MAC Copper Ltd. Q3 FY2024 earnings call

• Strong Q3 results with over 10,000 tonnes of copper produced at a 4% head grade. C1 costs were at the bottom end of the range.
• Exploration activities showed success with QTS South Upper confirming high-grade copper and zinc hits, and ongoing drilling to convert inferred mineralization.
• The Vent project is well underway, and QTS South Upper development commenced this quarter.
• Post-equity raise, pro forma liquidity is ~USD 226 million, providing flexibility to pursue strategic opportunities and retire mezzanine debt.
• Operational highlights include better dilution control due to improved mining practices, development meters picking up as per plan, and exploration expanding the resource with high-grade results.
• Processing costs per tonne milled in Q3 were ~$26, 18% lower than Q2, and mining costs per tonne were 7% lower than previous quarter.

The key segment is copper production. In Q3, the firm produced over 10,000 tonnes of copper at a head grade of 4% milled. C1 came in at the bottom end of the range. While specific revenue contribution percentages weren't explicitly stated, copper production was the main focus of the segment's financial performance.

• Q4 is expected to be the strongest quarter of the year.
• Tracking towards the midpoint of guidance for ~40,500 tonnes of copper.
• QTS South Upper is completely additive to future production beyond current guidance.
• The company aims to retire the mezzanine debt at the earliest opportunity, with a long stop date of June 2025.

• Ongoing discussions with lenders regarding mezzanine debt repayment, with consent needed for early repayment.
• Market price fluctuations in copper could impact financial performance.
• Operational constraints such as dilution control and ensuring sufficient development meters remain risks.
• Potential challenges with tailings facility agreements and securing optimal TC/RCs.

Q: About development meters and mine plan.

A: Development meters are mine plan related, with the double lift stope strategy requiring less operating meters per ore tonne.

Q: On QTS Upper's impact on guidance.

A: Material from QTS Upper is completely additive to current guidance.

Q: Discussion on mezzanine debt discussions.

A: Ongoing discussions with lender group, proactive equity raise to position for better debt conversations.

Q: On mill capacity and growth.

A: Mill has a capacity, with growth arriving from QTS South Upper and Vent project, and water access resolved.

Q: On TC/RCs.

A: Annual benchmark TC/RCs, expecting lower rates impacting C1 costs.

Q: On trucking tonnes and capacity.

A: Trucking tonnes limited by dilution control and development, with gradual increase expected.