Rising copper prices boost Minmetals Resources' 2025 performance, with leading mineral production and expansion plans in 2026

Minmetals Resources announced at its earnings release that the company’s financial performance in 2025 reached a record high, with annual revenue of $6.218 billion, a 39% increase year-over-year; net profit after tax was $955 million, a 161% increase year-over-year, of which net profit attributable to the parent company was $509 million. Management stated that the performance growth was mainly due to increased production of metals such as copper, zinc, gold, and silver, as well as rising market prices, especially with copper prices rising about 40% throughout the year, becoming a key factor driving the company’s profitability.

CEO and Executive Director Zhao Jing reviewed the operation of the Las Bambas mine at the meeting. The mine experienced three consecutive months of transportation disruptions at the end of 2022, causing the company to fall into a trough, but since 2025, it has achieved three consecutive years of stable production. In 2025, copper production reached 410,800 tons, exceeding the upper limit of guidance, with an average cash cost (C1 cost) of $1.12 per pound, outperforming the annual guidance range. Zhao Jing pointed out that the stable operation of the Las Bambas mine provided important support for overall performance.

In 2025, Minmetals Resources’ copper production reached 507,000 tons, a 27% increase year-over-year, reaching a new high since 2018; zinc production was 232,000 tons, a 6% increase; gold and silver production both increased by about 20%. As of June 30, 2025, the company’s copper equivalent resource volume was nearly 27 million tons, with copper resources approximately 18.6 million tons. Management plans to invest between $1.6 billion and $1.7 billion in capital expenditures in 2026, mainly for projects to increase copper production.

Specifically, $800 million to $850 million will be used for upgrades to the existing facilities at the Las Bambas mine, and $400 million for the second phase expansion of the Khoemacau mine in Africa. The Khoemacau Phase II project was launched in February 2026. Once completed, the annual copper concentrate copper content capacity will increase to 130,000 tons, with associated silver production exceeding 4 million ounces. The full-cycle average C1 cost is expected to drop below $1.60 per pound (2025: $1.97 per pound). CFO and Executive Director Qian Song emphasized that the company remains optimistic about the long-term outlook for copper prices, believing that energy transition and strong demand from AI data centers will continue to support the market.

Regarding whether high copper prices will stimulate global supply growth, Zhao Jing analyzed that over the past decade, exploration investment by large mining companies has been insufficient, which may lead to a limited number of new mines in the next ten to fifteen years. She pointed out that copper prices need to reach higher levels to incentivize large-scale capital investment, as current project development cycles generally exceed ten years, and some companies are waiting for further price increases. Deputy General Manager Guan Xiangjun added that the scarcity of mature greenfield projects has led large mining companies to prefer mergers and acquisitions over development, citing BHP’s attempt to acquire Anglo American Resources as an indirect proof of the market’s mature resource shortage.