Gold Production Surges to 6,861 Oz, Revenue Hits $26.6M in December Quarter
Beacon Minerals delivered a robust December quarter with gold production rising 31% to 6,861 ounces, surpassing guidance and underpinning a strong financial position bolstered by a $10.3 million entitlement issue.
- Gold production increased 31% to 6,861 ounces, exceeding guidance
- Mill throughput rose 30% to 208,673 dry tonnes with 87.4% recovery
- Quarterly gold sales reached 6,551 ounces at A$4,060/oz, generating $26.6 million revenue
- Completed $10.3 million fully underwritten entitlement issue
- Focused exploration at MacPhersons with 3,616m drilled; new Mt Dimer drilling planned
Production Momentum
Beacon Minerals Limited (ASX: BCN) reported a strong operational performance for the December 2024 quarter, with gold production climbing 31% to 6,861 ounces. This output not only exceeded the company’s guidance of 6,500 ounces but also marked a significant improvement over the prior quarter’s 5,230 ounces. The increase was driven by a 30% rise in mill throughput to 208,673 dry tonnes and a solid mill recovery rate of 87.4%.
The company’s Jaurdi processing facility benefited from key upgrades, including the commissioning of a second cone crusher and ore stacker, which contributed to the enhanced throughput. Ore feed grades remained consistent at 1.17 g/t, supporting steady production quality.
Financial Strength and Sales
On the financial front, Beacon sold 6,551 ounces of gold during the quarter at an average price of A$4,060 per ounce, generating sales revenue of $26.6 million. The company reported closing cash of $16.71 million and bullion on hand or in transit of 1,960 ounces as at 31 December 2024. Operating cash costs stood at A$2,891 per ounce, excluding royalties and stock adjustments, while all-in-sustaining costs (AISC) decreased 10% to A$3,314 per ounce due to higher recovered ounces.
Beacon completed a fully underwritten non-renounceable entitlement issue raising $10.3 million, strengthening its balance sheet and funding ongoing exploration and capital expenditure, which totaled A$3.3 million for the quarter.
Exploration and Growth Prospects
Exploration efforts remained focused on the MacPhersons Project, where 3,616 metres of drilling were completed. Encouraged by these results, the company plans to commence drilling at new targets in the Mt Dimer area in February 2025. Additionally, post-quarter drilling has started at the Lady Ida Iguana deposit, aimed at geotechnical and metallurgical assessments, with results expected in Q2 2025.
Beacon’s strategy continues to prioritize the Jaurdi assets, with MacPhersons, A-Cap, and Tycho ore expected to form the bulk of mill feed through 2025. The company also reported substantial ROM ore stockpiles totaling 269,000 tonnes containing approximately 7,150 ounces of gold, providing operational flexibility.
Corporate and Market Position
Beacon holds no gold hedging positions, opting to sell gold at spot prices since June 2024, a strategy that has benefited from the recent gold price appreciation. The company’s market capitalization stood at approximately $110 million as of late January 2025, supported by a strong cash position and a $12.45 million finance facility, of which $9.2 million was drawn.
In a strategic portfolio move, Beacon sold a portion of its shares in Maximus Resources Limited to Astral Resources NL in exchange for shares, aligning with its focus on establishing a long-life gold operation at Jaurdi.
Bottom Line?
Beacon’s operational gains and exploration momentum position it well for a stronger 2025, but market gold prices and drilling outcomes will be key to sustaining growth.
Questions in the middle?
- How will the upcoming Mt Dimer drilling results impact resource estimates and production forecasts?
- What is the potential timeline and impact of the Lady Ida Iguana pre-feasibility study expected in Q1 2025?
- How might fluctuations in the gold price affect Beacon’s unhedged sales strategy and cash flow stability?
