20974 29Metals AR23 WEB V1 - Flipbook - Page 93
2023 key
results
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
89
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
14
Directors’ Report
Operating and Financial Review
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▪
ignificant progress towards recovering operations at Capricorn Copper, achieving the hase 1 restart with
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The recommencement of mining and milling at the Mammoth and reenstone orebodies in August 2023
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Establishment of interim water treatment solutions to facilitate campaign milling activity and
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Commencement of dewatering and rehabilitation of E
underground operations.
Continued progress towards the establishment of long term tailings storage solutions at both operations with
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Regulatory submissions for approval of T 4 at olden rove – a new facility which will provide long term tailings capacity and
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Advancing groundwater and flora and fauna studies as well as designs for T 3 at Capricorn Copper, ahead of a regulatory submission.
KEY FINANICAL RESULTS
he treme eather ent at apricorn opper had a material impact on the Group’s financial results for the Reporting Period. nformation regarding
the financial impacts of the treme eather ent is set out at ote to the onsolidated inancial tatements.
▪
▪
▪
Total revenue of $449, 4 ,0003 was 3
inc prices.
lower than the prior period, reflecting lower production and sales volumes and lower realised copper and
roup ite Operating Costs4 of $3 3,932,000 (2022 $4 ,294,000) was 19 lower than the prior period, reflecting
―
broadly flat ite Operating Costs at olden rove year on year, despite cost inflation pressures, reflecting a focus on cost savings initiatives
through the year and
―
Capricorn Copper ite Operating Costs (excluding Recovery Expenses)
the impact of the Extreme Weather Event.
lower than the prior period, reflecting lower activity resulting from
roup A C unit costs increased to $4.9 lb of payable copper (2022
$3. 4 lb), reflecting the combined impact of reduced payable copper
volumes, lower by product metals sales volumes and lower realised inc prices during the Reporting eriod.
―
―
Reported roup A C unit costs are after approximately $20 million in sustainable cost improvements identified and implemented during the
Reporting eriod and
roup A C excludes Capricorn Copper Recovery Expenses4 of $4 ,10 ,000 (2022 Nil).
▪
An E TDA4 loss and Net Loss After Tax (‘E>d’) of $21,1
▪
The NLAT is after non cash impairment charges recorded during the Reporting eriod, including
―
,000 and $440,4 3,000, respectively.
impairments recognised at 30 une 2023 in relation to Capricorn Copper, following the Extreme Weather Event, comprising
▪
$2 ,000,000 from damage or loss to assets and
▪
$1 0,000,000 in relation to the Capricorn Copper business segment
―
a$ ,
0,000 write down of the net realisable value (‘EZs’) recognised for ore stoc piles, ROM stoc piles and concentrate inventory.
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a $ ,092,000 write down of capitalised Exploration and Evaluation expenditure where no follow up wor is planned.
―
a$
,0 2,000 de recognition of deferred tax assets (‘d’) due to reduced certainty as to the timing of utilising the DTA.
▪
Other income includes an initial unallocated progress payment of $24,000,000 from 29Metals’ insurers in response to the insurance claim for loss
and damage suffered resulting from the Extreme Weather Event. 29Metals’ insurers have confirmed indemnity under the policy for damage to
property on surface and associated business interruption. n relation to loss and damage underground, the insurers have not accepted indemnity
under the policy at this stage. 29Metals does not agree with the insurers’ position and continues to press its claims in connection with surface and
underground loss and damage resulting from the Extreme Weather Event
▪
Total Liquidity4 at 31 December 2023 was $1 1,
―
―
▪
Drawing down its wor ing capital facility of
9,000 (31 December 2022 $1 1,9 2,000) after
$40,000,000 and
uccessfully completing a 1 for 2.20 accelerated pro rata non renounceable entitlement offer (the ‘ŶƚŝƚůĞŵĞŶƚKĨĨĞƌ’).
At 31 December 2023 the Company’s Net Drawn Debt4 was $
,3 2,000 (31 December 2022 $2 ,39 ,000).
…
Total revenue cited inclusive of quotational period (‘YW’) adjustments and net of treatment and refining charges (‘dZƐ’).
et ra n e t Reco er
penses ite perating osts and otal i uidit are a non R financial information metric. Refer to important information on page 1 regarding the
use of non R financial information metrics in this report.
Refer to 29Metals’ Appendix 4D and Half ear inancial Report for the six months ended 30 une 2023, as released to the A announcements platform on 30 August 2023.
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4
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