29Metals Limited (29M) 2025 Conference Transcript

Summary of the Conference Call for Twenty Nine Metals Company Overview - Company: Twenty Nine Metals - CEO: James Palmer, with over 25 years of experience in operational, technical, strategy, and business development roles across multiple commodities [1] Industry Context - Industry: Copper mining - Market Trend: Increasing demand for copper due to global electrification and supply constraints, leading to upward pressure on prices [3][5] Key Assets - Golden Grove: - Producing over 20,000 tonnes of copper annually, with a total copper equivalent production of over 50,000 tonnes [3][6] - Significant by-products include zinc, gold, and silver [3] - Historical production growth: 7% increase in copper, 15% in zinc, and 7% in gold year-on-year [4] - Established asset with over 30 years of operational history and a mineral resource of 54 million tonnes [6] - Recent investments in high-grade ore sources, particularly Xantho Extended and Gossam Valley, expected to enhance production and cash margins [7][11] - Capricorn Copper: - Currently suspended due to extreme weather events in 2023, but has significant potential with 64 million tonnes in mineral resources and 1.2 million tonnes of contained copper [15][20] - Historical EBITDA of $10 million in 2021 and $66 million in 2022, with all-in sustaining costs of $3.7 per pound [17] - Focus on reducing elevated water levels and establishing long-term tailing solutions for a sustainable restart [18][19] Financial Performance - Golden Grove: - Achieved a 10% reduction in unit costs and a 155% increase in EBITDA from 2023 to 2024 [12] - Ongoing improvements in metal production are anticipated [12] - Capricorn Copper: - Significant value potential once operational challenges are addressed, particularly concerning water management [21] Strategic Focus - Exploration and Development: - Increased exploration budget from $4 million in 2024 to between $10 million and $14 million in 2025 to support resource extensions and mine life optimization [13][14] - New mining front at Gossam Valley expected to contribute to production from late 2026 [7] Conclusion - Investment Thesis: - Twenty Nine Metals is well-positioned in a low-risk jurisdiction with substantial copper endowments and significant geological upside, making it an attractive investment opportunity as global demand for copper rises [21][22]