29Metals Boosts Liquidity with $180M Equity Raise, Advances Gossan Valley Project

Strong Operational Performance at Golden Grove

29Metals Limited reported a robust December 2024 quarter, with Golden Grove copper production rising to 5.3 kilotonnes, up from 4.4kt in the prior quarter. Zinc production moderated slightly to 17.6kt, reflecting lower ore grades but was still within full-year guidance. The company successfully met its 2024 production targets across copper, zinc, gold, and silver, underscoring operational consistency.

Cost metrics improved notably, with C1 cash costs declining to US$1.82 per pound of copper sold, down from US$2.52 in the September quarter. This was driven by higher by-product credits and more efficient stockpile management, despite increased mining volumes and capital expenditure related to the Tailings Storage Facility 4 (TSF 4) project, which is on track for completion in the March quarter of 2025.

Strategic Investment in Gossan Valley

The company made a decisive Final Investment Decision (FID) to develop the Gossan Valley project, which is expected to extend and optimise the Golden Grove mine life. The project boasts an initial net present value (NPV) of $110 million at a 9% discount rate and an internal rate of return (IRR) of 34%, with an anticipated seven-year mine life producing approximately 4kt of copper and 20kt of zinc annually.

Capital expenditure for Gossan Valley, estimated at $112 million to first ore, will be fully funded by the recent equity raising. This development is expected to provide production flexibility and a higher-grade ore source to replace declining zones, while also simplifying mining operations.

Liquidity Strengthened Through Equity Raising and Debt Refinancing

29Metals completed a fully underwritten $180 million equity raising at $0.27 per share, bolstering its cash position to $252 million and overall liquidity to $268 million by the end of December. Concurrently, the company secured a refinancing agreement with senior lenders that extends debt maturities to 2028 and reduces scheduled repayments by US$74 million over the next two years, improving near-term financial flexibility.

The refinancing package also excludes Gossan Valley capital expenditures from debt service covenant tests, providing additional headroom for project development. Post-quarter, the company prepaid US$18 million of senior debt, further deleveraging the balance sheet.

Capricorn Copper: Managing Challenges and Preparing for Restart

At Capricorn Copper, operations remain suspended as the company focuses on reducing site water inventories, a critical step toward a sustainable restart. Water inventory was reduced by approximately 200 megalitres during the quarter, aided by treated water releases facilitated by an Environmental Enforcement Order that temporarily removes volume limits on treated water discharge during the wet season.

While bushfires near the site caused some damage to water diversion infrastructure, repairs were completed within existing cost guidance. The company continues to optimize its interim water treatment plant and advance designs for a replacement facility, pending progress on water level reductions and tailings management solutions.

Safety and Sustainability Initiatives

Safety metrics improved with the Group's total recordable injury frequency (TRIF) decreasing to 10.0 and lost time injury frequency (LTIF) to 2.4. The company is also progressing an electric loader trial at Golden Grove, aiming to reduce diesel emissions underground and enhance operational efficiency.

Outlook and Guidance

Looking ahead, 29Metals provided 2025 guidance targeting increased copper production of 22-25kt and zinc production of 60-70kt at Golden Grove, with site costs expected between $370 million and $400 million. Growth capital includes $50-65 million allocated to Gossan Valley development. Capricorn Copper's expenditures will be weighted to the first half of 2025 as water management and environmental compliance projects continue.

Exploration efforts will intensify, particularly at Golden Grove, as the company seeks to convert recent high-grade drilling results at Europa into updated Mineral Resource estimates expected in the March quarter.