29Metals (29M) H2 2023 earnings summary

Executive summary

• Recovery from the March extreme weather event progressed at Capricorn Copper, with partial mining and milling restarting in August; Golden Grove benefited from completed debottlenecking projects.

• 2023 revenue fell 38% as sales volumes and copper and zinc prices declined; a $440.5m net loss included major non-cash impairments and deferred tax asset derecognition.

Financial highlights

• Revenue was $449.7m vs $720.7m in 2022; EBITDA was negative $21.2m vs positive $151.6m, reflecting lower revenue partly offset by lower site operating costs.

• Net loss after tax was $440.5m vs $47.2m; operating cash flow was negative $36.5m vs positive $155.7m.

• Site operating costs fell 19% to $383.9m; cost of sales was $540.9m vs $716.8m, while AISC rose to US$4.96/lb from US$3.64/lb.

• Capital expenditure was $85m vs $114m, driven by lower development and exploration activity and reduced spending after the weather event.

Outlook and guidance

• 2024 Golden Grove guidance: ore mined and milled 1,475–1,625kt each; copper 18–22kt, zinc 54–61kt, gold 17–25koz and silver 700–1,000koz.

• Capricorn Copper’s Mar-Qtr physicals, costs and capital were expected to be broadly consistent with Dec-Qtr, with improved milling and metal production after a tailings thickener repair.

• No full-year 2024 Capricorn Copper guidance pending clarity on tailings approvals; forecast capacity supported planned milling rates until approximately end-April 2024.

• 2024 focus includes increasing Golden Grove production, recovering Esperanza South ore production, securing tailings approvals, reducing water use and extending cost initiatives.