MMG reports its 2020 performance impacted by lower zinc prices and COVID-19 disruptions
(Kitco News) - MMG, a Hong Kong-based international producer of base and precious metals, reported today that the company’s net cash flow from operating activities increased by 19% to US$1,358.2 million in 2020, supporting a reduction in borrowings of US$453.3 million.
According to the company’s statement, December 2020 and a full-year loss attributable to equity holders was US$64.7 million, a 72% improvement on 2019. MMG’s Board does not recommend the payment of a dividend for the year.
MMG said that its full-year financial performance was impacted by lower zinc prices and the effects of COVID-19 and community disruptions on sales volumes at Las Bambas. This was offset by improved output at Kinsevere, strong operational performance at Dugald River, higher copper and precious metal prices and lower financing costs.
The Las Bambas mine, located in Peru, produced 311,020 tonnes of copper in concentrate in 2020. COVID-19 related impacts on workforce availability and unplanned site maintenance were the largest drivers of an estimated 70,000 tonnes production shortfall.
A 6% increase in copper production at the Kinsevere mine in DRC and higher copper prices supported an EBITDA of US$68.3 million, a 143% increase over 2019.
MMG added that records were set at the Dugald River mine, located in Australia, for both zinc and lead production which increased by 4% and 3% respectively.
Significant precious metal by-products and higher gold and silver prices supported a 3% increase in EBITDA for the Rosebery mine, located in Australia. This was achieved despite declining zinc ore grades at depth and lower zinc and lead prices and constraints on mine access for much of the year.
MMG expects to produce between 360,000 and 390,000 tonnes of copper and 240,000 and 260,000 tonnes of zinc in 2021, with Las Bambas' annual copper production anticipated to increase.