The company’s latest quarterly results reflect a challenging transition to underground mining, with production expected to improve significantly in the second half of FY2027.
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Operating cash flow was A$47 million, or approximately A$69 million excluding a one-off customer settlement, while cash reserves remained strong at A$502 million despite increased capital expenditure and debt repayments. Importantly, the company appears well-funded to complete its A$389 million expansion program, with FY2027 capital expenditure forecast at A$175–195 million.
Although the quarter likely represents the low point in production, achieving full-year guidance will depend on increasing underground ore throughput towards 2.8Mtpa and improving recovery rates towards 70%. Successful execution could provide a meaningful catalyst for production growth, improved profitability and a potential share price re-rating.
