MAC Copper’s Q2: 10,587 Tonnes Produced, C1 Costs Down 23%, Free Cash Flow Up 71%

Operational Excellence Drives Growth

MAC Copper Limited has reported a robust June 2025 quarter, marked by record-setting production and significant cost efficiencies at its CSA Copper Mine in New South Wales. The company achieved a 23% increase in copper production quarter-on-quarter, reaching 10,587 tonnes at an improved grade of 4.4%. Notably, daily production peaked at 385 tonnes in June, the highest since MAC took ownership.

This surge in output was complemented by a substantial reduction in C1 cash costs, which fell by approximately 23% to US$1.48 per pound of copper produced, with June alone hitting a record low of US$0.94/lb. These improvements underscore the mine’s high-grade, low-cost profile and MAC’s operational efficiencies, including increased ore mined and processed.

Financial Strength and Free Cash Flow

Financially, MAC strengthened its position with operational free cash flow soaring to around US$42 million, a 71% increase from the previous quarter. The company ended the period with cash and equivalents of approximately US$102 million, bolstered by strong operational cash generation and disciplined capital expenditure. Total liquidity stood at nearly US$196 million, providing a solid buffer for ongoing growth initiatives and obligations.

Strategic Growth Projects and Production Outlook

Looking ahead, MAC maintains its 2025 copper production guidance of 43,000 to 48,000 tonnes and is targeting over 50,000 tonnes per annum by 2026. This ambitious growth is supported by key projects including the Merrin Mine, which is progressing rapidly with ore expected in Q4 2025, and the Capital Ventilation Project, on track for completion by Q3 2026. These developments are critical to sustaining production growth and unlocking the full potential of the CSA Copper Mine.

Progress on Harmony Gold Acquisition

MAC is also advancing a recommended acquisition by Harmony Gold Mining Company Limited. The transaction is moving through necessary regulatory and shareholder approvals, with a key court hearing scheduled for late July 2025. The deal promises to bring a respected operator’s stewardship to the CSA Copper Mine, potentially enhancing operational and strategic outcomes for stakeholders.

Safety and Sustainability Highlights

Safety performance improved markedly, with the Total Recordable Injury Frequency Rate (TRIFR) dropping to 6.9 in Q2 2025 from 9.9 in the prior quarter, reflecting a strengthened safety culture. Environmental and community initiatives also featured, including a donation to local heritage projects and ongoing rehabilitation efforts that reduced estimated costs by around A$4 million.

Exploration and Future Potential

Exploration activities identified a high-priority electromagnetic anomaly at the Bundella Project, 15 km north of the CSA Mine, with drilling underway to test this promising target. This exploration could add further value and extend the mine’s resource base beyond current reserves.