MAC Copper Reports Q1 Production of 8,644 Tonnes, C1 Costs Rise 15%

Steady Production Amid Seasonal Variability

MAC Copper Limited (ASX: MAC; NYSE: MTAL) released its March 2025 quarterly report detailing operational and financial performance at the CSA Copper Mine. The company produced 8,644 tonnes of copper at a 4.1% grade during the quarter, reflecting the typical seasonal low in production for Q1. This output represents a 24% decrease from the previous quarter, largely driven by the timing of mining high-grade stopes.

Despite the dip in volume, the copper grade remained robust, with March alone achieving a 4.7% grade. CEO Mick McMullen highlighted the consistent mining processes setting up the remainder of the year, with production guidance for 2025 maintained.

Rising Costs Offset by Operational Efficiencies

The company reported a 15% increase in C1 cash costs to US$1.91 per pound, primarily due to lower production volumes impacting fixed costs. However, this was partially offset by a significant reduction in treatment and refining charges (TC/RC), which fell by approximately 70% for 2025, contributing to a US$0.16/lb cost saving compared to 2024.

Operational improvements and cost control initiatives have been steadily reducing costs over 2024, with March 2025 setting a new low C1 cost of US$1.49/lb under MAC ownership. Sustaining capital expenditure was US$7.2 million for the quarter, reflecting an accelerated spend in the prior quarter.

Safety and Sustainability Progress

MAC Copper achieved a Total Recordable Injury Frequency Rate (TRIFR) of 9.9 in Q1 2025, a marked improvement from 14.2 in 2024. The company attributes this to enhanced safety training and leadership engagement. Environmentally, there were no reportable incidents during the quarter, and the company published its inaugural sustainability report outlining its ESG commitments and future initiatives.

Debt Refinancing Strengthens Financial Position

In a major financial development, MAC completed a refinancing of its debt facilities in March 2025. The new facilities include a US$159 million term loan and an upsized US$125 million revolving credit facility, extending maturity to March 2028 and providing a repayment holiday until September 2025.

This refinancing reduced the average weighted cost of debt by approximately 30% to 6.85%, generating estimated annual interest cash savings of US$14 million. The company also repaid the US$160 million Sprott mezzanine facility early, simplifying its balance sheet and boosting liquidity to US$153 million.

Growth Projects on Track for Production Expansion

MAC is targeting a 23% increase in copper equivalent production to over 50,000 tonnes per annum by 2026. Key to this growth are two major projects: the Merrin Mine and the Ventilation project. Development at Merrin commenced in Q4 2024, with ore mining expected to start in Q4 2025. The Ventilation project, critical for accessing lower mine levels and sustaining production, is progressing on schedule for completion by Q3 2026.

The Merrin Mine offers faster and cheaper development rates compared to existing areas and has revealed additional high-grade mineralisation, enhancing its potential impact. Meanwhile, the ventilation upgrade is advancing with significant underground development completed in Q1 2025.

Outlook and Strategic Positioning

MAC Copper’s management remains confident in delivering on its growth strategy supported by operational improvements and a strengthened financial position. The company’s dual listing and hedging program provide some insulation against copper price volatility and currency fluctuations, with hedges in place through mid-2026 at US$3.72/lb.

With a strong liquidity buffer, reduced debt servicing costs, and key projects advancing, MAC is well positioned to capitalize on the growing demand for copper critical to electrification and decarbonization trends globally.