How 29Metals Is Navigating Growth Amid Capricorn Copper’s Suspension
29Metals Limited's June Quarter 2025 report highlights steady production at Golden Grove with revised capital guidance, while Capricorn Copper remains suspended but progresses on key environmental and regulatory fronts.
- Golden Grove maintains stable copper and zinc output with 2025 production guidance intact
- Capricorn Copper operations suspended; water inventory reduced and tailings storage approval underway
- Group liquidity strengthens to $202 million following $54 million insurance claim receipt
- Gossan Valley project on track for first ore in H2 2026 with capital expenditure revised down
- Safety metrics improve with lower injury frequency rates reported
Operational Stability at Golden Grove
29Metals Limited’s June Quarter 2025 update underscores the resilience of its Golden Grove asset in Western Australia, which continues as the company’s primary producing operation. Copper production rose to 5.6kt for the quarter, supported by a higher milled grade and steady recovery rates, while zinc output moderated to 12.3kt amid lower grades. Despite these fluctuations, the company reaffirmed its 2025 production guidance for copper (22–25kt), zinc (60–70kt), and gold (20–25koz), reflecting confidence in operational execution.
Cost metrics saw a quarter-on-quarter increase, with C1 costs rising to US$2.09 per pound of copper sold and all-in sustaining costs (AISC) climbing to US$3.29 per pound. These increases were primarily driven by reduced by-product credits and lower stockpile movement credits, factors that investors will watch closely as commodity prices and operational efficiencies evolve.
Capricorn Copper – Suspension and Strategic Progress
Meanwhile, Capricorn Copper in Queensland remains under suspension following the March 2024 decision triggered by extreme weather events. The company has made significant strides in reducing surface water inventory by 1.3 gigalitres since suspension, a critical step toward mitigating environmental risks. Additionally, 29Metals is progressing its application for a long-term tailings storage facility (TSF 3), with regulatory submission on track for the September quarter of 2025.
These efforts are part of a broader imperative to prepare Capricorn Copper for a sustainable restart, contingent on further environmental approvals and successful derisking of operational challenges. The company’s cautious approach reflects the complexities of restarting operations in a sensitive jurisdiction and the importance of regulatory compliance.
Financial Position and Corporate Developments
Financially, 29Metals reported a robust liquidity position with available group liquidity rising to $202 million at the end of June 2025, up from $182 million in March. This improvement was bolstered by the receipt of a $54 million insurance claim payment related to Capricorn Copper. Net drawn debt was reduced to $19 million, signaling a strengthening balance sheet as the company navigates capital allocation between sustaining operations and growth projects.
On the corporate front, the appointment of Ashish Gupta as a Non-executive Director adds depth to the board’s expertise, potentially supporting strategic oversight as 29Metals advances its growth agenda.
Growth and Exploration Outlook
The Gossan Valley project at Golden Grove remains a key growth lever, with all approvals secured and surface civil construction underway. Capital expenditure guidance for this project has been revised down to $35–50 million for 2025, reflecting a deferral of some spending into 2026, but the timeline for first ore extraction remains on track for the second half of 2026. Exploration activities are ramping up, with planned expenditures increasing to $10–14 million, aimed at testing priority targets and extending resource life.
Overall, 29Metals continues to leverage its substantial copper and zinc resource base across Australia, positioning itself for long-term value creation despite near-term operational challenges at Capricorn Copper.
Bottom Line?
29Metals balances steady production and growth at Golden Grove with cautious progress on Capricorn Copper’s restart, setting the stage for a pivotal 2026.
Questions in the middle?
- When will Capricorn Copper’s restart be fully approved and operational?
- How will fluctuating by-product credits impact 29Metals’ cost structure going forward?
- What exploration results might accelerate resource expansion at Golden Grove and Capricorn Copper?
