29Metals (29M) Q3 2024 earnings summary

Executive summary

• Golden Grove delivered strong zinc output (19.1kt, up 25% QoQ) but lower copper production (4.4kt, down from 6.4kt QoQ), generating $42 million in operating cash flow and $26 million in free cash flow.

• Capricorn Copper remained suspended, focusing on water reduction, environmental compliance, and major investments in water treatment and release infrastructure.

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

• 2024 production and cost guidance remain unchanged, with a focus on productivity, cost discipline, and organic growth options.

• Continued progress on key projects, including TSF4 at Golden Grove and preparations for a final investment decision at Gossan Valley.

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 $175 million in revenue, with copper sales at $81 million and zinc at $68.5 million.

• Golden Grove generated $42 million in operating cash flow and $26 million in free cash flow for the quarter.

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

• Available liquidity at quarter-end was $104 million, including $60 million in cash and $30 million undrawn off-take facility.

Outlook and guidance

• 2024 production and cost guidance for Golden Grove and Corporate remain unchanged, with Golden Grove expected to deliver full-year metal production at the low end of the range.

• 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 are 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.

• Golden Grove to continue maximizing free cash flow and advancing Gossan Valley development.