29Metals has announced its half yearly financial results revealing the impacts of record flooding in Queensland earlier this year on production.
The company reported a revenue loss of $235 million with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of $27 million.
Operating cash outflow stood at $25 million, with a net loss after tax (NLAT) of $307 million.
“29Metals’ first half 2023 financial result was significantly impacted by the extreme weather event that resulted in Capricorn Copper’s operations being suspended,” managing director and chief executive officer Peter Albert said.
“This includes loss of revenues, increased costs associated with recovery efforts and non-cash accounting impairment charges at Capricorn Copper.
“Looking ahead, we remain focused on executing our plans to deliver positive improvements for both operations in the second half.”
Copper production was halved to 10,000 tonnes (kt) for the 2023 half year compared to the 20.5kt reported in the 2022 half year (HY22). But zinc production remained steady, only seeing a drop to 22.1kt compared to the 23kt produced in HY22.
On May 23 the company announced the Capricorn Copper recovery plan which involves the phased restart of operations.
Phase one involves the restart of operations at Mammoth and Greenstone in mid-September and phase two is the restart at Esperanza South in first half of 2024.
Mining and mineral processing operations were partially restarted on August 1 2023.
“We continue to progress the Capricorn copper phased restart of operations, improving development rates at the high-grade Xantho extended ore body at Golden Grove, completing ventilation upgrades and progressing regulatory approvals while maintaining cost management and capital discipline,” Albert said.
“While today’s result is not what we hoped for, we are confident that the progress made in the first half of the year under extremely challenging circumstances sets the company on the path to delivering its potential.”