MAC Copper Ltd. Q1 FY2025 earnings call

Debt Refinance: Completed refinance of debt structure, significantly delevered and simplified balance sheet, reduced net gearing to under 20%, extended maturity of facilities, increased revolving credit facility, and reduced average weighted cost of debt by over 30%. ### Merrin Mine: Has made good progress with discovered mineralization, including high-grade copper and zinc-lead zones. Development rates are increasing, and there is potential to ramp up production. ### Safety: TRIFR has been trending down, ending around 7 for the last 12 months. ### Tailings Storage Facility: Stage 10 embankment on track for completion in the fourth quarter of this year, providing capacity up to about 2030. ### Production: First quarter is typically soft, with seasonal variation, but grade was good, and expected Q2 grade to be strong. Capital expenditure on growth and sustaining projects is ongoing.

In the first quarter, C1 was $1.91 a pound, total cash cost about $2.47 a pound, and realized price was $4.04 a pound. Copper production guidance for the year is 43,000 tonne to 48,000 tonne, with copper grade between 3.8% and 4%. Sustaining capital expenditure is $40 million to $50 million, and growth capital expenditure is in the order of $20 million to $25 million. The Merrin Mine has made good progress with discovered mineralization, including high-grade copper, zinc, and lead zones.

Production: Guidance for 2025 is 43,000 tonne to 48,000 tonne of copper, with potential to exceed 50,000 tonnes in 2026 with the Merrin Mine and ventilation project. ### Cost: C1 has reduced, with target of $1.50 per pound by 2025. ### Debt: Gearing under 20% within target range, with refinance providing better liquidity and reduced interest costs.

Market Uncertainty: General market uncertainty affecting the business. ### Supply Chain: Potential issues with consumables and spare parts, although not currently an issue. ### Off-take Agreements: Zinc off-take agreement not yet signed, and copper off-take for Polymetals not finalized.

Q: Daniel Morgan asked about cash flow alignment with production and sales, and Merrin Mine development.

A: Mick McMullen explained that they try to match cash with production, and Merrin Mine has development ore and potential to pull stope.

Q: Ben Wood asked about production guidance and ventilation project.

A: Mick McMullen said guidance is evolving with Merrin Mine, and ventilation project is still on track.

Q: David Radclyffe asked about shaft production profile.

A: Mick McMullen mentioned grade is better and likely to result in lower haulage for same metal.

Q: Timothy Hoff asked about zinc off-take terms.

A: Mick McMullen said zinc off-take agreement not signed yet, and focus is on copper first.

Q: Eric Winmill asked about tariffs and supply chain.

A: Mick McMullen said no major issues currently, but general market uncertainty exists.