Southern Cross Gold Consolidated Ltd. reported a significantly reduced net loss of $2.41 million for Q2 2024, down from $43.69 million a year earlier, as it sharpens focus on its Australian gold projects following a major corporate restructuring.
- Q2 2024 net loss narrowed to $2.41 million from $43.69 million in prior year
- Completed spin-out of uranium assets and share consolidation in January 2025
- Acquired remaining 30% interest in Redcastle gold-antimony joint venture
- Sunday Creek project drilling reveals multiple high-grade gold-antimony vein sets
- Board refresh with new leadership appointed post-restructuring
Financial Performance and Corporate Restructuring
Southern Cross Gold Consolidated Ltd. (ASX: SX2, TSXV: SXGC) has reported a net loss of $2.41 million for the second quarter ended November 30, 2024, a marked improvement from the $43.69 million loss recorded in the same period last year. This dramatic reduction primarily reflects the sale of its Finnish subsidiary, Mawson Oy, and a significant decrease in impairment charges and share-based compensation expenses.
In January 2025, the company completed a pivotal corporate restructuring that included a spin-out of its uranium assets into a separate entity, SUA Holdings Limited, and a share consolidation reducing the number of outstanding shares by over two-thirds. The restructuring also saw Southern Cross Gold acquire full ownership of its Australian subsidiary, Southern Cross Gold Ltd. (SXG AUS), consolidating its gold exploration assets under one roof and listing on the ASX under the ticker SX2.
Exploration Focus: Sunday Creek and Australian Assets
Post-restructuring, Southern Cross Gold’s strategic focus is squarely on its Australian gold and antimony projects, particularly the Sunday Creek project in Victoria. The company holds 100% ownership of the Sunday Creek and Redcastle projects, both situated in historically prolific goldfields within the Melbourne Structural Zone.
Drilling results from Sunday Creek continue to impress, with recent assays confirming multiple high-grade vein sets extending over significant strike and depth. Notably, drill hole SDDSC145 returned an extraordinary 0.5 meters grading 2,554 g/t gold equivalent, underscoring the project's potential as a premier epizonal gold-antimony deposit. The company has now defined at least 67 mineralised 'rungs' within the ladder-like vein system, with ongoing step-out drilling aimed at expanding the known mineralised footprint.
Southern Cross Gold also completed the acquisition of the remaining 30% interest in the Redcastle joint venture from Nagambie Resources, securing full control over this historically significant gold-antimony property. This move eliminates royalty obligations and simplifies future development plans.
Governance and ESG Initiatives
The company refreshed its board following the restructuring, appointing Tom Eadie as Non-Executive Chairman and Michael Hudson as President and CEO. This leadership team brings a strong focus on advancing exploration and delivering shareholder value.
On the environmental, social, and governance (ESG) front, Southern Cross Gold has implemented comprehensive safety programs, biodiversity baseline studies, and community engagement initiatives. The company’s expanded landholding around Sunday Creek now exceeds 1,050 hectares, with active land management practices aimed at sustainability and local stakeholder collaboration.
Outlook and Market Position
Southern Cross Gold’s repositioning as a focused Australian gold explorer with a high-grade, critical metal asset base positions it well amid tightening global antimony supply and rising demand for critical minerals. The company’s robust drilling results at Sunday Creek, combined with its full ownership of key projects and streamlined corporate structure, set the stage for further resource definition and potential development.
While the company remains in the exploration stage without production revenue, its working capital of over $5.4 million provides a runway for ongoing drilling and operational activities. The market will be watching closely for upcoming assay results and the company’s ability to secure additional financing to advance its exploration programs.
Bottom Line?
Southern Cross Gold’s strategic refocus and strong drilling results at Sunday Creek signal a promising new chapter, but financing and exploration execution remain critical hurdles ahead.
Questions in the middle?
- How will Southern Cross Gold finance its aggressive exploration plans post-restructuring?
- What are the next key milestones for resource definition at Sunday Creek?
- How might rising antimony prices and supply constraints impact the project's valuation?