29Metals has released its half-year financial report for the period ending June 30 2024, showcasing improved financial and operational metrics.
The company reported a revenue of $243 million, a three per cent increase compared to the previous year, largely driven by higher zinc concentrate revenue.
While 29Metals also recorded a net loss after tax (NLAT) of $109 million, cost of sales dropped by six per cent to $258 million, contributing to a positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $5 million, an improvement from the first half of 2023.
“Significant progress was made through the first half of 2024 to improve the financial and operational footing of 29Metals,” 29Metals chief executive officer James Palmer said.
“At Capricorn Copper, the decision to suspend operations will preserve group liquidity while we progress the key imperatives for a future successful and sustainable restart.
“Reducing water levels on site is the immediate focus, with significant investment made through the reporting period in water treatment and bulk release infrastructure.”
Palmer said 29Metals saw positive developments at Golden Grove, where the company saw an increase in copper production and lower unit costs, resulting in an EBITDA rise from $12 million to $34 million.
“Xantho Extended remains the near-term value driver for the company, with focus on leveraging the investment made to date to increase the contribution of Xantho Extended to the total ore feed to the mill and achieving consistent delivery of tonnes from the mine,” Palmer said.
29Metals’ financial position has strengthened with a new $US50 million offtake finance facility finalised with Glencore and additional insurance payouts related to Capricorn Copper’s extreme weather event.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
