MMG Limited | 五礦資源有限公司

Incorporated in Hong Kong with limited liability STOCK CODE:1208

ANNOUNCEMENT ON
ANNUAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2023

The Board of Directors (Board) of MMG Limited (Company or MMG) is pleased

to announce the consolidated results of the Company and its subsidiaries
(Group) for the year ended 31 December 2023.

The financial information set out in this announcement does not constitute the
Group’s complete set of the consolidated financial statements for the year
ended 31 December 2023, but rather, represents an extract from those
consolidated financial statements.

The financial information has been reviewed by the Company’s Audit and Risk
Management Committee and the Company’s auditor.

The audited consolidated results of the Group are annexed to this

announcement.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no
responsibility for the contents of this announcement, make no representation as to its accuracy
or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising
from or in reliance upon the whole or any part of the contents of this announcement.

1
MMG RESULTS FOR THE YEAR ENDED 31
DECEMBER 2023

KEY POINTS

• In a tragic start to 2023, two people, employed through our mining contractor Barminco at our
Dugald River mine, lost their lives after a light vehicle they were travelling in fell into a stope on 15
February 2023. We will continue to take every effort to promote a safe workplace and culture and
to ensure every person returns safely home to their loved ones.
• MMG recorded a Total Recordable Injury Frequency (TRIF) of 1.97 per million hours worked for the
full year 2023, an increase compared to the full year 2022 TRIF of 1.25. Despite the overall increase
in TRIF for the year, the fourth quarter TRIF of 1.13 showed a significant improvement, with all sites
demonstrating better execution of safety controls.
• MMG recorded a net profit after tax of US$122.1 million, including a profit of US$9.0 million
attributable to equity holders of the Company. This compared to a net profit after tax of US$243.5
million in 2022, including a profit of US$172.4 million attributable to equity holders.
• MMG achieved an increase in net cash flow from operations, totalling US$1,849.9 million,
representing growth of 122% compared to 2022. This performance is primarily attributed to
favourable working capital movements with a copper concentrate inventory drawdown at Las
Bambas compared to a build-up in 2022. Lower tax payments for Las Bambas and Kinsevere also
contributed positively.
• Driven by strong cashflows, the Company reduced net debt levels by US$783.6 million, reducing
gearing ratio by 5% to 50% at the end of 2023.
• Revenue increased by US$1,092.3 million (34%) for the period, primarily driven by higher sales
volumes from Las Bambas, which more than offset the impact of lower copper and zinc prices.
• The Company’s total EBITDA of US$1,461.9 million was 5% lower than 2022. This decline was
attributed to lower prices for copper and zinc, lower sales at Kinsevere and Dugald River and higher
consumption of third-party ores at Kinsevere to offset reduced oxide ore mined during the
transition to mining sulphide ores. Higher sales volumes at Las Bambas contributed positively but
were partly offset by an unfavourable stock movement.
• Las Bambas EBITDA of US$1,396.7 million was 24% higher than 2022. This result was largely due
to higher sales of copper and molybdenum due to stable logistics since March 2023 compared to
2022. This was partly offset by lower copper prices and higher operating expenses due to higher
material mined and milled volumes and unfavourable stock movement with a drawdown in copper
concentrate inventory.
• Kinsevere recorded a negative EBITDA of US$32.0 million, compared to the positive US$131.7
million recorded in 2022. The downturn was primarily attributed to lower copper sales volumes in
line with lower production and lower copper prices. Kinsevere production of 44,068 tonnes of
copper cathode was 10% lower than 2022 due to lower oxide ore feed grade and unstable power
supply from the national grid affecting ore milled throughput. The mine’s operating expenses
increased by 21% mainly driven by higher consumption of third-party ores.
• Dugald River recorded an EBITDA of US$33.8 million during 2023, 84% lower than 2022 due to
lower production following a 34-day suspension of operations caused by the fatal incident in
February, lower zinc prices and unfavourable stock movement.
• Rosebery EBITDA of US$77.8 million represented a 21% decrease from 2022 due to lower zinc
prices, partly offset by higher sales volumes for zinc and higher precious metal prices.
• MMG remains committed to working closely with the Government of Peru and community members
for transparent and constructive dialogue. Discussions with the Huancuire community have
advanced and five contracts with community companies have been signed. These companies have
now commenced early works at Chalcobamba.

2
MMG RESULTS FOR THE YEAR ENDED 31
DECEMBER 2023 CONTINUED

KEY POINTS
• The construction of the Kinsevere Expansion Project, which includes the transition to mining and
processing sulphide ores and the commencement of cobalt production, remains on track. The
cobalt plant was commissioned in the fourth quarter, and the first production of cobalt hydroxide
was achieved. The new tailing storage facility was commissioned to support the cobalt plant ramp-
up. Progress has also been made in the installation of the concentrator and the roaster, gas cleaning
and acid plant for copper production from sulphide ore.
• Total capital expenditure for 2023 was $790.0 million, in line with our guidance, including $268.9
million on the Kinsevere Expansion Project and $332.6 million at Las Bambas.
• On 21 November 2023, MMG announced that it entered into a Share Purchase Agreement on 20
November 2023 to acquire the Khoemacau Mine in Botswana for US$1,875.0 million. The
Khoemacau Mine is a large, long-life copper mine located in northwest Botswana, in the emerging
Kalahari Copperbelt. The Khoemacau Mine’s 4,040 km2 tenement package hosts the 10th largest
African copper Mineral Resource by total contained copper metal and is one of the largest copper
sedimentary systems in the world outside of the Central African Copperbelt.
• The Board did not recommend the payment of a dividend for the period.
Outlook
• Las Bambas copper production for 2024 is expected to be in the range of 280,000 and 320,000
tonnes. This is largely in line with 2023 but is subject to the timing of the development of
Chalcobamba. Las Bambas C1 costs in 2024 are expected to be in the range of US$1.60 –
US$1.80/lb, representing an increase compared to 2023 primarily due to higher ore mined and
milled volumes and lower by-product credits related to lower molybdenum price assumptions.
• Kinsevere copper cathode production for 2024 is expected to be in the range of 39,000 and 44,000
tonnes. This range reflects the declining supply of Kinsevere oxide ore due to the transition from
the mining of oxide to sulphide ores. The supply from Sokoroshe II is expected to increase and will
compensate for the reduced oxide ore mined from the Kinsevere main pit. C1 costs in 2024 are
expected to be in the range of US$2.80 – US$3.15/lb, an improvement from 2023 due to by-product
credits from cobalt and an increase in the supply of ore mined from Sokoroshe II to reduce the
reliance on third-party ore.
• The focus for the Kinsevere Expansion Project will be on the ramp-up of the cobalt plant and
completing the installation of the concentrator and the roaster, gas cleaning and acid plant as well
as operational readiness-related work. The first production of copper cathode from sulphides is
expected in the second half of 2024, and a full ramp-up is expected in 2025.
• Dugald River zinc production for 2024 is expected to be in the range of 175,000 and 190,000 tonnes
of zinc in zinc concentrate. This is a substantial improvement over 2023 which was impacted by
the suspension of operations in the first quarter of 2023. C1 costs in 2024 are expected to be in
the range of US$0.70 – US$0.85/lb, an improvement from 2023 reflective of the increased
production as well as lower anticipated zinc treatment charges in 2024.
• Rosebery zinc production for 2024 is expected to be in the range of 50,000 to 60,000 tonnes of
zinc in zinc concentrate. Including the contribution of by-product metals, zinc equivalent production
is expected to be in the range of 115,000 to 130,000 tonnes. C1 costs for 2024 are expected to be
in the range of US$0.10 - US$0.25/lb. This is an improvement over 2023 due to higher anticipated
production levels and lower zinc treatment charges.
• Total capital expenditure in 2024 is expected to be between US$800 million and US$900 million.
US$400-450 million is attributable to Las Bambas, including the expansion of the Las Bambas
tailings dam facility, Ferrobamba pit infrastructure and Chalcobamba execution. At Kinsevere,
capital expenditure related to the Kinsevere Expansion Project is expected to be US$250-300
million.

3
MMG RESULTS FOR THE YEAR ENDED 31
DECEMBER 2023 CONTINUED

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %

US$ MILLION US$ MILLION FAV/(UNFAV)

Revenue 4,346.5 3,254.2 34%

EBITDA 1,461.9 1,535.4 (5%)
EBITDA margin 34% 47%
EBIT 531.7 745.3 (29%)
Profit for the year before income tax 189.6 460.5 (59%)
Profit after income tax for the year 122.1 243.5 (50%)
Net cash generated from operating activities 1,849.9 832.1 122%
Dividend per share - - n/a
Basic earnings per share US 0.10 cents US 2.00 cents
Diluted earnings per share US 0.10 cents US 1.98 cents

4
CHAIRMAN’S LETTER

Dear Shareholders,

I am pleased to present the 2023 Annual Report which is my first as the Chair of the Company. After
six years on the Executive Committee and as a Director since May 2009, I am delighted to have the
opportunity, together with the Management Team, to drive the future success of the business.

Safety, our first value

First, let me start with our safety performance. At MMG, safety is our first value and we continue to
place significant effort on eliminating fatalities and serious injuries from our workplaces. However, I am
deeply saddened by the deaths of Barminco contractors Mr Trevor Davis and Mr Dylan Langridge at
Dugald River in February 2023. I offer my sincere condolences to their families and friends. This incident
serves as a sad and lasting reminder of the paramount importance of safety, and our commitment to
eliminate injuries and fatalities across MMG. In 2024, we will maintain a close focus on learning from
incidents and particularly significant events with energy exchange. We will continue to take a proactive
approach to risk management and field task observations to ensure that we are actively reducing risks
for our people. Nothing is more important than ensuring our people can return home safely to their
families and friends.

Strategy and Portfolio

While 2023 has presented challenges with price fluctuations in our core commodities, the medium and
long-term outlook for our products remains very strong. Global trends such as urbanisation,
decarbonisation and electrification will continue to drive demand for copper and zinc. China also
remains deeply committed to a strong decarbonisation agenda domestically and is actively advancing
clean energy technologies which are very supportive of the mining sector. The need for minerals that
are critical to the energy transition will continue to grow and evolve and will require many sources of
investment, technology and manufacturing capability - with China to remain a key partner. As a
producer with a commitment to the highest operating standards, and as an active member of the
International Council on Mining and Metals, MMG remains an important international growth platform
for our major shareholder, China Minmetals Corporation (CMC).

CMC’s support has enabled us to enter into a Share Purchase Agreement to acquire the Khoemacau
Mine in Botswana in November 2023. This acquisition reaffirms our commitment to build a portfolio of
high-quality mines and aligns to our vision of creating a leading international mining company for a low
carbon future. Khoemacau is a high-quality operating mine with a very robust expansion case and is
located in one of the most prospective mining regions in Africa, the Kalahari Copperbelt. This
acquisition is closely aligned to our strategy of delivering long-term value for shareholders by pursuing
value-accretive external opportunities while continuing to focus on pursuing organic growth
opportunities across our existing asset base.

Across the entire MMG portfolio we have also continued to focus on growth drilling and on progressing
the key development projects which include the Chalcobamba development at Las Bambas and the
Kinsevere Expansion Project. I am pleased to report that we have made steady progress on both
throughout 2023.

In Peru, we have worked closely with the Government of Peru and community members in transparent
and constructive dialogue. Discussions with the Huancuire community have continued to progress and
we have signed agreements with a number of community companies which have been able to
commence early works at Chalcobamba. While we have not yet reached final agreements with the
community, we remain positive regarding progress as we work together to share the success of Las
Bambas.

5
CHAIRMAN’S LETTER CONTINUED

The construction of the Kinsevere Expansion Project, which will enable us to transition to mining
sulphide ores and introduce cobalt into our product portfolio, remains on track. We were pleased to
celebrate the commissioning of the cobalt plant in the fourth quarter of the 2023, having achieved the
first production of Kinsevere’s cobalt hydroxide. The new tailings storage facility at site was also
commissioned to support cobalt production and progress has been made in the installation of the
concentrator and roaster as well as the gas cleaning and acid plant to support copper production from
sulphide ore.

Executive team changes

In February 2024, we welcomed the appointment of Mr Song Qian as the Executive General Manager
Finance, following the retirement of Chief Financial Officer Mr Ross Carroll who will depart the business
in July 2024.

Mr Qian brings to MMG significant experience within CMC where he has held a number of senior
executive roles, most recently as the Chief Financial Officer of Minmetals Innovative Investments Co.
Mr Qian was also employed by the Company from 2010 to 2012 and has a strong understanding of the
MMG business.

In early 2024, we further undertook a review of executive portfolios and realigned a number of
executive accountabilities. As part of this process, we have created a new role of Executive General
Manager Operations to integrate group operational accountability and excellence. Mr Nan Wang,
formerly Executive General Manager Australia and Africa, has been appointed and commenced in this
role on 1 February 2024.

A new position of Executive General Manager Commercial and Growth has been created to focus on
strategy, projects, mergers and acquisitions with the Interim Chief Executive Officer performing this
role until the recruitment process is completed.

On behalf of the Board, I extend my gratitude to Mr Carroll for his valuable contributions to the Company
since he joined MMG in late 2015.

Conclusion
Finally, in 2024 we will continue to focus our efforts on driving strong operational performance and
excellence in project delivery across the business.

Our success would not be possible without our people or the support of our shareholders. On behalf of
the Board, I extend my gratitude to our people for their commitment and contributions and we thank
our shareholders, partners and communities for their ongoing support.

XU Jiqing
CHAIRMAN

6
CHIEF EXECUTIVE OFFICER’S REPORT

Dear Shareholders,
I am pleased to present our 2023 Annual Report.
Safety
At MMG, our first value is safety.
In a tragic start to 2023 two people, employed through our mining contractor Barminco at our Dugald
River mine, lost their lives after a light vehicle they were travelling in fell into a stope on 15 February
2023.
The loss of Dylan Langridge and Trevor Davis has had a profound impact on us all and our united focus
remains on doing everything we can to promote a safe workplace and culture and to ensure every
person returns safely home to their loved ones.
MMG’s total recordable injury frequency (TRIF) was 1.97 for the full year 2023, which is higher than the
full year 2022 result of 1.25. We recognise there is still significant room for improvement – particularly
in reducing significant potential incidents - and during the fourth quarter we saw a significant reduction
in injury rates.
Operational performance
Overall, our sites have delivered strong results with production and cost performance, in line with or
exceeding our updated guidance.
In 2023, MMG produced 347,264 tonnes of copper (copper cathode plus copper in concentrate) and
203,470 tonnes of zinc (zinc in concentrate).
Copper production in 2023 was 14% higher than in 2022 driven by uninterrupted operations at Las
Bambas. This result further demonstrates the site’s strong operational performance throughout the
year which included achieving a record in milled ore throughput and the second highest annual sales
volume, with over 1.1 million tonnes of concentrate sold.
Copper production at the Kinsevere mine was 10% lower than in 2022 largely due to unstable power
supply from the national grid. Construction of the Kinsevere Expansion Project continues to advance
with the cobalt plant commissioned in the fourth quarter.
Zinc production at Dugald River mine was 12% lower than in 2022, due to the impact of suspension of
operations in the first quarter.
Annual production at Rosebery mine was 1% above 2022 levels, largely driven by the mining sequence
with the ore mined and milled volume results in the fourth quarter the highest for the year.
Financial performance
In 2023, MMG recorded a net profit after tax of US$122.1 million, including a profit of US$9.0 million
attributable to equity holders of the Company. This compared to a net profit after tax of US$243.5
million in 2022, including a profit of US$172.4 million attributable to equity holders.
Driven by strong cashflows, the Company reduced net debt levels by US$783.6 million, lowering overall
gearing ratio by 5% to 50% at the end of 2023.
Pleasingly, revenue increased by US$1,092.3 million (34%) for the period, primarily driven by higher
sales volumes from Las Bambas, which more than offset the impact of lower copper and zinc prices.
Delivering growth
In 2023 we also achieved a major milestone having entered into a Share Purchase Agreement to acquire
the Khoemacau Mine.
The Khoemacau Mine is a large, long-life copper mine located in northwest Botswana, in the emerging
Kalahari Copperbelt. The tenement package hosts the tenth largest African copper mineral resource
by total contained copper metal and is one of the largest copper sedimentary systems in the world
outside of the Central African Copperbelt.

7
CHIEF EXECUTIVE OFFICER’S REPORT CONTINUED

Commitment to Sustainability
I am proud that the minerals we produce are essential to ensuring that we can successfully transition
to a more sustainable world. MMG plays a key role in providing these metals to our customers to drive
the development of green technology that will replace fossil fuels.
As part of our commitment to achieve Net Zero we have set an interim 2030 target of reducing Scope
1 and Scope 2 operational greenhouse gas emissions from our operated assets by 40%, from a 2020
baseline. This interim target aligns with science-based methodologies, in line with ambitions set out in
the Paris Agreement.
Growing our assets, while maintaining an unwavering commitment to sustainable development, is what
drives our business.
Executive Committee Changes
In January 2024, the Board announced that Mr Ross Carroll will retire from his role as the Chief Financial
Officer (CFO) of MMG and will depart the company on 1 July 2024, following a transition period. Mr
Carroll was appointed as CFO of the Company in December 2015. On behalf of everyone at MMG I
would like to take this opportunity to express my sincere gratitude to Mr Carroll for his valuable
contribution to MMG over many years.
Mr Song Qian joined MMG on 1 February 2024 as the Executive General Manager Finance and brings
to the business significant executive experience within CMC. He brings to MMG valuable experience in
global treasury systems and a strong understanding of commercial and investment banking, financial
markets, and cross-cultural integration in mining assets and multi-industrial assets within China and
internationally.
Additional changes to the Executive Team include a rebalancing of responsibilities with the creation of
the role of Executive General Manager Operations to integrate group operational accountability and
operational excellence. Mr Nan Wang, formerly Executive General Manager Australia and Africa, was
appointed to this role and commenced on 1 February 2024. Mr Troy Hey, the Executive General
Manager Corporate Relations, has taken accountability for the Legal and Company Secretary functions
alongside his existing accountabilities.
I am confident that the new structure will enable our leadership to drive successful outcomes as we
work towards our vision of creating a leading international company for a low carbon future.
Future focus
As we look ahead to 2024, we are focused on securing the next stage of growth for our business.
At Las Bambas, this means working closely with the Huancuire community to progress the
Chalcobamba development.
We will also continue to focus on advancing the Kinsevere Development Project and the completion
and subsequent integration of Khoemacau.
Across all operations we remain focused on safe and stable production while adding value to our assets
through expansion and life extension.

Thank you for your ongoing support of MMG.

LI Liangang
CHIEF EXECUTIVE OFFICER (INTERIM)

8
MANAGEMENT DISCUSSION AND ANALYSIS

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2023

For the purpose of the management discussion and analysis, the Group’s results for the year ended 31
December 2023 are compared with results for the year ended 31 December 2022.

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %

US$ MILLION US$ MILLION FAV/(UNFAV)

Revenue 4,346.5 3,254.2 34%

Operating expenses (2,814.1) (1,682.6) (67%)
Exploration expenses (49.6) (30.8) (61%)
Administration expenses (12.9) (16.0) 19%
Net other (expense)/income (8.0) 10.6 (175%)
EBITDA 1,461.9 1,535.4 (5%)
Depreciation and amortisation expenses (930.2) (790.1) (18%)
EBIT 531.7 745.3 (29%)
Net finance costs (342.1) (284.8) (20%)
Profit before income tax 189.6 460.5 (59%)
Income tax expense (67.5) (217.0) 69%
Profit for the year 122.1 243.5 (50%)

Attributable to:
Equity holders of the Company 9.0 172.4 (95%)
Non-controlling interests 113.1 71.1 59%

Profit attributable to equity holders of the Company

MMG’s profit of US$122.1 million for the year ended 31 December 2023 includes profit attributable to
equity holders of US$9.0 million and profit attributable to non-controlling interests of US$113.1 million.
This compares to a profit attributable to equity holders of US$172.4 million and profit attributable to
non-controlling interests of US$71.1 million for the year ended 31 December 2022. Amounts attributable
to non-controlling interests relates to the 37.5% interest in Las Bambas not owned by the Company.
The following table provides a reconciliation of reported profit after tax attributable to equity holders.

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %

US$ MILLION US$ MILLION FAV/(UNFAV)
Profit after tax – Las Bambas 62.5% interest 188.6 118.4 59%
(Loss)/profit after tax – other continuing operations (55.9) 154.6 (136%)
Exploration expenses (49.6) (30.8) (61%)
Administration expenses (12.9) (16.0) 19%
Net finance costs (excluding Las Bambas) (98.5) (81.7) (21%)
Other 37.3 27.9 34%
Profit for the year attributable to equity holders 9.0 172.4 (95%)

9
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

Overview of operating results

The Group’s continuing operations comprise Las Bambas, Kinsevere, Dugald River and Rosebery.
Exploration, corporate activities and other subsidiaries are classified as ‘Other’.

REVENUE EBITDA
YEAR ENDED 31 2022 2022
DECEMBER 2023 US$ CHANGE % 2023 US$ CHANGE %
US$ MILLION MILLION FAV/(UNFAV) US$ MILLION MILLION FAV/(UNFAV)
Las Bambas 3,417.3 2,086.8 64% 1,396.7 1,121.9 24%
Kinsevere 354.6 421.5 (16%) (32.0) 131.7 (124%)
Dugald River 331.2 484.3 (32%) 33.8 210.2 (84%)
Rosebery 240.0 259.9 (8%) 77.8 98.6 (21%)
Other 3.4 1.7 100% (14.4) (27.0) 47%
Total 4,346.5 3,254.2 34% 1,461.9 1,535.4 (5%)

The following discussion and analysis of the financial information and results should be read in
conjunction with the financial statements.
Revenue increased by US$1,092.3 million (34%) to US$4,346.5 million compared to 2022 due to higher
sales volumes (US$1,292.9 million), partly offset by lower commodity prices (US$200.6 million).
Sales volumes increased by US$1,292.9 million compared to 2022 driven by higher sales of copper
concentrate (US$1,332.0 million) and molybdenum concentrate (US$33.3 million) at Las Bambas due
to stable logistics since March 2023 compared to 173 days of road blockages throughout 2022. This
was partly offset by lower copper cathode sales volumes at Kinsevere (US$43.6 million) in line with
lower production due to declining oxide feed grades and lower ore milled caused by an unstable power
supply from the national grid. Dugald River zinc and lead concentrate sales volumes were also lower
(US$39.4 million), as a result of a 34-day suspension due to the tragic incident in February.
Unfavourable commodity price variances of US$200.6 million were driven by lower prices for zinc
(US$159.2 million) and copper (US$117.6 million), partly offset by higher prices for gold (US$28.3
million), silver (US$25.5 million) and molybdenum (US$23.3 million). Price variances also include mark-
to-market adjustments on open sales contracts and the impacts of commodity hedging.

REVENUE BY COMMODITY 2023 2022 CHANGE %

YEAR ENDED 31 DECEMBER US$ MILLION US$ MILLION FAV/(UNFAV)
Copper 3,304.2 2,227.7 48%
Zinc 359.4 547.1 (34%)
Lead 67.9 72.9 (7%)
Gold 233.5 151.5 54%
Silver 205.7 135.8 51%
Molybdenum 175.8 119.2 47%
Total 4,346.5 3,254.2 34%

10
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

Price
Average LME base metals prices for zinc, copper and lead were lower in the year ended 31 December
2023 compared to the prior corresponding period. The averages for molybdenum, gold and silver were
higher.

AVERAGE LME CASH PRICE (1) CHANGE %

YEAR ENDED 31 DECEMBER 2023 2022 FAV/(UNFAV)
Copper (US$/tonne) 8,483 8,815 (4%)
Zinc (US$/tonne) 2,649 3,485 (24%)
Lead (US$/tonne) 2,137 2,153 (1%)
Gold (US$/ounce) 1,943 1,801 8%
Silver (US$/ounce) 23.39 21.75 8%
Molybdenum (US$/tonne) 53,231 41,411 29%

(1) Sources: zinc, lead, and copper: LME cash settlement price; Molybdenum: Platts; gold and silver: LBMA.
LME (London Metal Exchange) data is used in this report under licence from LME; LME has no involvement and accepts no
responsibility to any third party in connection with the data; and onward distribution of the data by third parties is not
permitted.

Sales volumes

PAYABLE METAL IN PRODUCTS SOLD CHANGE %

YEAR ENDED 31 DECEMBER 2023 2022 FAV/(UNFAV)
Copper (tonnes) 419,584 272,132 54%
Zinc (tonnes) 176,292 185,606 (5%)
Lead (tonnes) 34,389 36,461 (6%)
Gold (ounces) 121,316 89,049 36%
Silver (ounces) 8,926,822 6,707,204 33%
Molybdenum (tonnes) 4,037 3,156 28%

PAYABLE METAL IN PRODUCTS SOLD COPPER ZINC LEAD GOLD SILVER MOLYBDENUM
YEAR ENDED 31 DECEMBER 2023 TONNES TONNES TONNES OUNCES OUNCES TONNES
Las Bambas 374,743 - - 94,925 5,361,326 4,037
Kinsevere 43,710 - - - - -
Dugald River - 128,628 17,535 - 1,358,919 -
Rosebery 1,131 47,664 16,854 26,391 2,206,577 -
Total 419,584 176,292 34,389 121,316 8,926,822 4,037

PAYABLE METAL IN PRODUCTS SOLD COPPER ZINC LEAD GOLD SILVER MOLYBDENUM
YEAR ENDED 31 DECEMBER 2022 TONNES TONNES TONNES OUNCES OUNCES TONNES
Las Bambas 221,918 - - 62,901 3,293,364 3,156
Kinsevere 49,048 - - - - -
Dugald River - 140,980 19,116 - 1,342,406 -
Rosebery 1,166 44,626 17,345 26,148 2,071,434 -
Total 272,132 185,606 36,461 89,049 6,707,204 3,156

Operating expenses include expenses of operating sites, excluding depreciation and amortisation. Site
expenses include mining and processing expenses, changes in inventories, royalty expenses, selling
expenses and other operating expenses.

11
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

Total operating expenses increased by US$1,131.5 million (67%) in 2023. This increase was primarily
driven by unfavourable stock movement (US$787.4 million) resulting from the drawdown of Las
Bambas copper concentrate stockpiles, compared to a build-up in 2022. Additionally, higher production
expenses (US$273.1 million) were mainly attributable to higher costs at Las Bambas (US$214.5 million)
in line with higher material mined and milled volumes and higher copper concentrate transported.
Furthermore, there was higher consumption of third-party ores (US$47.3 million) at Kinsevere to offset
the reduced oxide ore mined during the transition to mining sulphide ores.
Further detail is set out below in the mine analysis section.
Exploration expenses increased by US$18.8 million (61%) to US$49.6 million in 2023. Expenditure at
Las Bambas (US$8.1 million) was higher with drilling focused on various locations within the
Ferrobamba pit, including Ferrobamba Deeps, Ferrobamba South, Ferrobamba East, and West Plant
targets. Higher costs at Rosebery (US$7.2 million) were due to the accelerated diamond drilling
program to support life extension. At Kinsevere, exploration expenses were higher by US$3.5 million
driven by resource testing at Sokoroshe II and Nambulwa satellite deposits.
Administrative expenses decreased by US$3.1 million (19%) to US$12.9 million in 2023 mainly due to
the weaker Australian dollar (US$3.5 million).
Net other expenses increased by US$18.6 million (175%) compared to a net other income of US$10.6
million in 2022. This was mainly attributable to foreign exchange losses in 2023 (US$3.5 million) in
contrast to foreign exchange gains in 2022 (US$6.6 million).
Depreciation and amortisation expenses increased by US$140.1 million (18%) to US$930.2 million
compared to 2022. The increase was primarily attributable to higher mining and milling volumes at Las
Bambas (US$134.3 million).
Net finance costs increased by US$57.3 million (20%) to US$342.1 million compared to 2022. The
increase was mainly due to higher net interest costs driven by a rising interest rate environment
(US$67.0 million), higher discount unwind on mine rehabilitation provisions (US$9.5 million) and a
refund of interest from SUNAT (US$9.5M million) in 2022. This is partly offset by lower debt balances
(US$18.2 million) and higher interest income ($9.3 million) due to increased rates for funds on deposit.
Income tax expense decreased by US$149.5 million, reflecting the decrease in the Group’s underlying
profit before income tax from the prior year. Underlying income tax expense for 2023 of US$67.5 million
reflects the impacts of non-creditable withholding tax expenses in Peru of US$47.3 million (2022:
US$35.8 million) and the reversal of prior year tax provisions of US$38.7 million due to the completion
of tax audits.

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

MINES ANALYSIS

Las Bambas
YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %
FAV/(UNFAV)
Production
Ore mined (tonnes) 46,429,483 43,178,984 8%
Ore milled (tonnes) 52,871,670 44,043,203 20%
Waste movement (tonnes) 122,908,814 116,206,593 6%
Copper in copper concentrate (tonnes) 302,033 254,836 19%
Payable metal in product sold
Copper (tonnes) 374,743 221,918 69%
Gold (ounces) 94,925 62,901 51%
Silver (ounces) 5,361,326 3,293,364 63%
Molybdenum (tonnes) 4,037 3,156 28%

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE%

US$ MILLION US$ MILLION FAV/(UNFAV)
Revenue 3,417.3 2,086.8 64%
Operating expenses
Production expenses
Mining (490.4) (401.2) (22%)
Processing (316.3) (261.5) (21%)
Other (474.0) (403.5) (17%)
Total production expenses (1,280.7) (1,066.2) (20%)
Freight (transportation) (96.2) (86.1) (12%)
Royalties (104.5) (59.4) (76%)
Other (i) (532.3) 263.4 (302%)
Total operating expenses (2,013.7) (948.3) (112%)
Other expenses (6.9) (16.6) 58%
EBITDA 1,396.7 1,121.9 24%
Depreciation and amortisation expenses (800.0) (665.7) (20%)
EBIT 596.7 456.2 31%
EBITDA margin 41% 54%
(i) Other operating expenses include changes in inventories, corporate recharges and other costs of operations.

Las Bambas produced 302,033 tonnes of copper in 2023, which was 47,197 tonnes (19%) higher than
2022 largely due to uninterrupted operations in 2023 that allowed 20% more ore to be processed
compared to a production shutdown of more than 50 days in the second quarter of 2022.
Copper sales volumes were 69% higher compared to 2022 due to stable logistics since March 2023
compared to 173 days of road blockages throughout 2022. Copper concentrate sales of 1.1 million
tonnes of concentrate (374,743 tonnes of payable metal) for the year 2023 marks as the second-
highest level since the commissioning of the mine. As a result of the stability, on-site concentrate
inventory was reduced to the minimal level of around 1,000 tonnes of copper in concentrate at the end
of 2023, compared to approximately 85,000 tonnes at the beginning of the year.
Revenue of US$3,417.3 million was US$1,330.5 million (64%) higher than 2022 due to higher sales
volumes for copper (US$1,236.8 million), gold (US$53.8 million), silver (US$41.4 million) and

13
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

molybdenum (US$33.3 million) and higher sales prices for molybdenum (US$23.3 million). This was
partly offset by lower copper prices (US$94.6 million).
Total production expenses of US$1,280.7 million were US$214.5 million or 20% above 2022. This was
mainly driven by higher material mined and milled volumes (US$77.2 million), lower deferred mine
capitalisation costs (US$67.6 million), higher copper concentrate transported (US$56.8 million) and
increased maintenance works previously deferred (US$50.2 million). Production expenses were also
higher due to increased execution of social programs ($22.5 million). This was partly offset by lower
unit prices for diesel (US$21.1 million), explosives (US$14.1 million) and grinding media (US$5.5 million).
EBIT was further impacted by unfavourable stock movement of US$787.4 million due to a drawdown
of concentrate inventory (US$468.3 million) in 2023, compared to a build-up (US$235.6 million) in
2022 and a higher drawdown of ore stockpiles (US$80.7 million). Royalty expenses were also higher
by US$45.1 million reflecting higher revenue.
Depreciation and amortisation expenses were higher than 2022 by US$134.3 million (20%) due to
higher mining and milling volumes.
The C1 costs of US$1.60/lb for 2023 were below our guidance range of US$1.65 – US$1.75/lb, although
they were higher than the 2022 C1 costs of US$1.53/lb. The higher C1 unit costs in 2023 are attributed
to higher production costs and the absence of care and maintenance cost exclusions for the period of
the shutdown in 2022 (US$97.4 million), partly offset by increased copper production and higher by-
product credits from molybdenum, gold and silver.
2024 Outlook
Full-year production for 2024 is expected to be between 280,000 and 320,000 tonnes of copper in
concentrate. This is largely in line with 2023 but is subject to the timing of the development of
Chalcobamba.
Las Bambas C1 costs in 2024 are expected to be in the range of US$1.60 – US$1.80/lb, representing
an increase compared to 2023 primarily due to higher ore mined and milled volumes and lower by-
product credits related to lower molybdenum price assumptions.

Kinsevere
YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %
FAV/(UNFAV)
Production
Ore mined (tonnes) 1,726,145 3,100,273 (44%)
Ore milled (tonnes) 2,107,223 2,348,699 (10%)
Waste movement (tonnes) 32,646,890 7,087,508 361%
Copper cathode (tonnes) 44,068 49,070 (10%)
Cobalt (tonnes) 105 - -
Payable metal in product sold
Copper (tonnes) (i) 43,710 49,048 (11%)

14
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %

US$ MILLION US$ MILLION FAV/(UNFAV)
Revenue 354.6 421.5 (16%)
Operating expenses
Production expenses
Mining (18.7) (62.5) 70%
Processing (188.0) (118.7) (58%)
Other (90.8) (74.3) (22%)
Total production expenses (297.5) (255.5) (16%)
Freight (transportation) (7.3) (5.0) (46%)
Royalties (17.8) (23.6) 25%
Other (ii) (32.2) (10.2) (216%)
Total operating expenses (354.8) (294.3) (21%)
Other (expenses)/income (31.8) 4.5 (807%)
EBITDA (32.0) 131.7 (124%)
Depreciation and amortisation expenses (27.5) (27.8) 1%
EBIT (59.5) 103.9 (157%)
EBITDA margin (9%) 31%
(i) Kinsevere sold copper includes copper cathode and copper scrap.
(ii) Other operating expenses include changes in inventories, corporate recharges and other costs of operations.

Kinsevere produced 44,068 tonnes of copper cathode, which is a decrease of 10% compared to 2022.
The lower cathode production was primarily attributed to a decrease in ore milled throughput
(2,107,223 tonnes vs. 2,348,699 tonnes) caused by an unstable power supply from the national grid
alongside lower ore feed grade.
Kinsevere revenue decreased by US$66.9 million (16%) to US$354.6 million compared to 2022 due to
lower copper sales volumes in line with lower production (US$43.6 million) and lower copper prices
(US$23.3 million).
Total production expenses increased by US$42.0 million or 16% compared to 2022. This was mainly
driven by higher consumption of third-party ores (US$47.3 million) to offset the reduced oxide ore
mined volume, and higher sulphuric acid consumption (US$12.3 million). Net mining costs decreased
by US$43.8 million, primarily due to a rise in capitalised mining costs (US$115.3 million), which is
associated with increased waste stripping activities as the operation transitions from mining oxide ores
to mining sulphide ores. This more than offset the increased gross mining costs (US$72.8 million) as a
result of a full year of mining operations in 2023 including the commencement of mining at Sokoroshe
II.
Other operating expenses were higher than 2022 by US$22.0 million driven by unfavourable stock
movement (US$12.1 million) due to the higher net drawdown of ore stockpiles.
Other expenses were higher than 2022 by US$36.3 million driven by foreign exchange losses in 2023
(US$17.9 million) and a release of legacy provisions in 2022 relating to the 2012 Kinsevere acquisition
(US$14.1 million).
C1 costs for 2023 were US$3.29/lb, higher than the US$2.55/lb in 2022 driven by lower production,
and higher processing cost caused by higher consumption of third-party ores and higher consumption
of sulphuric acid.
2024 Outlook
Kinsevere copper cathode production for 2024 is expected to be in the range of 39,000 and 44,000
tonnes. This range reflects the declining supply of oxide ore due to the transition from the mining of

15
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

oxide ores to the mining of sulphide ores. The supply from Sokoroshe II is expected to increase in 2024
to compensate for the reduced oxide ore mined from the Kinsevere main pit.
C1 costs in 2024 are expected to be in the range of US$2.80 – US$3.15/lb. This represents an
improvement from 2023 due to by-product credits from cobalt production and an increase in the supply
of ore mined from Sokoroshe II to reduce the reliance on third-party ore. Looking ahead to 2025 and
beyond, the combination of higher copper production and cobalt by-product credits is expected to
significantly lower the mine’s C1 costs.

Dugald River
YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %
FAV/(UNFAV)
Production
Ore mined (tonnes) 1,650,517 1,873,332 (12%)
Ore milled (tonnes) 1,660,104 1,844,212 (10%)
Zinc in zinc concentrate (tonnes) 151,844 173,395 (12%)
Lead in lead concentrate (tonnes) 19,907 20,869 (5%)
Payable metal in product sold
Zinc (tonnes) 128,628 140,980 (9%)
Lead (tonnes) 17,535 19,116 (8%)
Silver (ounces) 1,358,919 1,342,406 1%

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %

US$ MILLION US$ MILLION FAV/(UNFAV)
Revenue 331.2 484.3 (32%)
Operating expenses
Production expenses
Mining (115.4) (111.6) (3%)
Processing (66.1) (68.6) 4%
Other (65.7) (69.3) 5%
Total production expenses (247.2) (249.5) 1%
Freight (transportation) (16.6) (18.2) 9%
Royalties (14.9) (20.7) 28%
Other (i) (15.4) 10.9 (241%)
Total operating expenses (294.1) (277.5) (6%)
Other (expenses)/income (3.3) 3.4 (197%)
EBITDA 33.8 210.2 (84%)
Depreciation and amortisation expenses (53.1) (57.7) 8%
EBIT (19.3) 152.5 (113%)
EBITDA margin 10% 43%

(i) Other operating expenses include changes in inventories, corporate recharges and other costs of operations.

Dugald River produced 151,844 tonnes of zinc in zinc concentrate in 2023, which was 12% lower than
2022 as operations were suspended for 34 days after the fatal incident at the mine on 15 February
2023. Zinc metal production was also impacted by lower ore feed grades associated with the mining
sequence, partially offset by record-high annual zinc recovery rates of 90.0% compared to 89.3% in
2022 driven by ongoing plant optimisation.

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

Revenue decreased by US$153.1 million to US$331.2 million due to lower zinc prices (US$117.2 million),
a 9% drop in zinc sales volumes (US$36.6 million) and an 8% drop in lead sales volumes (US$3.2 million)
in line with lower production. This was partly offset by higher silver prices (US$2.5 million).
Total production expenses decreased by US$2.3 million compared to 2022, primarily attributed to the
favourable impact of the weaker Australian dollar (US$10.5 million) and lower costs (US$6.1 million)
due to the suspension of operations. This reduction was partly offset by increased energy costs with
higher gas prices (US$18.3 million) partly offset by savings from solar power (US$9.6 million), as well
as unfavourable mining costs (US$4.1 million) due to increased development metres.
EBIT was additionally affected by unfavourable stock movement of US$26.2 million due to a net
drawdown of concentrate inventory and ore stockpiles in 2023, as opposed to a net build-up in 2022.
This was partly offset by lower royalties (US$5.8 million) in line with a decrease in revenue.
Dugald River’s zinc C1 costs were US$0.93/lb in 2023, higher than the US$0.84/lb in 2022 but
outperforming the revised guidance of US$1.05 – US$1.20/lb. The higher C1 costs were largely
attributable to lower production volumes.
2024 Outlook
Dugald River zinc production for 2024 is expected to be in the range of 175,000 and 190,000 tonnes
of zinc in zinc concentrate. This is a substantial improvement over 2023 reflecting the anticipated
stable operations and continuous operational improvements compared to the suspension of operations
in the first quarter of 2023.
C1 costs in 2024 are expected to be in the range of US$0.70 – US$0.85/lb due to the increased
production as well as lower anticipated zinc treatment charges.

Rosebery
YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %
FAV/(UNFAV)
Production
Ore mined (tonnes) 922,275 886,118 4%
Ore milled (tonnes) 918,074 896,861 2%
Zinc in zinc concentrate (tonnes) 51,626 51,156 1%
Lead in lead concentrate (tonnes) 19,147 18,077 6%
Copper in precious metals concentrate (tonnes) 1,163 1,147 1%
Gold (ounces) 30,096 26,709 13%
Silver (ounces) 2,583,418 2,178,998 19%
Payable metal in product sold
Copper (tonnes) 1,131 1,166 (3%)
Zinc (tonnes) 47,664 44,626 7%
Lead (tonnes) 16,854 17,345 (3%)
Gold (ounces) 26,391 26,148 1%
Silver (ounces) 2,206,577 2,071,434 7%

17
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %

US$ MILLION US$ MILLION FAV/(UNFAV)
Revenue 240.0 259.9 (8%)
Operating expenses
Production expenses
Mining (78.2) (70.5) (11%)
Processing (33.0) (31.0) (6%)
Other (29.8) (26.7) (12%)
Total production expenses (141.0) (128.2) (10%)
Freight (transportation) (7.8) (10.1) 23%
Royalties (3.7) (12.8) 71%
Other (i)
(4.0) (10.2) 61%
Total operating expenses (156.5) (161.3) 3%
Other expenses (5.7) - (100%)
EBITDA 77.8 98.6 (21%)
Depreciation and amortisation expenses (56.8) (46.9) (21%)
EBIT 21.0 51.7 (59%)
EBITDA margin 32% 38%
(i) Other operating expenses include changes in inventories, corporate recharges and other costs of operations.

Rosebery produced 51,626 tonnes of zinc in zinc concentrate and 19,147 tonnes of lead in lead
concentrate in 2023. This represented a 1% and 6% increase respectively compared to 2022. The
volume of ore mined was 4% higher compared to 2022, primarily due to mining sequence and improved
workforce availability, despite lost production in January resulting from the bushfire incident.
Precious metal production for 2023 totalled 30,096 ounces of gold and 2,583,418 ounces of silver. This
represents an increase of 13% and 19% respectively compared to 2022, reflecting higher grades for
both gold and silver.
Revenue decreased by US$19.9 million (8%) to US$240.0 million due to lower prices for zinc (US$42.0
million), lead (US$1.8 million), and copper (US$1.0 million), this was partly offset by higher zinc sales
volumes (US$8.8 million), higher precious metal prices (US$14.1 million) and higher precious metal
sales volumes (US$3.1 million).
Total production expenses increased by US$12.8 million (10%) compared to 2022 mainly due to higher
mining costs (US$11.8 million) driven by increased ore mined, higher backfill volumes and higher
intensity of ground support in seismically active areas of the mine. Processing costs were also higher
by US$3.5 million driven by higher ore milled volumes. This is partly offset by impact of the weaker
Australian dollar (US$6.1 million).
Royalties were favourable by US$9.1 million reflecting lower sales revenue and profit as well as an
adjustment that was made to the prior year’s royalty return.
Rosebery’s C1 costs were US$0.26/lb in 2023, in line with 2022, as higher production expenses were
offset by higher by-product credits.
2024 Outlook
Rosebery zinc production for 2024 is expected to be in the range of 50,000 to 60,000 tonnes of zinc
in zinc concentrate, an improvement on 2023 mainly due to higher expected zinc grades. Including the
contribution of by-product metals, zinc equivalent production for 2024 is expected to be in the range
of 115,000 to 130,000 tonnes.
C1 costs for 2024 are expected to be in the range of US$0.10 – US$0.25/lb. This is an improvement on
2023 due to higher anticipated production levels and lower zinc treatment charges.

18
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

CASH FLOW ANALYSIS

Net cash flow

YEAR ENDED 31 DECEMBER 2023 2022 CHANGE %
US$ MILLION US$ MILLION FAV/(UNFAV)
Net operating cash flows 1,849.9 832.1 122%
Net investing cash flows (790.0) (538.7) (47%)
Net financing cash flows (985.1) (1,176.5) 16%
Net cash inflows/(outflows) 74.8 (883.1) 108%

Net operating cash inflows increased by US$1,017.8 million (122%) to US$1,849.9 million driven by
favourable working capital movements (US$828.2 million) with a copper concentrate inventory
drawdown at Las Bambas compared to a build-up in 2022. Lower tax payments in Peru (US$160.9
million) and the DRC (US$29.5 million) also contributed positively.
Net investing cash outflows increased by US$251.3 million (47%) to US$790.0 million. This was driven
by higher capital expenditure at Kinsevere (US$251.5 million) attributable to expenditure on the
Kinsevere Expansion Project.
Net financing cash outflows were favourable by US$191.4 million (16%) compared to 2022. This was
due to a US$500.0 million early payment on the Las Bambas Project facility in 2022 and cash received
on early closure of the Interest Rate Swap (US$96.0 million). This was partly offset by a net repayment
on working capital facilities (US$150.0 million) in 2023 compared to a net drawdown ($150.0 million) in
2022, and higher net finance costs paid (US$81.8 million).

FINANCIAL RESOURCES AND LIQUIDITY

31 DECEMBER 31 DECEMBER
2023 2022 CHANGE
US$ MILLION US$ MILLION US$ MILLION
Total assets 11,900.8 12,535.5 (634.7)
Total liabilities (7,588.8) (8,307.0) 718.2
Total equity 4,312.0 4,228.5 83.5

Total equity increased by US$83.5 million to US$4,312.0 million as at 31 December 2023.

The gearing ratio for the Group is defined as net debt (total borrowings excluding finance charge
prepayments, less cash, and cash equivalents) divided by the aggregate of net debt and total equity
as set out in the following table:

31 DECEMBER 31 DECEMBER
2023 2022
MMG GROUP US$ MILLION US$ MILLION
Total borrowings (excluding prepaid finance charges) (i) 4,748.1 5,456.9
Less: cash and cash equivalents (447.0) (372.2)
Net debt 4,301.1 5,084.7
Total equity 4,312.0 4,228.5
Net debt +Total equity 8,613.1 9,313.2

Gearing ratio 0.50 0.55

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

(i) Borrowings at an MMG Group level reflect 100 per cent of the borrowings of the Las Bambas Joint Venture Group. Las Bambas
Joint Venture Group borrowings as at 31 December 2023 were US$2,016.8 million (31 December 2022: US$3,025.6 million) and
Las Bambas Joint Venture Group cash and cash equivalents as at 31 December 2023 were US$399.2 million (31 December 2022:
US$171.8 million). For the purpose of calculating the gearing ratio, Las Bambas Joint Venture Group’s borrowings have not been
reduced to reflect the MMG Group’s 62.5% equity interest. This is consistent with the basis of the preparation of MMG’s financial
statements.

Available debt facilities

As at the date of this announcement, the Group (excluding the Las Bambas Joint Venture Group) had
available in its undrawn debt facilities an amount of US$3,350 million (31 December 2022: US$300.0
million). These include:

1. A new US$1,000.0 million RCF from Top Create was undrawn and available. It will expire in
December 2026;
2. A new US$200.0 million RCF from China Construction Bank ("CCB") of which US$50.0 million was
undrawn and available. It will expire in January 2027;
3. A new US$300.0 million Term Loan Facility from Top Create supporting KEP project was undrawn
and available. It will expire in December 2030; and
4. A new US$2,000.0 million shareholder term loan facility with Top Create to support the acquisition
of the Cuprous Capital Ltd (“CCL”) and its subsidiaries was undrawn and available.

As at the date of this announcement, the Las Bambas Joint Venture Group had available in its undrawn
debt facilities of US$975.0 million (31 December 2022: US$800.0 million). These include:

1. A US$350.0 million RCF from Album Enterprises was undrawn and available. This facility was
successfully extended for 1 year and will expire in August 2024;
2. A new US$275.0 million RCF from BOC was undrawn and available. This facility will expire in April
2026;
3. A new US$150.0 million RCF from ICBC made up from three tranches of US$50.0 million each was
undrawn and available. This facility will expire in March, May and June 2026;
4. A new US$100.0 million RCF from CCB was undrawn and available. This facility will expire in
February 2027; and
5. A new US$100.0 million RCF from BOCOM was undrawn and available. This facility will expire in
August 2026;
Note: The US$800.0 million revolving credit facility available at 31 December 2022 provided by China Development Bank,
Bank of China, Bank of Communications and The Export-Import Bank of China for operation and general corporate purposes
was cancelled in September 2023.

The Group’s certain available external debt facilities are subject to covenant compliance requirements.
The Group was not in breach of covenant requirements in respect of the Group’s borrowings at 31
December 2023. Certain financial covenants are measured with reference to the financial performance
of the Group or its subsidiaries, and may be influenced by future operational performance.

PLACING OF NEW SHARES UNDER GENERAL MANDATE

On 8 June 2021, the Company undertook a share placement with an issue of 565.0 million shares at a
price of HK$4.15 per share (“the Placement”). The net proceeds, after deducting share issue costs of
US$3.1 million, was US$299.0 million. At 31 December 2023, the Company has no amount of proceeds
brought forward from the placement (31 December 2022: US$85.0 million). The Company has applied
49.8 per cent (31 December 2022: 29.9 per cent) of the net proceeds to the KEP project; and 50.2 per
cent (31 December 2022: 70.1 per cent) for the replenishment of working capital and general corporate
purposes to support the Company’s strategy.

20
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

DEVELOPMENT PROJECTS

The Chalcobamba project, as part of the next phase of development at Las Bambas, is located around
three kilometres from the current processing plant. In March 2022, the Peru Ministry of Energy and
Mines granted regulatory approval for the development of the Chalcobamba pit and associated
infrastructure.
MMG remains committed to working closely with the Government of Peru and community members for
transparent and constructive dialogue. Discussions with the Huancuire community have advanced with
the signing of five contracts with community companies and these companies have now commenced
early works at Chalcobamba. The Las Bambas team is working with the Huancuire community towards
enduring agreements for the development of the Chalcobamba deposit.
The project is significant for the economy of Peru and will support additional social contributions and
financial and business opportunities for local and regional communities. It will underpin an annual
production increase to a range of 350,000 to 400,000 tonnes over the medium term.
In addition to the Chalcobamba project, successful deep drilling below the current Ferrobamba pit has
defined the depth extension and continuity of skarn and porphyry mineralisation beneath the 2022 Ore
Reserve pit design. These positive drill results confirmed the potential for a large tonnage of copper (at
0.4% to 0.6%), molybdenum (at 200 to 500 ppm), silver (2g/t to 4g/t) and gold (0.04g/t to 0.08g/t)
grade deposit may exist at Ferrobamba Deeps. Ongoing studies are being conducted based on these
positive results, and further drilling is planned for 2024 to evaluate the mineralisation and determine
potential mining methods, including expansion of the open pit and/or an underground development.
Kinsevere Expansion Project, which includes the transition to the mining and processing of sulphide
ore and the commencement of cobalt production, remains on track. The cobalt plant was commissioned
in the fourth quarter of 2023 with cobalt hydroxide produced, containing 105 tonnes of cobalt. The new
tailing storage facility was commissioned to support the cobalt plant ramp-up.
The construction of the sulphide processing system continued with the majority of civil work completed
in the fourth quarter. The site started receiving long-lead equipment and material. Mechanical and
structural installation has also commenced. Progress has been made at the jaw crusher, coarse ore
stockpile, SAG mill, flotation cells, thickeners and concentrator storage, as well as the main body of the
roaster plant.
Moving forward, the focus will be on the ramp-up of the cobalt plant and completing the installation of
the concentrator and the roaster, gas cleaning and acid plant (RGA) as well as operational readiness-
related work.
This next phase of Kinsevere development will extend Kinsevere's mine life to at least 2035 and, once
fully ramped up, will result in total annual production of approximately 80,000 tonnes of copper cathode
and 4,000-6,000 tonnes of cobalt in cobalt hydroxide. The first production of copper cathode from
sulphides is expected in the second half of 2024, and a full ramp-up is expected in 2025.
Rosebery mine life extension is being supported by an accelerated exploration program. Project
Legacy, initiated in 2023, is designed with the objective of extending the mine life through an
accelerated diamond drilling program. This drilling program, which includes both underground and
surface drilling, has already resulted in several intersections. The current orebody knowledge
demonstrates that extensions to the Rosebery orebody are possible with new targets emerging in the
field. Several targets show significant intercepts and growth potential. Project Legacy is set to continue
the accelerated drilling strategy in 2024, with a primary focus on exploring key targets.
The Rosebery mine continues to engage with the Minister and the Department of Climate Change,
Energy, the Environment and Water (DCCEEW) and provide all required information and documentation
while awaiting the Minister’s decision on the proposed preliminary works at South Marionoak.
Concurrently the mine is continuing to investigate potential options for safe and viable short-term
capacity increases at existing tailings storage facilities. Finding a sustainable tailings storage solution
that supports the Rosebery mine life extension remains a key priority for our operation and we will
continue to proactively explore all feasible options.

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

There were no other major development projects noted during the year ended 31 December 2023.

CONTRACTS AND COMMITMENTS

Throughout the year 2023, a total of 745 contracts have been reviewed either through market
engagements or in-contract renegotiations. The approximate annual operational or capital values
addressed by these activities comes to US$1,047.6 million.
Significant contracting activities were conducted across all operational sites to ensure the security of
supply for critical inputs and other necessary requirements. This was essential to support the
scheduled execution of projects, the continuity of our operations, and the effective management of
potential disruption risks.

Las Bambas
New and revised agreements were finalised to optimise production and development options for Las
Bambas. These agreements include contracts for a consolidated head contractor for projects, which
encompasses studies, engineering services and construction supervision. Additionally, contracts were
finalised for activities such as projects construction (including an EPC contract for the new truck shop,
construction of phase 6 of the tailings storage facility and tailings deposition improvement), new fuel
supply, mining services such as blasting and drilling services, equipment maintenance, catering and
camp services, personal transportation, health and medical services, road maintenance, customs and
freight forwarding, plant shutdown services, major component repair, as well as components, spares
and other consumables. Significant efforts were made to ensure the safety and continuity of supply
during blockades in the first quarter of the year in order to support continued operations.

Kinsevere
Several new and revised agreements were finalised for activities such as deployment of a fleet
management system, tailing storage facility-related works, procurement of generator sets and slope
monitoring equipment. Parts of the contract packages for the Kinsevere Expansion Project, which were
signed in 2022, were completed in 2023. These completed packages include construction of the cobalt
plant package, the third tailing storage facility (TSF3) package and the Sokoroshe II mine infrastructure
package. The EPC contract package for the RGA (Roaster, Gas Cleaning, and Acid) plant and the
concentration plant will continue into 2024.

Dugald River
New and revised agreements were finalised to support the optimisation of production performance and
operation, particularly in consideration for the owner-operator transition for production mining. These
agreements include multiple contracts for the purchase of mobile equipment, related maintenance
support, and necessary amendments to contracted development mining services. A number of logistics
agreements related to the outbound transport of concentrate were executed and will be further
optimised with additional contracts in early 2024. Additionally, contracts were finalised for a number
of bulk chemicals used in the processing plant.
Ongoing activity has involved the review of long-term energy options. In 2023, around one third of the
power requirement transitioned to solar, and a number of gas contracts were entered into for 2024 to
continue firming power supply. Sustainable long-term power options are under review to drive cost
reduction and increase the adoption of renewable energy sources.

Rosebery
New and revised agreements were finalised for various significant goods and services across the
operation. These agreements cover ground support materials and services, various groundwater

22
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

monitoring/environment testing services and various mobile equipment items, including Rosebery’s first
diesel-electric loader, following trials earlier in the year.

Group
New and revised agreements have been finalised for various goods and services, including IT-related
goods and services as well as a number of professional services consultancy agreements covering
marketing, assurance, risk and audit, finance and reporting, and HR (Human Resources).

PEOPLE

As at 31 December 2023, the Group employed a total of 4,542 full-time equivalent employees (2022:
4,296) in its continuing operations (excluding contractors and casual employees) with the majority of
employees based in Australia, Peru, the DRC, China and Laos.
Total employee benefits expenses for the Group’s operations for the year ended 31 December 2023,
including Directors’ emoluments, totalled US$365.7 million (2022: US$321.9 million). The increase was
mainly due to the insourcing of mining activities at Dugald River and the commencement of the
Kinsevere Expansion Project in the DRC.
The Group has remuneration policies that align with market practice and remunerates its employees
based on the accountabilities of their role, their performance, market practice, legislative requirements
and the performance of the Group. Employee benefits include market-competitive fixed remuneration,
performance-related incentives, a limited company equity scheme and, in specific cases, insurance and
medical support. A range of targeted training and development programs are provided to employees
across the Group that are designed to improve individual capability and enhance employee and Group
performance.

EXPLORATION ACTIVITIES

Las Bambas
Extensive drilling activities were conducted at various locations within the Ferrobamba pit. Specifically,
drilling at Ferrobamba Deeps continued, situated directly beneath the current Ferrobamba Ore Reserve
pit.
Ongoing studies and further drilling are planned for 2024 to evaluate the mineralisation and determine
potential mining methods including expansion of the open pit and / or an underground development at
Ferrobamba Deeps.
Additionally, drilling activities were carried out at Ferrobamba South, Ferrobamba East, and West Plant
targets, focusing primarily on near-surface skarn and porphyry copper mineralisation. At Ferrobamba
South, drilling specifically targeted the extension of mineralisation along the southern edge of the
Ferrobamba pit and the depth extension of Ferrobamba Deeps. Similarly, at Ferrobamba East, the
objective was to explore the extension of mineralisation east of the current open pit. At the West Plant
project, drilling activities concentrated on identifying polymetallic intermediate sulfidation veins located
west of the processing plant.

Kinsevere
The 2023 exploration program focused on resource testing drilling and resource delineation drilling at
the Kinsevere mine site and satellite projects.
At Kinsevere the drilling concentrated on the Saddle and Mashi extension targets. On the Nambulwa
tenement, drilling activities concentrated on the Kimbwe-Kafubu target. Additional prospect testing
occurred at Wasumbu and Kamafesa oxide copper targets.

23
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

Furthermore, the geological model for Saddle area in Kinsevere was completed in preparation for
resource estimation, and the construction of the geological model for the northwest-extension of the
Kinsevere mine is in progress.

Dugald River
The 2023 surface exploration drilling campaign for Extended Dugald River (EDR) focused on extending
the Dugald River lode at depth, with a total of eight drill holes aimed at extending and improving
geological confidence in the central and south extents of the Dugald River lode. Additionally, an
exploration program targeting Cu-Au-Co included a scout hole drilled into the M2 target to test a
magnetic anomaly from the sub-audio magnetic (SAM) geophysical survey completed in the third
quarter 2023. Another long (+650m) underground diamond drill hole tested geochemical and
geophysical anomalies interpreted from the 2023 down-hole electro-magnetic (DHEM) survey at
Target Z.

Rosebery
Project Legacy, initiated in January 2023, is designed with the objective of extending the mine life
through an accelerated diamond drilling program. This program employs 5 underground rigs and 3
surface rigs to carry out exploration drilling around the known Rosebery orebody. The in-mine drilling
has focussed on areas outside the current mining focus in the lower mine such as T Lens, U Downdip,
Lower V Lens, Lower H Lens, AB South and AB North.
Further drilling concentrated to the north of the lower mine such as Z Lens. Surface and underground
drilling was also conducted to the west of the Rosebery Fault into the Oak prospect. In 2024, other
targets will also be tested as part of this exploration.
Furthermore, surface drilling in the late fourth quarter focussed on growth potential at the historical
Jupiter and Hercules mines, which are located 4km and 8km south of Rosebery, respectively.
Project Legacy is set to continue the accelerated drilling program in 2024, with a primary focus on
exploring key targets.

24
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

METERAGE NUMBER OF AVERAGE LENGTH

PROJECT HOLE TYPE
(METRES) HOLES (METRES)
Americas
Diamond (Ferrobamba Deeps) 36,831 57 646
Diamond (Ferrobamba South) 11,453 14 818
Las Bambas
Diamond (Ferrobamba East) 1,983 4 496
Diamond (West Plant) 2,228 4 557
Africa
Diamond (SOK II Regional) 4,636 28 166
Diamond (Nambulwa - Wasumbu) 1,195 6 199
Diamond (Kamafesa) 601 4 150

Kinsevere Diamond (Kinsevere Hill SE Extension) 440 2 220

Diamond (Mashi Extension) 4,584 15 306

Diamond (Nambulwa - Kimbwe Kafubu) 7,031 34 207

Diamond (Kinsevere Saddle) 4,976 18 276

Australia
Diamond EDR Near-Mine growth 10,172 8 1,272
Dugald River
Diamond Cu-Au-Co exploration 1,275 2 638
Diamond – surface exploration 31,938 72 444
Rosebery
Diamond – underground exploration 52,525 201 261
Total 171,868 469 366

MATERIAL ACQUISITIONS AND DISPOSALS

On 21 November 2023, MMG announced that it entered into a Share Purchase Agreement with Cuprous
Capital Ltd on 20 November 2023 to acquire the Khoemacau Mine in Botswana for US$1,875,000,000.
The Khoemacau Mine is a large, long life copper mine located in north-west Botswana, in the emerging
Kalahari Copperbelt. The Khoemacau Mine’s 4,040 km2 tenement package hosts the 10th largest African
copper Mineral Resource by total contained copper metal and is one of the largest copper sedimentary
systems in the world outside of the Central African Copperbelt.
The Company has received written Shareholders’ approval in respect of the acquisition from China
Minmetals H.K. (Holdings) Limited, which holds approximately 67.55% of the total issued Shares of the
Company, in accordance with Rule 14.44 of the Listing Rules. Accordingly, no general meeting will be
convened by the Company to approve the acquisition. The Company will despatch the circular in
relation to the acquisition to the Shareholders on or before 31 May 2024.
The acquisition is subject to the fulfillment or waiver of certain conditions and may or may not proceed
to completion. On 22 December 2023, Khoemacau Copper Mining (Pty) Ltd, a subsidiary of Cuprous
Capital Ltd, received approval from the Minister of Minerals and Energy of Botswana in respect of the
transfer of a controlling interest in the project licenses and prospecting licenses associated with the
Khoemacau Copper Mine, brought about by the acquisition.
The Company has obtained unconditional approvals of the acquisition from the Competition and
Consumer Authority of Botswana and the State Administration for Market Regulation of the PRC on 30
January 2024 and 25 December 2023 respectively and the relevant conditions have been satisfied.
Subject to the terms of the Agreement, MMG and Cuprous Capital Ltd have agreed to work towards
Completion in the first quarter of 2024.

25
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

EVENTS AFTER THE REPORTING DATE

Other than the matters outlined below, there have been no matters that have occurred subsequent to
the reporting date, which have significantly affected, or may significantly affect, the Group’s operations,
results or state of affairs in future years.
• On 20 November 2023, the Group entered into a Share Purchase Agreement with Cupric Canyon
Capital L.P., The Ferreira Family Trust, Resource Capital Fund VII L.P., and the Missouri Local
Government Employees’ Retirement System (Sellers). The Group has conditionally agreed to
purchase the entire issued share capital of CCL from the Sellers at a purchase price of US$1,875.0
million.
As at the date of this report, the acquisition had been approved by the Minister of Minerals and
Energy of Botswana; the Competition and Consumer Authority of Botswana; the State
Administration for Market Regulation of the People’s Republic of China (PRC) and the requisite
majority of the relevant Shareholders as required under the Listing Rules; and
• The group obtained new RCFs of US$300.0 million from CCB of which US$150.0 million is undrawn.

FINANCIAL AND OTHER RISK MANAGEMENT

Financial risk factors

The Group’s activities expose it to a variety of financial risks, including commodity price risk, interest
rate risk, foreign exchange risk, credit risk, liquidity risk and risk arising from the interest benchmark
reform. The Group’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the Group’s financial performance. The
Group can use derivative financial instruments such as interest rate swaps, collar hedges and
commodity swaps to manage certain exposures. The Group does not and is prohibited from entering
into derivative contracts for speculative purposes.
Financial risk management is carried out by the Group Treasury function under proposals approved by
the Board. Group Treasury identifies, evaluates and manages financial risks in close cooperation with
the Group’s operating units. The Board approves written principles for overall risk management, as well
as policies covering specific areas, such as those identified below.

(a) Commodity price risk

The prices of copper, zinc, lead, gold, silver and molybdenum are affected by numerous factors and
events that are beyond the control of the Group. These metal prices change on a daily basis and can
vary significantly up and down over time. The factors impacting metal prices include both broader
macro-economic developments and micro-economic considerations relating more specifically to the
particular metal concerned.
During the year ended 31 December 2023, the Group entered into various commodity trades to hedge
the sales prices for copper and zinc. The outstanding commodity trades included:
• Zero/low-cost collar hedges:
o 3,000 tons of copper with put strike price of US$9,000/ton and call strike price of
US$9,300/ton;
• Fixed price swap hedges:
o 24,500 tons of copper with fixed price ranging from US$8,607/ton to US$8,672/ton;
• Above hedges settlement ranged from January to April 2024.

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

A change in commodity prices during the year can result in favourable or unfavourable financial impact
for the Group.
The following table contains details of the hedging instrument used in the Group’s hedging strategy:

Settled Hedging
portion of gain/(loss)
hedging recognised
Favourable/(Unfavourable) instrument in cash Cost of
changes in fair value used realised flow hedge hedging
Carrying for measuring gains/(losses) reserve reserve
amount of ineffectiveness US$ million US$ million US$ million
hedging Hedged
instrument Hedging item
US$ instrument US$
Term million US$ million million
Cash flow
hedges:

At 31 December 2023
March
Derivative 2023 to
financial December
assets/(liabilities) 2023 - - - 10.8 - -
At 31 December 2022
March
Derivative 2022 to
financial December
assets/(liabilities) 2022 - - - 47.0 - -

The following table details the sensitivity of the Group’s financial assets balance to movements in
commodity prices. Financial assets arising from revenue on provisionally priced sales are recognised
at the estimated fair value of the total consideration of the receivable and subsequently remeasured at
each reporting date. At the reporting date, if the commodity prices increased/(decreased) by 10% and
taking into account the commodity hedges, with all other variables held constant, the Group’s post-tax
profit would have changed as set out below:

2023 2022
(Decrease)/increase
Commodity price Increase in profit Commodity price in profit
Commodity movement US$ million movement US$ million
Copper +10% 11.2 +10% (21.5)
Zinc +10% 7.2 +10% 0.3
Total 18.4 (21.2)

Commodity price Decrease in profit Commodity price Increase in profit

Commodity movement US$ million movement US$ million
Copper -10% (10.9) -10% 21.8
Zinc -10% (7.2) -10% -
Total (18.1) 21.8

(b) Interest rate risk

The Group is exposed to interest rate risk primarily through interest bearing borrowings and investment
of surplus cash holdings. Deposits and borrowings at variable rates expose the Group to cash flow

27
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

interest rate risk. Deposits and borrowings at fixed rates expose the Group to fair value interest rate
risk.
The Group regularly monitors its interest rate risk to ensure there are no undue exposures to significant
interest rate movements. Any decision to hedge interest rate risk is assessed periodically in light of the
overall Group’s exposure, the prevailing interest rate market and any funding counterparty
requirements. Regular reporting of the Group’s debt and interest rates is provided to the MMG
Executive Committee.
The Group is exposed to the risk-free rate of SOFR. The exposures arise on derivative and non-
derivative financial assets and liabilities. The Group cash flow hedge relationship was affected by the
interest rate benchmark reform. With the IRS closure, the cash flow hedge relationship was
discontinued. The current exposures mainly arise on non-derivative financial assets and liabilities.
The following table contains details of the cash flow hedge was affected by the IRS closure:
AT 31 DECEMBER 2023 AND FOR YEAR ENDED 31 DECEMBER 2023

Amount reclassified Line item

from the cash flow affected in profit
Balance in cash flow hedge reserve to profit or loss because
hedge reserve or loss of the
US$ million US$ million reclassification

Financial cost,
Discontinued Cash Flow Hedges: Income tax
Interest Rate Swap 40.2 37.0 expense

The following table contains details of the hedging instrument used in the Group’s hedging strategy as
at 31 December 2022:

Favourable/(Unfavourable) Settled
Carrying changes in fair value used portion of Hedging
amount for measuring hedging gain
of ineffectiveness instrument recognised Hedge
Notional hedging Hedged realised in cash ineffectiveness
amortising instrum Hedging item gains/ flow hedge recognised in
amount ent US$ instrument US$ (losses) reserve2 profit or loss
Term US$ million million US$ million million US$ million US$ million US$ million
Cash flow
hedges:
At 31 December 2022

June
2020
Derivative –
financial June
assets1 2025 1,560 113.9 82.1 (82.1) 17.9 55.8 -
1. In 2020, the Group has entered into a notional US$2,100 million 5-year amortising interest rate swap with BOC Sydney.
2. The hedging gain recognised in cash flow hedge reserve is the amount after tax.

28
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

Interest rate sensitivity analysis

At 31 December 2023 and 2022, if the interest rate had increased/(decreased) by 100 basis points,
taking into account the interest rate swap, with all other variables held constant, post-tax profit and
other comprehensive income (OCI) would have changed as follows:

2023 2022
+100 basis -100 basis
points points +100 basis points -100 basis points
Increase/ Increase/
(decrease) in (Decrease)/ (decrease) in (Decrease)/
profit increase in profit Increase increase in Decrease
US$ MILLION after tax profit after tax after tax in OCI profit after tax in OCI
Financial assets
Cash and cash
equivalents 3.0 (3.0) 2.5 - (2.5) -
Financial liabilities
Borrowings (taking
into account the
impact of the
interest rate swap) (17.6) 17.6 (9.7) 13.6 9.7 (13.6)
Total (14.6) 14.6 (7.2) 13.6 7.2 (13.6)

(c) Foreign exchange risk

The Group operates internationally and is exposed to foreign currency exchange risk. The Group’s
reporting currency and functional currency of the majority of subsidiaries within the Group is US dollars.
The majority of revenue received by the Group is in US dollars. The Group’s foreign currency exchange
risk arises predominantly from the currency of the countries in which the Group’s operations are located.
Any decision to hedge foreign currency risk is assessed periodically in light of the Group’s exposure,
the prevailing foreign currency market and any funding counterparty requirements.
The following table shows the foreign currency risk arising from the monetary assets and liabilities,
which are shown by foreign currency of the Group.

US$ MILLION US$ PEN A$ HK$ OTHERS TOTAL

At 31 December 2023
Financial assets
Cash and cash equivalents 425.3 16.5 0.8 0.4 4.0 447.0
Trade receivables 354.8 - - - - 354.8
Other receivables 30.9 211.4 6.8 - 0.1 249.2
Derivative financial assets 3.1 - - - - 3.1
Other financial assets 2.7 - - - - 2.7
Financial liabilities
Trade and other payables (459.3) (384.8) (52.0) - (6.8) (902.9)
Borrowings (4,707.1) - - - - (4,707.1)
Lease liabilities (118.8) (0.2) (28.6) - - (147.6)
(4,468.4) (157.1) (73.0) 0.4 (2.7) (4,700.8)

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

US$ MILLION US$ PEN A$ HK$ OTHERS TOTAL

At 31 December 2022
Financial assets
Cash and cash equivalents 346.4 21.2 - 1.8 2.8 372.2
Trade receivables 212.7 - - - - 212.7
Other receivables 28.0 235.6 6.5 - - 270.1
Derivative financial assets 126.0 - - - - 126.0
Other financial assets 1.5 - - - 1.5
Financial liabilities
Trade and other payables (333.2) (332.6) (62.1) - (25.1) (753.0)
Borrowings (5,412.6) - - - - (5,412.6)
Lease liabilities (114.0) (0.2) (24.5) - - (138.7)
Derivative financial - - - -
liabilities (0.3) (0.3)
(5,145.5) (76.0) (80.1) 1.8 (22.3) (5,322.1)

Based on the Group’s net monetary assets and financial liabilities at 31 December 2023 and 2022, a
movement of the US dollar against the principal non-functional currencies as illustrated in the table
below, with all other variables held constant, would cause changes in post-tax profit as follows:

2023 2022
Weakening of US Strengthening of Weakening of US Strengthening of
dollar US dollar dollar US dollar
Decrease in profit Increase in profit Decrease in Increase
US$ MILLION after tax after tax profit after tax in profit after tax
10% movement in
Australian dollar
(2022: 10%) (5.1) 5.1 (5.6) 5.6
10% movement in
Peruvian sol (2022:
10%) (10.7) 10.7 (5.2) 5.2
Total (15.8) 15.8 (10.8) 10.8

(d) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Group. The Group is exposed to counterparty credit risk through sales of metal products on normal
terms of trade, through deposits of cash and settlement risk on foreign exchange transactions. While the most
significant exposure to credit risk is through sales of metal products on normal terms of trade, the majority of
sales for mining operations were made under contractual arrangements whereby provisional payment is
received promptly after delivery and the balance within 30 to 120 days from delivery. 100% of the balance is
aged less than 6 months based on invoice date. The carrying amount of the Group’s trade receivables at FVTPL
best represents their respective maximum exposure to credit risk. The Group holds no collateral over any of
these balances.
Investments in cash, short-term deposits and similar assets are with approved counterparty banks.
Counterparties are assessed prior to, during and after the conclusion of transactions to ensure exposure to
credit risk is limited to acceptable levels. There has been no change in the estimation techniques or significant
assumptions made during the year ended 31 December 2023 in assessing the ECL for these financial assets.

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

The limits are set to minimise the concentration of risks and therefore mitigate the potential for financial loss
through counterparty failure. Impairment is provided for where the credit risk is perceived to exceed the
acceptable levels and there are concerns on recoverability of the relevant assets. The management of the Group
considers cash and cash equivalents that are deposited with financial institutions with high credit rating to be
low credit risk financial assets.
Other receivables include balances related to various matters including other taxes, indemnities. These balances
are assessed at the reporting date considering contractual and non-contractual legal rights to receive such
amounts as well as the expectation of recoverability based on expert third party advice and management
assessment based on all available information. There are no significant increases in credit risk for these balances
since their initial recognition and the Group provided impairment based on a 12 month ECL. For the years
ended 31 December 2023 and 2022, the Group assessed the ECL for these balances and considered no
significant impact to the consolidated financial statements.
The Group’s most significant customers are CMN, CITIC Metal Peru Investment Limited (CITIC Metal), and
Trafigura Pte Ltd (Trafigura). Revenue earned from these customers as a percentage of total revenue was:

2023 2022
CMN 46.6% 34.5%
CITIC Metal 20.2% 16.2%
Trafigura 8.2% 14.0%

The Group’s largest debtor at 31 December 2023 was CMN with a balance of US$159.1 million (2022: US$102.6
million) and the five largest debtors accounted for 77.6% (2022: 84.0% ) of the Group’s trade receivables. Credit
risk arising from sales to large concentrate customers is managed by contracts that stipulate a provisional
payment of at least 90% of the estimated value of each sale. For most sales a second provisional payment is
received within 60 days of the vessel arriving at the port of discharge. Final payment is recorded after
completion of the quotation period and assaying.
The credit risk by geographic region was:
AT 31 DECEMBER
US$ MILLION 2023 2022
Asia 264.7 154.0
Europe 78.6 31.2
Australia 11.0 6.4
Other 0.5 21.1
354.8 212.7

(e) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with
financial liabilities.
Management utilises short and long-term cash flow forecasts and other consolidated financial
information to ensure that appropriate liquidity buffers are maintained to support the Group’s activities.

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MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

The table below analyses the Group’s financial assets and liabilities into relevant maturity groupings
based on the remaining period at the reporting date to the contractual maturity date. The amounts
disclosed in each maturity grouping are the contractual undiscounted cash flows for financial
instruments.

Between Between Total

Within 1 and 2 2 and 5 Over carrying
US$ MILLION 1 year years years 5 years Total value
At 31 December 2023
Financial assets
Cash and cash equivalents 447.0 - - - 447.0 447.0
Trade receivables 354.8 - - - 354.8 354.8
Other receivables 93.4 150.7 5.1 - 249.2 249.2
Derivative financial assets 3.1 - - - 3.1 3.1
Other financial assets 2.7 - - - 2.7 2.7
Financial liabilities
Trade and other payables (616.4) (286.5) - - (902.9) (902.9)
Borrowings (including interest) (1,599.6) (1,285.1) (1,899.6) (824.3) (5,608.6) (4,707.1)
Lease liabilities (including interest) (33.9) (32.6) (66.0) (73.7) (206.2) (147.6)
(1,348.9) (1,453.5) (1,960.5) (898.0) (5,660.9) (4,700.8)
At 31 December 2022
Financial assets
Cash and cash equivalents 372.2 - - - 372.2 372.2
Trade receivables 212.7 - - - 212.7 212.7
Other receivables 114.7 145.5 9.9 - 270.1 270.1
Derivative financial assets 75.0 51.0 - - 126.0 126.0
Other financial assets 1.5 - - - 1.5 1.5
Financial liabilities
Trade and other payables (535.5) (217.5) - - (753.0) (753.0)
Derivative financial liabilities (0.3) - - - (0.3) (0.3)
Borrowings (including interest) (1,510.1) (1,357.8) (2,530.6) (1,090.5) (6,489.0) (5,412.6)
Lease liabilities (including interest) (32.7) (25.4) (59.6) (85.4) (203.1) (138.7)
(1,302.5) (1,404.2) (2,580.3) (1,175.9) (6,462.9) (5,322.1)

Country and community risks

The Group conducts all of its operations outside of Hong Kong and, as such, it is exposed to various
levels of political, economic and other risks and uncertainties. These risks and uncertainties vary from
country to country. Material risks include, but are not limited to, regime or policy change, fluctuation in
currency exchange rates, changes to licensing regimes and amendments to concessions, licences,
permits and contracts, changing political conditions and governmental regulations and community
disruptions. Changes in any aspects above and in the country where the Group operates may adversely
affect the Group’s operations and profitability. The decline in growth and macroeconomic activity in
many developing nations has resulted in governments seeking alternative means of increasing their
income, including increases to corporate tax, VAT and royalty rates, coupled with increased audit and
compliance activity.
The DRC Government during 2018 made changes to the 2002 Mining Code and Mining Regulations.
These changes were enacted (2018 Mining Code) and continue to result in an increased tax burden on
mining companies; In Peru, over the past decades, Las Bambas has experienced heightened political
instability with succession of regimes with differing political policies. As the community disruptions and
political situation are expected to evolve in the near future, the Group will continue to work closely with

32
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

the relevant authorities and community groups to minimise the potential risk of social instability and
disruptions to the Las Bambas operations.
Some of the countries in which the Group operates carry higher levels of sovereign risk. Political and
administrative changes and reforms in law, regulations or taxation may impact sovereign risk. Political
and administrative systems can be slow or uncertain and may result in risks to the Group including the
ability to obtain tax refunds in a timely manner. The Group has processes in place to monitor any impact
on the Group and implement responses to such changes.

CONTINGENT LIABILITIES

Bank guarantees
Certain bank guarantees have been provided in connection with the operations of certain subsidiaries
of the Company primarily associated with the terms of mining leases, mining concessions, exploration
licences or key contracting arrangements. At the end of the reporting period, no material claims have
been made under these guarantees. The amount of these guarantees may vary from time to time
depending upon the requirements of the relevant regulatory authorities. At 31 December 2023, these
guarantees amounted to US$310.5 million (2022: US$297.5 million).

Contingent liabilities - tax related contingencies

The Group has operations in multiple countries, each with its own taxation regime. The nature of the
Group’s activities requires it to comply with various taxation obligations including corporation tax,
royalties, withholding taxes, transfer pricing arrangements with related parties, resource and
production-based taxes, environmental taxes and employment related taxes. Application of tax laws
and interpretation of tax laws may require judgement to assess risk and estimate outcomes, particularly
in relation to the application of income taxes and withholding tax to the Group’s cross-border operations
and transactions. The evaluation of tax risks considers both assessments received and potential
sources of challenge from tax authorities. Additionally, the Group is currently subject to a range of
audits and reviews by taxation authorities in Australia, Peru, Zambia and the DRC. No disclosure of an
estimate of financial effect of the subject matter has been made in the consolidated financial
statements as, in the opinion of the management, such disclosure may seriously prejudice the position
of the Group in dealing with these matters.
Tax matters with uncertain outcomes arise in the normal course of business and occur due to changes
in tax law, changes in interpretation of tax law, periodic challenges and disagreements with tax
authorities, and legal proceedings. The status of proceedings for such uncertain tax matters will impact
the ability to determine the potential exposure, and in some cases, it may not be possible to determine
a range of possible outcomes, including timing of resolution or determining a reliable estimate of the
potential exposure.
Peru – Withholding Taxes (2014, 2015, 2016 and 2017)
Included within such uncertain tax matters are audits of the 2014, 2015, 2016 and 2017 tax periods for
MLB in relation to withholding taxes on interest and fees paid under certain loans, which were provided
to MLB pursuant to facility agreements entered into among MLB and a consortium of Chinese banks in
connection with the acquisition of the Las Bambas mine in 2014. MLB received assessment notices
from the Peruvian tax authority (National Superintendence of Tax Administration of Peru or “SUNAT”),
which advised that, in its opinion, MLB and the Chinese banks are related parties and thus a 30%
withholding tax rate ought to be imposed rather than the 4.99% applied. The assessments of omitted
tax plus penalties and interest as at 31 December 2023 totalled PEN2,069.5 million (approximately
US$551.8 million) (31 December 2022: PEN2,015.1 million (approximately US$527.5 million)).
In relation to these assessments, having received external legal and tax advice, the Group has formed
the view that the Company and its controlled entities are not related parties to Chinese banks under
Peruvian tax law. Additionally, the Peruvian tax law was amended (with effect from October 2017) to

33
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

provide expressly that parties are not related by being under state ownership for the purposes of
withholding taxes. Las Bambas has appealed the assessments issued by SUNAT in the Peru Tax Court
and the pronouncement is pending. In parallel, MLB filed an Amparo lawsuit to request a Constitutional
Court the nullity of withholding tax Assessments due to the violation of MLB's constitutional rights in
the issuance of SUNAT Assessments. Where MLB is not successful in rebutting or appealing such
challenge(s), this could result in significant additional tax liabilities.
Peru –Income Taxes (2016 and 2017)
• Peru –2016 Income Tax
In January 2023, Las Bambas received assessment notices from SUNAT in connection with the
2016 income tax audit (2016 Income Tax Assessment). The assessment denied the deductions
for all interest on borrowings expensed during the 2016 tax year. This included the loans from
Chinese banks where SUNAT denied the interest deductions on the basis that the borrowings
were from related parties and that the alleged related party debt should be included in
calculating Las Bambas’ related party ‘debt to equity’ ratio (the ‘thin capitalisation’ threshold)
which would then be breached. SUNAT also alleged that interest payable on the shareholder
loan from MMG Swiss Finance A.G. is non-deductible, due to the application of the “Causality
Principle” (i.e., the loan has no relevance to the income-producing activities of Las Bambas).
Further, SUNAT separately alleged that the accounting treatment of the merger of Peruvian
entities (subsequent to the acquisition of Las Bambas in 2014) should have resulted in a
negative equity adjustment which would result in Las Bambas having no equity for the purposes
of calculating its thin capitalisation allowance. The Assessment issued by SUNAT for tax,
interest and penalties for the income tax year 2016 totalled PEN651.0 million (approximately
US$173.0 million) as at 31 December 2023.
On 27 July 2023, SUNAT confirmed that it had considered Las Bambas’ appeal against the
Assessment and concluded that the Assessment remains correct and valid. Las Bambas will
appeal to the Peru Tax Court.
• Peru –2017 Income Tax
In August 2023, Las Bambas received assessment notices from SUNAT in connection with the
2017 income tax audit (2017 Income Tax Assessment). Similar to the 2016 Income Tax
Assessment, SUNAT has continued to challenge Las Bambas’ treatment of interest expense in
the 2017 tax year on the same basis as that described above. Further, SUNAT has not
recognised previous years’ tax losses, including 2014, 2015 and 2016 development costs
(US$710 million). The Assessment for tax, interest and penalties for the income tax year 2017
totalled PEN 3,610.4 million (approximately US$961.0 million) as at 30 November 2023.
However, on 30 November 2023 SUNAT issued Resolution No. 4070140000905 and declared
the nullity of tax debt. An updated Assessment for 2017 was received on 13 December 2023
and notified a tax debt of PEN 3,460.2 million (approximately US$924.0 million).
Regarding the above SUNAT interpretations, management strongly disagrees and is of the view that
SUNAT has disregarded all available evidence and independent opinions on the accounting treatment,
submitted by Las Bambas for consideration during the 2016 and 2017 income tax assessment process.
Further, in not recognising prior years’ tax losses, SUNAT has failed to acknowledge the Tax Court
decisions in respect of development costs for the 2012 and 2013 years which were ruled in MLB’s favour.
The risk remains that this treatment will also be applied for future income tax years.
Las Bambas has notified the Peru Government of a dispute pursuant to the Peru-Netherlands Bilateral
Investment Treaty (Treaty) and the Peru Government has confirmed its inability to resolve the dispute
by way of commercial negotiation. Las Bambas is currently evaluating its legal options to seek damages
from the Government of Peru for a number of breaches of the Treaty.
Considering the Las Bambas’ proposed appeals and advice from the Las Bambas’ tax and legal advisers,
the Group did not recognise a liability in its consolidated financial statements for any assessed amount.
If Las Bambas is unsuccessful in its challenge on the SUNAT assessments, this could result in significant
liabilities being recognised.

34
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

CHARGES ON ASSETS

As at 31 December 2023, approximately US$2,016.8 million (31 December 2022: US$2,653.6 million)
from China Development Bank, Industrial and Commercial Bank of China Limited, BOC Sydney and
The Export-Import Bank of China was secured by share security over the entire share capital of MMG
South America Management Company Limited and each of its subsidiaries including MLB, a
debenture over the assets of MMG South America Management Company Limited, an assets pledge
agreement and production unit mortgage in respect of all of the assets of MLB, assignments of
shareholder loans between MMG South America Management Company Limited and its subsidiaries
and security agreements over bank accounts of MLB.

FUTURE PROSPECTS

MMG’s vision is to create a leading international mining company for a low-carbon future. We mine to
create wealth for our people, host communities and shareholders with an ambition to grow and diversify
our resources, production and value, by leveraging Chinese and international expertise. Our strong
relationship with China draws upon the strength of the world’s largest commodities consumer and
provides a deep understanding of markets and access to its sources of funding.
The Company is focused on maximising the value of our existing assets by increasing our safety
performance, improving competitiveness, containing costs, continually improving productivity, building
successful relationships with our host communities and governments and growing our resource base.
We are actively pursuing our next phase of disciplined growth.
In South America, Las Bambas’ copper production in 2024 is expected to be in the range of 280,000
and 320,000 tonnes. MMG expects to produce between 39,000 and 44,000 tonnes of copper cathode
at Kinsevere, and between 225,000 and 250,000 tonnes of zinc at its Dugald River and Rosebery
operations in 2024.

Las Bambas
Las Bambas annual production is expected to reach 350,000-400,000 tonnes in the medium term with
the extended contribution from the Chalcobamba project. Early works at Chalcobamba have now
commenced and the Las Bambas team is working toward enduring agreements for the development of
the Chalcobamba deposit with the Huancuire community. The continued development of Las Bambas
is significant for the economy of Peru and will support additional social contributions and financial and
business opportunities for local and regional communities.

Australia
In Australia, Dugald River remains committed to safe, greener and sustainable production to deliver
annual ore mined throughput of 2,000,000 tonnes in the future years. This will pave the way for
targeted zinc equivalent production to remain at around 200,000 tonnes annually. MMG will build on
the already operational long-term solar offtake agreement to pursue more green, reliable and cost-
effective energy solutions, including supporting CopperString 2032, which aims to connect
Queensland’s North West Minerals Province to the National Electricity Grid.
At Rosebery, an accelerated resource extension and near mine exploration drilling program is currently
in progress to support a mine life extension. MMG remains committed to extending the operating life
of this important asset, proactively investigating all feasible options to secure a sustainable tailings
storage solution.

Kinsevere
In the DRC, MMG continues to progress the next phase of Kinsevere Expansion Project, namely the
transition to the mining and processing of sulphide ores. This project will extend Kinsevere’s mine life
to at least 2035 and increase copper production back to around 80,000 tonnes of copper cathode per

35
MANAGEMENT DISCUSSION AND ANALYSIS
CONTINUED

annum and 4,000 to 6,000 tonnes of cobalt in cobalt hydroxide. The cobalt plant was commissioned in
the fourth quarter of 2023, and the first production of cobalt hydroxide was achieved. The new tailing
storage facility was commissioned to support the cobalt plant ramp-up. The first copper cathode from
sulphides is expected in the second half of 2024, and a full ramp-up is expected in 2025. MMG will
continue to invest in regional exploration programs focusing on proving up discoveries within an
operating radius of the Kinsevere mine.

Capital expenditure plan in 2024

Total capital expenditure in 2024 is expected to be between US$800 million and US$900 million.
US$400-450 million is attributable to Las Bambas, including the expansion of the Las Bambas tailings
dam facility, Ferrobamba pit infrastructure and Chalcobamba execution. At Kinsevere, capital
expenditure related to the Kinsevere Expansion Project is expected to be US$250-300 million. Should
MMG successfully complete the acquisition of the Khoemacau asset, additional capital expenditure will
be required in 2024.
MMG will continue to focus on the next phase of growth. Currently, the company has no future plans
for material investments or capital assets sanctioned by the Board, other than those detailed in this
report or announced to the market.

36
OTHER INFORMATION

ANNUAL GENERAL MEETING

The annual general meeting (AGM) of the Company will be held on Thursday, 23 May 2024 (2024 AGM).
The notice of the 2024 AGM will be published and despatched to shareholders of the Company in due
course.

CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Monday, 20 May 2024 to Thursday, 23
May 2024, inclusive, during which period no transfer of shares will be registered.
In order to qualify for attending and voting at the 2024 AGM, all completed transfer forms accompanied
by the relevant share certificates must be lodged with Computershare Hong Kong Investor Services
Limited at Shops 1712-1716, 17/F, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not
later than 4:30 p.m. on Friday, 17 May 2024.
The record date for determining Shareholders’ eligibility to attend and vote at the 2024 AGM will be on
Thursday, 23 May 2024.

CORPORATE GOVERNANCE

The Company is committed to maintaining a high standard of corporate governance practices by

emphasising a quality Board, sound internal controls, and transparency and accountability to all
Shareholders.
The Company has complied with all the code provisions set out in Part 2 of the CG Code throughout
the year ended 31 December 2023, except for the deviations as explained below.
Code provision C.2.7 requires the Chairman should at least annually hold meetings with the
independent non-executive directors without the presence of other directors. During the year, Mr Jiao
Jian resigned as Chairman and Non-executive Director with effect from 31 March 2023. The new
Chairman, Mr Xu Jiqing was appointed as Chairman with effect from 18 August 2023. The Chairman
did not hold a separate meeting with the Independent Non-executive Directors but the Chairman met
all Directors including the Non-executive Directors and the Independent Non-executive Directors at
each Board meeting, except the Board meetings held during the period from 31 March 2023 to 17
August 2023. The preliminary section of each meeting was devoted to an exchange of ideas and
discussion between the Chairman and the Directors.
Code provision F.1.1 requires the issuer should have a policy on payment of dividends. The Company
does not have a dividend policy. The Board will decide on the declaration/recommendation of any
future dividends after taking into consideration a number of factors, including the prevailing market
conditions, the Company’s operating results, future growth requirements, liquidity position, and other
factors that the Board considers relevant. The recommendation of the payment of any dividend is
subject to the discretion of the Board, and any declaration of dividend will be subject to the approval
of Shareholders at the AGM.
Code provision F.2.2 requires the Chairman of the Board to attend and answer questions at the AGM.
Mr Jiao Jian resigned as Chairman with effect from 31 March 2023 before the AGM held on 25 May
2023. As such, Mr Leung Cheuk Yan, an Independent Non-executive Director, a member of the Audit
and Risk Management Committee and the Governance, Remuneration, Nomination and Sustainability
Committee of the Company, was nominated by the Board to take the chair of the AGM on 25 May 2023.
The Company adopted a Board Charter to outline the manner in which its constitutional powers and
responsibilities will be exercised, delegated and discharged, having regard to principles of good
corporate governance, international best practices and applicable laws. The Board Charter is adopted
on the basis that strong corporate governance can add to the performance of the Company, create
Shareholder value and engender the confidence of the investment market.
37
OTHER INFORMATION CONTINUED

DIRECTORS’ SECURITIES TRANSACTIONS

The Company has adopted a model code for securities trading by Directors (Securities Trading Model
Code) on terms no less exacting than the required standard of the Model Code for Securities
Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules (Model Code).
Specific enquiry was made with all the Directors and all confirmed that they have complied with the
requirements set out in the Model Code and the Securities Trading Model Code during the year ended
31 December 2023.

AUDIT AND RISK MANAGEMENT COMMITTEE

The Audit and Risk Management Committee comprises five members including three Independent Non-
executive Directors, namely Mr Chan Ka Keung, Peter as Chair, Dr Peter Cassidy and Mr Leung Cheuk
Yan, and two Non-executive Directors, namely Mr Zhang Shuqiang and Mr Xu Jiqing.
The Audit and Risk Management Committee is principally responsible for (i) financial reporting related
matters, such as reviewing financial information and overseeing financial reporting related systems and
controls; and (ii) advising the Board on high-level risk related matters, risk management and internal
control, including advising on risk assessment and oversight of the internal audit function.
The Audit and Risk Management Committee has reviewed the consolidated financial statements of the
Group for the year ended 31 December 2023.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES

During the year ended 31 December 2023, neither the Company nor any of its subsidiaries purchased,
sold or redeemed any of the Company’s listed securities.

PUBLICATION OF ANNUAL RESULTS AND ANNUAL REPORT

This annual results announcement is also published on the website of the Company (www.mmg.com).
The Company’s 2023 Annual Report will be despatched to Shareholders and made available on the
websites of the Hong Kong Exchange and Clearing Limited (www.hkexnews.hk) and the Company in
due course.

SCOPE OF WORK OF MESSRS. DELOITTE TOUCHE TOHMATSU

The figures in respect of the Group’s consolidated statement of financial position, consolidated
statement of profit or loss, consolidated statement of comprehensive income, consolidated statement
of changes in equity, consolidated statement of cash flows and the related notes thereto for the year
ended 31 December 2023 as set out in the announcement on annual results for year ended 31
December 2023 have been agreed by the Group’s auditor, Messrs. Deloitte Touche Tohmatsu, to the
amounts set out in the Group’s audited consolidated financial statements for the year as approved by
the Board of Directors on 5 March 2024. The work performed by Messrs. Deloitte Touche Tohmatsu in
this respect did not constitute an assurance engagement and consequently no opinion or assurance
conclusion has been expressed by Messrs. Deloitte Touche Tohmatsu on the announcement on annual
results for year ended 31 December 2023.

38
FINANCIAL INFORMATION OF THE GROUP

The financial information relating to year ended 31 December 2023 and 2022 included in this
preliminary announcement of the 2023 annual results does not constitute the Company's statutory
consolidated financial statements for those periods but is derived from those financial statements.
Further information relating to these statutory consolidated financial statements as required to be
disclosed in accordance with section 436 of the Companies Ordinance is as follows:
1. The Company has delivered the consolidated financial statements for the year ended 31 December
2022 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to
the Companies Ordinance and will deliver the consolidated financial statements for the year ended
31 December 2023 to the Registrar of Companies in due course.
2. The Company's auditors have reported on these consolidated annual financial statements. The
auditor's reports were unqualified; did not include a reference to any matters to which the auditor
drew attention by way of emphasis without qualifying their reports; and did not contain a statement
under sections 406(2), 407(2) or (3) of the Companies Ordinance.

39
CONSOLIDATED STATEMENT OF PROFIT OR LOSS

YEAR ENDED 31 DECEMBER

2023 2022
NOTES US$ MILLION US$ MILLION
Revenue 3 4,346.5 3,254.2
Net other (expense)/income 4 (2.2) 2.4
Expenses (excluding depreciation and
amortisation) 5 (2,882.4) (1,721.2)
Earnings before interest, income tax,
depreciation and amortisation – EBITDA 1,461.9 1,535.4
Depreciation and amortisation expenses 5 (930.2) (790.1)
Earnings before interest and income tax – 531.7 745.3
EBIT
Finance income 6 24.3 15.0
Finance costs 6 (366.4) (299.8)
Profit before income tax 189.6 460.5
Income tax expense 7 (67.5) (217.0)
Profit for the year 122.1 243.5

Profit for the year attributable to:

Equity holders of the Company 9.0 172.4
Non-controlling interests 113.1 71.1
122.1 243.5
Earnings per share attributable to equity
holders of the Company
Basic earnings per share 8 US 0.10 cents US 2.00 cents
Diluted earnings per share 8 US 0.10 cents US 1.98 cents

The accompanying notes are an integral part of these consolidated financial statements.

40
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME

YEAR ENDED 31 DECEMBER

2023 2022
US$ MILLION US$ MILLION
Profit for the year 122.1 243.5

Other comprehensive (loss)/income

Items that may be reclassified to profit or loss
Movement on hedging instruments
designated as cash flow hedges (54.9) 82.1
Income tax expense relating to cash flow
hedges 17.6 (26.3)
Item that may not be reclassified to profit or
loss
Remeasurement on the net defined benefit
liability (1.0) -
Other comprehensive (loss)/income for the
year, net of income tax (38.3) 55.8

Total comprehensive income for the year 83.8 299.3

Attributable to:
Equity holders of the Company (15.3) 207.3
Non-controlling interests 99.1 92.0
83.8 299.3

The accompanying notes are an integral part of these consolidated financial statements.

41
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION

AT 31 DECEMBER

2023 2022
NOTES US$ MILLION US$ MILLION
ASSETS
Non-current assets
Property, plant and equipment 9,417.1 9,509.4
Right-of-use assets 118.1 111.2
Intangible assets 534.0 534.2
Inventories 115.0 122.2
Deferred income tax assets 150.0 315.7
Other receivables 12 168.8 167.5
Derivative financial assets - 113.9
Other financial assets 2.7 1.5
Total non-current assets 10,505.7 10,875.6
Current assets
Inventories 389.5 872.6
Trade and other receivables 12 476.0 342.5
Current income tax assets 79.5 60.5
Derivative financial assets 3.1 12.1
Cash and cash equivalents 13 447.0 372.2
Total current assets 1,395.1 1,659.9
Total assets 11,900.8 12,535.5

EQUITY
Capital and reserves attributable to equity
holders of the Company
Share capital 14 3,224.6 3,220.5
Reserves and retained profits (1,101.2) (1,081.5)
2,123.4 2,139.0
Non-controlling interests 2,188.6 2,089.5
Total equity 4,312.0 4,228.5

The accompanying notes are an integral part of these consolidated financial statements.

42
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION CONTINUED

AT 31 DECEMBER
2023 2022
NOTES US$ MILLION US$ MILLION
LIABILITIES
Non-current liabilities
Borrowings 15 3,375.8 4,209.6
Lease liabilities 125.6 117.4
Provisions 647.0 599.2
Trade and other payables 16 286.5 217.5
Deferred income tax liabilities 952.7 1,208.0
Total non-current liabilities 5,387.6 6,351.7
Current liabilities
Borrowings 15 1,331.3 1,203.0
Lease liabilities 22.0 21.3
Provisions 127.3 81.0
Derivative financial liabilities - 0.3
Trade and other payables 16 616.4 535.5
Current income tax liabilities 104.2 114.2
Total current liabilities 2,201.2 1,955.3
Total liabilities 7,588.8 8,307.0
Net current liabilities (806.1) (295.4)
Total equity and liabilities 11,900.8 12,535.5

The accompanying notes are an integral part of these consolidated financial statements.

43
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

ATTRIBUTABLE TO EQUITY HOLDERS OF

THE COMPANY
NON-
SHARE TOTAL RETAINED CONTROLLING TOTAL
US$ MILLION CAPITAL RESERVES PROFITS TOTAL INTERESTS EQUITY
(Note 14)
At 1 January 2023 3,220.5 (1,826.7) 745.2 2,139.0 2,089.5 4,228.5
Profit for the year - - 9.0 9.0 113.1 122.1
Other comprehensive loss - (24.3) - (24.3) (14.0) (38.3)
Total comprehensive
(loss)/income for the year - (24.3) 9.0 (15.3) 99.1 83.8
Provision of surplus reserve - 0.4 (0.4) - - -
Employee long-term
incentives - (1.5) - (1.5) - (1.5)
Employee share options and
performance awards vested
and exercised 4.1 (2.9) - 1.2 - 1.2
Employee share options and
performance awards lapsed - (0.1) 0.1 - - -
Total transactions with
owners 4.1 (4.1) (0.3) (0.3) - (0.3)
At 31 December 2023 3,224.6 (1,855.1) 753.9 2,123.4 2,188.6 4,312.0

The accompanying notes are an integral part of these consolidated financial statements.

ATTRIBUTABLE TO EQUITY HOLDERS OF THE

COMPANY
NON-
SHARE TOTAL RETAINED CONTROLLING TOTAL
US$ MILLION CAPITAL RESERVES PROFITS TOTAL INTERESTS EQUITY
(Note 14)
At 1 January 2022 3,220.3 (1,862.7) 572.9 1,930.5 1,997.5 3,928.0
Profit for the year - - 172.4 172.4 71.1 243.5
Other comprehensive
income - 34.9 - 34.9 20.9 55.8
Total comprehensive
income for the year - 34.9 172.4 207.3 92.0 299.3
Provision of surplus
reserve - 0.1 (0.1) - - -
Employee long-term
incentives - 1.1 - 1.1 - 1.1
Employee share options
exercised and vested 0.2 (0.1) - 0.1 - 0.1
Total transactions with
owners 0.2 1.1 (0.1) 1.2 - 1.2
At 31 December 2022 3,220.5 (1,826.7) 745.2 2,139.0 2,089.5 4,228.5

The accompanying notes are an integral part of these consolidated financial statements.

44
CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER

2023 2022
NOTE US$ MILLION US$ MILLION
Cash flows from operating activities
Receipts from customers 4,605.3 3,402.1
Payments to suppliers and employees (2,621.8) (2,319.9)
Payments for exploration expenditure (49.6) (30.8)
Income tax paid (79.1) (268.0)
Net settlement of commodity hedges (4.9) 48.7
Net cash generated from operating activities 1,849.9 832.1

Cash flows from investing activities

Purchase of property, plant and equipment (790.0) (564.5)
Purchase of intangible assets (1.2) (1.7)
Proceeds from disposal of subsidiary - 27.5
Proceeds from disposal of property, plant and
equipment 1.2 -
Net cash used in investing activities (790.0) (538.7)

Cash flows from financing activities

Proceeds from external borrowings 1,650.0 500.0
Repayments of external borrowings (2,458.8) (1,491.4)
Proceeds from related party borrowing 1,150.0 200.0
Repayments of related party borrowing (1,050.0) (100.0)
Net settlement of interest rate swap 132.4 17.9
Proceeds from shares issued upon exercise of
employee share options 1.2 0.1
Repayment of lease liabilities (37.7) (31.2)
Interest and financing costs paid on external
borrowings (279.0) (182.2)
Interest and financing costs paid on related party
borrowings (100.3) (95.6)
Withholding taxes paid in respect of financing
arrangements (14.6) (9.1)
Interest received 21.7 15.0
Net cash used in financing activities (985.1) (1,176.5)

Net increase/(decrease) in cash and cash

equivalents 74.8 (883.1)
Cash and cash equivalents at 1 January 372.2 1,255.3
Cash and cash equivalents at 31 December 13 447.0 372.2

The accompanying notes are an integral part of these consolidated financial statements.

45
NOTES TO FINANCIAL INFORMATION

1. GENERAL INFORMATION
MMG Limited (Company) is a limited liability company and was incorporated in Hong Kong on 29 July 1988.
The address of its registered office is Unit 1208, 12/F, China Minmetals Tower, 79 Chatham Road South,
Tsimshatsui, Kowloon, Hong Kong. The principal place of business of the Company is disclosed in the
Corporate Information section to the Group’s 2023 Annual Report.
The Company is an investment holding company listed on the main board of The Stock Exchange of Hong
Kong Limited (HKEx).
The Company and its subsidiaries (Group) are engaged in the exploration, development and mining of
copper, zinc, gold, silver, molybdenum and lead deposits around the world.
The consolidated financial statements for the year ended 31 December 2023 are presented in United
States dollars (US$) unless otherwise stated and were approved for issue by the Board of Directors of the
Company (Board) on 5 March 2024.
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the years presented, unless otherwise
stated.

Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with Hong Kong
Financial Reporting Standards (“HKFRSs”) – a collective term that includes all applicable individual Hong
Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKAS”) and Interpretations
issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”). These consolidated
financial statements have been prepared under the historical cost convention, except for financial assets
and financial liabilities at fair value through profit or loss which are measured at fair value.
The preparation of consolidated financial statements in accordance with HKFRSs requires the use of
certain critical accounting estimates. It also requires management to exercise their judgement in the
process of applying the Group’s accounting policies.
(a) Going Concern
The consolidated financial statements have been prepared on the going concern basis which assumes the
continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
normal course of business. Management of the Group continues to closely monitor the liquidity position
of the Group, which includes the sensitised analysis of forecast cash balances for key financial risks
(including commodity and foreign exchange risks) over the short and medium term to ensure adequate
liquidity is maintained.
As at 31 December 2023, the Group had net current liabilities of US$806.1 million (31 December 2022:
US$295.4 million) and cash and cash equivalents of US$447.0 million (31 December 2022: US$372.2
million). For the year ended 31 December 2023, the Group generated a net profit of US$122.1 million (2022:
US$243.5 million) and operational net cash inflows of US$1,849.9 million (2022: US$832.1 million).
Cash flow forecasts include drawdowns from existing and new credit facilities and assume the successful
extension of revolving credit facilities (“RCF”). With the inclusion of these assumptions, the Group will have
sufficient liquidity to meet its operational, existing contractual debt service and capital expenditure
requirements for the 12-month period from the approval of the consolidated financial statements.
Management notes the following considerations, relevant to the Group’s ability to continue as a going
concern:
• At 31 December 2023, total cash and cash equivalents of US$447.0 million (2022: US$372.2 million)
were held by the Group;

46
NOTES TO FINANCIAL INFORMATION CONTINUED

• The Group has US$4,325.0 million undrawn facilities as at the date that the financial statements
are authorised to issue:
o A US$350.0 million undrawn RCF from Album Enterprises Limited (“Album Enterprises”) (a
subsidiary of China Minmetals Non-ferrous Metals Co., Ltd (“CMN”)) which will expire in August
2024;
o A new US$275.0 million undrawn RCF from Bank of China (“BOC”) which will expire in April
2026;
o A new US$150.0 million undrawn RCF from Industrial and Commercial Bank of China (“ICBC”)
consisting of three tranches of US$50.0 million each set to expire in March, May and June
2026;
o A new US$100.0 million undrawn RCF from Bank of Communication (“BOCOM”) which will
expire in August 2026;
o A new US$200.0 million RCF from CCB of which US$50.0 million remains undrawn. It will expire
in January 2027;
o A new US$100.0 million undrawn RCF from CCB which will expire in February 2027;
o A new US$1,000.0 million undrawn RCF from Top Create Resources Limited (“Top Create”) (a
subsidiary of CMN). This facility will expire in December 2026;
o A new US$300.0 million Term Loan Facility from Top Create that supports the Kinsevere
Expansion Project which will expire in December 2030; and
o A shareholder term loan facility of US$2,000.0 million from Top Create to support the
acquisition of the CCL and its subsidiaries.
• The Group expects to obtain, renew or extend a number of facilities:
o A new RCF of US$700.0 million from syndicated banks currently being negotiated;
o A new US$44.0 million term loan from external banks currently being negotiated to support
the operations of Kinsevere;
o New RCFs of US$200.0 million with external banks; and
o The Tranche A repayment of the US$2,161.3 million term loan from Top Create of US $700.0
million is due in July 2024 but is expected to be deferred for three years.
In the event that forecast cash flow is not achieved or if existing or new debt facilities are insufficient or
not obtained in a timely manner, the Group has the ongoing support of its major shareholder, CMN. Support
to the Group may be in the form of providing additional debt facilities, deferral of debt service and
repayment obligations in relation to existing shareholder loans from CMN and its subsidiaries, early
payments for shipments of commodity or through further equity contributions.
Based on the above, and a review of the forecast financial position and results of the Group for the twelve
months from approval of these consolidated financial statements, the directors are thus of the view that
the Group will be able to meet its debts as and when they fall due and accordingly the consolidated
financial statements have been prepared on the going concern basis.

47
NOTES TO FINANCIAL INFORMATION CONTINUED

(b) New standards and amendments to existing standards effective and adopted in 2023 with no
significant impact to the Group
HKFRS 17 (including the October Insurance Contracts1
2020 and
February 2022 Amendments to
HKFRS 17)
Amendments to HKAS 8 Definition of Accounting Estimates1
Amendments to HKAS 12 Deferred Tax related to Assets and Liabilities arising
from a Single Transaction1
Amendments to HKAS 1 and HKFRS Disclosure of Accounting Policies1
Practice Statement 2
Amendments to HKAS 12 International Tax Reform-Pillar Two model Rules

1. The application of the new HKFRS in the current year has had no material impact on the Group's
financial positions and performance for the current and prior years and/or on the disclosures set out
in these consolidated financial statements.
Impacts on application of amendments to HKAS 12 “Income Taxes International Tax Reform-Pillar Two
model Rules”
The Group has applied the amendments for the first time in the current year. HKAS 12 is amended to add
the exception to recognising and disclosing information about deferred tax assets and liabilities that are
related to tax law enacted or substantively enacted to implement the Pillar Two model rules published by
the Organisation for Economic Co-operation and Development (the "Pillar Two legislation"). The
amendments require that entities apply the amendments immediately upon issuance and retrospectively.
The amendments also require that entities disclose separately its current tax expense/income related to
Pillar Two income taxes in periods which the Pillar Two legislation is in effect, and the qualitative and
quantitative information about its exposure to Pillar Two income taxes in periods in which the Pillar Two
legislation is enacted or substantially enacted but not yet in effect in annual reporting periods beginning
on or after 1 January 2023.
The Group has applied the temporary exception immediately upon issue of these amendments and
retrospectively, i.e. applying the exception from the date Pillar Two legislation is enacted or substantially
enacted. The qualitative and quantitative information about the Group’s exposure to Pillar Two income
taxes is set out in Note 7.
In addition, the Group applied the following agenda decision of the Committee of the International
Accounting Standards Board (“IASB”) which is relevant to the Group given that HKFRSs Standards are
largely aligned with IFRS Standards, the agenda decision of the Committee is equally applicable:
Definition of a Lease - Substitution Rights (IFRS 16 Leases)

In April 2023, the Committee published the agenda decision which addressed: (i) the level at which to
evaluate whether a contract contains a lease when the contract is for the use of more than one similar
asset i.e. by considering each asset separately or all assets together; and (ii) how to assess whether a
contract contains a lease applying IFRS 16 when the supplier has substitution rights to substitute
alternative assets, but would not benefit economically from the exercise of its right to substitute the asset
throughout the period of use.
The Committee concluded that, (i) the level to assess whether the contract contains a lease is at each
identified asset level; and (ii) the supplier’s right is not substantive because the supplier is not expected
to benefit economically from exercising its right to substitute an asset throughout the period of use.
The application of the Committee's agenda decision has had no material impact on the Group's
consolidated financial statements.

48
NOTES TO FINANCIAL INFORMATION CONTINUED

(c) Amendments to standards that have been issued but not yet effective or early adopted by the
Group
The Group has not early adopted the following amendments to standards that have been issued but are
not effective for financial year 2023.
Amendments to HKFRS 10 Sale or Contribution of Assets between an Investor and its
and HKAS 28 Associate or Joint Venture1
Amendments to HKFRS 16 Lease Liability in a Sale and Leaseback2
Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related
amendments to Hong Kong Interpretation 5 (2020)2
Amendments to HKAS 1 Non-current liabilities with Covenant2
Amendments to HKAS 7 and HKFRS 7 Supplier Finance Arrangements2
Amendments to HKAS 21 Lack of Exchangeability3
1. Effective for annual periods beginning on or after a date to be determined.
2. Effective for annual periods beginning on or 1 January 2024.
3. Effective for annual periods beginning on or 1 January 2025.

3. SEGMENT INFORMATION
HKFRS 8 “Operating Segments” requires operating segments to be identified on the basis of internal
reports about operations of the Group that are regularly reviewed by the chief operating decision-maker
(“CODM”) in order to allocate resources to the segment and assess its performance.
The Company’s Executive Committee has been identified as the CODM. The Executive Committee reviews
the Group’s internal reporting of these operations in order to assess performance and allocate resources.
The Group’s reportable segments are as follows:
Las Bambas The Las Bambas mine is a large open-pit, scalable, long-life copper
and molybdenum mining operation with prospective exploration
options. It is located in the Cotabambas, Apurimac region of Peru.
Kinsevere Kinsevere is an open-pit copper mining operation located in the Haut-
Katanga Province of the DRC.
Dugald River The Dugald River mine is an underground zinc mining operation located
near Cloncurry in North West Queensland.
Rosebery Rosebery is an underground polymetallic base metal mining operation
located on Tasmania’s west coast.
Other Includes corporate entities in the Group.

A segment result represents the EBIT by each segment. This is the measure reported to the CODM for the
purposes of resource allocation and assessment of segment performance. Other information provided,
except as disclosed in the following paragraph, to the CODM is measured in a manner consistent with that
in these consolidated financial statements.
Segment assets exclude current income tax assets, deferred income tax assets and net inter-segment
receivables. Segment liabilities exclude current income tax liabilities, deferred income tax liabilities and
net inter-segment loans. The excluded assets and liabilities are presented as part of the reconciliation to
total consolidated assets or liabilities.

49
NOTES TO FINANCIAL INFORMATION CONTINUED

The segment revenue and results for the year ended 31 December 2023 are as follows:
FOR THE YEAR ENDED 31 DECEMBER 2023
Other unallocated
Las Dugald items/
US$ MILLION Bambas Kinsevere River Rosebery eliminations Group
Revenue by metal:
-Copper1 2,938.0 354.63 - 8.2 3.4 3,304.2
-Zinc2 - - 264.1 95.3 - 359.4
-Lead - - 35.9 32.0 - 67.9
-Gold 180.8 - - 52.7 - 233.5
-Silver 122.7 - 31.2 51.8 - 205.7
-Molybdenum 175.8 - - - - 175.8
Revenue from contracts with
customers 3,417.3 354.6 331.2 240.0 3.4 4,346.5

EBITDA 1,396.7 (32.0) 33.8 77.8 (14.4) 1,461.9

Depreciation and amortisation
expenses (Note 5) (800.0) (27.5) (53.1) (56.8) 7.2 (930.2)
EBIT 596.7 (59.5) (19.3) 21.0 (7.2) 531.7
Finance income (Note 6) 24.3
Finance costs (Note 6) (366.4)
Income tax expense (Note 7) (67.5)
Profit for the year 122.1

Other segment information:

Additions to non-current assets
(excluding deferred tax assets,
inventories and financial
instruments) 351.0 332.2 92.3 68.0 4.9 848.4
The segment assets and liabilities at 31 December 2023 are as follows:
AT 31 DECEMBER 2023
Other
unallocated
Las Dugald items/
US$ MILLION Bambas Kinsevere River Rosebery eliminations Group
Segment assets4 9,449.3 852.8 687.0 295.8 386.4 11,671.3
Current/deferred income tax
assets 229.5
Consolidated assets 11,900.8

Segment liabilities 5 3,093.2 317.4 367.6 197.8 2,555.9 6,531.9

Current/deferred income tax
liabilities 1,056.9
Consolidated liabilities 7,588.8

Segment non-current assets 8,635.8 725.9 620.9 255.6 267.5 10,505.7

50
NOTES TO FINANCIAL INFORMATIONCONTINUED

The segment revenue and results for the year ended 31 December 2022 are as follows:
FOR THE YEAR ENDED 31 DECEMBER 2022
Other
unallocated
Las Dugald items/
US$ MILLION Bambas Kinsevere River Rosebery eliminations Group
Revenue by metal:
-Copper1 1,795.9 421.53 - 8.6 1.7 2,227.7
-Zinc2 - - 417.9 129.2 - 547.1
-Lead - - 38.1 34.8 - 72.9
-Gold 105.7 - - 45.8 - 151.5
-Silver 66.0 - 28.3 41.5 - 135.8
-Molybdenum 119.2 - - - - 119.2
Revenue from contracts with
customers 2,086.8 421.5 484.3 259.9 1.7 3,254.2

EBITDA 1,121.9 131.7 210.2 98.6 (27.0) 1,535.4

Depreciation and amortisation
expenses (Note 5) (665.7) (27.8) (57.7) (46.9) 8.0 (790.1)
EBIT 456.2 103.9 152.5 51.7 (19.0) 745.3
Finance income (Note 6) 15.0
Finance costs (Note 6) (299.8)
Income tax expense (Note 7) (217.0)
Profit for the year 243.5

Other segment information:

Additions to non-current assets
(excluding deferred tax assets,
inventories and financial
instruments) 354.4 44.8 59.1 52.3 38.3 548.9
The segment assets and liabilities at 31 December 2022 are as follows:
AT 31 DECEMBER 2022
Other
unallocated
Las Dugald items/
US$ MILLION Bambas Kinsevere River Rosebery eliminations Group
Segment assets4 10,275.6 539.6 654.3 276.1 413.7 12,159.3
Current/deferred income tax
assets 376.2
Consolidated assets 12,535.5

Segment liabilities5 3,965.4 240.2 358.4 175.4 2,245.4 6,984.8

Current/deferred income tax
liabilities 1,322.2
Consolidated liabilities 8,307.0

Segment non-current assets 9,231.8 387.6 583.1 245.3 427.8 10,875.6

1. Commodity derivative realised and unrealised net losses with a total amount of US$15.9 million (2022: net gains of US$58.2
million) were included in “Revenue” of Copper;

51
NOTES TO FINANCIAL INFORMATIONCONTINUED

2. Commodity derivative realised and unrealised net losses with a total amount of US$3.0 million (2022: net gains of US$14.4
million) were included in “Revenue” of Zinc;
3. Commodity hedge trades with realised net losses of US$0.3 million (2022: net realised and unrealised gains of US$20.8
million) under Kinsevere were executed by another subsidiary of the Company, MMG Finance Limited located in Hong Kong;
4. Included in segment assets of US$386.4 million (2022: US$413.7 million) under the other unallocated items is cash of
US$39.1 million (2022: US$171.7 million) mainly held in the Group treasury entities and US$213.2 million trade receivables
(2022: US$102.9 million) for MMG South America Company Limited (“MMG SA”) in relation to copper concentrate sales; and
5. Included in segment liabilities of US$2,555.9 million (2022: US$2,245.4 million) under the other unallocated items are
borrowings of US$2,459.9 million (2022: US$2,160.9 million), which are managed at the Group level.

4. NET OTHER (EXPENSE)/INCOME

2023 2022
US$ MILLION US$ MILLION
Loss on disposal of property, plant and equipment (2.6) (9.0)
Sundry income 0.4 11.4
Total net other (expense)/income (2.2) 2.4

5. EXPENSES
Profit before income tax includes the following expenses:
2023 2022
US$ MILLION US$ MILLION
Changes in inventories of finished goods and work in 506.8 (298.2)
progress
Write-down of inventories to net realisable value 17.9 3.3
Employee benefit expenses 1
320.6 277.9
Contracting and consulting expenses 3
565.5 529.1
Energy costs 360.9 305.4
Stores and consumables costs 511.1 422.9
Depreciation and amortisation expenses 2 913.2 773.8
Other production expenses 3
210.4 165.5
Cost of goods sold 3,406.4 2,179.7
Other operating expenses 59.2 41.0
Royalty expenses 140.9 116.4
Selling expenses 3
127.4 119.3
Total operating expenses including depreciation and
amortisation4 3,733.9 2,456.4
Exploration expenses 1,2,3
49.6 30.8
Administrative expenses 1,3
12.9 16.0
Auditors’ remuneration 1.8 1.7
Foreign exchange loss/(gain) – net 3.5 (6.6)
(Gain)/loss on financial assets at fair value through profit
or loss (1.2) 0.3
Other expenses 1,2,3
12.1 12.7
Total expenses 3,812.6 2,511.3

52
NOTES TO FINANCIAL INFORMATIONCONTINUED

1. In aggregate US$45.1 million (2022: US$44.0 million) employee benefit expenses by nature is included in the administrative
expenses, exploration expenses, and other expenses categories. Total employee benefit expenses were US$365.7 million
(2022: US$321.9 million).
2. In aggregate US$17.0 million (2022: US$16.3 million) depreciation and amortisation expenses are included in exploration
expenses and the other expenses category. Total depreciation and amortisation expenses were US$930.2 million (2022:
US$790.1 million).
3. The expense under these categories includes certain amounts in respect of lease and non-lease contracts which were not
recognised as right-of-use assets on the consolidated statement of financial position following the guidance as per HKFRS
16 or where the contracts were low value for a lease assessment under HKFRS 16 requirements. Expenditure in respect of
such contracts assessed as leases but which did not qualify for recognition as right-of-use assets included US$102.8 million
(2022: US$87.8 million) in respect of variable lease payments contracts and, US$0.4 million (2022: US$1.0 million) and
US$0.9 million (2022: US$1.3 million) for short-term and low-value lease contracts, respectively.
4. Operating expenses include mining and processing costs, royalties, selling expenses (including transportation) and other
costs incurred by operations.

6. FINANCE INCOME AND FINANCE COSTS

2023 2022
US$ MILLION US$ MILLION
Finance income
Interest income 24.3 15.0
24.3 15.0
Finance costs
Interest expense - 3rd party (239.9) (166.8)
Interest expense - related party (108.2) (96.1)
Withholding taxes in respect of financing arrangements (15.2) (10.3)
Unwinding of discount on lease liabilities (12.9) (11.8)
Unwinding of discount on provisions (22.9) (13.4)
Other finance (cost)/refund - 3rd party (0.3) 0.1
Other finance cost - related party (4.0) (1.5)
(403.4) (299.8)
Gain reclassified from equity to profit or loss on
interest rate swaps designated as cash flow hedges 37.0 -
Finance costs - total (366.4) (299.8)

53
NOTES TO FINANCIAL INFORMATIONCONTINUED

7. INCOME TAX EXPENSE

Hong Kong profits tax is provided at a rate of 16.5% where there are net assessable profits derived for
the year. The income tax rates applicable for the main jurisdictions in which the Group operates are:
Australia (30.0%), Peru (32.0%) and the DRC (30.0%). Tax rates for some jurisdictions are covered by
historical legal agreements with governments. Taxation on profits arising from other jurisdictions has
been calculated on the estimated assessable profits for the year at the rates prevailing in the relevant
jurisdictions.

2023 2022
US$ MILLION US$ MILLION
Current income tax benefit/(expense)
– HK income tax 0.4 (2.6)
– Overseas income tax (139.9) (182.5)

Deferred income tax benefit/(expense)

– HK income tax 1.0 (1.0)
– Overseas income tax 71.0 (30.9)

Income tax expense (67.5) (217.0)

The Group has applied the temporary exception issued by the HKICPA in July 2023 from the accounting
requirements for deferred taxes in HKAS12. Accordingly, the Group neither recognises nor discloses
information about deferred tax assets and liabilities related to Pillar Two income taxes.
On December 2023, Pillar Two legislation was enacted or substantively enacted in certain jurisdictions
the Group operates. The Group is in the scope of the enacted or substantively enacted legislation.
However, the legislation was enacted close to the reporting date. Therefore, the Group is still in the
process of assessing the potential exposure to Pillar Two income taxes as at 31 December 2023. The
potential exposure, if any, to Pillar Two income taxes is currently not known or reasonably estimable.
The Group expects to be in a position to report the potential exposure in its next interim financial
statements for the period ending 30 June 2024.
The tax on the Group’s profit before income tax differs from the prima facie amount that would arise
using the applicable tax rate to profit of the consolidated companies as follows:

2023 2022
US$ MILLION US$ MILLION
Profit before income tax 189.6 460.5
Calculated at domestic tax rates applicable to profits or
losses in the respective countries (47.4) (128.5)
Net non-taxable/(non-deductible) amounts 4.5 (33.4)
Over/(under)-provision in prior years 47.4 (2.5)
Non-creditable withholding tax (70.7) (52.8)
Others (1.3) 0.2
Income tax expense (67.5) (217.0)

54
NOTES TO FINANCIAL INFORMATIONCONTINUED

In addition to the amount charged to profit or loss, the following amounts relating to tax have been
recognised in other comprehensive income:
YEAR ENDED 31 DECEMBER
2023 2022
US$ MILLION US$ MILLION
Before Net of
tax Tax income tax Before tax Tax Net of income
amount benefit amount amount expense tax amount
Items that will be reclassified subsequently to profit or loss:
Fair value
gain/(loss) on
IRS (17.9) 5.8 (12.1) 82.1 (26.3) 55.8
Movement
on IRS
closure (37.0) 11.8 (25.2) - - -
(54.9) 17.6 (37.3) 82.1 (26.3) 55.8

8. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the earnings for the year attributable to equity holders
of the Company by the weighted average number of ordinary shares on issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares. For the Company’s share
options and performance awards on issue, a calculation is performed to determine the number of
shares that could have been acquired at fair value (determined at the average market share price of
the Company’s shares) based on the monetary value of the subscription rights attached to outstanding
share options and performance awards. The number of shares calculated as below is compared with
the number of shares that would have been issued assuming the exercise of share options and
performance awards.

2023 2022
US$ MILLION US$ MILLION
Earnings attributable to equity holders of the Company in
the calculation of basic and diluted earnings per share 9.0 172.4
NUMBER OF SHARES ‘000
2023 2022
Weighted average number of ordinary shares used in the
calculation of the basic earnings per share 8,649,544 8,639,618
Shares deemed to be issued in respect of long-term
incentive equity plans 38,654 57,552
Weighted average number of ordinary shares used in the
calculation of the diluted earnings per share 8,688,198 8,697,170

Basic earnings per share US 0.10 cents US 2.00 cents

Diluted earnings per share US 0.10 cents US 1.98 cents

9. DIVIDENDS
The Directors did not recommend the payment of an interim or final dividend for the year ended 31
December 2023 (2022: nil).

55
NOTES TO FINANCIAL INFORMATIONCONTINUED

10. IMPAIRMENT TESTING OF NON-CURRENT ASSETS AND GOODWILL

In accordance with the Group’s accounting policies and processes, the Group performs its impairment
testing annually at 31 December. In addition, CGUs are reviewed at each reporting period to determine
whether there is an indication of impairment or impairment reversal. Where an indicator of impairment
or impairment reversal exists, a formal estimate of the recoverable amount is made at the reporting
period.
In respect of Las Bambas, the CGU is subject to impairment testing due to goodwill being attributed to
the CGU which requires an annual impairment assessment.
In respect of Kinsevere and Dugald River, impairment losses have been recognised in 2019 and 2015
respectively. Management has reviewed the operational performance and considered the operation’s
sensitivity to a range of factors including commodity prices, throughput, grade, recovery, operation,
capital expenditure and progress of development projects and concluded that there is currently no
further impairment or any requirement to reverse the previously recognised impairment.
No impairment indicators were noted in respect of Rosebery.
(i) Approach to recognition of an impairment loss
An impairment is recognised when the carrying amount exceeds the recoverable amount. The
recoverable amount of each CGU has been estimated using its fair value less costs of disposal (“Fair
Value”), which is consistent with the approach from the prior year. The Group considers the inputs and
the valuation approach to be consistent with the approach taken by market participants.
Estimates of quantities of recoverable minerals, production levels, operating costs and capital
requirements are sourced from the Group’s planning process, including Life of Mine Planning, three-
year budgets, periodic forecasts and CGU specific studies. Expected operating performance
improvements reflecting the Group’s objectives to maximise free cash flow, optimise operational activity,
apply technology, improve capital and labour productivity and other production efficiencies are also
included along with the expected costs to realise the initiatives.
All reserves and resources have been included in the valuations at justifiable reasonable conversion
rates, supported by proof of concept studies. Exploration targets are included in the valuation based
on management’s expectation of identifying and converting potential resources to reserves and
successfully utilising such resources.
(ii) Key assumptions
The key assumptions impacting the discounted cash flow models used to determine the Fair Value
include:
• Commodity prices;
• Operating costs;
• Production rates;
• Capital requirements;
• Political instability and social unrest impacting regulatory approvals and timing thereof;
• Real post-tax discount rates;
• Foreign exchange rates;
• Reserves and resources and conversion of exploration targets;
• Recovery of taxes;
• Optimisation of operational activity and productivity; and
• Rehabilitation timing.
In determining some of the key assumptions, management considered external sources of information
where appropriate.

56
NOTES TO FINANCIAL INFORMATIONCONTINUED

Commodity price and exchange rate assumptions are based on the latest internal forecasts
benchmarked to analyst consensus forecasts. The long-term cost assumptions are based on actual
costs adjusted for planned operational changes and input cost assumptions over the life of mine.
The long-term price assumed for copper is US$4.03 per pound (2022: US$3.86 per pound) and for
zinc is US$1.30 per pound (2022: US$1.25 per pound).
The long term AUD:USD exchange rate is 0.73 (2022: 0.75).
The real post-tax discount rates used in the Fair Value estimates of the CGU’s are listed below at 10.75%
for Kinsevere (2022: 10.5%), 6.75% for Dugald River and Rosebery (2022: 6.5%) and 8.0% for Las
Bambas (2022: 7.75%), reflecting a 0.25% increase in the Weighted Average Cost of Capital (WACC).
Management considers the estimates applied in this impairment assessment are reasonable. However,
such estimates are subject to significant uncertainties and judgements. Refer to (iv) below for
sensitivity analysis.
(iii) Valuation methodology
Las Bambas
The Las Bambas Fair Value is determined through CGU discounted cash flows at 31 December 2023.
The valuation is based on the current operation and further regional exploration targets included in the
initial valuation to acquire the mine in 2014. Management continues to work with local communities to
secure land access to continue its exploratory drilling activities, to materialise the potential from such
exploration targets.
The cash flows assume additional capital investment in the processing plant, tailings facilities and mine
developments as well as expected cost reductions from operational improvement programs. Significant
upcoming projects are included that are subject to regulatory permits and approvals. Future cash flow
forecasts include estimates for the cost of obtaining access to land where the rights do not currently
exist.
Political instability at a national level may result in delays of environmental and drilling permits and the
ability to engage with the community and carry out exploration drilling. Although access to the heavy
haul road for concentrate transportation significantly improved from March 2023, management
continues to progress dialogue with local communities and the Government of Peru to ensure the
continuity of road access into the future. This includes continuing to deliver on the Company’s
obligations in relation to social and community development programs and supporting the Government
of Peru to progress public investment projects which will improve the condition of the public road which
Las Bambas’ uses for the transport of concentrate to the port, which is expected to reduce disruptions
of road usage into the future.
The impairment assessment of the Las Bambas CGU at 31 December 2023 did not result in the
recognition of any impairment.
Kinsevere
The Kinsevere Fair Value at 31 December 2023 assumes delivery of the Kinsevere Expansion Project
(KEP) and further regional exploration targets which are at varying levels of confidence. KEP was
approved in March 2022 and construction is currently underway. KEP will extend the life of Kinsevere
by modifying and extending the existing oxide processing facilities to include a sulphide ore and cobalt
processing circuit. The cobalt circuit was commissioned in Q4 2023 with first copper cathode from
sulphides expected in the second half of 2024.
The impairment assessment of the Kinsevere CGU at 31 December 2023 did not result in the
recognition of any further impairment.
In 2019, management had recognised a pre-tax impairment of US$150.0 million due to operational
challenges and risks associated with political and legislative matters. Significant risks and uncertainties

57
NOTES TO FINANCIAL INFORMATIONCONTINUED

still exist in respect of the application of the Mining Code (2018), additional duties and taxes, and
recoverability of VAT receivable from the DRC Government. The valuation is also sensitive to factors
such as copper and cobalt price, discount rate, recovery, ore loss, KEP schedule and performance and
dilution. Considering such risks and sensitivities, no reversal of previously recognised impairment was
required. The Group will continue to monitor and assess if a reversal of impairment is required in future
periods.
Dugald River
The impairment assessment of the Dugald River CGU at 31 December 2023 resulted in in positive
headroom requiring no impairment.
Previously, in 2015, management had recognised a pre-tax impairment loss of US$573.6 million for
Dugald River. Given the value of the headroom and considering that the fair value is highly sensitive to
zinc price, exchange rates and operational performance, management believes no reversal of
previously recognised impairment is required. The Group will continue to monitor and assess if a
reversal of impairment is required in future periods.
Rosebery
The Rosebery Fair Value is determined through the 2023 Life of Mine Planning discounted cashflows.
No indicators of impairment were noted for Rosebery and the Fair Value currently supports the carrying
value of the CGU. Consequently, no impairment was recognised.
(iv) Sensitivity analysis
Commodity prices, the level of production activity as well as the success of converting reserves,
resources, exploration targets and increasing the resource estimates over the lives of mines are key
assumptions in the determination of Fair Value. Due to the number of risk factors that could impact
production activity, such as processing throughput, changing ore grade and/or metallurgy and revisions
to mine plans in response to physical or economic conditions, no quantified sensitivity has been
determined. Changes to these assumptions may however result in an impact on the Fair Value and
result in an impairment in the future.
A sensitivity analysis is presented below for both Las Bambas and Kinsevere. The sensitivities assume
that the specific assumption moves in isolation, whilst all other assumptions are held constant. However
in reality, a change in one of the aforementioned assumptions may accompany a change in another
assumption which may have an offsetting impact. Management action is also usually taken to respond
to adverse changes in economic assumptions that may mitigate the impact of any such change.
Las Bambas
The key assumptions to which the calculation of recoverable amount for Las Bambas is most sensitive
are discount rate, copper prices, operating costs, tax disputes, permitting delays, land access and
timing of identifying and converting potential resources and reserves thereby realising the exploration
potential. An unfavourable movement in any one of these factors may result in a material impairment to
the asset with a favourable movement resulting in a substantial improvement to the recoverable
amount.
• A movement of 1% to the discount rate would impact recoverable amount by approximately
US$900 million;
• A change of 5% in copper price over the remaining mine life would impact the recoverable
amount by approximately US$1,000 million; and
• A change of 5% in operating costs would impact the recoverable amount by approximately
US$450 million.
Political instability and community blockades are potential risks which may result in delays in
environmental and drilling permits and the ability to access land required for carrying out exploration

58
NOTES TO FINANCIAL INFORMATIONCONTINUED

activities and ultimately the development of operations. They may also cause delays to critical capital
projects impacting cashflows. MMG remains committed to working closely with the government of Peru
and community members to reach an enduring agreement. Potential impacts on Las Bambas’ cashflows
due to a level of delays in permits and disruptions by communities have been considered in the Las
Bambas fair value.
At the time of the Las Bambas acquisition in 2014, the initial valuation included significant value to be
realised from exploration targets. Las Bambas’ future cash flows remain significantly dependent on the
realisation of the value from exploration activities. Identification and exploitation of resources depends
on obtaining permits and timely and continued access to drilling targets. There is also a risk that
exploration activities may result in lower than expected actual resources whereby the value assigned
to the exploration potential may not be fully recoverable.
Management expects that the impact of delays caused by community disputes, access to land or the
amount and timing of exploration potential realised would result in a revision to the mine plan.
The occurrence of one or more of the above assumptions in isolation, without a change in other
assumptions which may have an offsetting impact, is likely to result in recognition of a material
impairment.
Kinsevere

The key assumptions to which the calculation of Fair Value for Kinsevere is most sensitive are copper
and cobalt prices and discount rate. An unfavourable movement in any one of these factors in
isolation may result in a material impairment to the asset with a favourable movement resulting in a
substantial improvement to the recoverable amount.
• A change of 5% in copper price over the remaining mine life would impact the recoverable
amount by approximately US$150 million;
• A change of 5% in cobalt price over the remaining mine life would impact the recoverable
amount by approximately US$50 million; and
• A movement of 1% to the discount rate would impact recoverable amount by approximately
US$50 million.

59
NOTES TO FINANCIAL INFORMATIONCONTINUED

11. SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS

The Group had total non-controlling interests of US$2,188.6 million at 31 December 2023 (2022:
US$2,089.5 million) which relate to the Las Bambas Joint Venture Group.
The summarised financial information is shown on a 100% basis. It represents the amounts shown in
the Las Bambas Joint Venture Group’s consolidated financial statements prepared in accordance with
HKFRSs under Group’s accounting policies, before inter-company eliminations.
US$ MILLION AT 31 DECEMBER
Summarised Consolidated Statement of Financial Position 2023 2022
Assets 9,930.7 10,685.5
Current 1,227.8 1,225.2
Include: Cash and cash equivalents 399.2 171.8
Non-current 8,702.9 9,460.3
Liabilities (4,094.4) (5,113.6)
Current (970.1) (1,393.0)
Non-current (3,124.3) (3,720.6)
Net assets 5,836.3 5,571.9

YEAR ENDED 31 DECEMBER

Summarised Consolidated Statement of Comprehensive 2023 2022
Income
Revenue 3,417.3 2,086.8
Net financial cost 202.6 181.1
Income tax expense 92.4 85.5
Profit for the year 301.0 189.5
Other comprehensive (loss)/income for the year (37.3) 55.8
Total comprehensive income 263.7 245.3

Total comprehensive income attributable to:

Equity holders of the Company 164.6 153.3
Non-controlling interests 99.1 92.0
263.7 245.3

YEAR ENDED 31 DECEMBER

Summarised Consolidated Statement of Cash Flows 2023 2022
Net increase/(decrease) in cash and cash equivalents 227.4 (664.5)
Cash and cash equivalents at 1 January 171.8 836.3
Cash and cash equivalents at 31 December 399.2 171.8

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NOTES TO FINANCIAL INFORMATIONCONTINUED

12. TRADE AND OTHER RECEIVABLES

2023 2022
US$ MILLION US$ MILLION
Non-current other receivables
Prepayment 0.3 -
Other receivables – government taxes (net of
provisions)1 20.3 11.4
2
Sundry receivables, net of provisions 148.2 156.1
168.8 167.5
Current trade and other receivables
Trade receivables3 354.8 212.7
Prepayments 32.9 20.0
Other receivables – government taxes 1
66.0 74.0
Sundry receivables 22.3 35.8
476.0 342.5
1. The government taxes amount mainly consists of VAT receivables associated with the Group’s operations in Peru and DRC.
2. Sundry receivables amount mainly consists of receivables from Glencore in MLB acquisition project and VAT2011/12
receivables from SUNAT.
3. At 31 December 2023 and 2022, trade receivables of the Group mainly related to the mining operations. The majority of sales
for mining operations were made under contractual arrangements whereby provisional payment is received in line with
requirement under the sales contract, usually within 30 days of submission of all required documentation and fulfilment of
obligations under the respective incoterm for the sales; Upon issuance of final invoice at end of the quotational period, any
remaining balance is then payable within 30 days from such final invoice being issued All the trade receivables at 31
December 2023 and 2022 were within 6 months from the date of invoice. At 31 December 2023, there was no trade
receivable past due (2022: nil). At 31 December 2023, the Group’s trade receivables, other receivables and prepayments
included an amount of US$160.9 million (2022: US$106.4 million) which were due from related companies of the Group. The
carrying amounts of the Group’s trade receivables are all denominated in US$.

13. CASH AND CASH EQUIVALENTS

2023 2022
US$ MILLION US$ MILLION
Cash at bank and in hand 138.8 191.2
Short-term bank deposits and others2 308.2 181.0
Total 1
447.0 372.2
1. Total cash and cash equivalents include US$399.2 million (2022: US$171.8 million) of cash held limited for use by Las Bambas
Joint Venture Group.
2. The effective interest rate on short-term bank deposits as at 31 December 2023 range from 5.37% to 5.70% (31 December
2022: 4.37% to 4.55%). These deposits have an average 29 days (2022: 18 days) to maturity.

The carrying amounts of the cash and cash equivalents are denominated in various currencies.

61
NOTES TO FINANCIAL INFORMATIONCONTINUED

14. SHARE CAPITAL

NUMBER OF SHARE
ORDINARY SHARES CAPITAL
2023 2022 2023 2022
‘000 ‘000 US$ MILLION US$ MILLION
Issued and fully paid:
At 1 January 8,639,767 8,639,126 3,220.5 3,220.3
Employee share options exercised 1
3,159 641 1.9 0.2
Employee performance awards vested 2
13,121 - 2.2 -
At 31 December 8,656,047 8,639,767 3,224.6 3,220.5
1. During the year ended 31 December 2023, a total of 3,158,983 (2022: 640,980) new shares were issued as a result of
employee share options exercised at a weighted average exercise price of HK$2.29 per share under the Company’s 2016
Share Option Scheme which were pursuant to 2013 Share Option Scheme. The weighted average closing price of the shares
of the Company immediately before the date on which the options were exercised was HK$2.83 (2022: HK$3.08);
2. During the year ended 31 December 2023, a total of 13,120,972 new shares were issued as a result of 2020 Performance
Awards vesting on 1 June 2023. The closing price of the shares of the Company immediately before the date on which the
performance award was exercised was HK$2.35.

15. BORROWINGS

2023 2022
US$ MILLION US$ MILLION
Non-current
Loan from related parties 1,831.3 2,231.3
Bank borrowings, net 1,544.5 1,978.3
3,375.8 4,209.6
Current
Loan from related parties 900.0 400.0
Bank borrowings, net 431.3 803.0
1,331.3 1,203.0
Analysed as:
– Secured 2,016.8 2,675.7
– Unsecured 2,731.3 2,781.2
4,748.1 5,456.9
Prepayments – finance charges (41.0) (44.3)
4,707.1 5,412.6
Borrowings (excluding: prepayments) were repayable as follows:
– Within one year 1,336.8 1,208.8
– More than one year but not exceeding two years 1,078.0 1,136.8
– More than two years but not exceeding five years 1,620.4 2,181.6
– More than five years 712.9 929.7
4,748.1 5,456.9
Prepayments – finance charges (41.0) (44.3)
Total 4,707.1 5,412.6

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NOTES TO FINANCIAL INFORMATIONCONTINUED

An analysis of the carrying amounts of the total borrowings (excluding prepayments) by type and
currency is as follows:
2023 2022
US$ MILLION US$ MILLION
US dollars
– At floating rates 2,586.8 1,713.6
– At fixed rates 2,161.3 3,743.3
4,748.1 5,456.9

The effective interest rate of borrowings during the year ended 31 December 2023 was 5.2% (2022:
4.3%) per annum.
At 31 December 2023, certain borrowing of the Group was secured as follow:
US$2,016.8 million (2022: US$2,653.6 million) from China Development Bank, ICBC, BOC Sydney and
Export-Import Bank of China was secured by share security over the entire share capital of MMG South
America Management Co Ltd and each of its subsidiaries including MLB, a debenture over the assets
of MMG South America Management Co Ltd, an assets pledge agreement and production unit
mortgage in respect of all of the assets of MLB, assignments of shareholder loans between MMG South
America Management Co Ltd and its subsidiaries and security agreements over bank accounts of MLB.

Note: The US$22.1 million borrowing as at 31 December 2022 from ICBC Peru Bank, Banco de Crédito del Peru and Scotiabank
Peru secured by mine fleet equipment procured under asset finance arrangements was fully paid during the year ended 31
December 2023.

16. TRADE AND OTHER PAYABLES

The analysis of the trade and other payables is as follows:

2023 2022
US$ MILLION US$ MILLION
Non-Current
Other payables and accruals 286.5 217.5

Current
Trade payables
- Less than 6 months 322.5 271.9
- More than 6 months - 0.4
322.5 272.3
Related party interest payable 45.5 37.6
Other payables and accruals 248.4 225.6
Total current trade and other payables 616.4 535.5

Aggregate
Trade payables1 322.5 272.3
Related party interest payable 45.5 37.6
Other payables and accruals 2
534.9 443.1
Total trade and other payables 902.9 753.0

63
NOTES TO FINANCIAL INFORMATIONCONTINUED

1. At 31 December 2023, the Group’s trade and other payables included an amount of US$4.2 million (2022: US$3.5 million),
which was due to a related company of the Group. The ageing analysis of the trade payables is based on the creditors’
invoice date;
2. At 31 December 2023, the Group’s other payables and accruals included an amount of US$5.4 million (2022: US$8.4 million)
accrued interest on external bank borrowings.

17. CAPITAL COMMITMENTS

Commitments for capital expenditure contracted for at the reporting date but not recognised as
liabilities, are set out in the table below:

2023 2022
US$ MILLION US$ MILLION
Property, plant and equipment
Within one year 225.6 143.9
Over one year but not more than five years 119.8 127.6
345.4 271.5

Intangible assets
Within one year 1.9 2.7
Over one year but not more than five years 0.4 -
2.3 2.7

2023 2022
Aggregate US$ MILLION US$ MILLION
Property, plant and equipment and intangible assets
Contracted but not provided for 347.7 274.2

64
GLOSSARY

A$ Australian dollar, the lawful currency of Australia

AGM annual general meeting of the Company
Album Enterprises Album Enterprises Limited, a wholly owned subsidiary of CMN
associate(s) has the meaning ascribed to it under the Listing Rules
Australia The Commonwealth of Australia
Board the board of directors of the Company
Board Charter the board charter of the Company
BOC Bank of China Limited
BOC Sydney Bank of China Limited, Sydney Branch
BOCOM Bank of Communications Limited
CDB China Development Bank
CEO Chief Executive Officer
CFO Chief Financial Officer
China has the same meaning as PRC
CITIC CITIC Metal Peru Investment Limited
CMC China Minmetals Corporation, a state-owned enterprise incorporated
under the laws of the PRC
CMN China Minmetals Non-ferrous Metals Company Limited, a subsidiary of
CMC
Company MMG Limited, a company incorporated in Hong Kong, the securities of
which are listed and traded on the Main Board of the Stock Exchange
Companies Ordinance The Companies Ordinance (Chapter 622 of the Laws of Hong Kong)
Director(s) the director(s) of the Company
DRC Democratic Republic of Congo
EBIT earnings before interest (net finance costs) and income tax
EBITDA earnings before interest (net finance costs), income tax, depreciation,
amortisation and impairment expense
EBITDA margin EBITDA divided by revenue
EPC Engineering Procurement Construction
Executive Committee the executive committee of the Group, which consists of all Executive
Directors of the Company, Chief Executive Officer / Interim Chief
Executive Officer, Chief Financial Officer, Executive General Manager
– Finance, Executive General Manager – Corporate Relations,
Executive General Manager – Americas, Executive General Manager –
Operations and Executive General Manager – Commercial and Growth
Group the Company and its subsidiaries
HK$ Hong Kong dollar, the lawful currency of Hong Kong
HKFRS Hong Kong Financial Reporting Standards, which include all applicable
individual Hong Kong Financial Reporting Standards, Hong Kong
Accounting Standard (HKAS) and interpretations issued by the Hong
Kong Institute of Certified Public Accountants (HKICPA)
Hong Kong the Hong Kong Special Administrative Region of the People’s
Republic of China
Hong Kong Stock Exchange (please refer to the definition of ‘Stock Exchange’)
ICBC Industrial and Commercial Bank of China Limited

65
GLOSSARY CONTINUED

KEP Kinsevere Expansion Project

Las Bambas Joint Venture MMG South America Management Company Limited (also referred to
Group as MMG SAM), and its subsidiaries
Las Bambas Project The development, construction and operation of the copper mines,
processing facilities and associated infrastructure at the Las Bambas
copper project located in the Apurimac region in Peru, together with
all activities and infrastructure associated with the transportation and
export of products from such mines

Listing Rules the Rules Governing the Listing of Securities on the Stock Exchange
LME London Metal Exchange
MLB Minera Las Bambas S.A., a non-wholly owned subsidiary of MMG and
the owner of the Las Bambas mine
MMG or MMG Limited has the same meaning as the Company
MMG Dugald River MMG Dugald River Pty Ltd., a wholly subsidiary of the Company
Model Code Model Code for Securities Transactions by Directors of Listed Issuers
as set out in Appendix C3 of the Listing Rules
PRC the People’s Republic of China excluding, for the purpose of this
document only, Hong Kong, the Macao Special Administrative Region
of the People’s Republic of China and Taiwan, unless the context
requires otherwise
RCF Revolving Credit Facilities
Share(s) fully paid ordinary share(s) of the Company
Shareholder(s) the shareholder(s) of the Company
Stock Exchange The Stock Exchange of Hong Kong Limited
SUNAT National Superintendence of Tax Administration of Peru
Top Create Top Create Resources Limited, a subsidiary of CMN
TSF Tailings Storage Facilities
TRIF total recordable injury frequency per million hours worked
US$ United States dollar, the lawful currency of the United States of America
VAT value added tax

66
CORPORATE DETAILS

MELBOURNE OFFICE MMG LIMITED

Level 24, 28 Freshwater Place EXECUTIVE COMMITTEE
Southbank, Victoria 3006, Australia LI Liangang, Interim Chief Executive Officer, Executive Director and
T +61 3 9288 0888 Executive General Manager – Commercial and Growth
Ross CARROLL, CFO (will retire with effect from 6 March 2024)
HONG KONG OFFICE Song QIAN, Executive General Manager – Finance
Unit 1208, 12/F, Nan WANG, Executive General Manager – Operations
China Minmetals Tower Troy HEY, Executive General Manager – Corporate Relations
79 Chatham Road South, Tsimshatsui, WEI Jianxian, Executive General Manager – Americas
Kowloon, Hong Kong
T +852 2216 9688
IMPORTANT DATES*
POSTAL ADDRESS
24 April 2024 – First Quarter Production Report
GPO 2982
23 April 2024 – Annual Report lodged
Melbourne, Victoria 3001, Australia
*This information is subject to change.
www.mmg.com

SHARE REGISTRAR
Computershare Hong Kong
Investor Services Limited
17th Floor, Hopewell Centre
183 Queen’s Road East
Wanchai, Hong Kong

INVESTOR AND MEDIA ENQUIRIES

Jarod ESAM Andrea ATELL
Head of Business Evaluation and Investor Interim General Manager Stakeholder Relations
Relations T +61 439 689 991
T +61 475 564 285
E CorporateAffairs@mmg.com
E InvestorRelations@mmg.com

Chinese Language:
Sherry SHEN
Senior Advisor Investor Relations
T +86 10 563 90437
E InvestorRelations@mmg.com

67
 By order of the Board
MMG Limited
LI Liangang
Interim CEO and Executive Director

Hong Kong, 5 March 2024

As at the date of this announcement, the Board comprises six directors, of which one is an executive
director, namely Mr Li Liangang; two are non-executive directors, namely Mr Xu Jiqing (Chairman)
and Mr Zhang Shuqiang; and three are independent non-executive directors, namely Dr Peter William
Cassidy, Mr Leung Cheuk Yan and Mr Chan Ka Keung, Peter.

68