Published: 24 August 2021
Revenue from MMG’s Dugald River operations lifted by more than $157 million in the first half of this year as commodity prices improved and zinc sales volumes surged.
The North-West Queensland mine’s figures – with a 1018 per cent lift in EBITDA – were one piece of a pretty picture for MMG, which reported a record interim result.
Globally the company reported a bumper net profit after tax of $US584.0 million (about $AU807 million) compared with a net loss after tax of $US182.7 million in the first half of 2020.
“The strong profit was driven by higher commodity prices, increased production and the sale of Las Bambas stockpiles,” MMG chief executive officer Geoffrey Gao said.
Dugald River produced 89,076 tonnes of zinc concentrate, with EBITDA reaching $US101.7 million (about $AU140 million) during the first half of 2021.
That was a 1018 per cent improvement on the $US9.1 million ($12.57 million) result for the first half of 2020.
MMG attributed the gains to higher realised commodity prices (US$106.8 million) and higher zinc sales volumes (US$8.9 million).
Revenue lifted by 94 per cent from $US120.9 million to $US235.1 million – or about $325 million in Australian dollars.
The site reported lift in zinc production in the six months due to higher zinc feed grades.
This was partly offset by reduced ore availability due to short term constraints in the south mine caused by technical issues impacting the paste-fill delivery system.
While zinc sales volumes lifted eight per cent, there was a slight drop in lead (down 5 per cent) and silver (down 6 per cent).
The North-West Queensland site is expected to produce between 180,000 and 190,000 tonnes of zinc in zinc concentrate for the full year in 2021.