20784 29Metals AR 2022 WEB V1 - Flipbook - Page 9
The improved production outcomes
delivered $721 million of revenue,
up $11 million from the prior year
(on a pro forma1 basis), with an operating
cash flow of $156 million after settlement
of the last of the pre-IPO copper hedges
($28 million). We are very pleased that
29Metals is now fully exposed to the
prevailing copper price consistent with
our strategy.
We have started 2023 with the objective
to further build on the strong foundations
laid in 2021 and 2022.
At the start of 2023, the key drivers
for our performance were outlined:
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Advancing our pipeline of
organic growth opportunities
The quality of 29Metals’ assets was
again highlighted by our 2022 Mineral
Resources and Ore Reserves Statement
released earlier this year. Ore Reserves
estimates increased by 22.5% after
production depletion, with contained
copper metal increasing by 18% to 540kt.
We also saw strong conversion of our
Mineral Resources estimates from inferred
into the indicated and measured categories,
with total Mineral Resource tonnes
increasing 3.6%, after production depletion.
During the December 2022 quarter we
were pleased to release the results of the
Gossan Valley feasibility studies and the
Cervantes pre-feasibility study, two of
our in-mine and near mine organic growth
opportunities at Golden Grove.
These studies confirmed the viability of
these two low-risk, brownfield, organic
growth opportunities.
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underground development rates,
especially at Golden Grove;
ventilation to support productivity
at depth at both operations;
regulatory approvals, including key
tailings capacity approvals processes
at both our operating sites;
cost management; and
capital discipline.
The extreme rainfall event in March
this year has added an additional driver –
recovery at Capricorn Copper and the safe
return to operations as soon as possible.
The extreme rainfall event in the
Mount Isa region in early March 2023 was
truly unprecedented – during the five days
6–10 March 2023, the region recorded
the highest aggregate rainfall in 130 years,
and in the five months to 12 March 2023,
the region has recorded its highest
annual rainfall.
It is a testament to the efforts of our site
management team, before and during this
event, that 29Metals was able to navigate
such extreme conditions with no safety
incidents, no uncontrolled release of water
from site water storage facilities and no
loss of containment of tailings. However,
the impact of this event is significant and
will continue for some time.
614
‘13
‘15
750
‘17
‘19
597
525
‘11
485
‘09
Annual Totals
652
377
861
1,315
‘07
‘21
2023 March Rainfall
‘23
YTD
500
March Rainfall History for the five-day period
(1900–2022) 2
Mean
95th
Percentile
~200
2023: working towards a
bright future
1,364 mm – total rainfall
recorded over five months YTD
377
Site operating costs, although
approximately 14% higher than 2021
full year costs (on a pro forma1 basis),
were within guidance at $475 million.
The increase in site operating costs
reflected the increase in site activity
year-on-year and the impact of inflation
(particularly in the second half of the year).
We also commenced work to evaluate
the potential to recover cobalt at
Capricorn Copper, with the successful
drilling program at Esperanza South also
delivering increases in the estimated
grades and contained cobalt metal.
Prior record
since 1900
237
Operating performance
Despite the challenging conditions,
2022 production outcomes improved
for the year with 40,800 tonnes of
copper produced, in-line with 2021,
and 57,600 tonnes of zinc, up 21%
from 2021.
Our drilling in 2022 continued to
demonstrate the potential at Capricorn
Copper, with exceptional results at
Esperanza South contributing to a
significant increase in our Group Mineral
Resources (+3.6%) and Ore Reserves
(+22.5%) estimates.
Rainfall from 1st November Previous Year –
31st October Stated Year 2 (mm)
346
The safety and health of our people
will always be our key priority and we
will continue building our safety culture
in 2023.
In 2023 we plan to commence the
regulatory approvals process for the
development of Gossan Valley, and
continue resource conversion drilling
at Cervantes to further increase
geological confidence in the project.
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Our Total Recordable Injury
Frequency Rate (‘TRIFR’) improved
quarter on quarter throughout the year,
reducing to 9.8 per million work hours
(2021: 12.4 mwhrs) at year end.
Previous
Record
High
March
6–10
2023
Overnight
March 7–8
We are working closely with our
workforce, our business partners and
other stakeholders to return Capricorn
Copper to normal operations safely and
as soon as possible.
2022 presented a number of challenges,
and the extreme rainfall event at Capricorn
Copper in March this year has continued
that theme. The 29Metals team responded
strongly to the challenges in 2022 to
deliver a solid operating result and the
team will again rise to the challenges in
2023 to ensure that 29Metals builds upon
the foundations laid in our short time as a
listed company.
I thank all our employees, contractors
and suppliers, and our other stakeholders
for their commitment and support. I look
forward to working with you all in 2023 as
we continue to grow 29Metals and realise
our potential.
Peter Albert
Managing Director & CEO
1. 2021 figures cited is pro forma. Pro forma financial information is non-IFRS financial information. Refer to the Important Information regarding the use of
non-IFRS financial information on page 200.
2. Commonwealth of Australia 2023, Bureau of Meteorology (BoM).
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