3 ASX mining shares diving on quarterly updates

ASX investors are bidding down the mining stocks following their updates. But why?

The All Ordinaries Index (ASX: XAO) is up 0.2% in late morning trade today, but it's certainly not getting any help from these three diving ASX mining shares.

This morning, the miners all reported on their quarterly activities for the three months ending September.

And judging by their plunging share prices, investors are less than enthused.

Here's what we know.

Miner looks into the distance as he checks a folder.

Image source: Getty Images

ASX mining shares deep in the red

At one time focused primarily on gold, then on lithium, ASX mining share Cygnus Metals Ltd (ASX: CY5) said the past quarter leaves it set to emerge as an advanced Canadian copper explorer.

The company said that its planned merger with Canadian-listed Doré will enable it to apply its successful exploration team and strong balance sheet to the Chibougamau copper project, located in Quebec.

The merger will create a Canadian-based critical minerals company primarily focused on copper and lithium, both in Quebec.

Commenting on the quarter, Cygnus CEO David Southam said: "It was a highly successful quarter for Cygnus, during which we laid the foundations on which we aim to build a substantial Canadian copper company."

Southam added:

The planned merger with Doré is an exceptional opportunity to create value for both groups of shareholders. By combining the proven exploration and management skills of the Cygnus team with the high-grade resource and immense upside at the Chibougamau Copper-Gold Project, we have the potential to unlock substantial value.

Investors look to be taking a wait and see attitude here, with the Cygnus share price down 8.1% at 14.2 cents. Cygnus shares remain up 18% year to date.

Moving on to the second ASX mining share that's diving on its quarterly update today, we have 29Metals Ltd (ASX: 29M).

The 29Metals share price is down 10.6% in late morning trade at 50.5 cents. This sees 29Metals shares down 22% year to date.

Zinc production at the miner's Golden Grove project for the three months came in at 19,100 tonnes, up from 15,300 tonnes in the June quarter.

But copper production went the other way, sliding to 4,400 tonnes from 6,400 tonnes in the prior quarter. And costs were up too, reported at US$2.52/lb of copper sold, up from US$1.14/lb copper sold in the June quarter.

The ASX mining share had unaudited available cash at 30 September of $60 million, down from $85 million on 30 June.

Commenting on the results, CEO James Palmer said:

A great quarter delivered by the team at Golden Grove, producing 4.4kt of copper, and 19.1kt of zinc, positioning us well to deliver our full year metal production guidance.

In addition, the asset generated $42 million of operating cash flow and $26 million of free cash flow.

High-flying gold stock takes a hit

High-flying gold stock St Barbara Ltd (ASX: SBM) isn't immune to the selling pressure following the release of the company's quarterly activities report.

The St Barbara share price is down 3.9% at 44.2 cents. Despite that retrace, the ASX mining share remains up 108% in 2024.

The quarterly results were solid, but with such a strong share price run, investor expectations appear to be high.

St Barabara reported Q1 gold production of 12,233 ounces at an all-in sustaining cost (AISC) of AU$3,905 per ounce. Gold production was up 18% year on year, while AISC was down 14%.

Gold sales for the quarter came in at 12,949 ounces at an average realised gold price of AU$3,733 per ounce.

The ASX mining share maintained its FY 2025 guidance at 65,000 to 75,000 ounces of gold and an AISC of AU$3,200 to AU$3,600 per ounce.

Commenting on the past quarter, St Barabara CEO Andrew Strelein said:

St Barbara continues to move as quickly as possible towards development of the Simberi Sulphides Expansion as outlined in our 10 Year Plus Mine Plan.

With the early selection of the Saleable Concentrate Flowsheet and the expansion of the Project Team, we have been able to commence investigation into opportunities to accelerate the development schedule with the objective of bringing forward first production from the sulphides.

Motley Fool contributor Bernd Struben 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 Scott Phillips.

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