Peru – International copper mining company MMG, which acquired the Las Bambas copper project in Peru in a joint venture from Glencore Xstrata in April 2014, says it is the single largest step it has taken to date in pursuit of sustained business growth.
The acquisition forms part of its vision to build the most respected diversified base metals company – valued as one of the world’s top mid-tier miners by 2020 – is on track.
This announcement was made by MMG CEO Andrew Michelmore as part of the company’s annual financial results for the year ended 31 December 2014.
The successful acquisition was the result of over a year’s hard work and collaboration between China Minmetals Corporation, joint venture partners Guoxin International and CITIC Metals and many stakeholders in China, Peru and Australia.
The acquisition is a transformational milestone for the company and will reposition MMG among the world’s largest copper producers. As a large-scale, low-cost, long-life asset with further growth potential, Las Bambas is expected to significantly enhance shareholder returns over the long term.
MMG’s operations delivered a solid operating performance in 2014 producing a total of 191 307 t of copper and 587 099 t of zinc.
“We achieved an annual copper production record (up 2% over 2013) following a strong fourth quarter at both Sepon (in Asia) and Kinsevere (in the Democratic Republic of Congo), supported by consistent results from Golden Grove and Rosebery.”
In a challenging year, with lower average prices for copper, MMG maintained consistent revenue of US$2.5 million. This was driven by robust sales at Kinsevere and Century which helped to offset reduced sales at Sepon.
The total profit for the year was US$99.2 million. Earnings per share for 2014 was US 1.96 cents. This represents a 1% increase compared to 2013.
MMG remains confident in the underlying fundamentals of copper and zinc, which will continue to be driven by sustainable growth in China and the economic recovery of the US and developing economies.
“Our operating expenses were well managed and we maintained financial discipline at all sites, evident through a further US$52.7 million, or 3%, reduction in operating costs compared to 2013.”