29Metals’ shares take a hit on higher copper output costs and lower zinc production

A share price hot streak for the owner of WA’s only major copper mine has lost steam after its quarterly update disappointed.

29Metals produced 5600 tonnes of copper from its Golden Grove mine during the June quarter, up from 4100t at the Mid West operation during the three months prior.

But all-in sustaining costs to produce a pound of copper were $5.15, well above analysts consensus of $3.72.

The zinc by-product at Golden Grove also failed to meet expectations. Zinc output of 12,300t was 4,200t below consensus.

Shares in 29Metals lost more than 12 per cent in early Thursday trade before recovering slightly to trade down 10 per cent at 31¢ by 10.15am.

Its stock is still up more than 150 per cent since the start of May.

The share price run began shortly after 29Metals struck a $54 million payout agreement with its insurers related to severe rainfall crippling its Capricorn copper operation in Queensland two years ago.

The company had already locked in a $61m payment from insurers.

29Metals has also been a beneficiary of Donald Trump’s vow last week to impose a 50 per cent tariff on copper from next month.