29Metals’ September quarter was sharply weaker after a planned 11-day Golden Grove shutdown cut copper production, revenue and liquidity. The company is now relying on higher December-quarter volumes, a restarted Xantho Extended and a funding solution for Capricorn Copper to restore momentum.
- Golden Grove copper production fell to 4.2kt and gross revenue to $94.1m
- Group liquidity declined to $142m, with unaudited net debt of $31m
- Xantho Extended mining restarted after quarter end, while Gossan Valley and Oizon advanced
- Capricorn Copper’s restart remains dependent on TSF 3 approval and funding negotiations
- 29Metals agreed to sell Redhill to Narryer for shares, deferred consideration and a strategic investment
Planned shutdown cuts Golden Grove output and revenue
29Metals Limited (ASX:29M) entered the final quarter of 2026 with a clear recovery task after an 11-day planned maintenance shutdown pushed Golden Grove copper production down to 4.2kt, from 4.8kt in the June quarter. Zinc production fell to 2.0kt from 3.1kt, while gross revenue more than halved to $94.1 million from $164.4 million.
The weaker sales profile also exposed the quarter’s cost pressure. Copper sold fell to 8.1 million pounds from 11.5 million pounds, lifting C1 costs to US$5.24 per pound from US$4.64. AISC rose to US$6.90 per pound, with lower by-product credits and higher sustaining capital contributing to the increase. Management said there are no further planned maintenance shutdowns for the remainder of the year.
Mining itself was less subdued than the production figures suggest: ore mined rose 17% to 351kt despite Xantho Extended remaining offline. Ore milled, however, dropped to 301kt from 363kt as the shutdown coincided with low opening run-of-mine stocks. The company expects mining, processing, sales and metal production to increase in the December quarter as higher stockpiles, developed underground ore and the Xantho restart feed the mill.
Xantho restart joins Gossan Valley and Oizon build-out
Mining restarted at Xantho Extended in October, after the quarter closed, with the first stope blasted and two more stopes scheduled for the December quarter. The high-grade copper and zinc orebody had been central to the company’s earlier production timing challenge, captured in the Xantho mining delay reported in April. 29Metals said a progressive ramp-up is planned, alongside additional access drives and strengthened geotechnical monitoring and re-entry processes.
Gossan Valley remains on track for first ore by the end of 2026, with a ventilation raise completed to surface and new underground electrical infrastructure commissioned during the quarter. Production is expected to ramp up progressively in 2027. Oizon also produced its first development ore during the quarter and is expected to begin production by year-end, following earlier reporting that its development was advancing toward first ore.
Those projects are intended to add operating flexibility as Scuddles declines, but they are still development-stage sources rather than current production. Golden Grove’s full-year guidance was maintained at 20kt to 24kt of copper, 5kt to 25kt of zinc, 6koz to 14koz of gold and 400koz to 600koz of silver.
Capricorn restart reaches funding and regulatory crossroads
At Capricorn Copper, water levels are no longer an impediment to restarting production, but approval for Tailings Storage Facility 3 remains the critical regulatory step. 29Metals submitted its response to a regulator’s request for information during the quarter and expects to respond to the EPBC referral process in the December quarter. The restart definitive feasibility study remains scheduled for completion later in that quarter, subject to the regulatory process.
The company is also negotiating streaming, royalty and joint-venture proposals intended to fully fund the restart while strengthening the balance sheet without relying on a dilutive equity issue. The proposals remain subject to commercial discussions, so the funding pathway is not yet settled. Management has previously described Capricorn as capable of more than doubling 29Metals’ annual copper production, but that potential remains conditional on approvals, feasibility work, financing and a final investment decision.
Liquidity falls as development spending continues
Group liquidity stood at $142 million on 30 September, down from $202 million three months earlier. Unaudited cash was $128 million, drawn debt was US$110 million and unaudited net debt was $31 million, compared with net cash of $22 million at the end of June. The company said available liquidity is sufficient to complete and ramp up Xantho Extended, Gossan Valley and Oizon, while cash flow is expected to improve as those ore sources come online.
The quarter’s cash drain came as operating cash flow weakened under lower sales and elevated costs, while investment reached its highest quarterly level of the year at Golden Grove. Separately, 29Metals agreed to sell its Redhill Project in Chile to Narryer Metals for 20 million Narryer shares, a $1 million deferred payment tied to a 12Mt resource at 2% copper equivalent, and a further $1 million strategic investment in Narryer shares. The structure reduces direct exposure to Redhill while retaining an indirect interest in its future upside.
Bottom Line?
The December quarter is the immediate test: Xantho’s restart must translate into higher sales and lower unit costs before Capricorn’s larger funding and approval questions are resolved.
Questions in the middle?
- Can Xantho Extended ramp up as planned without further geotechnical interruptions?
- Will TSF 3 approval and the restart feasibility study arrive in time to support a Capricorn Copper investment decision?
- What terms will 29Metals accept to fund Capricorn Copper without diluting shareholders or adding excessive balance-sheet risk?