29Metals Reports 4.8kt Copper and $202m Liquidity in June Quarter

Golden Grove Production Dips on Copper, Zinc Recovers

29Metals Limited (ASX:29M) posted a June 2026 quarter marked by a notable decline in copper output at its flagship Golden Grove operation, dropping to 4.8kt from 6.4kt in the prior quarter. This was driven by lower copper grades milled (1.5% versus 2.3%) and reduced recovery rates (89.6% down from 92.9%). Zinc production rebounded sharply to 3.1kt from a mere 0.1kt previously, reflecting a higher volume of zinc ore milled as mining at the zinc-rich Xantho Extended deposit remained suspended.

Ore milled increased to 363kt, largely copper ore, supplemented by blending a 33kt gold ore stockpile which boosted gold production to 4.7koz, quadrupling the prior quarter's output. The company continues to manage the temporary suspension of Xantho Extended mining by integrating alternative ore sources into its mill feed.

Xantho Extended and Gossan Valley Development on Track

Mining at Xantho Extended is slated to resume in the December quarter following completion of groundworks designed to mitigate seismic risks. Concurrently, development at the Gossan Valley project is progressing well, with first ore expected by the end of 2026. The Gossan Valley is positioned to add a flexible, higher-grade mining front, potentially extending Golden Grove’s life of mine.

Drilling continues to reveal extensions to mineral resources, particularly at Oizon, a high-grade copper reserve within Gossan Hill, where development is underway with first ore also anticipated by year-end. These advances underpin 29Metals’ strategy to ramp up production and enhance mine plan flexibility from late 2026.

Capricorn Copper Restart Hinges on Regulatory Approval

At Capricorn Copper, the critical bottleneck remains regulatory approval for the Tailings Storage Facility 3 (TSF 3). With water level issues resolved, the company is focused on responding to a Request for Information from the Department of Environment, Tourism, Science and Innovation, aiming for a resolution in the September quarter. This approval is essential before a final investment decision can be made.

A Restart Definitive Feasibility Study is underway, targeted for completion by the end of 2026, aligning with anticipated funding availability. The company is exploring non-dilutive funding options that could also accelerate growth initiatives across its portfolio.

Financial Position and Board Strengthening

29Metals maintains a robust liquidity position with $202 million in available funds, down slightly from $238 million at the previous quarter’s end but sufficient to support ongoing capital commitments, including Xantho Extended’s recommencement. Cash and cash equivalents stood at $188 million, with net cash of $22 million after drawn debt of US$115 million.

The company also appointed Colin Gilligan as a Non-executive Director and second nominee of BUMA, adding over three decades of operational and project delivery experience to the board.

Costs and Outlook

Despite inflationary pressures, site costs at Golden Grove were steady at $96 million, with higher C1 unit costs of US$4.64/lb copper sold due to lower sales volumes and increased stockpile movement charges. All-in sustaining costs rose to US$6.05/lb copper sold, reflecting ongoing development work at Oizon and Xantho Extended.

Revenue remained stable at $164.4 million, with a shift in metal sales mix; lower copper and zinc offset by increased precious metal sales. Guidance for the full calendar year remains unchanged, with the company emphasizing the importance of project development milestones and regulatory approvals in shaping near-term production trajectories.