MMG: Strong Growth Potential and Attractive Valuation Justify Buy Rating

MMG (MMLTF) has received a new Buy rating, initiated by DBS analyst, Lee Eun Young.

Lee Eun Young has given his Buy rating due to a combination of factors that highlight MMG’s strong growth potential and attractive valuation. The company is expected to achieve a remarkable 70% compound annual growth rate in earnings from 2024 to 2026, driven by increased copper sales volume. This growth is supported by strategic developments such as the new Chalco Bamba pit and the acquisition of the Khoemacau Copper Mine, enhancing MMG’s copper reserves significantly.
Furthermore, MMG is positioned as an ideal proxy for copper, with its operations in top-tier mines like Las Bambas and Dugald River, which offer strong cost competitiveness. The company’s valuation is appealing, trading at a discount compared to its peers, with a forward EV/EBITDA of 4.7x and a P/BV of 1.0x. These factors, along with the potential for rerating due to normalized operations and reduced gearing, make MMG an attractive investment opportunity, justifying the Buy recommendation.