Rand Mining’s Strong Quarter Hinges on Drilling Success and Cash Flow Gains

Operational Performance and Production

Rand Mining Ltd (ASX: RND) delivered a solid quarterly performance for the December 2024 period, processing a total of 49,715 tonnes of ore at an average grade of 3.77 grams per tonne (g/t) through the East Kundana Joint Venture (EKJV) operations. This effort yielded 5,369 ounces of gold, with Rand’s attributable share amounting to 1,342 ounces, reflecting its 25% stake in the joint venture.

The ore was processed at the Mungari plant operated by joint venture partner Evolution Mining Limited, achieving a recovery rate of 89.15%. This steady production underscores Rand’s operational consistency and the ongoing value of its partnership within the EKJV framework.

Exploration and Development Activities

Significant drilling campaigns were undertaken during the quarter, notably the completion of 4,158 metres of reverse circulation (RC) drilling at the Hornet deposit. This drilling was strategically focused on the Mary Fault mineralisation zone to support an upcoming open pit mining sequence scheduled for the fourth quarter of FY25. The dense 5x5 metre drill spacing has successfully delineated a high-grade mineralised zone, which will feed into an updated mineral resource estimate and mining plan.

Additionally, Rand completed two drill holes totaling 651 metres at the Seven Mile Hill joint venture, aimed at enhancing structural understanding and identifying deeper high-grade gold mineralisation. These results are pending assay but represent a proactive approach to extending the company’s resource base.

Financial Health and Cash Flow

Rand Mining’s financial position strengthened markedly, with net cash inflows from operating activities rising to $7.83 million for the quarter, a substantial increase from $1.85 million in the prior period. This improvement was driven by higher gold sales revenue, which rose by $7.34 million to $16.68 million, offsetting operational and development expenditures.

Cash and cash equivalents stood at $4.61 million at the end of December, up from $3.99 million at the previous quarter’s close. The company’s disciplined cost management was evident, with staff and corporate costs declining by $241,000, while exploration expenses remained controlled at $252,000.

Corporate Actions and Outlook

Rand extended its on-market share buy-back program to 9 January 2026, although no shares were repurchased during the quarter. This move signals management’s confidence in the company’s valuation and future prospects.

Looking ahead, the company’s focus will be on integrating the positive drilling results into updated resource models and advancing the open pit mining at Hornet. The continued collaboration with Evolution Mining and the disciplined financial management position Rand well to capitalise on its assets amid a dynamic gold market.