MMG Limited has finally reached to the settlement with Nueva Fuerabamba as they have accepted the agreement to lift their current roadblocks along Peruâs most important copper logistics corridor in Apurimac.
In the announcement dated 15 April 2019, MMG Limited (ASX: MMG) stated that communities have accepted the agreement to remove the roadblocks restricting road transport at the Yavi Yavi farm and at Manantiales near the entrance to the MMGâs Las Bambas mine in Peru.
This comes after the completion of the community meeting held on 8 April 2019 under which Government of Peru had agreed on undertakings with the Challhuahuacho district to conclude their support for roadblocks.
The issue underscores the protest activities by the Fuerabamba community, near the entrance to the Las Bambas mine in Peru. On 25 February 2019, the company stated that âthe protest activities are now disrupting personnel transport as well as inbound and outbound logistics which could also impact the production at Las Bambas site in the coming weeks.â
However, the impact was mitigated after the Las Bambas reached successful community ratification on 8 April 2019.
In todayâs update, MMG stated that Las Bambas has progressively restored critical supplies and increased staffing levels over the last week, with concentrate transport to Matarani Port recommencing on 13 April 2019.
As at 8 April 2019, Finished stockpiles at the site were reportedly of ~59,000 tonnes of copper in concentrate. The company intends to provide a further update on the production of Las Bambas at the release of its March Quarter Production Report expected to be released on 17 April 2019.
For the year ended 31 December 2018, MMG recorded total revenue of US$3,670 million and realised a net profit after tax of US$137.4 million, including US$68.3 million attributable to equity holders of the Company. EBITDA from continuing operations of US$1,751.2 million was 16% below the prior year, due to lower copper production at Las Bambas.
In 2018, MMG achieved stable performance across its operations, with total copper production of 466,475 tonnes and total zinc production of 223,041 tonnes. Las Bambas produced 385,299 tonnes of copper in concentrate in 2018, with production predominantly impacted by a localised wall slippage during the third quarter with production performance improving in the last quarter. EBITDA reached US$1,341.2 million, 23% below 2017.
2019 forecast production is expected to be between 385,000 and 405,000 tonnes at Las Bambas with C1 costs of US$1.15 to 1.25/lb. With respect to Dugald River, the company expects 2019 production to be between 165,000 and 175,000 tonnes of zinc in concentrate and C1 costs of US$0.58 to US$0.68/lb.
MMG expects to produce 462,500â485,000 tonnes of copper and 250,000â270,000 tonnes of zinc in 2019. This represents approximately 5% production growth in copper equivalent terms compared to 2018.
MMG Limited stock last traded at $5.00 with a Price to Earnings multiple of 413.220 x and a market capitalisation of $3.98 billion. The stock has witnessed a positive price change of 2.04% Over the past 12 months.
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