Costs Trending Lower, Production Guidance Intact

Research evidence excerpt

Costs Trending Lower, Production Guidance Intact

ASIA-PACIFIC | Metals & Mining

MMG Limited EquityJulyResearch22, 2026

ESTIMATE CHANGECosts Trending Lower, Production Guidance

RATING HOLDIntact

PRICE HK$8.47^

MMG delivered a solid 2Q, with copper and zinc production broadly in line with

the prior year but higher than we had been forecasting. Higher gold and silver PRICE TARGET | % TO PT HK$10.00 | +18%

prices, together with strong by-product volumes, resulted in lower C1 costs 52W HIGH-LOW HK$11.96 - HK$3.70

across much of the portfolio. Management reaffirmed full-year production FLOAT (%) | ADV MM (USD) 30.7% | 59.80

guidance while reducing cost guidance, which should support stronger earnings MARKET CAP HK$108.8B | $13.9B

if commodity prices strength, as we expect. Reiterate Hold with upside risk. TICKER 1208 HK ^Prior trading day's closing price unless otherwise

noted.

2Q Results Summary: MMG reported 2Q'26 copper production of 137.8kt (+9.9% vs. JefE, +7.1%

QoQ), as all operations performed well during the quarter. Aggregate zinc production of 55.5kt

FY (Dec) CHANGE TO JEFe JEF vs CONS

also beat our estimate and rose 10.5% QoQ. Overall, these 2Q results position the company

2026 2027 2026 2027

well to achieve its full year production targets of 380-400kt copper (Las Bambas), 65-75kt

copper (Kinsevere), 48-53kt copper (Khoemacau), 170-180kt zinc (Dugald River), and 45-55kt zinc REV NA NA NA NA

(Rosebery). In the case of costs, MMG benefited from strong by-product credits in 2Q, driving 1H'26 EPS +11% NA +45% +25%

C1 cash costs across most assets materially below their respective full-year guidance ranges. As

a result the company has lowered its full year C1 cost guidance for Las Bambas, Khoemacau, and 2026 ($) Q1 Q2 Q3 Q4 FY

Rosebery as shown in the table below.