Group 1 - In August 2025, China's copper material production reached 2.222 million tons, representing a year-on-year increase of 9.8% [1] - From January to August 2025, the cumulative production of copper materials was 16.598 million tons, with a year-on-year growth of 10.7% [1] - The refined copper (electrolytic copper) production in August 2025 was 1.301 million tons, showing a year-on-year increase of 14.8% [1] Group 2 - The cumulative refined copper production from January to August 2025 totaled 9.891 million tons, reflecting a year-on-year increase of 10.1% [1]

Group 1 - The core viewpoint of the report indicates that China's refined copper (electrolytic copper) production in July 2025 reached 1.27 million tons, representing a year-on-year increase of 14% [1] - Newly commissioned smelters are rapidly increasing their capacity utilization, while previously underperforming smelters are resuming production; however, some smelters are experiencing slight reductions in output due to tightening supply of raw materials [1] - In August, only one smelter had maintenance plans, and the reduction in output due to maintenance was minimal; however, the number of smelters reducing production due to tight supply of copper concentrate and raw materials increased compared to July [1] Group 2 - The end of maintenance and the ongoing ramp-up of newly commissioned smelters in East China are expected to stimulate production [1]

Investment Rating - Industry Rating: Recommended [5] Core Insights - The report highlights a significant increase in copper production for Q2 2025, with a year-on-year growth of 40.3% to 57,416 tonnes, primarily driven by increased output from Mantoverde and Mantos Blancos [1][2] - The C1 cash cost for copper in Q2 2025 was reported at $2.45 per pound, a decrease of 12.5% year-on-year, attributed to higher production volumes and lower production costs [2] - The average realized copper price in Q2 2025 was $4.39 per pound, reflecting a 3.1% decline year-on-year but a 0.7% increase quarter-on-quarter [2] Production and Operational Performance - Q2 2025 copper sales reached 53,977 tonnes, marking a 35.8% increase year-on-year, although it fell short of production by approximately 1,800 tonnes due to sales scheduling at Mantos Blancos [1] - The report indicates that the total sulphide production for Q2 2025 was 47,086 tonnes, compared to 30,374 tonnes in Q2 2024, showcasing a robust operational performance [10] - The report also details the production costs for various sites, with Mantoverde's C1 cash cost at $1.51 per pound and Mantos Blancos at $1.87 per pound [10] Financial Performance - The company reported revenues of $543.2 million for Q2 2025, a 38.2% increase year-on-year [3][13] - Net income attributable to shareholders for Q2 2025 was $30 million, a 9.1% increase compared to the previous year, recovering from a loss of $1.2 million in Q1 2025 [3][13] - Adjusted EBITDA for Q2 2025 was $215.6 million, reflecting a 75.1% increase year-on-year, driven by higher sulphide production [3][13] Debt and Liquidity - As of March 31, 2025, net debt stood at $788.1 million, slightly up from $742 million at the end of 2024, primarily due to working capital changes [4][8] - By June 30, 2025, net debt decreased to $691.9 million, indicating improved liquidity and financial management [8] 2025 Guidance - The company reaffirmed its 2025 guidance for total copper production between 220,000 to 250,000 tonnes, with C1 cash costs projected between $2.20 to $2.50 per pound [9] - Capital expenditures are expected to be $315 million, with exploration spending set at $25 million [9]

Group 1 - The core viewpoint is that Peru's mining sector is expected to see significant investment and production growth in the current year [1] Group 2 - Mining investment in Peru is projected to reach $4.8 billion this year [1] - Copper production in Peru is anticipated to reach 2.8 million tons this year [1]