Key points from 29Metals' March 2024 quarterly report

29Metals Limited (ASX: $29M) has released its March 2024 quarterly report, highlighting key achievements and challenges. The report includes safety metrics, production updates, financial information, and corporate developments. The company reported a Group total recordable injury frequency rate of 6.6 and a lost time injury frequency rate of 1.9. Golden Grove achieved positive free cash flow, while Capricorn Copper's production was suspended due to dewatering constraints. James Palmer has been appointed as the new Chief Executive Officer, and the company's unaudited available cash at 31 March 2024 was $106 million.

Executive commentary on the March 2024 quarterly results

At Golden Grove, record development rates and paste fill achieved at the Xantho Extended orebody in the Mar-Qtr positions the asset well for the balance of the year. The decision to suspend operations at Capricorn Copper was difficult, especially after the commitment and hard work by the team to bring the mine back into production. However, the suspension of operations best preserves group liquidity and allows time to establish the key enablers for a successful and sustainable future restart of operations. For H2-2024, a reduction of cash outflows at Capricorn Copper and a step down in Term Loan principal repayments from US$10 million to US$2.5 million per quarter will benefit cash flows. The balance sheet is well positioned with the liquidity provided by the US$50 million offtake finance facility and commitment from insurers to a further insurance progress payment of $16 million announced post quarter end. And we are of course very encouraged by the recent strength in metal prices at a time of ongoing improvement in operating performance at Golden Grove.

Summary of March 2024 quarterly report and outlook

The March 2024 quarterly report of 29Metals reflects a mixed performance with positive developments at Golden Grove and challenges leading to the suspension of production at Capricorn Copper. The company's focus on safety, environmental stewardship, and community engagement remains evident. With the appointment of a new CEO and the strengthening of the balance sheet through financial arrangements, 29Metals aims to navigate through the challenges and capitalize on the opportunities presented by the recent strength in metal prices. The company's outlook includes a reduction of operating expenses, ongoing exploration and development activities, and a commitment to progress key enablers for a successful and sustainable restart of operations at Capricorn Copper.