29Metals reported a strong December quarter with increased copper and zinc production at Golden Grove, cost efficiencies, and steady progress on key projects, while Capricorn Copper remains suspended pending regulatory approvals.
- Golden Grove copper production rises to 6.9kt with zinc output also up
- C1 costs at Golden Grove fall sharply to US$2.49/lb copper sold
- Gossan Valley mining contract awarded, on track for first ore by end 2026
- Capricorn Copper operations remain suspended, with water management ongoing
- Board changes include appointment of Nick Cernotta as Deputy Chair
Golden Grove Production and Cost Improvements
29Metals Limited delivered a robust December 2025 quarter, highlighted by a notable increase in copper production at its flagship Golden Grove operation. Copper output rose to 6.9 kilotonnes, up from 5.8 kilotonnes in the previous quarter, while zinc production also climbed to 3.4 kilotonnes. These gains were underpinned by higher ore milled and stable copper grades and recoveries.
Cost efficiencies were a key feature, with C1 unit costs dropping significantly to US$2.49 per pound of copper sold, down from US$3.74 in the September quarter. This improvement was driven by a favourable stockpile movement credit and lower site and selling costs, despite reduced by-product credits. The All-in Sustaining Cost (AISC) also improved to US$3.55 per pound.
Project Development, Xantho Extended and Gossan Valley
Progress continues on the Xantho Extended mine, where seismic activity had previously restricted access. Ground support upgrades are underway, covering approximately 28% of the mine workings, with completion expected by April 2026 to enable mining recommencement. Meanwhile, the Gossan Valley project remains on track with a $112 million capital budget and first ore targeted by the end of 2026. The awarding of a four-year underground mining contract to Byrnecut Australia Pty Ltd and the completion of the portal's first cut mark significant milestones.
Exploration drilling results reinforce the potential for mine life extensions at Golden Grove, particularly with indications that the Oizon and Hougoumont Extended deposits may form a single large mineralised system at depth, which could yield operational efficiencies.
Capricorn Copper Suspension and Water Management
Capricorn Copper remains in suspension, with no mining or exploration activity during the quarter. The company successfully managed heavy rainfall in December, maintaining an approximately neutral water balance through treated water releases and evaporation. Surface water levels are kept well below regulatory maximums, and ongoing engagement with the Department of Environment, Tourism, Science and Innovation (DETSI) continues regarding the Tailings Storage Facility (TSF) 3 application. The company anticipates responding to the Request for Information within the allowed timeframe to progress towards a potential restart.
Corporate and Financial Updates
On the corporate front, 29Metals appointed Nicholas Cernotta as Deputy Chair and planned successor to the Board Chair following the 2026 Annual General Meeting. Additionally, BUMA International Group exercised its right to nominate a second Non-executive Director to the Board, reflecting its increased shareholding.
Financially, the group reported unaudited liquidity of $118 million at 31 December 2025, down from $168 million the previous quarter, with net drawn debt at US$125 million. Revenue declined slightly quarter-on-quarter, impacted by lower zinc and precious metal sales volumes, partially offset by higher copper sales and prices.
2026 Outlook
Looking ahead, 29Metals provided guidance for 2026, forecasting copper production at Golden Grove between 20 and 24 kilotonnes and zinc production rising to 40–50 kilotonnes. Capital expenditure will focus heavily on the Gossan Valley project and sustaining development at Golden Grove, alongside exploration ramp-up at Capricorn Copper. The company remains committed to a sustainable restart of Capricorn Copper operations, contingent on regulatory approvals and successful water management.
Bottom Line?
29Metals is positioning for growth with operational gains and project development, but Capricorn Copper’s restart hinges on regulatory progress and weather resilience.
Questions in the middle?
- When will the ground support upgrades at Xantho Extended be fully completed and mining recommence?
- How soon can 29Metals expect regulatory approval for the Capricorn Copper TSF 3 application?
- What impact will the new board appointments have on the company’s strategic direction?