29Metals Reports Mixed Half-Year Performance with Higher Revenue but Rising Costs

29Metals Limited (ASX:29M) has released its half-year financial report for the period ending 30 June 2026, highlighting a mixed performance. The company reported a 12% increase in revenue to $304.9 million, driven by higher copper production and favorable metal prices. However, costs rose significantly, with the cost of sales increasing by 21% to $279.3 million, primarily due to stockpile movement charges and lower zinc by-product credits. This resulted in a sharp decline in EBITDA, which fell by $82.1 million to $30.5 million.

The Golden Grove mine, 29Metals' primary asset, saw copper production rise to 11.2 kilotonnes from 9.7 kilotonnes in the previous period. However, zinc production dropped significantly to 3.2 kilotonnes from 29.3 kilotonnes due to the suspension of mining at Xantho Extended following seismicity. The company expects to resume mining at Xantho Extended in the December 2026 quarter after completing necessary ground support and access works.

Chief Executive Officer James Palmer noted that the progressive ramp-up of mining from high-grade sources is expected to support metal production growth at Golden Grove from late 2026. Regarding Capricorn Copper, Palmer stated that water levels are no longer an impediment to restarting production, and the company is progressing regulatory approval for a new tailings storage facility and a Restart Definitive Feasibility Study by the end of 2026.

The company's liquidity position remains strong, with $202 million in liquidity at 30 June 2026, sufficient to fund growth capital commitments and risk mitigation works for the restart. Drawn debt decreased by $10 million to $115 million. Forward steps include the recommencement of mining at Xantho Extended, the ramp-up of Oizon and Gossan Valley, and regulatory approval of the Capricorn Copper tailings storage facility.