29Metals (ASX:29M) posted a mixed performance in Q3 FY24, with zinc production at its flagship Golden Grove mine soaring 25% quarter-on-quarter to 19.1kt. However, copper production dropped to 4.4kt. Despite the operational challenges, the company’s free cash flow amounted to $26m for the quarter, with operating cash flow reaching $42m.
James Palmer, 29Metals’ CEO, commented on the results, saying, “Golden Grove continues to deliver solid returns, particularly on the back of strong zinc output. While cost pressures remain, especially with our C1 costs rising to US$2.52/lb of copper sold, we are taking proactive steps to manage these challenges.”
The company’s major capital projects are progressing as planned, with the construction of Tailings Storage Facility 4 on track for completion in Q1 2025. Furthermore, the Gossan Valley study is advancing, positioning the site for long-term sustainability.
In addition to production gains, 29Metals remains focused on cost control, though rising treatment and refining charges and stockpile movements impacted profitability.
The company reaffirmed its full-year guidance.