Key Points
l
Total recordable injury frequency (TRIF) of 1.59 per million hours
worked for the first quarter in 2020.
l
Total copper production of 91,911 tonnes was 24% below the prior period,
largely due to social and operating disruptions at Las Bambas.
l
At Las Bambas, production levels were impacted in January and February
as a result of repairs to the overland ore conveyor, together with
blockades along Peru’s southern road corridor which temporarily
restricted both inbound and outbound logistics between 27 January and 8
February.
l
Further disruptions to mining and production activity at Las Bambas have
resulted from a nation-wide State of Emergency that was first declared
on 15 March, in response to the COVID-19 outbreak. As a result of the
State of Emergency and other health restrictions, the transport of
concentrates has been suspended, and the movement of people and critical
supplies is significantly restricted.
l
Kinsevere copper cathode production of 18,207 tonnes was in line with
plan for the first quarter and 45% above the comparative period in 2019,
reflecting a shift back to mining at the Central pit.
l
Zinc production of 52,957 tonnes was largely in line with expectations.
l
At Rosebery, zinc production of 17,452 tonnes was 6% below the
prior-year comparative period, reflecting anticipated lower ore grades,
together with lower milling volumes as work continues to enhance mine
flexibility in response to seismic instability at depth.
l
At Dugald River, zinc production of 35,505 tonnes was achieved, with
lower feed grades and temporary recovery challenges impacting the
result.
l
MMG continues to pro-actively respond to the COVID-19 pandemic, working
closely with national authorities in relevant jurisdictions to protect
the health and safety of its employees, host communities and other
stakeholders. To date, no COVID-19 cases have been identified at any MMG
operation.
l
The year-to-date impacts of community disruption and COVID-19 on
production, together with ongoing uncertainty regarding the continued
impact of virus-related constraints, has resulted in the withdrawal of
guidance for Las Bambas.
l
Noting the potential for further impacts and ongoing uncertainty
associated with the COVID-19 outbreak, the Company at this stage
maintains its full year production and C1 cost guidance for Kinsevere,
Dugald River and Rosebery.
l
Positive results continue to be received in relation to drilling
programs around existing operating hubs. Drilling over the first
quarter of 2020 at Las Bambas extends and confirms previously reported
high-grade intercepts (>1%) at the Chalcobamba Southwest Zone, and
significant copper and cobalt assay results were received during the
quarter from drilling programs at Sokoroshe II and Nambulwa, in the
Democratic Republic of Congo.
Table 1: Production Report
|
1Q20 |
1Q20 VS 1Q19 |
1Q20 VS 4Q19 |
YTD20 |
YTD20 VS YTD19 |
Copper cathode (tonnes) |
|
|
|
|
|
Kinsevere |
18207 |
0.45 |
-0.11 |
18207 |
0.45 |
Total |
18207 |
0.45 |
-0.11 |
18207 |
0.45 |
Copper (contained metal in concentrate, tonnes) |
|
|
|
|
|
Las Bambas |
73319 |
-0.28 |
-0.26 |
73319 |
-0.28 |
Rosebery |
385 |
0.02 |
-0.11 |
385 |
0.02 |
Total |
73704 |
-0.28 |
-0.26 |
73704 |
-0.28 |
Zinc (contained metal in concentrate, tonnes) |
|
|
|
|
|
Dugald River |
35505 |
-0.08 |
-0.26 |
35505 |
-0.08 |
Rosebery |
17452 |
-0.06 |
-0.23 |
17452 |
-0.06 |
Total |
52957 |
-0.07 |
-0.25 |
52957 |
-0.07 |
Lead (contained metal in concentrate, tonnes) |
|
|
|
|
|
Dugald River |
4277 |
-0.16 |
-0.37 |
4277 |
-0.16 |
Rosebery |
5666 |
-0.04 |
-0.17 |
5666 |
-0.04 |
Total |
9943 |
-0.09 |
-0.27 |
9943 |
-0.09 |
Molybdenum (contained metal in concentrate, tonnes) |
|
|
|
|
|
Las Bambas |
124 |
-0.76 |
-0.48 |
124 |
-0.76 |
Total |
124 |
-0.76 |
-0.48 |
124 |
-0.76 |
Table 2: Market Price
|
quarter-average |
quarter close |
1Q20 |
4Q19 |
1Q19 |
1Q20 |
4Q19 |
1Q19 |
Copper (US$/lb) |
2.56 |
2.83 |
2.82 |
2.18 |
2.79 |
2.94 |
Gold (US$/oz) |
1583 |
1548 |
1304 |
1607 |
1523 |
1293 |
Lead (US$/lb) |
0.84 |
0.88 |
0.92 |
0.78 |
0.87 |
0.92 |
Molybdenum (US$/lb) |
9.64 |
9.14 |
11.79 |
8.43 |
9.2 |
12.13 |
Silver (US$/oz) |
16.9 |
18.29 |
15.57 |
13.93 |
18.05 |
15.1 |
Zinc (US$/lb) |
0.97 |
1.04 |
1.23 |
0.85 |
1.04 |
1.36 |
Source:
MMG |