29Metals (ASX:29M) Lifts HY26 Revenue 12% as Operating Cash Flow Jumps 148% Despite Zinc Production Slump

Sonal Goyal

27 August 2026 10:22 AM AEST

29Metals (ASX:29M) Lifts HY26 Revenue 12% as Operating Cash Flow Jumps 148% Despite Zinc Production Slump

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Key Highlights

Total Revenue increased 12% to $305 million for HY26, up from $271 million in HY25.
Zinc production fell sharply to 3.2 thousand tonnes from 29.3 thousand tonnes, following the suspension of Mining at Xantho Extended due to seismicity impacts.
Cash flows from Operating Activities rose 148% to $66 million, up from $26 million in HY25.
Drawn Debt was reduced by US$10 million during the period, falling to US$115 million from US$125 million at 31 December 2025.

29Metals Limited (ASX:29M) released its Half-Year Financial Results for the six months ended 30 June 2026 (HY26), reporting total revenue of $305 million, up 12% from $271 million in the prior corresponding period. Copper production increased to 11.2 thousand tonnes from 9.7 thousand tonnes in HY25, while zinc production declined sharply to 3.2 thousand tonnes from 29.3 thousand tonnes, a result the company attributed to the suspension of mining at Xantho Extended following impacts from seismicity.

Despite the fall in zinc output, cash flows from operating activities rose 148% to $66 million, up from $26 million in HY25. Cost of sales increased 21% to $279 million from $231 million, which the company said reflected stockpile movement charges associated with the drawdown of stockpiles and lower zinc by-product credits during the period.

Xantho Extended Recovery Progressing

The company reported that development works to upgrade ground support and establish alternate level access drives to the Xantho Extended orebody progressed during the half, with recommencement of mining expected during the December quarter of 2026. Xantho Extended represents Golden Grove's highest-grade ore source, and its return to production is expected to support higher metal output once mining resumes.

Chief Executive Officer James Palmer said the team continued to make progress toward strengthening the foundations of the Business through an optimised mine plan at Golden Grove, underpinned by Investment in the high-grade ore sources of Xantho Extended, Oizon and Gossan Valley. He said the progressive ramp-up of mining from these sources is expected to provide mine plan flexibility and support metal production growth at Golden Grove from the end of 2026.

Liquidity Position and Debt Reduction

29Metals reported a group Liquidity position of $202 million at 30 June 2026, which the company said is sufficient to fund ongoing growth Capital commitments and risk mitigation works associated with the recommencement of mining at Xantho Extended. Drawn debt stood at US$115 million at 30 June 2026, down US$10 million from US$125 million at 31 December 2025.

The improvement in operating Cash Flow during the half, combined with the reduction in drawn debt, reflects a period in which the company prioritised Balance Sheet management alongside continued investment in its Golden Grove and Capricorn Copper assets.

Capricorn Copper Restart Progressing

Mr Palmer said Capricorn Copper provides a low capital intensity pathway to more than double 29Metals' annual copper production. With water levels no longer an impediment to restarting production, the company is progressing regulatory approval of its application for a new Tailings Storage Facility and completing a Restart Definitive Feasibility Study, targeted for completion by the end of 2026.

In parallel, the company said it is progressing work on strategic funding Options to maintain momentum toward a restart of production at Capricorn Copper. The average realised copper price for the period, calculated on gross copper revenue inclusive of realised quotational period adjustments, is reported in US dollars, reflecting the AUD/USD Exchange Rate movement between the two comparative periods.

Conclusion

29Metals' HY26 results present a mixed operational picture, with revenue and Operating Cash Flow both improving materially even as zinc production fell sharply due to the Xantho Extended seismicity-related suspension. The company's liquidity position and debt reduction during the half indicate a measure of balance sheet resilience heading into the recommencement of mining at Xantho Extended, expected in the December quarter of 2026, while progress on the Capricorn Copper restart study continues in parallel.

FAQs

Q: Why did 29Metals' zinc production fall in HY26?

A: Zinc production fell to 3.2 thousand tonnes from 29.3 thousand tonnes in HY25 due to the suspension of mining at Xantho Extended following impacts from seismicity.

Q: Did 29Metals' revenue increase in HY26?

A: Yes, total revenue rose 12% to $305 million, up from $271 million in HY25.

Q: How much did 29Metals' operating cash flow improve?

A: Cash flows from operating activities increased 148% to $66 million, up from $26 million in HY25.

Q: When is mining expected to resume at Xantho Extended?

A: The company expects recommencement of mining at Xantho Extended during the December quarter of 2026, following development works to upgrade ground support and access drives.

Q: What is the status of the Capricorn Copper restart?

A: With water levels no longer an impediment, 29Metals is progressing regulatory approval for a new Tailings Storage Facility and completing a Restart Definitive Feasibility Study targeted for completion by the end of 2026, alongside work on strategic funding options.

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