Zhixun Finance and Economics APP learned that Guolian Securities has released a research report stating that it initiates coverage of mmg (01208) and gives it a "buy" rating. It is expected that the revenue will be $4.482 billion/$5.127 billion/$5.75 billion from 2024 to 2026, a year-on-year increase of 3.11%/14.40%/12.15%; the net income attributable to equity holders of the parent company will be $260 million/$365 million/$467 million, a year-on-year increase of 2793%/40.35%/27.81%, with a 3-year CAGR of 273%. Based on the expected increase in the company's copper production and the upward cycle of copper prices, the company's performance growth momentum is strong, and the target price is HKD 4.19.

The report stated that in March 2024, the company completed the acquisition of Khoemacau mine in Botswana for $1.735 billion. The mine was commissioned in 2021 and is expected to have a mine life of more than 20 years. The average annual copper concentrate production is currently 50,000 to 65,000 tons. The company plans to increase the copper concentrate production capacity to 130,000 tons/year by 2028 or 2029. After the expansion project reaches full production, the C1 copper cost is expected to be US $1.55/pound, ranking among the top 50% of the global copper mine cost curve. Khoemacau mine is the core asset of the company's copper sector and will help the company achieve its goal of becoming one of the top ten listed copper producers.

The bank stated that in 2023, the company's total copper production (copper concentrate and electrolytic copper) was 347,000 tons, a year-on-year increase of 13.8%; the zinc concentrate production was 203,500 tons, a year-on-year decrease of 9.4%. In 2024, the company plans to achieve copper production of 319,000-364,000 tons and zinc production of 225,000-250,000 tons. The expansion project of Kinsevere is planned to be put into operation in the second half of 2024, and the Chalcobamba development project of LasBambas has started construction in February 2024. With the release of production capacity of the new and promising Khoemacau mine under production and expansion projects, the company's copper production is expected to increase year by year.