Australia-headquartered mining firm MMG is hopeful of higher production rates for copper and zinc in H2 FY2021 (June-December) at Las Bambas and Kinsevere mines. Copper guidance is maintained at 360,000-390,000mt and full year zinc production guidance remains at 240,000-260,000mt, stated the company’s Q1 results and outlook update on April 22.
Strong fundamentals for all commodities coupled with strong medium-term outlook for Las Bambas and Dugald River, the approval for development at Kinsevere and potential for mine life extension at Rosebery plays out well for the company.
Copper production in Q1 slipped 16pc to 77,328mt compared to the prior year. Production is down almost 32pc compared to the prior quarter. Copper production at Las Bambas fell by 12pc in Q1 while production at Rosebery rose 14pc compared to the prior year. Copper cathode production at Kinsevere totalled to 12,490mt which is the sole producer of copper cathodes for the company. Production has slipped by 31pc compared to the prior year and down 29pc from the prior quarter. Production of copper was in-line with company’s plans despite a drop in output as a result of lower ore grades.
Total zinc production in Q1 rose by 29pc to 68,399mt from the prior year but decreased by 3pc from the previous quarter. Production of zinc at Dugald River was strong after a 38pc jump from the prior year to 49,049mt in Q1. Production at Rosebery also increased by 11pc compared to the previous year to 68,399mt. Total zinc production increased on the back of higher ore grades at both Dugald River and Rosebery and strong operational performance.
Lead production zoomed by 25pc to 12,426mt in Q1 from 2020 but fell by 10pc from the previous quarter. Production at Dugald River rose by 33pc to 5,675mt and at Rosebery by 19pc to 6,751mt from the prior year quarter.
Molybdenum production rose by 804pc in Q1 to 1,123mt from the year prior. The company’s Las Bambas mine is the only one that produces molybdenum. Production is down by 15pc from the previous quarter.
In Q1, commodity prices performed strongly, says MMG and the expected stimulus measures by the various governments across the countries will drive base metals demand higher over the coming years. Sentiments for lead and zinc also remain strong and positive with rising infrastructure spending and manufacturing activities which will push consumption up.