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

Table 2: Market Price

Source: MMG