Financial Performance - EBITDA for 2021 reached $2,725.4 million, an increase of 98% compared to 2020[7] - The company’s revenue for the year ended December 31, 2021, was $4,255.0 million, a 40% increase from $3,033.7 million in 2020[46] - Net profit attributable to equity holders was $667.1 million, compared to a loss of $64.7 million in 2020, marking a 1,131% change[48] - The net profit before tax reached $1,503.8 million, a significant increase of 2,770% from $52.4 million in 2020[46] - The company reported a total of 770 million tons of copper from Ferrobamba, with a significant increase in production efficiency noted[26] - The company achieved a copper recovery rate of 0.63 grams per ton in Sulfobamba, indicating a stable performance[26] - The company reported a significant increase in revenue, achieving a total of $1.5 billion for the fiscal year, representing a 15% year-over-year growth[146] Production and Operations - In 2021, total copper production was 339,681 tons, a 12% decrease from 2020, while zinc production increased by 2% to 249,767 tons due to strong performance at Dugald River and Rosebery[15] - The company expects copper production from Las Bambas to be between 300,000 and 320,000 tons in 2022, following the development of the Chalcobamba pit[15] - The Kinsevere expansion project is projected to produce 45,000 to 50,000 tons of electrolytic copper in 2022, enhancing the mine's lifespan[15] - Zinc concentrate production from Dugald River and Rosebery is expected to be between 225,000 and 255,000 tons, indicating stable production prospects[15] - The total processed ore in 2021 was 48,476,799 tons, a 7% increase from the previous year[65] - Las Bambas produced 290,097 tons of copper in 2021, a decrease of 20,923 tons (7%) compared to 2020 due to lower average ore grades and a two-week shutdown caused by community roadblocks[67] Financial Position and Debt Management - Net debt decreased by $1,952.8 million, with the debt ratio dropping from 73% in 2020 to 56% in 2021[7] - The company raised $299.0 million from a capital issuance completed in June 2021, strengthening its balance sheet[7] - Total liabilities decreased by $532.2 million to $9,096.1 million as of December 31, 2021[92] - The company reported a total equity increase of $1,258.3 million to $3,928.0 million, primarily due to annual profits of $920.5 million[92] - The debt-to-equity ratio improved to 0.56 in 2021 from 0.73 in 2020, indicating a stronger financial position[93] Strategic Initiatives and Growth Plans - The company aims to achieve net-zero carbon emissions by 2050, with a mid-term target of reducing emissions by 40% by 2030[8] - The company is focused on two clear organic growth projects: the Chalcobamba project and the Kinsevere expansion project, which will strengthen operations in key regions[18] - The company plans to assess growth opportunities to expand its current portfolio, particularly in Australia, where exploration results remain promising[18] - The company plans to allocate approximately 50% of the net proceeds from the share placement, amounting to about $1,160.56 million, for potential future acquisitions or projects[97] - The company is focused on extending the operational life of its key assets, with ongoing resource expansion and near-mine exploration drilling planned for 2022[143] Environmental, Social, and Governance (ESG) Practices - The company is committed to maintaining positive partnerships with local communities and contributing to economic development[8] - Ongoing research and development efforts are focused on sustainable mining practices to reduce environmental impact[26] - The management discussed the importance of environmental, social, and governance (ESG) practices in their operations[30] - The company has confirmed that it is committed to environmental, social, and governance (ESG) practices, as outlined in its reports[164] Market and Commodity Prices - The average LME cash price for copper increased by 51% to $9,315 per ton in 2021, compared to $6,169 per ton in 2020[54] - The company reported a 40% increase in copper revenue, totaling $3,050.4 million, up from $2,178.6 million in 2020[50] - The average copper price assumption for ore reserves was $3.28 per pound, while for mineral resources it was $3.68 per pound[39] Exploration and Resource Management - The resource and ore reserves report as of June 30, 2021, indicates a slight decrease in copper resources due to better understanding of the ore body, while zinc resources showed a mild increase[25] - The company is actively exploring new mining sites to expand its resource base and enhance production capabilities[26] - The company is focusing on expanding its mineral resources through exploration and development of existing projects[30] Tax and Regulatory Matters - The company is currently facing tax audits from the Peruvian tax authority (SUNAT) related to withholding tax assessments for the years 2014, 2015, and 2016, with potential liabilities amounting to approximately $58.3 million, $159.4 million, and $199.3 million respectively[137] - The company is actively managing tax audits and has appealed to relevant tax authorities regarding uncertain tax matters, with provisions raised to cover potential liabilities[138] Corporate Governance - The company has committed to maintaining high standards of corporate governance through effective internal controls and transparency to all shareholders[197] - The board consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors[198] - The company has adopted a set of standards for directors' securities trading, which are stricter than the standard code[198]

Production and Operations - In 2018, the company produced 466,475 tons of copper and 223,041 tons of zinc, maintaining stable operations across its mines[16]. - The company expects to produce between 462,500 and 485,000 tons of copper and between 250,000 and 270,000 tons of zinc in 2019[16]. - The Dugald River mine achieved commercial production ahead of schedule, with expected zinc production of 165,000 to 175,000 tons in 2019[16]. - The Las Bambas mine is projected to produce over 2 million tons of copper in its first five years of operation[16]. - The total production from Dugald River since its commercial production began on May 1, 2018, partially offset the decline in Las Bambas sales[60]. - Las Bambas expects to produce 385,000 to 405,000 tons of copper concentrate in 2019, with mining and development rates anticipated to increase[77]. - Dugald River achieved commercial production on May 1, 2018, with a zinc concentrate production forecast of 165,000 to 175,000 tons for 2019[87]. - Kinsevere processed 2,407,267 tons of ore in 2018, a 6% increase from 2,274,305 tons in 2017, while copper production slightly decreased by 1% to 79,711 tons[79]. Financial Performance - The total revenue for the company in 2018 was 36.7 billion yuan, with a net profit of 137.4 million dollars, representing a year-on-year growth of 16.5%[10]. - In 2018, MMG achieved EBITDA of $1,751.2 million, a decrease of 16% compared to 2017, primarily due to a decline in copper production at Las Bambas[17]. - The company's revenue for the year ended December 31, 2018, was $3,670.2 million, a decrease of 2% compared to $3,751.3 million in 2017[54]. - EBITDA for the same period was $1,751.2 million, down 16% from $2,090.8 million in 2017[54]. - The net profit attributable to equity holders for the year was $68.3 million, a decline of 54% from $147.1 million in 2017[57]. - The company reported a 64% decrease in net profit from Las Bambas, amounting to $119.6 million compared to $336.8 million in 2017[57]. - The company experienced a decrease in copper revenue by 10% to $2,839.2 million from $3,159.0 million in 2017[61]. - The company reported a significant increase in other income, reaching $27.1 million compared to a loss of $77.2 million in 2017[54]. Cost Management and Efficiency - The company aims to enhance operational efficiency and reduce the debt-to-equity ratio to create shareholder value[14]. - Cost-saving measures at Las Bambas resulted in annual savings of $95 million, while corporate support expenses were reduced to $45.9 million[19]. - The average C1 cost for 2018 was reported at $1.18 per pound, compared to $0.99 per pound in 2017[77]. - The total operating expenses increased by $227.7 million (14%) in 2018, largely due to $160.7 million in operating costs from Dugald River since its commercial production began[67]. - Administrative expenses decreased by $45.9 million (56%) due to cost and efficiency improvement initiatives[68]. - The company plans to implement cost-saving measures projected to reduce operational expenses by 5%[126]. Safety and Environmental Management - The company achieved a record low Total Recordable Injury Frequency (TRIF) of 1.00 in 2018, a decrease of 14.5% from 1.17 in 2017[15]. - The company is committed to improving safety management and ensuring employee health and safety as a top priority[15]. - The management emphasized the importance of ESG practices, aiming to improve sustainability and corporate governance standards[124]. - The company aims to achieve carbon neutrality by 2025, aligning with global sustainability trends[131]. Resource Management and Exploration - The company has established regulatory processes for estimating and reporting mineral resources and ore reserves, with a focus on quality and integrity[24]. - The total mineral resources amount to 63.3 million tons for Dugald River, with 56.7 million tons classified as total resources[30]. - The company continues to focus on resource expansion and exploration activities across its mining assets[30]. - The company plans to continue exploring new mining opportunities and optimizing existing operations to enhance resource recovery[39]. - The company has identified several potential copper-cobalt targets in the vicinity of the Kinsevere mine, including the Nambulwa, Mwepu, and Maga West projects[1]. Debt and Financing - The company's debt was reduced by $733.4 million in 2018, resulting in a debt-to-equity ratio decrease from 74% at the end of 2017 to 72% at the end of 2018, attributed to strong cash flow[17]. - As of December 31, 2018, borrowings related to the group amounted to approximately $5,396.48 million, down from $6,330.9 million in 2017[121]. - Approximately $4,697.35 million of the borrowings were secured debts as of December 31, 2018[121]. - The company has ongoing related party transactions, including agreements with Minmetals North-Europe and CITIC, which require independent shareholder approval[185]. Corporate Governance and Management - The company’s board of directors confirmed their independence in accordance with the listing rules[143]. - The board consists of nine members, including two executive directors, three non-executive directors, and four independent non-executive directors[200]. - The company emphasizes board diversity as a key element for sustainable and balanced development, considering factors such as gender, age, culture, and professional experience[200]. - The company has adopted a board diversity statement to enhance performance quality through diverse board composition[200]. - The independent auditor confirmed that there were no issues regarding the related party transactions for the year ending December 31, 2018[191]. Market Outlook and Strategic Initiatives - MMG remains confident in the outlook for copper and zinc, despite anticipated market volatility due to global political and economic uncertainties[20]. - The company plans to focus on high-quality, large-scale, and low-cost asset combinations following the sale of 90% of its interest in the Sepon mine for 275 million dollars[10]. - The company is focusing on expanding its market presence, particularly in emerging markets, to drive future growth[124]. - Future guidance indicates an expected revenue growth of Z% for the upcoming fiscal year, driven by increased production and market expansion efforts[124].