MMG Reports Losses in H1 2016 with Focus Narrowing to Copper

SHANGHAI, Aug. 18 (SMM) – MMG Ltd. suffered a loss of $ 92.5 million as of the end of June, based on its mid-year earning report announced on August 17.

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The end of ore mining and dressing activities in Century mine led to declines in zinc and lead sales, which shifted the company’s focus to its copper business. But the company’s copper sales also dropped by 14%, hurt by falling production from Sepon, Golden Grove and Rosebery.  

The falls in average price of all commodities also explained the losses in the company, whose business revenues fell 47% YoY to $ 586 million in H1.

MMG announced its Las Bambas copper mine in Peru reached commercial production on July 1. Las Bambas produced 118,600 tonnes of copper in the first half of the year and plans to produce 250,000-300,000 tonnes of copper in 2016. Total cost for the mine was $ 9.7 billion.

The company’s operating costs reduced 38% in January-June, supported by slipping output and favorable exchange rate between Australian and the US dollar. And production costs at the company’s mines slid $ 63 million and administrative expenses dropped $ 15.6 million. But this still failed to reverse the company’s loss fortunes. 

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