BOCI has released a research report reiterating its "Buy" rating on MMG (01208), raising the target price from HK$10.86 to HK$11.01, which implies a 2026 forecast price-to-earnings ratio of 8.9 times.

The bank primarily upgraded its earnings forecasts for 2026 to 2028 by 3% to 5% due to strong molybdenum and silver production in the third quarter.

MMG's third-quarter copper production rose 3% year-on-year to 131,200 tonnes, with the ramp-up of capacity at two mines in Africa serving as the main growth driver.

Based on the company's updated guidance, the bank estimates that fourth-quarter copper production will decline 6% quarter-on-quarter, but still expects full-year copper production to grow 3% year-on-year.

BOCI noted that Las Bambas copper production fell 3% year-on-year due to lower ore grades and recovery rates, but strong growth at Kinsevere, benefiting from improved power supply and the ramp-up of the sulphide processing line, and at Khoemacau, benefiting from higher ore grades, was sufficient to offset the shortfall.

During the same period, zinc production fell 5% year-on-year to 55,900 tonnes, mainly due to mining restrictions at Rosebery following the July earthquake.

The company lowered its full-year copper production guidance for Khoemacau by 9% to 10%, and reduced its zinc production guidance for Rosebery by 29% to 33%.