Metals Acquisition Reports Record Quarterly Copper Production and Increased Cash Flow for June 2024

Metals Acquisition has released its quarterly activities report for June 2024, highlighting significant achievements and operational improvements.

Key Highlights:

• Safety Performance: The Total Recordable Injury Frequency Rate (TRIFR) rose to 14.4 quarter on quarter, but remediation strategies were implemented, resulting in zero recordable injuries for the month of June.
• Record Copper Production: Under MAC ownership, copper production reached a record 10,864 tonnes, a ~24% increase quarter on quarter. June alone saw a record production of 5,378 tonnes, and the highest daily production since 2021 at 265 tonnes per day. This record was achieved despite a major planned maintenance shutdown in April, which saw 1,583 tonnes produced for the month, and a combined 9,281 tonnes over May and June.
• Improved Copper Grades: The copper grade for the quarter was 4.2%, a ~20% increase from the previous quarter, attributed to a shift in the mine plan to higher grade stopes and better dilution control.
• Cost Efficiencies: C1 costs improved by ~11% to US$1.92/lb and Total Cash Costs by ~17% to US$2.62/lb compared to the March quarter, driven by better production outcomes from grade, operational efficiencies, and consistency improvements.
• 2024 Production Outlook: Copper production for 2024 is tracking to the mid-point of guidance with no changes to 2025 and 2026 guidance.

Financial Performance:

• Free Cash Flow: Operational free cash flow for the quarter was approximately US$21 million, with an average realised copper sales price of US$4.41/lb, closely matching the Q2 copper spot average of US$4.42/lb.
• Increased Cash Reserves: Cash and cash equivalents rose by ~25% to US$88.6 million after pre-sales of US$37.4 million, a one-off Stamp Duty payment of US$23.2 million, and the repayment of US$7.9 million in senior debt.