Why Did Metals X’s Tin Production Drop 16.6% Despite Rising Prices?

Operational Setbacks Temper Production

Metals X’s Renison Tin Operation experienced a notable 16.59% drop in tin-in-concentrate production during the September quarter, falling to 2,272 tonnes from 2,724 tonnes in the previous quarter. This decline was primarily attributed to operational downtime and equipment failures, compounded by processing challenges such as elevated calcium levels in the ore feed and high recirculating mill loads. These factors disrupted mill throughput and recovery rates, which slipped to 76.39% from 80.53% in Q2.

Despite these setbacks, the company reported that most milling issues were resolved by quarter-end, with improved recoveries and throughput expected to continue into the next quarter. Workforce shortages and equipment reliability also constrained mining development and ore extraction, although recruitment efforts are underway to bolster personnel levels.

Financial Resilience and Cost Dynamics

While production volumes declined, the imputed tin price rose by 3.87% to A$52,024 per tonne, partially offsetting the impact on revenue. Metals X’s cash and cash equivalents increased significantly by A$48.63 million to A$279.51 million, reflecting strong cash management and proceeds from operations. However, cash production costs rose slightly to A$52.57 million, pushing unit costs higher due to lower output.

The company’s imputed EBITDA decreased to A$49.17 million for the quarter, down from A$67.06 million previously, and net cash inflow fell accordingly. Metals X continues to maintain a robust cash position, with a substantial portion invested in term deposits earning competitive interest rates, supporting its growth and capital expenditure plans.

Capital Projects and Resource Updates

Capital expenditure remained steady at nearly A$20 million, focusing on critical projects such as mine dewatering and surface infrastructure upgrades. Significant progress was made on installing pumping systems and power feeders, although some delays occurred due to geotechnical challenges. Surface projects, including the replacement of key mill infrastructure and preparatory works for ore sorter upgrades, are advancing on schedule.

The 2025 Renison Mineral Resource update incorporated material from the Ringrose deposit, increasing the total contained tin resource to 292,000 tonnes and sustaining a mine life of approximately 10 years. The company plans to complete an updated Life-of-Mine plan and Ore Reserve estimate in the coming quarter.

Rentails Project and Exploration Progress

Metals X continues to push forward with the Rentails project, targeting a Final Investment Decision by late 2026. The Environmental Impact Statement and Public Environmental Report are nearing completion, marking key milestones toward statutory approvals. Engineering and construction planning activities are well underway, supported by the appointment of a project management consultancy.

Exploration drilling remains active, with over 11,000 metres completed underground and nearly 6,000 metres of surface drilling targeting resource definition and new discoveries near the mine. These efforts aim to sustain resource growth and support long-term production.

Strategic Investments and Corporate Initiatives

Beyond operations, Metals X holds significant stakes in companies such as First Tin Plc and Elementos Limited, providing exposure to complementary tin projects and growth opportunities. The company also continues its on-market share buy-back program, having repurchased over 20 million shares since inception, although no shares were bought back this quarter.

Safety performance at Renison improved, with a reduction in lost time injury frequency rates, reflecting ongoing cultural and procedural enhancements. Meanwhile, Metals X remains vigilant regarding its investment in Greentech Technology International Limited, monitoring regulatory developments in Hong Kong.