Miner of critical metals and minerals 29Metals [ASX:29M] put out an announcement today that it has updated its production guidance for the Capricorn Copper project for 2023.
Having last withdrawn its guidance for the mine following severe weather events, the group has now completed recovery planning and said the updated figure for ore mined is now in the range of 514–584 kilo tonnes.
29M was trading for $1.05 at the time of writing, having bumped up 2.5% in share price by the early afternoon.
The metals miner’s stock has depleted in the year by more than 61%, and has dropped 13.5% in the last month alone:
Source: TradingView
29Metals reveals updated Capricorn copper production guidance
The copper miner today announced updated production guidance for the Capricorn Copper project for 2023.
The update comes after the miner had to recently withdraw its guidance for the mine following severe weather events that had challenged production and plans, the group ultimately having had to end operations and postpone completion of its recovery planning.
However, today bodes better sentiments and better news for those with an interest in the miner and its projects.
The company has now completed the recovery planning and said the updated figure for ore mined now sits in the range of 514–584 kilo tonnes.
Guidance for copper sits in the range of between 7–9 kilo tonnes, and silver is now ranged between 40 and 50 kilo ounces for the year.
Mining costs were also chalked up to between $40 and $45 million for the full fiscal year, with $20–22 million slated for processing costs.
Sustaining capital was marked to $17–23 million, with $11–13 million in capitalised development and around $1 million scheduled for growth funding guidance.
The miner asserted that the updated guidance provided today includes preliminary guidance to mid-H1 2024.
It said that because the guidance for 2024 is preliminary in nature, it is therefore subject to change — including as a result of progress against its recovery plan and its normal annual budget, with planning processes drawn up at the end of the year.
29Metals plans to restart operations at Capricorn Copper and believes the outlook for Golden Grove also looks positive, calculating substantial available liquidity in its funds.
29M said there is significant potential to extend mine life at Capricorn, especially with recent results at Esperanza South, which included 70.0 metres at 2.8% Cu, 1,083ppm Co.
There is also potential for further additions to Mineral Resource estimates with recent results from a new target area for exploration bearing 36.0 metres at 3.9% Cu, 188ppm Co.
At Golden Grove a mining ramp-up from Xantho has been extended, and Gossan Valley has produced higher mill throughput, with more potential for ongoing mine life extensions, and ongoing discoveries of new orebodies with near term targets for exploration in Xantho Extended North and Scuddles.
The company ended with cash of $163 million as at 31 March, and intends to draw from its existing US$40 million revolving capital facility.
It reported ongoing engagement with lenders includes a potential refinancing target for early 2024.
Is it time to get on the 2023 copper wagon?
Copper is a topic of the moment, and there’s certain stocks you should know about in 2023.
If you subscribe to Fat Tail Commodities, you can grab commodities expert James Cooper’s most recent copper stock report for free.
Not only will you get instant access to three of the latest top stock picks for the copper industry, but also ongoing access to integral information that every resource investor should know but might not.
Learn about the copper supply crisis and learn how you can position yourself to take advantage of changes that are already happening.
Interested in jumping at a potentially lucrative opportunity reserved for the shrewdest of investors?
Keen to get started with three not-to-be-ignored copper stock tips?
Then you should click here today.
Regards,
Fat Tail Commodities
Comments