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

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Stock data

Market cap.HK$14017.5m
Last closeHK$2.65
High / Low (52 weeks)HK$3.2 / HK$1.2
Stock market listingHK
Forecast net debt (US$m)1386
Forecast gearing ratio (%)74
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(8)(2.6)50.6
Relative *(5.8)(1)50.0

* % 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 8.4 2.6
2013A 2470.0 750.5 123.0 1.95 17.0 2.6
2014E 2422.6 687.4 113.0 1.80 18.4 2.5
2015E 2310.3 669.2 122.0 1.95 17.0 2.6

Last updated on 25/09/2014

Latest research

Investment summary

MMG reported strong H114 financials as higher production offset a mixed commodity price performance and costs were under control. Despite lower copper and lead prices, total revenue was virtually unchanged at US$1,194m, supported by a 12% y-o-y increase in payable metal sales in Cu equivalent. At the same time, H114 EBITDA increased by 21% y-o-y to US$365m on the back of a 17% reduction in total direct cash operating expense (a 26% fall in unit terms). At project level, the best cost performance was achieved at Century, which saw a 17% drop in cash operating costs, resulting in an 181% jump in EBITDA. Overall, if annualised, the reported total operating expense is in line with our FY14 forecast. However, given our conservative commodity price assumptions, the risk to our FY14 earnings estimates is on the upside. We will update our forecasts after the Q3 operating results and Las Bambas update due on 16 October.

Last updated on 30/09/2014

Industry outlook

Copper and zinc prices remain strong, supported by tight supply-demand fundamentals.

Last updated on 30/09/2014

Key management

Jiao Jian, 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
Southbank
VIC 3006
Australia
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