Key Takeaways
MMG Limited’s copper production reached 129,000 tonnes in the first quarter of 2026, a 9% increase year-over-year that exceeded market expectations and prompted a positive review from Morgan Stanley.
"The bank reiterated its Overweight rating on the stock with a TP of HKD11.2," a Morgan Stanley report noted, following the strong operational results.
The performance was driven by the Las Bambas mine in Peru, which produced 101,000 tonnes of copper, a 6% increase from the prior year. The mine’s C1 cost was $0.45 per pound, a figure significantly below expectations, supported by a 29% and 36% respective increase in gold and silver by-product output.
MMG’s operational execution comes as the broader copper market faces supply-chain risks. Goldman Sachs recently flagged potential shortages of sulphuric acid—a key input for copper processing—due to shipping disruptions and a Chinese export ban. MMG appears well-positioned to mitigate this risk, with self-produced sulfuric acid covering approximately 75% of consumption at its Kinsevere mine.
Further operational improvements bolstered the quarterly results. At the Kinsevere mine, copper cathode production jumped 44% year-over-year, benefiting from improved power supply stability as grid power increased from 16 to 32 megawatts. The company noted that the frequency of power outages fell 60% compared to the same period last year.
MMG's output of 129,000 tonnes for the quarter positions it as a significant global copper producer, comparing favorably to other major miners' individual assets and contributing substantially to the global supply. For context, its performance outpaces the production guidance of many mid-tier producers and reinforces its status alongside giants like Codelco and Freeport-McMoRan in terms of operational scale at key sites.
This article is for informational purposes only and does not constitute investment advice.
