Kingston’s Strategic Misima Review Could Reshape Mid-Tier Gold Outlook

Robust Production Growth at Mineral Hill

Kingston Resources capped off 2024 with a strong December quarter, highlighted by a 36% increase in ore mined at its Mineral Hill open pit operation in New South Wales. The company declared commercial production effective 1 October 2024, marking a significant milestone in its transition to steady gold and silver output. With 3,261 ounces of gold sold at an average realised price of A$4,101 per ounce, revenue from metal sales surged 113% quarter-on-quarter to $14.4 million.

Operational improvements included resolving previous fragmentation issues through refined blast patterns, which, alongside deeper mining into higher-grade sulphide zones, are expected to enhance ore quality. Processing throughput reached 74,000 tonnes at a grade of 1.56 grams per tonne gold, with metallurgical recovery outperforming forecasts at 89%. These metrics underpin an all-in sustaining cost (AISC) of $2,814 per ounce, positioning Mineral Hill competitively within the mid-tier gold sector.

Strategic Capital Raising Fuels Exploration Ambitions

To support its growth trajectory, Kingston successfully completed an $8.4 million equity raise comprising a $6.4 million placement and a fully underwritten $2 million share purchase plan. The capital injection is earmarked for accelerated exploration drilling, particularly targeting underground resource extensions and regional targets around Mineral Hill. This strategy aims to expand the mine life beyond current reserves, which presently utilise only 27% of the 8.2 million tonnes of mineral resources on site.

Kingston’s cash position strengthened to $9.89 million by the end of December 2024, bolstered by strong operating cash flow of $6.43 million during the quarter. The company also continues to manage milestone payments related to the Mineral Hill acquisition, with $2.15 million outstanding and due by May 2025.

Unlocking Value at Misima Gold Project

Beyond Mineral Hill, Kingston is advancing its 3.8 million ounce Misima Gold Project in Papua New Guinea through a formal strategic review led by appointed financial adviser Argonaut PCF Limited. The review aims to crystallise shareholder value by exploring development and funding options for this high-potential asset. The 2022 Definitive Feasibility Study projects an average annual production of 130,000 ounces over a 20-year mine life, with a pre-tax net present value of A$956 million based on a conservative gold price of US$1,800 per ounce.

Kingston’s engagement with local communities remains a priority, with ongoing environmental and social impact assessments and initiatives such as the Women in Business program, which has empowered over 600 women through education and financial literacy since 2023.

Outlook and Market Positioning

Managing Director Andrew Corbett emphasised the transformational nature of 2024 for Kingston, highlighting the company’s operational momentum and strategic positioning. With processing infrastructure fully commissioned and operating at nameplate capacity, Kingston is well placed to capitalise on rising gold and copper demand. The company’s dual focus on near-term production growth at Mineral Hill and unlocking Misima’s latent value offers a compelling growth narrative for investors seeking exposure to mid-tier gold and base metals.