29Metals stock rating upgraded to Hold by Jefferies despite zinc production miss

Published 16/10/2025, 08:28
29Metals stock rating upgraded to Hold by Jefferies despite zinc production miss

Investing.com - Jefferies has upgraded 29Metals Ltd (ASX:29M) stock rating from Underperform to Hold, while maintaining a price target of AUD0.40.

The upgrade comes despite the company reporting a significant 86% miss in zinc production compared to expectations, which negatively impacted fourth-quarter 2025 sales and revenue performance.

Jefferies noted that seismicity issues at the Xantho Extended mine are "more structural than previously understood," resulting in increased reliance on the Gossan Valley deposit for feed.

Despite ongoing operational and financial challenges, Jefferies believes several factors will likely support the stock price, including a "supportive macro" environment, the expiration of zinc treatment charge escalators, and the closure of second-half 2026 hedging positions.

These positive factors are expected to "keep a floor under the price until further clarity on operational momentum is gained," according to the research firm’s analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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