Manuka Faces Execution Risks as It Reboots Wonawinta and Pursues NZ Critical Minerals

Restarting Silver Production at Wonawinta

Manuka Resources has announced a comprehensive production plan to restart operations at its Wonawinta Silver Mine in New South Wales, targeting a substantial 13.2 million ounces of silver recovery over a 10-year mine life. The company plans to refurbish and upgrade the existing 1Mtpa processing plant, currently on care and maintenance, with a six-month turnaround to enhance throughput and leach performance. Production is expected to commence in the first quarter of 2026, leveraging existing silver and gold-bearing stockpiles to ramp up output efficiently.

The project economics are compelling, with an average all-in sustaining cost (AISC) of A$35 per ounce and an internal rate of return (IRR) of 109%, supported by a net present value (NPV8) of A$101 million. Gold credits from the nearby Mt Boppy Gold Mine, which holds significant resources in rock dumps and tailings, will further enhance project returns. Manuka’s strategic positioning in the prolific Cobar Basin offers near-term production opportunities and a platform for monetising stranded deposits through toll treating or other commercial arrangements.

Advancing the Taranaki Vanadium-Titanium-Magnetite Project

Beyond Australia, Manuka is progressing its flagship Taranaki VTM Project in New Zealand’s South Taranaki Bight. This offshore mineral sands project boasts a massive 3.2 billion tonne resource rich in vanadium, titanium, and magnetite; critical minerals increasingly sought after for clean energy and industrial applications. The project’s pre-feasibility study highlights a 20-year mine life with a planned 4.9Mtpa production of iron-bearing concentrate, supported by a US$602 million capital expenditure and an IRR of 39%.

Significantly, the Taranaki project is included in New Zealand’s government fast-track approvals process, reflecting its national importance. The project is forecast to generate NZ$854 million in annual revenue, representing over half of the country’s targeted increase in mineral export earnings. With vanadium and titanium recently added to New Zealand’s critical minerals list, the project aligns well with government policy objectives and regional economic development, promising over 300 new full-time jobs and substantial local expenditure.

Financial and Strategic Outlook

Manuka’s dual focus on restarting near-term precious metals production and advancing a large-scale critical minerals project positions it uniquely in the mining sector. The company’s current market capitalization reflects investor confidence, supported by a solid capital structure with manageable debt facilities. Upcoming catalysts include the refinancing of existing debt, securing production milestones at Wonawinta and Mt Boppy, and progressing the Taranaki project’s bankable feasibility study.

While the production targets incorporate a mix of measured, indicated, and inferred resources; with inherent geological uncertainties; the company’s experienced management team and existing infrastructure provide a strong foundation for execution. Investors should watch closely for regulatory approvals, commodity price movements, and operational ramp-up progress, all of which will shape Manuka’s growth trajectory in the coming years.