29Metals (ASX:29M) has commenced surface works at its Gossan Valley project after receiving all necessary approvals. The company reported increased copper production and a stronger liquidity position in the June quarter, despite challenges related to rising costs and limited access to key ore zones at its Golden Grove mine. 29Metals is an Australian base metals mining company focused on copper and zinc production. The company owns and operates the Golden Grove and Capricorn Copper mines in Western Australia and Queensland, respectively.
Golden Grove saw copper output increase to 5,600 tonnes, up from 4,100 tonnes in the previous period. However, zinc production declined to 12,300 tonnes from 17,000 tonnes. C1 costs at Golden Grove rose to $US2.09 per pound, reflecting lower zinc by-product credits and restricted access to the high-grade Xantho Extended zone, which is now weighted towards the second half of the year. 29Metals has revised its 2025 growth capital expenditure down to a range of $61 million to $82 million, from the previous estimate of $76 million to $97 million. This adjustment is primarily due to deferrals at the Gossan Valley project, where capital expenditure for the year is now projected to be between $35 million and $50 million.
According to Chief Executive James Palmer, momentum is building at Gossan Valley, evidenced by the receipt of final project approvals and the mobilisation of the surface civils contractor during the quarter. He noted that Gossan Valley is expected to enhance cost and production outcomes and provide operational flexibility. Capricorn Copper, which remains under care and maintenance, reduced its water inventory by 1.3 gigalitres and lowered suspension costs by 22 per cent quarter-on-quarter. The company is on track to submit its application for the long-term Tailings Storage Facility in the September quarter.
29Metals ended June with $202 million in available funds, an increase from $182 million at the end of March. This was partly due to the final $54 million insurance settlement related to Capricorn Copper. The company maintained its full-year guidance. 29Metals shares last traded at 34¢ on the ASX, giving the company a market capitalisation of $466.5 million.
