• Copper Production: 11,320 tonnes at a grade of 4.1% milled for Q4 2024.
• C1 Cash Cost: USD 1.66 per pound for the quarter.
• Liquidity: USD 213 million at the end of the year.
• EBITDA Margin: 47% with 74% conversion to cash for the year.
• Net Gearing: Reduced from 41% to 15% by year-end.
• Cash and Cash Equivalents: USD 172 million at year-end.
• Total Cash Cost: USD 2.31 per pound.
• Free Cash Flow from Operations: USD 30 million for the quarter.
• Sustaining CapEx: USD 12 million for the quarter, totaling just over USD 50 million for 2024.
• Interest Expense: USD 8 million for the quarter.
• Processing Cost per Tonne: USD 26 for Q4.
• Mining Cost Reduction: 21% reduction from Q1, 12% reduction in the last quarter alone.
• Tonnes Milled per Employee: Increased by 10% compared to the previous quarter.

• Warning! GuruFocus has detected 3 Warning Signs with MTAL.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MAC Copper Ltd (NYSE:MTAL) achieved record copper production in Q4 2024, surpassing the midpoint of their guidance.
• The company reported a strong EBITDA margin of 47%, converting 74% of that to cash.
• Net gearing was significantly reduced from 41% to 15%, indicating a stronger balance sheet.
• The company has a clear pathway to exceed 50,000 tonnes of copper production by 2026.
• MAC Copper Ltd (NYSE:MTAL) has a substantial liquidity position with USD 213 million available, providing financial flexibility.

Negative Points

• The company faced technical difficulties during the earnings call, affecting communication.
• There was a delayed shipment at the end of December, impacting revenue recognition for Q4.
• The company is still in the process of refinancing its debt, which could take another six to eight weeks.
• Despite strong operational performance, the CEO expressed dissatisfaction with the current share price.
• The development of the QTS South Upper project was delayed due to challenges in securing contractors.

Q & A Highlights

Q: What is the key driver for achieving your production outcomes in 2025 compared to 2024? Is it more tonnes mined or grade or both? A: The key driver is more tonnes mined rather than grade, which will hover around 4%. Consistency in production is crucial, as the mine can produce more than 45,000 tonnes of copper annually. The focus is on eliminating weeks of lower production and maintaining consistent output. (Michael McMullen, CEO)

Q: Can we expect another lift in mined ore tonnes in the March quarter? A: While specific quarterly guidance isn't provided, the expectation for the year is more ore tonnes with a similar grade, leading to a production lift. The company exited last year at the midpoint of this year's guidance, so maintaining Q4's performance is key. (Michael McMullen, CEO)

Q: What is in scope for the resource reserve update coming in February? A: The update will include QTS North, QTS Central, East West, and QTS South Upper. The focus is on total resource expansion and conversion to measured and indicated for reserves. The upper portion of the mine's copper is unlikely to be included yet, as it needs more confirmatory drilling. (Michael McMullen, CEO)

Q: What might get you to the top end of the current guidance range for 2025? A: The key factor is QTS South Upper, which is not currently in the guidance range. It could contribute about 1,500 tonnes of copper per quarter. If production from QTS South Upper can be brought forward, it could help reach the top end of the guidance. (Michael McMullen, CEO)

Q: What is the timeline for the balance sheet restructuring and refinancing process? A: The refinancing process is expected to take another six to eight weeks. The goal is to extend debt, convert remaining debt to a lower interest rate, and increase the revolving facility for more flexibility. The Sprott facility paydown is also expected within this timeframe. (Morne Engelbrecht, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.