Metals Acquisition (MTAL) - 2024 Q4 - Annual Report

Financial Performance - Revenue from ordinary activities increased by 114% to US$340,736,000 in FY24 compared to US$158,999,000 in FY23[5] - Underlying EBITDA rose by 277% to US$168,400,000 in FY24 from US$44,654,000 in FY23[17] - Net loss attributable to members decreased by 51% to US$70,221,000 in FY24 from US$144,554,000 in FY23[5] - Revenue for FY24 increased by 114% to US$340.736 million compared to FY23, primarily due to the acquisition of the CSA Copper Mine[61] - Free cash flow improved to US$62.751 million, a significant increase of 270% from a loss of US$36.860 million in FY23[61] - The statutory loss after tax for FY24 was US$70 million, influenced by net financing costs of US$75 million and non-cash movements of US$81 million[65] - The net loss for FY24 was $70.221 million, an improvement from a net loss of$144.554 million in FY23[122] Production and Costs - Record copper production of 41,128 tonnes in 2024, a 14% increase compared to 2023, with an average copper grade of 3.9%[16] - C1 cash cost improved to US$1.92/lb, a 4$1.99/lb in 2023[17] - All-in cash cost decreased by 6% to US$2.70/lb from US$2.86/lb in 2023[17] - Copper production increased from 36,000 tonnes to 41,000 tonnes, just above the midpoint of guidance[54] - FY24 copper production increased by 96% to 41,128 tonnes, and copper sales rose by 108% to 40,326 tonnes compared to FY23[64] - C1 cash cost for the year was US$1.92 per pound, a decrease of 4$1.99 per pound in FY23[61] - Total cash costs decreased by 6% to US$2.70 per pound from US$2.86 per pound in FY23[61] - Cost of goods sold rose to $223.394 million, reflecting an increase of 58$141.166 million in FY23[122] Cash and Liquidity - Cash and cash equivalents increased by approximately 431% to US$172,000,000 compared to December 31, 2023[16] - The company ended FY24 with a cash balance of US$172 million and pro-forma liquidity of approximately US$213 million[73] - Cash flows from operating activities improved significantly to US$117 million in FY24, compared to an outflow of US$12 million in FY23[79] - The cash position at the end of FY24 was$172 million, significantly up from $32 million in FY23[109] - The company reported a net cash from operating activities of$116,739 thousand in 2024, a significant turnaround from a cash outflow of $11,707 thousand in 2023[125] Strategic Investments and Future Guidance - Updated production guidance for 2025 is set between 43,000 tonnes and 48,000 tonnes, and for 2026 between 48,000 tonnes and 53,000 tonnes[20] - The company aims to grow copper production by approximately 23$325 million in equity in February and an additional A$150 million in October 2024[40] - Strategic investment in Polymetals increased in value to A$6.4 million, up more than 125% since the initial investment[16] Safety and Operational Efficiency - The company achieved a TRIFR reduction from 11.9 to 10.9, indicating improved safety performance[52] - The Total Recordable Injury Frequency Rate (TRIFR) for the CSA Copper Mine was 10.9, below the NSW underground metalliferous average of 15.5[86] - Ore mined increased by 80% to 1,052,050 tonnes, and tonnes milled rose by 75% to 1,072,676 tonnes in FY24[95] Assets and Liabilities - Total assets increased to $1,407,586 thousand in 2024, up from$1,305,468 thousand in 2023, representing a growth of approximately 7.8%[123] - Current assets rose significantly to $207,943 thousand in 2024, compared to$88,936 thousand in 2023, marking an increase of about 134%[123] - Total liabilities decreased to $840,627 thousand in 2024 from$1,037,441 thousand in 2023, a reduction of approximately 19%[123] - The total equity increased to $566,959 thousand in 2024 from$268,027 thousand in 2023, showing a growth of approximately 111%[124] Capital Expenditures - Capital expenditure for the development of the CSA Copper Mine was US$27 million in FY24, up from US$17 million in FY23[75] - The company invested $53,988 thousand in property, plant, and equipment in 2024, compared to$25,153 thousand in 2023, representing an increase of about 114%[125] Accounting Policies - The Group's revenue is primarily derived from the sale of goods, recognized when control of the goods is transferred to the customer, with revenue adjustments based on market price fluctuations[146][148] - Property, plant, and equipment are initially recognized at cost, including directly attributable costs, and are depreciated over their estimated useful life or remaining life of mine[164][166] - The Group applies FIFO or weighted average methods for inventory valuation, with copper-silver in concentrate and ore stockpiles measured at the lower of cost or net realizable value[163] - Financial assets are initially recognised at fair value plus transaction costs, and trade receivables are measured at the transaction price[184] - Financial liabilities are recognised at amortised cost using the effective interest rate method, with borrowings classified as current liabilities unless deferred for at least 12 months[192]