MMG (1208)

Business description

MMG is a mid-tier global resources company that explores, develops and mines base metal deposits around the world. Its headquarters are in Melbourne, Australia, and it is listed on the Hong Kong Stock Exchange.

Share price chart

Share chart

Stock data

Market cap.HK$11425.5m
Last closeHK$2.16
High / Low (52 weeks)HK$3.2 / HK$1.2
Stock market listingHK
Forecast net debt (US$m)1385
Forecast gearing ratio (%)73
TeamResources - Mining

Price performance

Relative *(7.7)(20)51.5

* % 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 2499.0 738.0 234.0 4.0 7.0 2.2
2013A 2470.0 751.0 123.0 2.0 13.9 2.2
2014E 2413.0 748.0 138.0 2.2 12.7 1.9
2015E 2166.0 720.0 139.0 2.2 12.7 2.0

Last updated on 25/02/2015

Investment summary

MMG delivered robust Q414 and FY14 operating results, achieving record copper production and demonstrating strict cost control at the C1 level. The company’s Q414 copper and zinc sales increased 27% q-o-q and 104% q-o-q to 56.4kt and 181.7kt respectively, while lead sales jumped 156% q-o-q to 30.2kt. In FY14, MMG sold 193kt of copper, up 2.9% on FY13, and 525kt of zinc, up 6.4% y-o-y. C1 cash costs for all operations were towards the lower end of guidance. The company sees FY15 copper production at 166-181kt, while zinc output is guided in the 440-510kt range. Based on the averages, this is 8% and 19% lower compared to the reported FY14 numbers. While zinc production will be affected by the decommissioning of the Century mine, lower copper output expectations are a result of the more challenging mining and processing conditions at Sepon and Kinsevere.

Last updated on 02/03/2015

Industry outlook

We expect the copper price to gradually recover following the end of the Chinese New Year holiday, as seasonal market activity improves.

Last updated on 02/03/2015

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
VIC 3006
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