Metals X Smashes Tin Production Records and Expands Strategic Holdings

Operational Excellence Drives Record Production

Metals X Limited has reported a landmark quarter ending 31 December 2024, with its Renison Tin Operation achieving a new highest quarterly tin production record of 3,329 tonnes of tin-in-concentrate. This represents a 14.83% increase over the previous quarter and contributes to an all-time annual production record of 11,006 tonnes. The surge in output was underpinned by higher mined tonnes and improved ore grade, alongside ongoing plant enhancement initiatives aimed at boosting recovery rates and throughput capacity.

Despite a 15.49% rise in cash production costs to $54.20 million, driven by increased production volumes and production bonuses, the company maintained a stable C1 cash production unit cost of $16,282 per tonne. This operational efficiency translated into a 12.73% uplift in EBITDA to $80.17 million and a net cash flow increase to $58.70 million for the quarter.

Financial Strength and Strategic Investments

Metals X’s financial position strengthened considerably, with closing cash balances rising by $23.10 million to $220.64 million. The company continues to prudently manage its cash, allocating 66% into 90-day term deposits yielding approximately 5.0% per annum, while maintaining liquidity in current accounts.

On the investment front, Metals X increased its stake in First Tin Plc to 29.91%, acquiring an additional 61.7 million shares for approximately A$7.3 million. This move enhances exposure to First Tin’s advanced, low-risk Australian tin project and secures board representation, signaling Metals X’s commitment to expanding its footprint in the tin sector.

Additionally, Metals X made an unsolicited approach to Hong Kong-listed Greentech Technology International Limited, proposing to acquire all issued shares at HK$0.28 per share. While Greentech has yet to engage, this strategic bid aligns with Metals X’s growth-by-acquisition strategy, particularly in assets with geological or geographic synergies.

Safety and Environmental Initiatives

Safety performance at Renison showed mixed results, with the Lost Time Injury Frequency Rate (LTIFR) improving to 1.8 from 2.8, though total recordable injuries rose slightly to four. The company implemented enhanced safety protocols, including daily incident reviews and updated Life Saving Rules, reflecting a proactive approach to workplace safety.

Environmental stewardship remains a priority, with the draft Mt Bischoff Closure 90% design plan submitted to the Environmental Protection Authority and a 17% reduction in greenhouse gas emissions reported for FY2024 compared to the prior year. These initiatives underscore Metals X’s commitment to sustainable mining practices.

Capital Projects and Exploration Outlook

Capital expenditure remained robust at $21.47 million, supporting key projects such as ventilation upgrades, mine dewatering, and surface infrastructure improvements. The company is advancing the Rentails Project, with a feasibility study update completed and environmental approvals underway, targeting a final investment decision by late 2026.

Exploration drilling continued actively, with over 16,800 metres completed underground and 3,000 metres near-mine, focusing on resource definition and grade control. Promising results at the Ringrose extension and ongoing geophysical surveys suggest potential for resource growth, which could extend the mine life and enhance future production profiles.