Investment decisions should be made with careful and prudent judgment. We strongly encourage all investors to conduct their own independent analysis and due diligence before acting on any information shared during this call. Joining us today from M&G's management team are Mr. Zhao Jin Yifou, Chief Executive Officer and Executive Director, Mr. Qian Song, Chief Financial Officer, Mr. Wang Nan, Chief Operating Officer, Ms. Guan Xiangjun Sandra, Interim Executive General Manager, Commercial and Development, Mr. Xia Weiquan, President Africa, and Mr. Chen Xuesong, President Las Bambas. I will now hand over to Mr. Jiaojin Ivo to take you through MNG's operational performance for the fourth quarter and the full year 2025. After the presentation, we will also open the line for questions. Thank you.

Thank you, and welcome to MNG's fourth quarter production report teleconference. I'm very pleased to share an update on MMG's operational performance. Safety is MMG's first value. As always, let me begin with our safety performance. In 2025, our safety performance was generally in line with the previous year. The total recordable injury frequency was 2.06, and the significant event with energy exchange frequency was 0.80. per million hours worked. However, we observed an increase in safety performance indicators during the fourth quarter. This reminds us of the importance of staying focused on the safety of all employees and contractors. Moving forward, we will continue to strengthen proactive field task observation, ensure the effective implementation of critical controls, and enhance contractor safety management. Now let's turn to our production results. 2025 was a year of strong operational performance for MMT with the record and the new record results across our key assets. Total corporate production for the year reached 507,000 tons. A 27% increase over 2024 and the clear milestone beyond the half million ton threshold This result reflects our strategic focus on copper with our three copper mines, particularly our flagship assets that fund us, making a key contribution. Total zinc production reached 230,000 tons, up 6% year-on-year, with Dubuweva delivering its highest-end production on record. 5% precious metals, also performing strongly. Huge production reached 118,000 ounces, up 22% year-on-year, and production reached 10.6 million ounces, up 17% year-on-year. These byproducts are important contributors to MMG's revenue and help to support our financial performance, particularly during periods of strong precious metals market conditions. Next, as we go through our performance by business segment. First, the corporate portfolio. That fund has achieved a historic operational breakthrough in 2025, with annual copper production exceeding 410,000 tons. This represents a 27% year-on-year increase, solidifying its position as one of the world's top 10 copper mines. This result was above the upper the upper end of guidance, and was the second highest annual production since the mine began operation. This outstanding performance was given, was driven by improved operating efficiency and stable mining operations at both Federal Bamba Peat and Chalibur Bamba Peat. Notably, in 2025, Las Bambas set new records for all mines, all mills, and recovery rates. On cost, thanks to by-product credits, from stronger precious metals prices. The full year average C1 cost was $1.12 per pound of copper, better than our guidance range. On community relations, Las Palmas made positive progress by working closely with local communities and the Peruvian government. Through the heart of Las Palmas program, we helped the local communities set up a business in transportation, infrastructure, agriculture, and to catering services. These businesses provide services to the mine and create stable income for local residents. We also invested in local education infrastructure through Peru's Works for Texas program. This allows Texas to be used for community development more quickly and efficiently. These efforts have helped build a strong and stable relationship with the government and communities. supporting the mine nearly three years of stable operations. For 2026, the sunbus protection guidance is 380,000 to 400,000 tons of copper in copper concentrate. We expect average C1 costs to be in the range of $1.20 to $1.40 per pound. If precious metals prices stay strong, actual C1 costs may be lower. With a C1 cash cost position in the lowest third of global corporate money, that number enjoys a robust cost advantage. In the context of currently strong corporate prices, this offers considerable profit resilience and reinforces the stability of our business. Next, Kingsbury. In 2025, Kingsville focused on ramping up its expansion project. It produced about 53,000 tons of copper cathode, up 18% year on year. The full year average C1 cost was $3.12 per pound. This year, Kingsville's focus will be addressing challenges, including improving power supply stability, stabilizing production, optimizing the concentrator and roaster, and fixing bottlenecks in the hydrometallurgical process. For 2026, Kingsbury copper production guidance is 65,000 to 75,000 tons, with C1 cost guidance of $2.50 to $2.90 per ton. Now, Coimbatore. In 2025, Coimbatore produced about 42,000 tons of copper in copper concentrate. During the third quarter, the change in mining contractors caused a short-term impact on the mining volume. However, by the fourth quarter, operations recovered, and mining expanded into the higher-grade Zone 5 north area. This supported higher head grades and improved recovery rate. supported by stronger silver prices and lower ore development costs. Full year C1 costs were $1.90 per pound, 97 cents per pound, better than the guidance range. For 2026, as mining moves into higher grade ore in Zone 5 North, and with progress in mine development and the paste field project, copper production is expected to increase Production guidance is 48,000 to 53,000 tons in copper concentrate, with C1 cost guidance of $2 to $2.30 per pound. If silver prices stay strong, the actual C1 cost may be further improved. I'd also like to share an update on Comatose's expansion plan. Coimbatore is a new mine that MMG acquired in March, 2024. It has attractive resource potential and a clear expansion plan. In December, 2025, the board approved the feasibility study for the phase two expansion. This is an important part of our global mining strategy in Africa. After completion, Annual production capacity is expected to increase to 130,000 tons of copper in copper concentrate, with annual silver production exceeding 4 million ounces. Early works have already started, including camp construction, land acquisition, recruitment, and procurement of long-lived items. Land construction is planned to commence this year. with first copper concentrate expected in the first half of 2028. After commissioning, ComiCal's average C1 costs are expected to drop to below $1.60 per pound, which would significantly improve the mine's profitability and strengthen MMT's position in the global copper supply market. Ongoing exploration at Comical has identified more expansion potential. Energy capacity could increase to 200,000 tons of copper in copper concentrate in the future. We plan to start a pre-feasibility study for the next phase of the expansion this year. For our zinc portfolios, Google River delivered record energy results, with zinc production reaching 183,000 tons. This result exceeded the prior year by 12% year-on-year and finished at the upper end of guidance, solidifying its position among the world's top 10 zinc mines. For the first time, annual ore percentage exceeded 2 million tons, with plant recovery rates staying stable at around 90%. These strong results were driven by a focus on operational efficiency and technical and technical optimization, which helped the site recover quickly and reform well after unplanned wet impacts in the first quarter. On costs, the full-year average C1 cost was $65 per pound of zinc, better than the previous guidance range. This was mainly due to higher by-product credits from stronger silver prices, lower treatment charges, high production levels, and favorable exchange rates. Looking ahead to 2026, we anticipate potential constraints as demand deepens alongside season weather challenges in the first half. Our focus will be on enhanced planning and operational execution to maintain resilience through this period. Link production for the year is expected to be between 170,000 and 180,000 tons, with C1 costs guidance of 80 U.S. cents to 95 U.S. cents per pound. Again, if sewer prices remain high, C1 costs may be further improved. Roseboi also delivered a steady performance in 2025, with good execution of the mine plan. Full-year zinc production was approximately 49,000 tons, while zinc equivalent production reached 140,000 tons. This highlights the value of Rosebud's polymetallic oil body and its effective approach to optimizing bi-product value. On cost, supported by sand operating efficiency, high bi-product volumes, and favorable precious metals prices, full-year C1 costs were negative 94 US cents per pound of zinc. significantly lower than the previous guidance range. Looking ahead, any zinc production is expected to be between 45,000 and 55,000 tons. Based on 2025 reliable prices, zinc equivalent production is expected to be 125,000 to 140,000 tons. B1 cost guidance is negative 60 US cents to negative 10 US cents per pound. If precious metals prices remain strong, Rosebury's C1 cards could improve further. Finally, I'd like to share an update on our recent senior management appointment. In December, Mr. Chen Xuesong was appointed as President of Asthma, and Mr. Xia Weiquan as President of Africa of Operations. This appointment aimed to extend operating responsibilities to the asset level, strengthen frontline leadership in safety, production, and cost optimization. Both Mr. Chen and Mr. Xia are on the line today and available to answer any questions about our asset operations. To wrap up, MMG delivered a strong performance in 2025, unlocking production potential while achieving steady progress on key growth projects. Looking ahead to 2020, we will remain focused on safety, stability, and efficiency to support production reliability. At the same time, we keep advancing key growth projects, like the Coimbatore Phase II expansion, to stress MMG's long-term value and resilience as a corporate-focused, diversified miner. On behalf of MMG, I would like to sincerely thank all investors and stakeholders for your support. We are committed to creating sustainable value for all shareholders. That concludes my remarks. I will now hand the call back to the moderator.

Thank you. Thank you. Ladies and gentlemen, we will now poll for questions. If you would like to register for a question, please press star 1 on your telephone. Thank you. Once again, ladies and gentlemen, that is star 1 to register for a question. Thank you. Once again, ladies and gentlemen, that is all I want to register for a question. Thank you.