MMG Ltd.

MMG Ltd. is a mid-tier copper producer headquartered in Hong Kong, China, operating primarily in Africa. The company's portfolio consists of 5 projects, comprising 3 operating mines and 2 expansion projects, in addition to several early-stage exploration prospects. Key assets include Dugald River and Las Bambas. The business model centers on creating a leading international mining company for a low-carbon future, leveraging a strong relationship with its major shareholder to gain deep market understanding and access to funding. The operational approach is guided by membership in the International Council on Mining and Metals (ICMM), ensuring adherence to high operational standards. The organizational structure features largely self-sufficient operational sites supported by centralized group functions for operational excellence, global services, and corporate governance. This federated model aims to empower diverse operations while maintaining core disciplines and values across an international footprint. The enterprise focuses on maximizing value from existing assets through continuous productivity improvements and cost containment, while also pursuing disciplined growth. A key differentiator is the ability to leverage both Chinese and international expertise to advance strategic objectives and enhance competitiveness. The company's vision is to create wealth through the development of its people and partnerships with local communities, delivering value to shareholders.

Strategic direction is focused on long-term, disciplined growth, with an ambition to become a top-tier global producer of materials critical to a low-carbon future. This is pursued through a dual approach of maximizing value from the existing asset base and actively seeking opportunities for diversification and expansion. A key initiative involved a strategic review of executive portfolios in 2024 to strengthen leadership and enhance operational accountability, including the creation of an Executive General Manager - Operations role. Capital management is a core pillar, demonstrated by a successful Rights Issue in 2024 that enhanced financial flexibility for future growth initiatives and a commitment to debt reduction. The growth strategy is exemplified by a recent agreement to acquire a new business, expanding the organization's commodity portfolio and geographic footprint. The company's strategic drivers include leveraging its major shareholder's market position, adopting a 'Business Miner' mindset for superior returns, embracing a federated operational structure, and delivering social progress through its activities.

Governance is led by a 7-member Board of Directors, comprising 1 Executive Director, 2 Non-executive Directors, and 4 Independent Non-executive Directors, ensuring a majority of independent oversight. The roles of Chairman and Chief Executive Officer are segregated. The Board is supported by 2 key committees: the Audit and Risk Management Committee and the Governance, Remuneration, Nomination, and Sustainability Committee, both chaired by Independent Non-executive Directors. Day-to-day operations are managed by an Executive Committee, which underwent significant changes in 2024, including the appointment of a new CEO, CFO, and Executive General Manager – Operations, reflecting a strategic leadership refresh. The new CEO brings nearly 20 years of experience in international mining investment, strategy, and project management. The company has adopted a formal Board Charter and a Securities Trading Model Code, with all directors confirming compliance. The Chairman holds annual meetings with independent directors without the presence of other directors to ensure open dialogue.

The sustainability approach is anchored by the core value of safety, with a commitment to eliminating fatalities and a reported total recordable injury frequency (TRIF) of 2.06 per million hours worked in 2024. The environmental management system aligns with ISO14001 principles and is guided by a commitment to achieve net zero Scope 1 and 2 emissions by 2050, supported by an interim target of a 40% reduction by 2030 from a 2020 baseline. The company's climate strategy, approved in 2022, is integrated into business planning, with all sites developing decarbonization pathways. Social performance is guided by ICMM principles, emphasizing stakeholder engagement, local employment, and community investment aligned with UN Sustainable Development Goals 1 through 6. The governance framework includes a formal Code of Conduct, an Anti-Corruption Standard, and a confidential Whistleblower service available to all stakeholders. The company also released a formal Human Rights Policy in 2024, outlining its commitments to employees, stakeholders, and communities.

The corporate structure is defined by a controlling interest held by China Minmetals Corporation (CMC), which owned 67.49% of the company as of year-end 2024. A significant structural development in 2024 was the acquisition of Cuprous Capital Ltd on March 22. Subsequently, on June 6, the company formed a joint venture for the acquired asset by selling a 45% interest in the holding entity, MMG Africa Resources Company Limited, to CNIC Corporation Limited, retaining a 55% controlling stake. This transaction was part of a strategy to manage debt and optimize the balance sheet. In July 2024, the company successfully completed a Rights Issue that was approximately 2.8 times oversubscribed, raising significant capital to repay shareholder loans and fund growth. Further demonstrating its diversification strategy, the company announced an agreement on February 18, 2025, to acquire a nickel business from Anglo American, which is expected to close in the third quarter of 2025.