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$15339.9m
Last closeHK$2.90
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

Price performance

Relative *0.837.756.7

* % 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 9.5 2.9
2013A 2470.0 750.5 123.0 1.95 19.2 3.0
2014E 2422.6 687.4 113.0 1.80 20.8 2.9
2015E 2310.3 669.2 122.0 1.95 19.2 2.9

Last updated on 26/08/2014

Latest research

Investment summary

On 1 August, MMG announced completion of the acquisition of the Las Bambas copper project from Glencore. Earlier, the company reported Q214 operating results, with zinc and lead production rising 2% q-o-q (136.3kt) and 44% (26.8kt), and copper output sliding 12% (43.4kt). At the project level, Kinsevere maintained record production levels, with H114 copper volumes rising 13% y-o-y to 33.6kt on the back of higher throughput and grades. MMG has also revised its FY14 production guidance from 173-186kt to 177-190kt for copper and from 600-625kt to 580-605kt for zinc. Based on the mid-point, this is a 2% improvement for copper and a 4% reduction for zinc. On the cost side, FY14 C1 cost guidance for Kinsevere and Sepon remains unchanged, while cost estimates for Century and Golden Grove were reduced by 3% for the former and 7% (copper)/21% (zinc) for the latter.

Last updated on 01/09/2014

Industry outlook

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

Last updated on 01/09/2014

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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