The 29Metals Ltd (ASX: 29M) share price is on the move this morning following the company releasing its latest quarterly report.
The copper and precious metals mining company’s quarterly report is the first it’s released since it floated on the ASX earlier this month.
At the time of writing, the 29Metals share price is down 1.38% on the back of its report. Its shares are currently swapping hands for $2.15.
However, earlier today the 29Metals share price was $2.23 – 2.24% higher than its previous closing price.
The news driving the 29Metals share price
The 29Metals share price is wavering as the market responds to the company’s first quarterly report as an ASX-listed company.
The company’s copper production is on track to finish the year within the company’s full-year guidance. However, its production of gold, zinc, silver, and copper equivalent is sitting at less than half the year’s predicted production at the 6-month mark.
29Metals also announced it reaped $233.5 million (after costs) from its Initial Public Offering (IPO).
Its Capricorn (Queensland) and Golden Grove (West Australia) sites’ combined cash balance as of 30 June, and the company’s unaudited corporate cash balance as of 19 July 2021, is $183.8 million. The company has unaudited debt worth US$150 million.
The company reports both its Capricorn and Golden Grove projects are managing COVID-19 border restrictions.
Let’s take a closer look at what’s driving the 29Metals share price.
Capricorn project
The company mined 395 kilotons of ore at the Capricorn project over the quarter just been. During the same period, it milled 430 kilotons of ore, an increase on the quarter prior.
Capricorn’s costs for the quarter were $5 million less than the previous quarter. The company spent $41 million at the project over the June quarter. However, it brought in $63.6 million over the 3 month period.
Golden Grove project
Employees at the Golden Grove project were impacted by Tropical Cyclone Seroja in April but the company reported no infrastructure damage.
The Golden Grove project saw 423 kilotons of ore mined and 369 kilotons milled over the June quarter. That’s respectively 65 kilotons and 91 kilotons more than the quarter prior.
Golden Grove’s net direct cash costs for the quarter were $4 million. That’s a decrease on the previous quarter’s costs, driven by an increase in by-product sales.
Over the quarter, Golden Grove earned 29Metals $129 million.
Commentary from management
29Metals CEO and managing director Peter Albert commented on the results driving the company’s share price today:
29Metals delivered a strong June quarter relative to the March quarter, as expected, with improved production performance across all metals at both operating sites… June quarter performance, combined with progress against our pipeline of organic growth opportunities, has positioned the company for a successful year in 2021 and beyond. It was important to demonstrate delivery of our plan following our listing and successful completion of the IPO at the beginning of July, tremendous milestones for 29Metals after many months of hard work.
29Metals share price snapshot
The 29Metals share price has gained around 8% since it listed on the ASX.
It has a market capitalisation of around $1 billion, with approximately 480 million shares outstanding.
The post What’s up with the 29Metals (ASX:29M) share price today? appeared first on The Motley Fool Australia.
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More reading
- Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO
- 29Metals (ASX:29M) slips on biggest ASX mining debut in a decade
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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