How Did 29Metals Boost Golden Grove EBITDA by 76% Amid Challenges?

Financial Performance Highlights

29Metals Limited has delivered a marked improvement in its 2025 financial results, posting total revenue of $567 million, up 3% from the previous year. More notably, the company slashed its cost of sales by 14%, driving a substantial increase in profitability. The Golden Grove mine was a standout performer, with EBITDA soaring 76% to $178 million despite some operational interruptions at the Xantho Extended ore body.

The group’s overall EBITDA climbed to $176 million, a significant leap from $58 million in 2024, while net profit after tax turned positive at $24 million compared to a $178 million loss the prior year. This turnaround was partly supported by $54 million in insurance proceeds related to prior events at Capricorn Copper.

Operational Insights and Cost Management

Golden Grove’s operational efficiency improved with C1 costs falling 3% to US$2.49 per pound of copper, reflecting tighter cost control and operational optimisation. Copper production edged up slightly to 22.3 kilotonnes, though zinc output declined, impacted by the reduced mining of high-grade ore at Xantho Extended. CEO James Palmer emphasised the underlying asset quality of Golden Grove and anticipated further cost reductions post-2026 as capital expenditure eases and higher-grade ore sources like Gossan Valley come online.

Capricorn Copper Restart Progress

Meanwhile, Capricorn Copper continues its path toward a sustainable restart. The company made significant progress in 2025, including advancing an application for a new Tailings Storage Facility and achieving substantial water level reductions. These developments underpin the confidence to proceed with a Restart Definitive Feasibility Study in 2026, a critical step toward resuming production at this key asset.

Balance Sheet and Future Guidance

29Metals also strengthened its balance sheet by reducing drawn debt by $74 million to $188 million as of year-end. The company provided guidance for 2026, forecasting increased depreciation and amortisation expenses reflecting ongoing capital investments. Tax payable is expected to remain nil, consistent with prior years. The company’s outlook remains cautiously optimistic, contingent on market and operational conditions.

Overall, 29Metals’ 2025 results reflect a successful turnaround driven by operational improvements, disciplined cost management, and strategic progress on key projects. The company’s focus now shifts to unlocking further value from Golden Grove’s high-grade ore bodies and advancing Capricorn Copper’s restart plans.