Merrin Mine and Zinc Production: Contradictions in 2025 Outlook Raise Investor Concerns

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Financial and Operational Performance:
- MAC Copper reported C1 of $1.91 per pound for Q1 2025, a significant improvement from the previous quarter, and aims for 43,000 to 48,000 tonnes of copper production in 2025.
- The improvement in cost efficiency was driven by favorable exchange rates, lower treatment charges, and better mining practices.

Debt Refinancing and Balance Sheet Strength:
- MAC Copper successfully refinanced its debt, reducing net gearing by over 50% to under 20%.
- The refinancing included a $14 million annual cash interest saving due to a 30% reduction in the average weighted cost of debt.

Merrin Mine Development and Potential:
- The Merrin Mine, a separate operation, is expected to contribute significantly to production, with potential for 150,000 tonnes of copper equivalent.
- The mine's development is progressing quickly, with costs per meter of development being around one-third of those at the mine's bottom, enhancing economic viability.

Safety and Tailings Storage Facility Progress:
- MAC Copper's TRIFR has improved, now below 7, indicating enhanced safety measures and a reduction in incidents.
- The Stage 10 embankment for the Tailings Storage Facility is on track for completion, ensuring capacity until 2030.