Capricorn Copper Suspension Continues: What’s Next for 29Metals?
29Metals Limited has reversed a significant loss to report a $35.3 million net profit for the first half of 2025, driven by stronger production at Golden Grove and improved metal prices, while Capricorn Copper remains suspended amid ongoing water and regulatory challenges.
- Half-year net profit of $35.3 million, reversing prior $109.2 million loss
- Revenue up 12% to $271 million, boosted by zinc and precious metals
- Golden Grove mine ramps up ore production and zinc output
- Capricorn Copper operations remain suspended due to water management and approvals
- Refinancing extends debt maturity to 2028 and improves liquidity
Financial Turnaround
29Metals Limited has reported a striking turnaround in its half-year results ending 30 June 2025, posting a net profit after tax of $35.3 million compared to a loss of $109.2 million in the same period last year. This recovery reflects a combination of higher revenues, improved operational efficiencies, and a substantial insurance settlement related to the 2023 Extreme Weather Event at Capricorn Copper.
Revenue climbed 12% to nearly $271 million, underpinned by increased zinc and precious metal production alongside firmer metal prices. EBITDA surged to $112.6 million, a dramatic improvement from just $5 million a year earlier, signaling a healthier underlying business performance.
Golden Grove, The Growth Engine
The company’s flagship Golden Grove mine in Western Australia delivered mixed but encouraging operational results. Copper production dipped 20% to 9.7 kilotonnes, while zinc output jumped 47% to 29.3 kilotonnes, reflecting a strategic shift to milling higher proportions of zinc ores. Ore production from the high-grade Xantho Extended orebody increased by 12%, despite some disruption from local seismic activity.
Significant progress was made on infrastructure, including the successful transition to a new Tailings Storage Facility (TSF4), which secures long-term tailings capacity and supports the mine’s life extension plans. Surface works commenced at the Gossan Valley project following mining approvals, aiming to boost head grades and optimise the mine’s future production profile.
Capricorn Copper, Suspension Persists
Meanwhile, Capricorn Copper in Queensland remains in suspension, a status unchanged since March 2024 due to challenges managing water inventory and securing regulatory approvals for a long-term tailings storage solution. The company has made headway in reducing on-site water levels by 1.3 gigalitres and is actively engaging with the Department of Environment, Tourism, Science and Innovation (DETSI) on its TSF application.
During the suspension, 29Metals has curtailed cash outflows by completing key environmental compliance projects and scaling back operating costs. Revenue during the period came from toll treatment of Capricorn Copper ore stockpiles, while insurance proceeds related to the 2023 weather event provided a $54 million boost to other income.
Financial Position and Refinancing
29Metals strengthened its balance sheet through a refinancing completed early in 2025, which extended the maturity of senior secured debt facilities to 2028 and reduced near-term repayment obligations by US$74 million. The company prepaid US$18 million of its term loan, lowering drawn debt to $203 million from $262 million at the end of 2024.
Liquidity remains robust at $202 million, including cash and undrawn facilities. The refinancing also introduced covenant relief for capital expenditure on the Gossan Valley project, supporting ongoing growth investments.
Safety and Exploration
Safety metrics improved notably, with total recordable injury frequency and lost time injury frequency both declining, reflecting a sustained focus on risk management and workplace safety culture.
Exploration activity continued primarily at Golden Grove, targeting resource extensions and conversions near the Xantho orebodies and advancing grade control drilling at Gossan Valley. The Redhill project in Chile remains in the evaluation phase with no field work during the period.
Outlook and Challenges
While the financial and operational momentum at Golden Grove is encouraging, the timing and certainty of Capricorn Copper’s restart remain key uncertainties. The company’s impairment testing showed no new write-downs, but the restart is contingent on further water management progress and regulatory approvals, currently targeted for late 2027.
Legal and environmental compliance matters, including ongoing enforcement proceedings related to water management at Capricorn Copper, continue to be monitored but are not expected to materially affect the company’s financial position.
Bottom Line?
29Metals’ next chapters hinge on Capricorn Copper’s restart and sustaining Golden Grove’s growth amid evolving regulatory and market conditions.
Questions in the middle?
- When will Capricorn Copper operations realistically resume, and what are the key regulatory hurdles?
- How will commodity price fluctuations and currency movements impact 29Metals’ profitability going forward?
- What are the potential financial and operational risks if the water management challenges at Capricorn Copper persist?
