MMG (1208)

Business description

MMG is a mid-tier global resources company that explores, develops and mines base metal deposits. It is headquartered in Melbourne, Australia, and listed on the Hong Kong Stock Exchange.

Share price chart

Share chart

Stock data

Market cap.HK$14334.8m
Last closeHK$2.710
High / Low (52 weeks)HK$2.8 / HK$1.2
Stock market listingHKSE
Forecast net debt (US$m)1386
Forecast gearing ratio (%)74
TeamResources - Mining

Price performance

Relative *35.131.929.6

* % Relative to local index

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Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2012A 2499.4 737.9 234.0 3.95 8.8 2.7
2013A 2470.0 750.5 123.0 1.95 17.9 2.8
2014E 2422.6 687.4 113.0 1.80 19.4 2.7
2015E 2310.3 669.2 122.0 1.95 17.9 2.7

Last updated on 14/07/2014

Latest research

Las Bambas valuation revisite

Update | Mining | 14/07/2014

Pricing in the Las Bambas potential

Update | Mining | 30/04/2014

Proposed Las Bambas acquisition

Flash note | Mining | 15/04/2014

Strong results, weak sentiment

Update | Mining | 13/03/2014

Forecasts and valuation revised

Update | Mining | 17/01/2014

Century and Dugald River update

Flash note | Mining | 20/12/2013

Gold operations cease at Sepon

Update | Mining | 20/11/2013

Pursuing growth opportunities

Initiation | Mining | 22/10/2013

Investment summary

We believe that the Las Bambas acquisition is value accretive for MMG on both NPV and multiples. Our revised valuation of Las Bambas is US$6.9bn or US$1.0bn adjusted for the acquisition cost. Based on our estimates, the deal would put the combined company on a 2016e EV/EBITDA of 3.1x. This compares to MMG’s standalone multiple of 5.5x. We believe the deal is not fully priced in and expect the re-rating of MMG shares to continue.

Last updated on 14/07/2014

Industry outlook

We expect the copper price to remain under moderate pressure due to the growing supply and slower growth in China.

Last updated on 30/06/2014

Key management

Wang Lixin, Chairman
Andrew Michelmore, CEO
David Lamont, CFO
Colette Campbell , Head of IR
Maggie Qin, Head of Corporate Affairs
Marcelo Bastos, COO

Company address

Level 23
28 Freshwater Place
VIC 3006
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