29Metals (29M) H1 2024 earnings summary

Executive summary

• Revenue increased 3% to $243.0M for the half-year ended 30 June 2024, driven by higher zinc concentrate revenue, partially offset by lower copper and lead revenues.

• Net loss after tax narrowed to $109.2M from $306.7M year-over-year, reflecting lower impairment charges and insurance proceeds.

• EBITDA was $5.1M, a turnaround from a $27.1M EBITDA loss in the prior period.

• Operating cash flow turned positive at $1.4M, including $16M insurance proceeds.

• No dividends were paid or declared for the period.

Financial highlights

• Gross loss improved to $15.3M from $40.2M year-over-year.

• Net tangible assets per share fell to $0.45 from $0.85 at 30 June 2023.

• Cash and cash equivalents decreased to $84.7M from $161.9M at year-end 2023.

• Total liquidity at period end was $129.7M, down from $161.9M at 31 Dec 2023.

• Drawn debt at 30 June 2024 was $216.8M; net drawn debt $132.1M.

Outlook and guidance

• Compliance with debt covenants for the next 12 months depends on Golden Grove production, insurance claim proceeds, and working capital management.

• Restart of Capricorn Copper is contingent on water reduction, infrastructure upgrades, and regulatory approvals, with restart not expected before H2 2026.

• Focus remains on preserving liquidity, particularly through the suspension of operations at Capricorn Copper and investment in water management infrastructure.

• Golden Grove is expected to drive near-term value, with ongoing efforts to increase ore feed from Xantho Extended.

• Directors consider the going concern basis appropriate, but material uncertainty remains due to covenant compliance risks.