29Metals (29M) Q3 2024 earnings summary

Executive summary

• Golden Grove generated $42 million in operating cash flow and $26 million in free cash flow for the September 2024 quarter, with strong zinc output (19.1kt, up 25% QoQ) but lower copper production (4.4kt, down from 6.4kt QoQ) due to lower ore grades, and ongoing productivity and cost improvements.

• Capricorn Copper remained suspended, focusing on water reduction and environmental compliance, with major investments in water treatment and release infrastructure and no mining production during the quarter.

• Group unaudited available cash at 30 September 2024 was $60 million, with group liquidity at $104 million, down from $130 million in June.

• 2024 production and cost guidance remain unchanged, with restart planning for Capricorn Copper ongoing.

Financial highlights

• Group gross revenue for the quarter was AUD 177 million, up 39% quarter-on-quarter, driven by a 52% increase in sales at Golden Grove.

• Golden Grove contributed AUD 175 million in revenue, with copper sales at AUD 81 million and zinc at AUD 68.5 million.

• Golden Grove C1 costs rose to US$2.52/lb copper sold (from US$1.14/lb in the previous quarter); AISC increased to US$3.42/lb (from US$2.83/lb).

• Group unaudited available cash decreased to $60 million (from $85 million at 30 June 2024); group liquidity fell to $104 million (from $130 million).

• Unaudited net drawn debt at 30 September 2024 was $147 million, up from $136 million at 30 June 2024.

Outlook and guidance

• Golden Grove is on track to deliver full-year metal production guidance, with volumes expected at the low end of the range.

• 2024 production and cost guidance for Golden Grove and Corporate remain unchanged.

• Capricorn Copper restart is contingent on successful water management and regulatory approvals, with meaningful water reduction expected to take more than one wet season.

• Cash outflows at Capricorn Copper expected to reduce through 2025 as environmental projects complete.

• Guidance for holding and operating costs at Capricorn Copper remains within the previously stated range for the second half of the year.