HK Stock Market Move | MMG (01208) rises by more than 7% again, institutions say that the decrease in production and costs at Las Bambas is expected to exceed expectations.

MMG (01208) is up more than 7% again, with a cumulative increase of 21% for the month. As of the time of writing, it has gone up by 6.69%, reaching 2.87 Hong Kong dollars with a trading volume of 2.08 billion Hong Kong dollars. In terms of news, MMG announced last month that the total copper production in the first quarter of this year reached 118,200 tons, a 76% increase from the same period last year. The announcement stated that the company's production and cost guidance for this year remains unchanged. The stable operation of the Las Bambas mine in the first quarter, a decrease in processing fees for copper and zinc, and a rise in precious metal prices are expected to drive mining financial reports higher. The company is evaluating the possibility of modifying production guidance to reflect these positive changes. Minsheng Securities pointed out that MMG's flagship mine Las Bambas in Peru is the company's most important asset. The expected decrease in production and costs at Las Bambas is likely to exceed expectations, and considering the reduction in interest expenses, it is expected that the company's overall performance will surpass expectations. The securities firm mentioned that the biggest and most common issue in Peru's mine development is the local community issues. The market has underestimated the company's ability to solve community issues. Compared to other companies in the same industry, the company has a low valuation and high elasticity.