How Is 29Metals Navigating Seismic Setbacks and Growth Ambitions?

Operational Resilience at Golden Grove

29Metals Limited’s September 2025 quarterly report highlights a steady copper production performance at its flagship Golden Grove operation, delivering 5.8 kilotonnes of copper. This output aligns with the company’s 2025 guidance, underscoring operational resilience despite challenges. However, zinc production has been notably impacted, falling to 2.0 kilotonnes this quarter, a sharp decline attributed to seismic activity restricting access to high-grade zinc stopes at the Xantho Extended mine.

The company has responded by revising its zinc and precious metals production guidance downward for 2025, while maintaining copper targets. This adjustment reflects a strategic pivot to alternate ore sources within the Gossan Hill area to mitigate the disruption. The seismic event has necessitated the establishment of exclusion zones and ongoing ground support upgrades, with production at Xantho Extended expected to resume within six months pending safety validations.

Growth Projects and Exploration Upside

Looking beyond immediate operational challenges, 29Metals is advancing its growth pipeline. The Gossan Valley project, a key development at Golden Grove, remains on schedule with surface civil works and box cut excavation underway, targeting first ore extraction by the end of 2026. Exploration drilling in 2025 has ramped up significantly, with high-grade copper intercepts at Gossan Hill and Cervantes indicating potential mine life extensions and future growth options.

This exploration success reinforces the company’s strategy to leverage its substantial mineral resources in a low-risk Australian jurisdiction. The focus on organic growth and resource conversion aims to sustain and potentially extend the life of its operations, providing a buffer against commodity price volatility and operational disruptions.

Capricorn Copper – Progress Toward Restart

Meanwhile, Capricorn Copper remains under suspension following extreme weather events in 2023. The company is actively progressing key imperatives for a sustainable restart, including significant reductions in surface water inventory and the submission of a long-term tailings storage facility (TSF) application to regulators. The TSF application has been confirmed as properly made, advancing to detailed assessment stages.

Water inventory reductions have been substantial, with a 1.5 gigalitre decrease since suspension, achieved through evaporation and treated water releases during the wet season. However, one more successful wet season and regulatory approvals are required before operations can recommence. The company continues to manage costs prudently during this suspension, reducing cash outflows and conserving liquidity.

Financial Position and Cost Dynamics

Financially, 29Metals reports a solid liquidity position with $153 million in cash and $168 million in available group liquidity as of September 2025, alongside a net drawn debt of $44 million. The quarter saw increased site costs of $103 million, up from $91 million in the previous quarter, driven largely by a major shutdown and stockpile movement charges. This contributed to higher C1 costs of US$3.74 per pound of copper sold and an all-in sustaining cost (AISC) of US$4.93 per pound, both elevated quarter-on-quarter.

Safety metrics improved, with the Total Recordable Injury Frequency (TRIF) falling to 5.4 and Lost Time Injury Frequency (LTIF) at zero, reflecting ongoing commitment to workforce wellbeing amid operational pressures.

Strategic Outlook

29Metals’ September quarter update paints a picture of a company balancing near-term operational challenges with a clear focus on unlocking long-term value. The steady copper production at Golden Grove, despite zinc setbacks, combined with promising exploration results and disciplined cost management, positions the company well. The path to restarting Capricorn Copper, while contingent on regulatory and environmental milestones, remains a critical catalyst for future growth.