20974 29Metals AR23 WEB V1 - Flipbook - Page 94
29Metals 2023 Annual Report
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Directors’ Report continued
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
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Directors’ Report
Operating and Financial Review
MARKET OUTLOOK AND STRATEGY
Business Strategy
29Metals’ ision is to be a leading ASX listed copper producer developer and explorer offering investors exposure to attractive mar et dynamics for copper
and other metals critical to the global energy transition.
n the near to medium term 29Metals is focused on delivering against our operating plan including returning operations at Capricorn Copper to levels
consistent with those prior to the Extreme eather Event identifying and implementing operational and productivity improvements securing ey
approvals to support current operations and future growth opportunities and advancing our organic growth pipeline.
29Metals may evaluate external growth opportunities on an opportunistic and selective basis. External growth opportunities will only be pursued where
29Metals is confident the opportunity will enhance shareholder value and enhance its ability to deliver sustainable returns to shareholders.
Key Performance Drivers
he ey performance drivers for the roup in 202
its operations and managing cost and capital.
and the medium term are advancing regulatory approvals delivering productivity improvements at
ZĞŐƵůĂƚŽƌLJĂƉƉƌŽǀĂůƐ
▪
An ongoing focus on implementing long term approvals plans to mitigate the Company’s exposure to the increasingly complex regulatory landscape
being experienced by 29Metals and the sector generally.
▪
At Capricorn Copper there is a significant near term focus on resolving the regulatory approvals re uired to support continuity of tailings capacity
for an interim period of up to
2 months as 29Metals’ transitions the site to a proposed new long term tailings storage facility (to be called d^&ϯ .
29Metals is advancing studies and design wor to support an application for S 3.
▪
At olden rove wor is focused on advancing regulatory approval of the proposed new long term tailings facility S (approval applications
submitted in the ec tr 2023 and progressing its applications for approvals of the development of the ossan alley project.
WƌŽĚƵĐƚŝǀŝƚLJ/ŵƉƌŽǀĞŵĞŶƚƐ
▪
he roup see s to find ways to improve operational efficiencies and reduce its costs to offset industry wide inflationary presses which are expected
to continue in 202 building on the successes delivered in 2023. 29Metals is wor ing closely with its mining contractor at both sites yrnecut
(Australia ty td to identify and implement productivity improvement measures.
▪
Continuing improvements in productivity at olden rove are expected in 202 realising the benefit of investment in operational de ris ing projects
completed in 2023 including ventilation and chiller plant upgrades and establishing underground fuel bays to support higher rates of development
and ore production at XE.
▪
At Capricorn Copper productivity improvements will be realised from achieving production rates consistent with those prior to the Extreme eather
Event (‘WŚĂƐĞϮ’ϲ through completing the progressive dewatering and rehabilitation of ESS and continuing efforts to reduce water inventory held
on site. or to evaluate opportunities to improve scale and efficiency will also be advanced including potential plant debottlenec ing opportunities
and cobalt commercialisation studies.
ŽƐƚƐĂŶĚĂƉŝƚĂůDĂŶĂŐĞŵĞŶƚ
▪
As widely reported across the sector inflationary and labour mar et pressures persist and are expected to continue in 202 .
▪
uilding on the successful cost reduction initiatives realised in 2023 the internal focus on reducing cost (and improving productivity will continue
in 202 . 29Metals’ objective is to deliver more improvements than those realised in 2023. his will be achieved by lin ing remuneration outcomes
for leaders across the business and extending efforts across all operations offices and administrative functions.
Market Outlook
29Metals explores for develops and produces metals (in the form of mineral concentrates including copper inc gold silver and lead. he outloo for
copper inc gold and silver is set out below.
ŽƉƉĞƌ
he near term outloo for copper is expected to be supported by
▪
global economic growth and in turn demand for copper
▪
increasing use of renewable energy technologies related distribution networ s and adoption of electric vehicles increasing copper demand and
▪
ongoing disruptions to traditional sources of supply particularly from South American producers.
…
Refer to 29Metals’ announcement entitled ‘^ƚƌĂƚĞŐŝĐhƉĚĂƚĞ’ released to the ASX announcements platform on 23 May 2023.
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