29Metals Limited (ASX:29M) swung to a $24 million net profit in 2025, powered by steady copper output at Golden Grove despite seismic disruptions, cost efficiencies, and key progress on growth projects including Gossan Valley and Capricorn Copper restart.
- Net profit after tax of $24m versus $178m loss in 2024
- Golden Grove copper production steady at 22kt despite Xantho seismic issues
- Gossan Valley project portal fired ahead of schedule, first ore expected end 2026
- Capricorn Copper water inventory cut by 1.5 gigalitres, TSF 3 regulatory application advanced
- Debt reduced by $74m, $150m equity raise completed post year-end
Financial Turnaround Driven by Copper and Cost Control
29Metals Limited (ASX:29M) reported a striking turnaround in its 2025 financials, delivering a net profit after tax of $24 million compared to a $178 million loss in 2024. Total revenue rose 3% to $567 million, buoyed by stronger base and precious metal prices, particularly copper, which accounted for 59% of group revenue. The company’s EBITDA surged 200% to $176 million, with Golden Grove’s contribution up 76% to $178 million, despite operational challenges.
Cost discipline was evident with a 14% reduction in cost of sales to $482 million, reflecting lower concentrate treatment and refining charges due to zinc production setbacks and efficiency gains. The company also reduced drawn debt by $74 million during the year, aided by a US$18 million prepayment and refinancing of senior facilities.
Seismic Disruptions at Xantho Extended Impact Zinc and Precious Metals
Golden Grove’s copper output held steady at 22kt, within guidance, despite a series of seismic events at the high-grade Xantho Extended orebody. These events necessitated an exclusion zone from September 2025, halting mining and development in that area for the remainder of the year and leading to a 39% drop in zinc production to 35kt and softer gold and silver output.
Ground support upgrades at Xantho Extended are on track for completion in April 2026, with additional seismic mitigation works extending to December 2026, as detailed in the recent 29Metals Delays Full Mining at Xantho Extended. The company expects to safely recommence mining thereafter, aiming to restore zinc and precious metals production.
Gossan Valley Project Progresses Ahead of Schedule
The Gossan Valley project, a key organic growth initiative at Golden Grove, achieved a significant milestone with the first blast of the access portal fired in December 2025, ahead of schedule. The project remains on track for first ore by the end of 2026 and is expected to extend mine life by providing a new, relatively shallow mining front with high-grade copper ore.
Tailings Storage Facility 4 (TSF 4) was commissioned and fully operational in early 2025, providing long-term tailings capacity and expected to reduce deposition costs over the life of mine. Exploration drilling yielded exceptional results, contributing to a 10% increase in Ore Reserves and a 17% increase in Mineral Resources at Golden Grove, underpinning the asset’s exploration upside.
Capricorn Copper Restart Advances Amid Water Management and Regulatory Progress
Operations at Capricorn Copper in Queensland remained suspended throughout 2025 following extreme weather events in 2023 and early 2024. However, the company made substantial progress towards a sustainable restart, reducing water inventory on site by more than 1.5 gigalitres since suspension and upgrading the water treatment plant to increase throughput to 20 ML/day.
29Metals submitted a regulatory application for a new Tailings Storage Facility 3 (TSF 3), which was deemed properly made, with the regulator issuing a Request for Information. The company is actively engaging with authorities to address the information request and advance approvals, critical for restarting mining operations.
The company plans to complete a Restart Definitive Feasibility Study in 2026 to accelerate the restart timeline upon regulatory approval. Exploration activities at Capricorn Copper are also planned to resume, focusing on near-mine targets and resource extensions.
Safety and Sustainability Highlights
Safety performance improved markedly, with zero Lost Time Injuries recorded across the group and a 29% reduction in Total Recordable Injury Frequency to 7.1 per million work hours. Significant Incident Frequency declined 4%, continuing a multi-year downward trend.
29Metals embedded its TEAMS values across the workforce, with 20% of employees participating in workshops to define behavioural expectations. Female workforce participation increased to 16.1%, supported by targeted recruitment campaigns and leadership training.
On the sustainability front, 29Metals released its first mandatory Sustainability Report aligned with Australian Sustainability Reporting Standard AASB S2, including its inaugural Climate Action Plan for 2025-27. The company reported Scope 1 and 2 greenhouse gas emissions of 130,546 tonnes CO2-e, with initiatives underway to improve energy efficiency and trial electric mining equipment.
Governance and Leadership Transitions
The company welcomed Nick Cernotta to the Board as Deputy Chair in December 2025, bringing over 40 years of mining operational experience. Owen Hegarty announced his intention to step down as Chair following the May 2026 Annual General Meeting, with Cernotta to succeed him.
Executive leadership strengthened with the appointment of James Palmer as CEO in May 2024, who led the company through operational challenges and growth initiatives. The Board maintained a strong focus on remuneration alignment with performance, with executive KMP STI outcomes at 88.5% of target despite zinc production setbacks.
Outlook and Capital Management
29Metals entered 2026 with a strengthened balance sheet following a fully underwritten $150 million equity raise completed in early 2026, aimed at supporting working capital, Gossan Valley development, Capricorn Copper restart, and exploration programs. Drawn debt stood at $188 million, down from $262 million in 2024, with covenant relief secured through to mid-2026.
The company plans to increase exploration spend to $15-20 million in 2026, focusing on resource conversion and extension at Golden Grove and recommencing near-mine exploration at Capricorn Copper. Mining activity at Xantho Extended is expected to resume after ground support upgrades, while Gossan Valley development will continue to ramp up.
Investors should watch closely how 29Metals manages the seismic risks at Xantho Extended, the timeline for Capricorn Copper’s restart approvals, and execution of the Gossan Valley project, all pivotal to sustaining production and growth momentum.
Bottom Line?
29Metals’ 2025 profit swing and project progress set a foundation, but seismic risks and Capricorn restart timing remain key uncertainties.
Questions in the middle?
- How will 29Metals mitigate ongoing seismic risks at Xantho Extended to restore full zinc and precious metals production?
- What is the realistic timeline and regulatory hurdles for Capricorn Copper’s restart, and how might delays impact the company’s financials?
- Can the Gossan Valley project deliver on its promise to extend mine life and improve margins amid evolving market conditions?