Minmetals Resources Reports Significant Revenue Increase in 2023 Amid Copper and Zinc Production

Minmetals Resources announced a 34% year-on-year increase in revenues for 2023, totaling $4.346 billion, despite a 95% decline in profit attributable to shareholders, which stood at $9 million. The company produced 347,000 tons of copper and 203,000 tons of zinc during the year. A notable development was the acquisition agreement for the Homakau mine, marking a significant step in the growth of the company's assets.

Copper production saw a 14% increase from the previous year, largely due to the stable operation of the Bombas mine, which reported a 19% increase in production. This achievement led to the highest beneficiation throughput and the second-highest concentrate sales volume in the mine's history, with over 1.1 million tons of concentrate sold. Additionally, the company made progress in negotiations with the Huancuire community and initiated early work on the Chalcobamba quarry.

Looking ahead to 2024, Minmetals Resources expects copper production from Las Bambas to range between 280,000 and 320,000 tonnes, with Kinsevere's copper cathode production projected between 39,000 to 44,000 tonnes. Zinc production from Dugald River is anticipated to be between 175,000 and 190,000 tonnes of contained zinc.

Despite a rise in the Total Recordable Injury Frequency Rate (TRIF) to 1.97 per million hours worked in 2023, from 1.25 in 2022, the company saw an improvement in safety performance in the fourth quarter, attributing it to better implementation of safety controls at the mines.

The company's strong operational performance resulted in a net profit after tax of $122.1 million for the year. Net cash flow from operations significantly increased to $1.849.9 million, up 122% from 2022, driven by favorable working capital movements and lower tax expenses at Las Bambas and Kinsevere. This robust cash flow contributed to a $783.6 million decrease in net debt, bringing the gearing down to 50%.