29Metals Limited
29Metals Limited
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Australian miner 29Metals faces up to 3-4 weeks’ suspension of production and non-essential operations at its 100%-owned high-grade Capricorn Copper mine after a significant storm on Tuesday evening exacerbated continuing heavy rainfall in the area 120km N of Mount Isa.
29M expects the latest storm will block road access for an extended period, impacting deliveries of consumables, and has substantially worsened its long-standing issues with on-site water.
Inflationary pressures and accounting charges for depreciation and amortisation have brought a disappointing end to Australian miner 29Metals’ first full year as a listed company, resulting in a net loss for FY2022 of $A47.22M.
The result, which compared to its pro-forma NPAT of $121.01M in the previous year, came from revenue of $721M (FY2021: $464M) against cost of sales soaring to $716.8M ($464.12M). Operating cashflow was $155.7M ($75.1M) and EBITDA $151.58M ($177.3M).
A strong final quarter against a challenging backdrop has resulted in Australian miner 29Metals meeting or exceeding guidance for production, costs and capital across its commodity range for FY2022.
The company’s copper equivalent production rose to 73,400t (FY2021: 68,200t) at AISC of $US3.64/lb Cu ($3.16/t) comprising 40,800t copper (40,700t), 57,600t zinc (47,800t), 26,600oz gold (35,800oz) and 1.56Moz silver (1.77Moz).
Australian copper producer 29Metals sees greater organic growth potential for its 100%-owned Golden Grove mine in WA’s Mid West region after completing feasibility studies for its potential third mining front at Gossan Valley and the prefeasibility study for its Cervantes deposit.
Gossan Valley faces development capital costs of $A88M to deliver 326,000tpa ore, with potential to reach 550,000tpa, over an initial 6-year mine life.
Leading Australian underground mining contractor Byrnecut will continue its long-standing relationship with 29Metals' 100%-owned Golden Grove mine for another five years.
Byrnecut, originally engaged during the mine's ownership transition from MMG to EMR Capital in 2017 and last year to new listing 29Metals, offers continuity of operations for the mine in WA's Mid West region, 250km E of Geraldton.
A strong final quarter has enabled Australian producer 29Metals to meet production guidance of 68,200t copper equivalent for FY2021, exceeding its guidance of 38,600-40,500t, comprising 40,700t copper, 35,800oz gold, 47,800t zinc and 1.77Moz silver. AISC was $US3.41/lb Cu sold.
Newly listed Australian producer 29Metals lifted production at its Golden Grove and Capricorn Copper projects to 18,236t copper equivalent at $US3.16/t in the June qtr (Q2), up from 11,565t at $5.02/t in the previous period.
Production comprised 10,330t (Q1: 7,205t) Cu, 12,927oz (5,093oz) Au, 12,392t (7,720t) Zn and 586,203oz (237,027oz) Ag.
Gross revenue rose to $192.6M ($119.8M). Cash balance at Jul 19 was $183.8M and drawn debt $150M.
29Metals expects FY2021 production to come in at 67,353t CuEq.