Metals X Faces Production Challenges Despite Strong Earnings Growth

Strong Financial Performance Amid Market Headwinds

Metals X Limited has posted a solid set of results for the year ended 31 December 2025, underpinned by its 50% stake in the Renison Tin Mine through the Bluestone Mines Tasmania Joint Venture. Despite a modest 2.3% decline in tin production to 10,748 tonnes, the company capitalised on stronger tin prices to boost revenue by over 30% to $285 million. Net profit after tax edged up 2.2% to $104.6 million, reflecting both operational resilience and favourable market conditions.

The company’s cash position remains robust, with $293.6 million on hand at year-end and no corporate debt, providing a strong platform for growth and capital management. Operating cash flows were $128.3 million, supporting ongoing investments and strategic initiatives.

Operational Highlights and Challenges at Renison

Renison, Australia’s largest primary tin producer, faced some operational challenges during 2025, including a decline in ore grade mined from 1.91% to 1.74% tin and increased mining costs associated with accessing deeper ore zones. However, these were partially offset by improved mill recovery rates, which rose to nearly 80%, and record monthly production in December.

The mine’s safety performance saw an increase in lost time injury frequency rate to 2.6, prompting a comprehensive safety reset and new initiatives such as dash cams on vehicles and enhanced mental health programs. Management changes included the resignation of the Chief Operating Officer, with the Operations Manager stepping up to lead ongoing performance.

Advancing Growth Through Strategic Investments and Project Development

Metals X continued to build its portfolio with strategic investments in related companies, including a 29.9% stake in London-listed First Tin Plc and an 18.3% holding in ASX-listed Elementos Limited, both of which provide exposure to tin projects in Australia and globally. The company also acquired a 3.11% interest in Hong Kong-listed Greentech Technology International Limited, although this investment was revalued to nil due to Greentech’s prolonged trading suspension and potential delisting risk.

The Rentails Project, a key internal growth opportunity adjacent to Renison, made significant progress in 2025. Environmental Impact Statement guidelines were finalised, and engineering definition advanced with a Final Investment Decision targeted for late 2026. The project team was bolstered with dedicated leadership and consultancy support, while near-mine exploration drilling continued to identify promising high-grade tin mineralisation.

Capital Management and ESG Commitments

With a strengthened balance sheet, Metals X maintained a disciplined approach to capital management, foregoing dividends and share buy-backs during the year to preserve financial flexibility. The company remains open to acquisition opportunities in tin and related critical minerals, aiming to leverage geological and geographical synergies.

On the environmental, social, and governance (ESG) front, Metals X reinforced its commitment to sustainable mining practices, stakeholder engagement, and transparent reporting aligned with global standards. The company anticipates its first comprehensive ESG disclosure aligned with new Australian sustainability reporting standards in 2027.