Trigon Metals posted a net loss of N$256 million (US$14,2 million) in the third quarter ending December 31, 2024.
The company says the losses were due to impairment charges related to the suspension of surface mining operations in the quarter ended September 30, 2024, and subsequent flooding of the mine after December 31, 2024.
During the same quarter, Trigon Metals sold 2,19 million pounds of copper at the Kombat Mine and made N$116 million (US$6,42 million).
The price per pound was US$2.93 per pound, impacted by high penalties, lower-than-expected final copper assays compared to provision assays, and the pricing formula in the offtake agreement with IXM, which includes the lowest actual copper price look-back adjustment.
The copper production was at the C1 cost of US$3.21 per pound.
During the same quarter, Trigon Metals produced 32,949 ounces of silver at Kombat Mine, compared to 33,852 ounces in the second quarter.
The adjusted EBITDA for the period was negative US$968,447.
On January 16, 2025, Trigon announced a pause in mining operations following the failure of its main submersible dewatering pumps.
As a result, the company has withdrawn all production, capital expenditure, and exploration guidance.
By January 31, 2025, mining operations had been temporarily suspended, with an expected downtime of six to nine months.
The majority of onsite employees have been retrenched. The Trigon management team remains focused on finalizing the sale of Trigon’s interest in the Kombat Mine to Horizon Corporation Limited under the revised terms announced on February 11, 2025.
Trigon Metals CEO Jed Richardson says while the temporary suspension of mining operations is a setback, the revised sale agreement with Horizon strengthens the company’s financial position and preserves future upside potential at Kombat.
“We are confident that this transition will allow us to refocus on high-impact growth opportunities, including our Kalahari Copper and Safi Silver projects,” Richardson says.
