UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report
of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
| For the month of |
January |
|
2025 |
| Commission File Number |
001-41722 |
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| MAC COPPER LIMITED |
| (Translation of registrant’s name into English) |
| |
3rd Floor, 44 Esplanade
St. Helier, Jersey, JE4 9WG
Tel: +(817) 698-9901 |
| (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Incorporation By Reference
This Report on Form 6-K, including all exhibits hereto, shall be deemed
to be incorporated by reference into the registration statement on Form F-3 (Registration No. 333-276216) (including any prospectuses
forming a part of such registration statement) and to be a part thereof from the date on which this report is furnished, to the extent
not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| |
|
|
MAC
COPPER LIMITED |
| |
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(Registrant) |
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| Date: |
January 28, 2025 |
|
By: |
/s/
Michael James McMullen |
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Name: |
Michael James McMullen |
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Title: |
Chief Executive Officer |
Exhibit 99.1
28 January 2025
MAC COPPER LIMITED
ANNOUNCES DECEMBER 2024 QUARTERLY REPORT
RECORD QUARTERLY PRODUCTION
AND RECORD LOW CASH COST
ST. HELIER, Jersey - (BUSINESS
WIRE) – MAC Copper Limited (NYSE: MTAL; ASX:MAC)
MAC Copper Limited ARBN 671 963
198 (NYSE: MTAL; ASX: MAC), a private limited company incorporated under the laws of Jersey, Channel Islands (“MAC”
or the “Company”) is pleased to release its December 2024 quarterly activities report (“Q4 2024”
or “December quarter”).
HIGHLIGHTS
Record quarterly production
of 11,320 tonnes at a 4.1% Cu grade
| · | Material
improvement in TRIFR to 10.9 in Q4 2024 from a TRIFR of 14.2 recorded in Q3 2024 |
| · | Strongest
quarterly production under MAC’s ownership beating the previous record set in Q2 2024 |
| · | 11,320
tonnes of copper produced for Q4 2024 (an 11% increase QoQ) at a grade of 4.1% Cu |
| · | C1
of US$1.66/lb1 for Q4 2024 decreased by 12% (US$1.90/lb in Q3 2024), driven
by increased production, continued improved cost management and operational efficiencies
|
| · | 41,128
tonnes of copper produced in 2024 (above the mid-point of 2024 production guidance) and an
increase of 14% compared to 20232 with an average grade of 3.9% and a C1 of
US$1.92/lb for the year |
| · | 2025
C1 forecast to be positively impacted by3: |
| o | a circa 70% reduction in TC/RC benchmarks
(~US$0.16/lb impact) and |
| o | operational costs benefits due to the lower
A$:US$ exchange rate (+/-1 US$ cent = US$0.03/lb) |
Targeting copper production
of >50ktpa by 2026
| · | Growing
copper production by ~23% by 20264 with key projects delivering the further
step change |
| · | Ventilation
project – work well underway, advancing with completion targeted by Q3 2026 |
| · | QTS
South Upper – development commenced in Q4 2024, ore mining expected to commence from
Q4 2025 |
Generating material operational
free cash flow
| · | Operational
free cash flow for Q4 2024 of ~US$30M (~A$48M) including sustaining capex |
| · | Sustaining
capital expenditure of ~US$12M for Q4 2024 and ~US$50M for 2024 |
Increased liquidity and balance
sheet strength
| · | Raised
US$103M (A$150M5) (before costs) at A$18.00 per CDI as announced on 9 October
2024 |
| · | Cash
and cash equivalents of ~US$172M (~A$276M) after repayment of ~US$8.3M in senior debt principal
|
| · | Liquidity
of US$213M (~A$340M) includes ~US$6.5M of outstanding QP receipts, ~US$5.6M of unsold concentrate
and the Polymetals (“POL”) investment as at 31 December 2024 |
| · | POL
announced it secured financing to fund it’s mine restart by mid-2025 – the value of MAC’s investment in POL has increased
to A$6.4M, up more than 125% since its initial investment. |
| · | Reached
agreement with Sprott to repay Mezzanine debt early at MAC’s option from 1 January
2025 |
1 See “Non-IFRS financial information”
and refer to table 2 for reconciliation of C1 Cash Cost
2 Comparing 2024 CSA Copper Mine production to the total
2023 production (including production pre-MAC ownership)
3 Using 2024 unaudited results as a base, the impact of
this reduction amounts is noted as an impact if these TC/RC and exchange rate movements were to be applied to these unaudited 2024 results
4 Comparing 2024 actuals and mid-point of current 2026
production guidance range
5 Placement proceeds converted into US$ based on an A$:US$
exchange rate of 0.6869, representing the average exchange rate for the week from 30 September to 4 October 2024 (inclusive)
 | Page 1 |
ESG UPDATE
Safety
Achieved a Total Recordable Injury
Frequency Rate (TRIFR) of 10.9 in Q4 2024 which is a material improvement from an average TRIFR of 14.2 in Q3 2024. This was a positive
end to 2024 with no recordable injuries recorded for the quarter.
Total incidents recorded have
also reduced significantly during the quarter with increased awareness from extensive training
and coaching as well as increased leadership field safety interactions which is having a beneficial effect on safety.
Figure 1 - CSA Copper Mine Recordable Injuries
by Quarter6
Sustainability Report
MAC recognizes the importance
of our environmental, social and governance responsibilities and that sustainability strategies more broadly is integral to the way we
operate and essential to the accomplishment of our goals.
As a result, in 2024 MAC completed
a materiality assessment and stakeholder analysis to identify the key environmental, social and governance issues material to the business
and important to our stakeholders.
To this end, we will be publishing
our inaugural annual sustainability report at the same time as our annual report in Q1 2025 which will provide an overview of our material
ESG topics, a summary of current performance and an outline of future activities and initiatives to improve our reporting and disclosures
over time. The contents of the sustainability report are not intended to be incorporated by reference into our annual report or in any
other report or document we file or furnish with the Securities and Exchange Commission, and any reference to the sustainability report
is intended to be an inactive textual reference only.
Regulatory
Progress continues toward submission
of the CSA Annual Rehabilitation Report due in April 2025. There have been no reportable environmental incidents during the December
2024 quarter and no reportable environmental incidents for 2024.
Construction activities on the
Stage 10 embankment raise have been ongoing in the December 2024 quarter. Works on foundation preparation and development of the key
trench within the West Mound have begun. West Mound works are planned for completion in Q1 2025 prior to progressing to the East Mound
construction.
6 Industry TRIFR source: Mine Safety
performance report 2022-2023, Resource regulator Department of Regional NSW
| Page 2 |
PRODUCTION AND COST SUMMARY
Table 1 – Production and cost summary
(unaudited)
| |
Units |
Q1
2024 |
Q2
2024 |
Q3
2024 |
Q4 2024 |
QoQ
Change
(%) |
Full year
2024 |
| Copper
Production |
Tonnes |
8,786 |
10,864 |
10,159 |
11,320 |
11.4% |
41,128 |
| Sustaining
capital |
US$
million |
$13.0 |
$12.8 |
$12.5 |
$12.4 |
(0.8%) |
$50.7 |
| Cash
cost (C1)7 |
US$/lb |
$2.15 |
$2.028 |
$1.90 |
$1.66 |
(12.4%) |
$1.92 |
| Total
cash cost9 |
US$/lb |
$3.17 |
$2.72 |
$2.71 |
$2.31 |
(14.9%) |
$2.70 |
| Group
Net Debt10 |
US$
million |
$253 |
$232 |
$232 |
$132 |
(42.9%) |
$132 |
MAC Copper Limited’s CEO, Mick McMullen,
said:
“As a result
of our team’s focus on safety, it gives me great pleasure to be able to report that we closed the financial year with a TRIFR of
10.9. This is a material improvement on the previous quarter and represents the heightened awareness and focus of our people benefiting
from extensive training and coaching with increased field safety leadership interactions as well.
Nothing is more important than the health and well-being of our people, and the communities we are proud to be a part of; safety culture
takes time to take effect, and we are now seeing this show up in our TRIFR.
Our CSA Copper Mine
operational team delivered another record quarterly production volume for the December quarter, achieving copper production of 11,320
tonnes which is an increase of 11.4% over the September quarter. It was also pleasing to see that our C1 reduced by 12.4% quarter on
quarter to a record low under MAC ownership of US$1.66/lb. Higher grade stopes at the CSA Copper Mine continue to form a large proportion
of our annual production and played a key role again during the quarter, with milled copper grade achieved of 4.1%.
This also marks an
excellent end to the 2024 year with the CSA Copper mine producing 41,128 tonnes of copper at a low C1 cost of US$1.92/lb, with 2024 production
above the mid-point of the production guidance range previously announced with a strong finish to the year.
Furthermore, we have
established the platform to grow our Copper production by a further ~23% to over 50,000 tonnes of copper production per annum by 2026
as our growth projects including the expansion of the mine to include QTS South Upper and the Ventilation project are brought online
Q4 2025 and Q3 2026 respectively.
We will provide updated
production guidance when we report our revised R+R at the end of February 2025.
As announced on 9
October 2024, MAC raised approximately A$150 million (approximately US$103 million) (before costs) at an issue price of A$18.00 per New
CDI. The placement was well supported with support from new and existing institutional and sophisticated investors both in Australia
and offshore, which is a testament to the high-quality nature of the CSA Copper Mine. Proceeds of the Placement together with the potential
to repay the Mezzanine in H1 2025 will enable MAC to simplify and de-lever the balance sheet further. We thank all shareholders for their
continued support.
The operational performance delivered
to date confirms the CSA Copper Mine as a high-quality, free cash flow generating, long life copper asset with capital growth projects
unlocking further significant growth in production by 2026. The performance of the site team throughout 2024 has showcased just what
this mine can do when operations perform the way we know it can, and the Board and I would like to express our thanks to the entire team
for yet another strong performance.
MAC is positioned for growth and further
operational improvements to drive costs down from what is already a highly competitive cost position. We have some exciting growth opportunities
in the upper parts of the mine and as our drilling continues to expand the mineralized footprint we are pushing the Capital Vent Project
hard to unlock our mining potential at the lower levels of the mine.”
7 See “Non-IFRS Information”
and refer to table 2 for reconciliation of C1 Cash Cost
8 Q2 2024 adjusted post finalisation of half year accounts with additional freight and TC/RCs included accrued for recognition of June
pre-sales
9 Excludes corporate costs from parent entity. See “Non-IFRS financial information” and refer to table 2 for reconciliation
of Total Cash Cost.
10 Senior Debt + Mezzanine Facility – Cash and cash equivalents (excluding streams)
| Page 3 |
OPERATIONAL AND COST UPDATE
Table 2 - Quarterly Operational Performance
of the CSA Copper Mine (unaudited)
CSA
Copper Mine Metrics
(unaudited) |
Units |
Q1
2024 |
Q2
2024 |
Q3
2024 |
Q4
2024 |
QoQ
%
variance |
2024 |
| U/g
development – Capital |
Metres |
466 |
449 |
735 |
464 |
(37%) |
2,114 |
| U/g
development – Operating |
Metres |
703 |
611 |
359 |
449 |
25% |
2,121 |
| Rehab |
Metres |
246 |
113 |
145 |
246 |
69% |
751 |
| Total
development |
Metres |
1,415 |
1,173 |
1,239 |
1,159 |
(7%) |
4,986 |
| Ore
Mined |
Tonnes |
256,031 |
271,469 |
238,937 |
285,613 |
20% |
1,052,050 |
| Tonnes
Milled |
Tonnes |
260,297 |
266,936 |
260,953 |
284,490 |
9% |
1,072,676 |
| Copper
grade processed |
% |
3.5% |
4.2% |
4.0% |
4.1% |
2% |
3.9% |
| Copper
Recovery |
% |
97.6% |
97.9% |
97.2% |
97.9% |
1% |
97.7% |
| Copper
Produced |
Tonnes |
8,786 |
10,864 |
10,159 |
11,320 |
11% |
41,128 |
| Silver
Produced |
Ounces |
102,182 |
134,072 |
112,299 |
114,019 |
2% |
462,572 |
| Copper
Sold |
Tonnes |
8,112 |
12,984 |
10,244 |
8,987 |
(12%) |
40,326 |
| Achieved
Copper price11 |
US$/lb |
3.87 |
4.41 |
4.18 |
4.18 |
0% |
4.19 |
Achieved Copper price
(including hedging) |
US$/lb |
3.81 |
4.24 |
4.04 |
4.02 |
(0%) |
4.06 |
| Mining
Cost |
US$/t
Mined |
$95.7 |
$91.9 |
$85.9 |
$75.2 |
(12%) |
86.9 |
| Processing
Cost |
US$/t
Milled |
$25.7 |
$31.9 |
$26.3 |
$25.7 |
(2%) |
27.4 |
| G+A
Cost |
US$/t
Milled |
$33.1 |
$25.6 |
$27.5 |
$24.9 |
(9%) |
27.7 |
| Total
Operating Cost |
US$/t
milled |
$154.6 |
$149.3 |
$139.6 |
$125.8 |
(10%) |
142.0 |
| Development
Cost |
US$/metre |
$15,478 |
$9,330 |
$12,825 |
$12,633 |
(2%) |
12,625 |
| Capital
Expenditure12 |
US$
million |
$13.0 |
$12.8 |
$12.5 |
$12.4 |
(1%) |
50.6 |
| Tonnes
Milled per employee |
t/employee |
184 |
186 |
174 |
191 |
10% |
187 |
| Mining
|
US$/lb
prod |
1.27 |
1.04 |
0.92 |
0.86 |
(6%) |
1.01 |
| Processing |
US$/lb
prod |
0.35 |
0.36 |
0.31 |
0.29 |
(4%) |
0.32 |
| General
and Admin |
US$/lb
prod |
0.44 |
0.28 |
0.32 |
0.28 |
(11%) |
0.33 |
| Treatment
and refining |
US$/lb
prod |
0.17 |
0.26 |
0.23 |
0.19 |
(18%) |
0.22 |
| Work
in Progress inventory |
US$/lb
prod |
(0.14) |
0.03 |
0.02 |
0.00 |
(118%) |
(0.02) |
| Freight
and other costs |
US$/lb
prod |
0.17 |
0.21 |
0.24 |
0.15 |
(38%) |
0.19 |
| Silver
Credits |
US$/lb
prod |
(0.10) |
(0.16) |
(0.14) |
(0.11) |
(21%) |
(0.13) |
| C1
Cash Cost |
US$/lb
prod |
2.15 |
2.0213 |
1.90 |
1.66 |
(12%) |
1.92 |
| Leases |
US$/lb
prod |
0.08 |
0.07 |
0.07 |
0.06 |
(16%) |
0.07 |
| Inventory
WIP |
US$/lb
prod |
0.14 |
(0.03) |
(0.02) |
0.00 |
(118%) |
0.02 |
| Royalties |
US$/lb
prod |
0.13 |
0.13 |
0.20 |
0.08 |
(60%) |
0.14 |
| Sustaining
capital |
US$/lb
prod |
0.67 |
0.53 |
0.56 |
0.50 |
(11%) |
0.56 |
| Total
Cash Cost |
US$/lb
prod |
3.17 |
2.72 |
2.71 |
2.31 |
(15%) |
2.70 |
| Total
Revenue |
US$
millions |
66.0
|
120.0 |
87.5 |
74.9 |
(27%) |
348.4 |
Unless stated otherwise all
references to dollar or $ are in USD.
11 Realised provisional sales price
excluding hedging impact
12 Sustainable capex
13 Q2 2024 adjusted post finalisation
of half year accounts with additional freight and TCRCs included accrued for recognition of June pre-sales
| Page 4 |
Q4 2024 demonstrated consistent
mining processes that delivered above 10kt of copper production for three consecutive quarters. Production further benefited from a grade
of 4.1% for Q4 2024 with copper grade for the month of December 2024 recorded at 4.52%. The grade achieved continues to demonstrate the
high-quality ore body present at CSA mine.
The double lift stope extraction
method was again successfully deployed during Q4 2024 after being implemented in the previous quarters, resulting in less mining dilution
achieved with stronger grades and less total ore tonnes for the same metal. Total ore mined of ~286kt is around a 20% increase quarter
on quarter, together with the higher grade processed leading to higher copper production.
Figure 2 - CSA Copper Mine Quarterly Copper
Production (tonnes)
The average received copper price after hedge settlements was slightly lower compared with the prior quarter with Q4 2024 at
US$4.02/lb, compared to US$4.04/lb for Q3 2024, with the average spot copper price over the December quarter at ~US$4.16/lb.
In addition, the average A$:US$
exchange rate of ~US$65 cents for Q4 2024 declined by ~2.5% compared to Q3 2024 to ~US$67 cents which also marginally improved our US$
reported C1 cost, with the A$:US$ exchange rate further weakening to ~US$62 cents by the end of 2024.
C1 cash costs decreased by ~12%
quarter on quarter from US$1.90/lb in the September quarter to US$1.66/lb for Q4 2024. The higher production tonnes, as detailed above,
resulted in a positive impact to C1 costs of approximately US$0.19/lb, whilst the overall cost variance had a positive impact of approximately
US$0.05/lb.
| Page 5 |
Figure 3 - CSA Copper Mine C1 Cash Costs14
- US$/lb produced
MAC management continues to implement
additional productivity measures to further reduce C1 costs as is evident in the declining C1 achieved over the course of 2024, as depicted
above. Q4 2024 reflects a 23% drop in C1 as compared to the March quarter of US$2.15/lb which is a strong result given general cost trends
within the copper industry that many of our peers are experiencing.
Figure 4 provides an illustration
of tonnes milled per employee which increased ~10% quarter on quarter in line with increased ore processed which also drove down the
mining unit rate per tonne by around 12%.
| Figure 4 - CSA Mine Tonnes Milled per Employee | Figure 5
- CSA Mine Mining Unit Rate US$/t |
| | |
 |  |
Apart from copper production,
the largest driver of C1 costs is the mining unit rate as mining accounts for approximately 60% of total site operating costs.
Mining unit rates are trending down with better
cost control initiatives implemented combined with additional tonnes mined in Q4 2024. Capital metres decreased as focus shifted to extracting
ore for Q4 2024.
14 See “Non-IFRS Information”
and refer to table 2 for reconciliation of C1 Cash Cost
| Page 6 |
| Figure 6 - CSA Copper Mining Development Costs US$/metre |
Figure 7 - CSA Copper Mine Capital Development metres |
Processing costs per tonne milled
decreased slightly in December 2024 quarter. Tonnes processed for the quarter were 285kt (a 9% increase quarter on quarter) at recovery
rate of 97.8%.
G&A unit rates decreased
in the current quarter predominately driven by the increase in ore processed.
| Figure 8 - CSA Copper Mine Processing Unit Rate US$/t |
Figure 9 - CSA Copper Mine Site G+A Unit Rate US$/t |
As seen in Figure 10, sustaining
capital spend (including capitalized development) decreased slightly over the quarter. Sustaining Capital costs during the quarter included
diamond drilling, stage 10 TSF works and primary vent rises.
Figure 10 - CSA Copper Mine Site Sustaining
Capital US$M
| Page 7 |
TREASURY UPDATE
Cash position, liquidity and debt facilities
The Company’s unaudited
cash holding at the end of Q4 2024 was ~US$172 million or ~A$276 million for an unaudited net debt position of ~US$132 million or 15%
net gearing.
The increase in cash position
at quarter end is largely driven by the cash generated by operations of ~US$42 million or ~A$69 million with an equity raise completed
on 9 October 2024 amounting to US$103 million (~A$150 million) (before costs).
There were ~$14.5 million of
cash received for copper concentrate sold to Glencore on 23 December 2024 for which we received the cash but will not account for as
revenue until early January 2025.
The unaudited cash position also
reflects another ~US$8.3 million repaid on the Senior Debt Facility at the end of the quarter, ~US$8.1 million in interest payments for
the Senior debt (US$3.4 million) and Mezzanine facility (US$4.7 million).
As of 31 December 2024, the pro-forma
liquidity was ~US$213 million (~A$340 million) which includes cash of ~US$172 million (A$213 million), US$25 million (A$40 million) undrawn
revolving facility, ~US$16 million (A$28 million) of outstanding Quotational Period receipts, unsold concentrate and the strategic investment
held in POL at valuation as at 31 December 2024 of ~A$6.4 million (~US$4 million).
Sprott Mezzanine Facility Early Repayment
As announced on 17 December 2024, MAC Copper
Limited has agreed amendments with Sprott Private Resource Lending || (Collector-2), LP (“Sprott”) to permit early
repayment of its Mezzanine facility. This amendment underscores our commitment to the ongoing simplification and de-leveraging of our
balance sheet.
The agreement allows MAC Copper
to repay the Mezzanine from 1 January 2025 onwards instead of 15 June 2025 onwards.
MAC Copper will make a decision
regarding earlier repayments based on its cash balance and financial forecasts in H1 2025 which will be communicated to the market once
determined.
FX Impact on OPEX
Given MAC is dual listed in Australia
and the US, our financial performance is affected by movements in A$:US$ exchange rate with site costs predominantly Australian dollar
based.
Results provided over 2024 were
compiled at an average A$:US$ exchange rate of ~US$66cents, with a high of ~US$69cents noted in September 2024. At the end of 2024 we
note that the Australian dollar has dropped to ~US$62cents.
As an estimate, utilising 2024
unaudited results as a baseline, the impact of a US$1 cent movement on the A$:US$ exchange rate would have an impact of ~US$2.7M on total
operating costs, being a ~US$0.03/lb impact on C1.
TC/RC renegotiated pricing
Benchmark Treatment Charge and Refining Charge
(“TC/RC”) pricing has been renegotiated and a new benchmark set for 2025, as such, from 1 January 2025 Copper refining
charges will decrease by >70% to approximately US$21/t for the TC and US$0.21/ refined lb of copper for the RC.
Using 2024 unaudited results
as a base, the impact of this reduction amounts to ~US$14.6 million per annum in savings equating to a reduction in C1 cost of ~US$0.16/lb
year on year.
The impact of this change on
the proforma 2024 results would be to reduce the 2024 C1 to ~US$1.76/lb from US$1.92/lb based on the new 2025 pricing if it was to be
applied to 2024 (proforma C1 for Q4 2024 would be ~US$1.52/lb).
| Page 8 |
Figure 11 – Q4 2024 Cash flow waterfall (US$M)
Hedging
In adherence to our Debt Facility
Agreement, MAC Copper previously implemented a hedging program covering the period to June 2026. During the quarter, the Company delivered
3,105 tonnes of copper into the hedge book at a price of US$3.72/lb. A summary of our open hedge positions as at 31 December 2024 is
included below.
Table 3 – Hedge position
| |
Copper |
| |
2025 |
2026 |
Total |
| Future
Sales (t) |
12,420 |
5,175 |
18,595 |
| Future
Sales ($/t) |
3.72 |
3.72 |
3.72 |
| Page 9 |
PROJECTS AND EXPLORATION UPDATE
Pathway to >50,000 tonne per annum of copper
production
The CSA mine is already benefiting
from productivity improvements initiated under MAC ownership such as double stope lifts and other operational efficiencies noted in previous
announcements aimed at reducing waste and ensuring efficient delivery of ore. To further progress towards becoming a 50ktpa+ producer
two key projects have been identified as detailed below. Both projects are designed to deliver on our strategic goal of uplifting production
to 50kpta+ and unlock the full potential of the CSA mine.
Cu Production Bridge (Tonnes)
Projects updates
Ventilation project update
The Capital Vent Upgrade Project
is designed to support increased mining activity to 1.7Mtpa, improving access to lower mine levels and ensuring operational longevity
beyond the current reserve life. The project remains a key enabler for sustained production growth at CSA.
Total spend in Q4 was US$3.0
million, with 233m of development completed. Progress continued on establishing access to the first raise bore location, additional geotechnical
drilling was completed, and procurement of ventilation fans advanced.
The project is progressing well,
with development successfully integrated into existing operations. Early works in high-activity mining areas have supported a structured
ramp-up, ensuring alignment with operational priorities. The slowest development rates are in the early stages of the project as development
interacts with existing mining, and as development moves out away from the operations development rates are picking up as planned.
Development is progressing well
across multiple levels, with stripping, rehabilitation, and fan installations underway to enhance infrastructure and support operational
efficiency. Key design enhancements and coordinated planning have optimised integration with active mining zones. Work will continue
in 2025 to finalise critical infrastructure and further expand ventilation capacity in alignment with the long-term mine plan.
| Page 10 |
QTS South Upper update
The QTSSU deposit presents an
opportunity for incremental copper production at CSA Mine, representing an additional mining area not currently connected to the mine,
located approximately 150m below the surface. Drilling to upgrade this deposit from resource to reserve has been completed, with ore
mining expected to commence by Q4 2025.
Total spend in Q4 was US$0.6
million, primarily allocated to project startup and equipment costs.
The first development cut was
taken in the December quarter, marking a significant milestone in the project's progression.
All key project team members
are now in place, and the installation of new services from the surface has been completed.
The underground substation has
been installed, and back-stripping activities are underway in preparation for the secondary fan installation.
Development will continue throughout
Q1 2025 as the project ramps up.
| Page 11 |
CONFERENCE CALL DETAILS
The Company will host a conference
call and webcast to discuss the Company’s fourth quarter 2024 results on Tuesday, January 28, 2025 at 5:00 pm (New York time) /
Wednesday, January 29, 2025 at 9:00 am (Sydney time).
Details for the conference call
and webcast are included below.
Webcast
Participants can access the webcast at the following link https://event.choruscall.com/mediaframe/webcast.html?webcastid=D8OmknEn
Conference Call
For expedited access to the call, participants
should register at https://dpregister.com/sreg/10195707/fe3e823b2f and avoid the call queue. Alternatively, if you prefer to speak
with an operator, dial one of the numbers below and request the operator connect to the MAC Copper Limited call.
| Toll Free Dial In: |
1-833-816-1269 |
| Australia: |
+1-800-822-994 |
Replay
A replay of the webcast will
be available for three months via the webcast link above and or by visiting the Events section of the company’s website.
-ENDS-
This report is authorised for
release by the Board of Directors.
CONTACTS
Mick
McMullen
Chief Executive Officer
MAC Copper Limited
investors@metalsacqcorp.com |
Morné
Engelbrecht
Chief Financial Officer
MAC Copper Limited
|
| Page 12 |
ABOUT MAC COPPER LIMITED
MAC Copper Limited (NYSE: MTAL) is a company focused
on operating and acquiring metals and mining businesses in high quality, stable jurisdictions that are critical in the electrification
and decarbonization of the global economy.
Estimates of Mineral Resources and Ore Reserves
and Production Target
This release contains estimates
of Ore Reserves and Mineral Resources as well as a Production Target. The Ore Reserves, Mineral Resources and Production Target are reported
in MAC’s ASX Announcement dated 23 April 2024 titled ‘Updated Resource and Reserve Statement and Production Guidance’
(the R&R Announcement). The Company is not aware of any new information or data that materially affects the information included
in the R&R Announcement, and that all material assumptions and technical parameters underpinning the estimates or Ore Reserves and
Mineral Resources in the R&R Announcement continue to apply and have not materially changed. The material assumptions underpinning
the Production Target in the R&R Announcement continue to apply and have not materially changed. It is a requirement of the ASX Listing
Rules that the reporting of ore reserves and mineral resources in Australia comply with the JORC Code. Investors outside Australia should
note that while exploration results, mineral resources and ore reserves estimates of MAC in this presentation comply with the JORC Code,
they may not comply with the relevant guidelines in other countries and, in particular, do not comply with (i) National Instrument 43-101
(Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators; or (ii) the requirements adopted by the Securities
and Exchange Commission (SEC) in its Subpart 1300 of Regulation S-K. Information contained in this presentation describing mineral deposits
may not be comparable to similar information made public by companies subject to the reporting and disclosure requirements of Canadian
or US securities laws.
Forward Looking Statements
This release includes “forward-looking
statements.” The forward-looking information is based on the Company’s expectations, estimates, projections and opinions
of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as
other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements
are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of
copper, continuing commercial production at the CSA Copper Mine without any major disruption, the receipt of required governmental approvals,
the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner
and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing
list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the
assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the
forward-looking information will prove to be accurate.
MAC’s actual results may
differ from expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions
of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative
versions of such words or expressions) are intended to identify such forward- looking statements. These forward-looking statements include,
without limitation, MAC’s expectations with respect to future performance of the CSA Copper Mine. These forward-looking statements
involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking
statements. Most of these factors are outside MAC’s control and are difficult to predict. Factors that may cause such differences
include, but are not limited to: the supply and demand for copper; the future price of copper; the timing and amount of estimated future
production, costs of production, capital expenditures and requirements for additional capital; cash flow provided by operating activities;
unanticipated reclamation expenses; claims and limitations on insurance coverage; the uncertainty in Mineral Resource estimates; the
uncertainty in geological, metallurgical and geotechnical studies and opinions; infrastructure risks; and other risks and uncertainties
indicated from time to time in MAC’s other filings with the SEC and the ASX. MAC cautions that the foregoing list of factors is
not exclusive. MAC cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date
made. MAC does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement
is based.
More information on potential factors that
could affect MAC’s or CSA Copper Mine’s financial results is included from time to time in MAC’s public reports
filed with the SEC and the ASX. If any of these risks materialize or MAC’s assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking statements. There may be additional risks that MAC does not
presently know, or that MAC currently believes are immaterial, that could also cause actual results to differ from those contained
in the forward-looking statements. In addition, forward-looking statements reflect MAC’s expectations, plans or forecasts of
future events and views as of the date of this communication. MAC anticipates that subsequent events and developments will cause its
assessments to change. However, while MAC may elect to update these forward-looking statements at some point in the future, MAC
specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied
upon as representing MAC’s assessment as of any date subsequent to the date of this communication. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
| Page 13 |
Non-IFRS financial information
MAC’s results are reported
under International Financial Reporting Standards (IFRS), noting the results in this report have not been audited or reviewed. This release
may also include certain non-IFRS measures including C1, Total Cash costs and Free Cash Flow. These C1, Total Cash cost and Free Cash
Flow measures are used internally by management to assess the performance of our business, make decisions on the allocation of our resources
and assess operational management. Non-IFRS measures have not been subject to audit or review and should not be considered as an indication
of or alternative to an IFRS measure of financial performance.
C1 Cash Cost
C1 costs are defined as the costs
incurred to produce copper at an operational level. This includes costs incurred in mining, processing and general and administration
as well freight and realisation and selling costs. By-product revenue is credited against these costs to calculate a dollar per pound
metric. This metric is used as a measure operational efficiency to illustrate the cost of production per pound of copper produced.
Total Cash Cost
Total cash costs include C1 cash
costs plus royalties and sustaining capital less inventory WIP movements. This metric is used as a measure operational efficiency to
further illustrate the cost of production per pound of copper produced whilst incurring government-based royalties and capital to sustain
operations.
Free Cash Flow
Free cash flow is defined as
net cash provided by operating activities less additions to property, plant, equipment and mineral interests. This measure, which is
used internally to evaluate our underlying cash generation performance and the ability to repay creditors and return cash to shareholders,
provides investors with the ability to evaluate our underlying performance.
| Page 14 |
MAC Copper (NYSE:MTAL)
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