MMG 1208

Re: MMG 1208

Postby winston » Fri Mar 08, 2019 7:49 am

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Metals miner MMG keeps eye out for overseas acquisitions as it tackles mine blockades in Peru

by Eric Ng

After spending a total of US$10 billion on the half-finished Las Bambas in 2014 to bring it to production, and US$1.3 billion to make Dugald River operational last May, highly-leveraged MMG has been paying down its debt. its net debt fell US$733 million to US$7.6 billion last year.

MMG said on Wednesday its net profit had fallen by just over a half to US$68.3 million last year, because of lower metal prices and the higher cost of servicing debts amid rising interest rates.

Since last month, it has been troubled by a road blockade erected by villagers in Peru stemming from a claim for compensation for a pre-existing right of way, that overlaps with a public road on farmland transferred to a community, as part of a resettlement agreement in 2011.


Source: SCMP

https://www.scmp.com/business/companies ... it-tackles
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Re: MMG 1208

Postby winston » Tue Apr 16, 2019 10:17 am

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MMG(1208)

Analysis:
MMG (1208) expects to produce between 462.500 and 485,000 tonnes of copper in copper concentrate and 250,000 to 270,000 tonnes of zinc in zinc concentrate.

According to its projection, Las Bambas is expected to produce between 385,000 and 405,000 tonnes of copper in copper concentrate in 2019, while zinc production from Dugald River will be between 165,000 and 175,000 tonnes of zinc in zinc concentrate.

Las Bambas and Dugald River are now established as top 10 producing mines internationally in copper and zinc respectively.

On 30 November 2018, MMG finalized the sale of its 90% interest in Sepon for US275 million, as part of a strategy to focus the MMG portfolio on long life, quality, base metal mining assets. (I do not hold the above stock)

Strategy:
Buy-in Price: $3.60, Target Price: $4.00, Cut Loss Price: $3.40

Source: Phillips
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Re: MMG 1208

Postby winston » Thu Aug 22, 2019 2:19 pm

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July 23, 2019

<Research Report>G Sachs Trims MMG (01208.HK) TP to $4.6, Rated Buy

Goldman Sachs axed the 2019 earnings forecast for MMG (01208.HK) by 49%, reflecting guidance change on lower production output, higher C1 cost and falling LME copper price.

Equally, the company's 2020E earnings were lowered by 17% to indicate C1 cost surge in Las Bambas.

Hence, MMG was maintained at Buy, with target cut from $5.3 to $4.6.

Source: AAStocks Financial News
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Re: MMG 1208

Postby winston » Fri Mar 06, 2020 7:14 am

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Miner MMG sets up to US$700m capex

Chinese miner MMG (1208) expects 2020 could be the peak year of capital expenditure, which is set to be between US$650 million (US$5.07 billion) and US$700 million, due to expansion in the Las Bambas mining fleet, costs related to the development of Chalcobamba, completion of the third ball mill project and expansion of the Las Bambas tailings dam facility.

The level of capital expenditure is expected to decline in later years, with total capital expenditure estimated at between US$500 million and US$600 million per year in the mid-term, MMG said.

The subsidiary of state-owned China Minmetals last night posted a net loss of US$230.4 million for 2019, compared with a net profit of US$68.3 million a year ago.

This was the result of lower commodity prices, reduced copper sales volumes due to social protests and road blockages near its mine site in Peru, and operational challenges in the first half at Kinsevere.

The company did not declare a dividend for the year.

The miner’s revenue dropped by 22 percent to US$2.01 billion last year, while EBITDA also dropped by 17 percent to US$1.46 billion due to lower sales revenue at Las Bambas and Rosebery and operational challenges at Kinsevere in the first half last year, MMG said said.

The company said over 100 days of community disruption near its site Las Bambas last year resulted in lost production of about 20,000 tons and reduced sales volume of about 70,000 tons.

MMG expects to produce between 418,000 and 445,000 tons of copper and between 225,000 and 245,000 tons of zinc in 2020, slightly below 2019 levels, largely due to lower grades at Las Bambas before the start of mining at the Chalcobamba pit in the second half of 2020, and lower grades at Rosebery.

Source: The Standard

https://www.thestandard.com.hk/breaking ... 700m-capex
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Re: MMG 1208

Postby winston » Tue Mar 30, 2021 11:57 am

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Valuation

Our HK$5.7 TP is based on DCF. Our TP is derived from DCF valuation methodology which assumes 10% WACC and 2% terminal growth rate.

This implies 5.2x P/BV and 7.3x EV/EBITDA based on FY21F earnings.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 208_HK.xml
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Re: MMG 1208

Postby winston » Tue Jun 01, 2021 9:24 am

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MMG (01208.HK) Plans Shr Placing at Discount to Raise Max. $1.7B: Report

MMG (01208.HK) intends to place 400 million shares at $4.12-4.26 per share, which is a discount of 6%-9.1% from the closing price of $4.53 as quoted on Monday (31st), raising up to $1.704 billion, as Bloomberg cited a sales document.

Source: AAStocks Financial News
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Re: MMG 1208

Postby winston » Wed Jun 02, 2021 2:04 pm

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Valuation

Our HK$5.7 TP is based on DCF.

Our TP is derived from DCF valuation methodology which assumes 10% WACC and 2% terminal growth rate.

This implies 5.2x P/BV and 7.3x EV/EBITDA based on FY21F earnings.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 208_HK.xml
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Re: MMG 1208

Postby winston » Mon Mar 28, 2022 1:43 pm

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MMG Ltd (1208 HK): <Results Analysis> Deteriorated 2H21 earnings due to operation disruption in Las Bambas, but outlook is bright [BUY, TP HK$5.30]

2H21 results were dampened by the roadblock in Las Bambas, but were above our expectations

Expect strong earnings in 1H22 on strong copper prices and sales volume growth

Approval for Chalco Bamba and Kinsvere expansion to brighten earnings outlook

The conflict with the local community is a key risk for the company

Source: DBS
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Re: MMG 1208

Postby winston » Mon Mar 28, 2022 2:15 pm

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MMG Ltd (1308 HK) shares rose 9.7% on Friday, after announcing its FY2021 results.

The mining company posted a net profit of $667.1mn for the year compared with a $64.7mn loss in 2020.

Full year revenue was $4.26bn versus $3.03bn the year before.

The company said separately late Thursday that it approved the development of the Kinsevere Expansion Project, which will extend the life of the operation for at least 13 years from 2022.

The total investment amount of $550mn to $600mn will be funded via a combination of debt and available cash reserves, it said.

Source: KGI
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Re: MMG 1208

Postby winston » Wed Apr 06, 2022 2:56 pm

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MMG(1208)

Analysis:
Minerals and Metals Group (MMG) recently released its 2021 results, with its revenue of approximately US$4.255 billion and the growth rate is 40% compared with 2020;

EBITDA of approximately US$2.725 billion with 98% YoY growth rate; and profit after tax is US$920 million during the year, with 16,338% YoY growth rate.

The profit attributable to equity holders of the company has turned from loss into profits reaching US$667 million profit compared with loss US$64.7 million in 2020.

Basic earnings per share were US7.95 cents.

In addition, the board of directors of MMG approved the implementation of the Kinsevere expansion project, which is expected to release 80,000 tons of copper and cobalt and 0.4-0.6 million tons from 2023.

The total investment is 550 million to 600 million US dollars.

First of all, the company`s future performance prospects are optimistic, thanks to the support of abundant production in the future.

Copper-equivalent production increases by approximately 150 thousand tons in 2025 at the Kinsevere expansion project and the Chalcobamba development.

Secondly, corporate balance sheets are strong and thus help support orderly growth opportunities.

At the same time, the company`s copper-cobalt-zinc products can meet the green investment portfolio requirements for a low-carbon economy.

Strategy:
Buy-in Price: $3.28, Target Price: $3.61, Cut Loss Price: $3.10

Source: Phillips
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