CITIC Securities Investment issued a research report rating MMG (01208) as "Overweight," noting that the company's copper mining operations are entering a fast track development phase.

According to the construction progress of MMG's mines, the report projects copper sales of 520,000 tons, 535,000 tons, and 541,000 tons for 2025-2027 respectively, with corresponding equity production of 346,000 tons, 360,000 tons, and 364,000 tons. Assuming copper price forecasts of $9,500/ton, $10,000/ton, and $10,500/ton for 2025-2027, the company's attributable net profit is projected at $719 million, $782 million, and $859 million USD respectively. The profit improvement is primarily driven by rising copper prices, declining financial costs, and modest increases in production and sales.

As a resource stock with price appreciation expectations, copper mining companies warrant reasonable valuations of 15-20 times earnings. The company's value appears significantly undervalued, supporting the "Overweight" rating.

The report notes that MMG focuses on global copper, zinc, and other base metal mining, excelling in overseas mine acquisitions and operations. The company's successful international operation cases are expected to continue replicating.

Currently, the company's main profits are concentrated in copper mining. With the Federal Reserve entering a rate-cutting cycle and energy transition driving copper demand, copper prices are expected to continue rising. The company's three main mines have all entered a fast development track.

Las Bambas has achieved dual growth in production increase and cost reduction as community relations improve and the high-grade ore from the second pit, Chalcobamba, is successfully produced. Kinsevere's oxide-to-sulfide ore conversion project is also proceeding smoothly. As the company's self-supplied power system gradually improves, the adverse effects of power fluctuations will gradually subside, and production and sales are expected to increase smoothly.

The Khoemacau mine's expansion plan has been designated, and the experienced local subsidiary of Sinomine Resource Group has been introduced as the engineering project implementer. Both the original project reaching full production and new expansion projects will continue to contribute incremental performance.