Beacon Minerals Posts 31% Production Increase, 6,861 Ounces in December Quarter

• 6,861 ounces of gold produced in December 2024 quarter, 31% increase from prior quarter
• Ore milled increased by 28%, with mill throughput annualized at over 950,000 tonnes
• MacPhersons Project mining operations performing well with night shift planned from February 2025
• Gold sales of 6,551 ounces at an average price of $4,060/oz, generating $26.6 million in receipts
• March 2025 production guidance raised to 7,000–8,000 ounces

Robust Production Growth at Jaurdi

Beacon Minerals Limited (ASX: BCN) has delivered a notable production update for the December 2024 quarter at its 100% owned Jaurdi Gold Project. The company reported gold production of 6,861 ounces, marking a 31% increase over the previous quarter and surpassing its own guidance of 6,500 ounces. This performance underscores operational improvements and effective resource management across the site.

The quarter saw 208,673 dry metric tonnes of ore milled, a 28% increase from the September quarter, with the mill achieving an 87.4% recovery rate. The annualized mill throughput based on December’s run rate now exceeds 950,000 tonnes per annum, reflecting successful upgrades to the crushing circuit, including the addition of a new cone crusher and ore stacker.

MacPhersons Project Driving Ore Supply

Mining activities at the MacPhersons Project, a key ore source for the Jaurdi mill, continued steadily with 80,990 bank cubic meters of ore mined during the quarter. Beacon operates two 100-tonne mining fleets on day shifts, with plans to introduce a night shift from February 2025 to boost output. The company has also commenced cutbacks in the eastern wall to access additional ore and has undertaken extensive drilling within the Tycho pit and A-Cap pit extensions, signaling ongoing resource development.

Beacon’s Managing Director and Executive Chairman, Graham McGarry, highlighted the operational improvements, stating, "The successful upgrading of the crushing circuit and key improvement initiatives at the Jaurdi Mill, combined with steady performance at MacPhersons, have laid the foundation for this production increase." He further noted that the company’s guidance for the March 2025 quarter is set between 7,000 and 8,000 ounces, indicating confidence in continued growth.

Financial and Corporate Position

Gold sales for the quarter totaled 6,551 ounces at an average price of $4,060 per ounce, generating receipts of $26.6 million. At quarter-end, Beacon held 1,960 ounces of bullion on hand or in transit and reported cash reserves of $16.71 million. The company’s market capitalization stood at approximately $97.2 million, with 4.23 billion ordinary shares on issue.

Beacon maintains a $12.45 million finance facility, with $9.2 million drawn down as of December 31, 2024. Notably, the company did not make any income tax payments during the quarter and has a history of paying fully franked dividends, reflecting a stable financial position amid operational expansion.

Looking Ahead

Beacon Minerals’ operational momentum, driven by mill optimization and resource development at MacPhersons, positions the company well for the coming quarters. The planned introduction of a night shift and ongoing drilling programs suggest further production upside. However, as with all mining ventures, risks related to ore grade variability, market gold prices, and operational challenges remain factors to monitor closely.

Bottom Line?

Beacon’s December quarter outperformance sets a confident tone for 2025, but sustaining growth will require continued operational discipline and market vigilance.

Questions in the middle?

• How will the planned night shift at MacPhersons impact overall production costs and output?
• What are the risks to achieving the March 2025 production guidance of 7,000–8,000 ounces?
• How might fluctuations in gold prices affect Beacon’s revenue and dividend policy moving forward?