Okvau Gold Production Dips to 21Koz in June Quarter, FY25 Targets Intact

Operational Challenges Temper June Quarter

Emerald Resources NL (ASX, EMR) has provided its June 2025 quarterly production update for the Okvau Gold Mine in Cambodia, revealing a shortfall against quarterly guidance. The company attributed this to accelerated earthworks and waste movements related to cutback activities, which restricted access to ore zones during the early months of the quarter. This operational bottleneck slowed gold output, with the quarter’s total production falling below expectations.

However, normal mining activities resumed in June, resulting in a production rebound exceeding 10,000 ounces for the month alone. This output level translates to an annualized rate of approximately 120,000 ounces, signaling a return to steady operations as the quarter closed.

Maintaining Full-Year Targets and Cost Improvements

Despite the June quarter hiccup, Emerald remains confident in achieving its full-year 2025 production guidance of 114,000 ounces. The company anticipates stronger performance in the remaining quarters, with production expected to reach between 25,000 and 30,000 ounces per quarter. Alongside this, all-in sustaining costs (AISC) are forecasted to improve significantly from around US$1,200 per ounce in the June quarter to a more competitive US$900 to US$1,000 per ounce in the September and December quarters.

This cost reduction aligns with the company’s operational normalization and efficiency gains as the cutback activities conclude, positioning Emerald to sustain profitability amid fluctuating gold prices.

Strategic Growth on Multiple Fronts

Looking beyond 2025, Emerald is gearing up for substantial growth. The company plans to expand the Okvau Gold Mine underground operations and extend pit boundaries, unlocking additional reserves. Moreover, Emerald is advancing two new projects, the Memot Gold Project in Cambodia and the Dingo Range Gold Project in Australia. Both projects boast significant resource bases, with Memot holding over one million ounces of gold in indicated and inferred resources, and Dingo Range similarly positioned with a maiden resource exceeding one million ounces.

These developments are expected to propel Emerald toward its strategic goal of becoming a multi-mine producer exceeding 300,000 ounces of gold annually within the next 18 months. The company’s strong balance sheet, with A$194 million in cash and no debt, underpins this ambitious expansion plan.

Commitment to ESG and Carbon Neutrality

Emerald also emphasizes its commitment to environmental, social, and governance (ESG) principles. The company targets net positive impacts near its mining operations, adhering to international standards and local regulations. Notably, Emerald aims for carbon-neutral operations in Cambodia, reflecting growing investor and community expectations for sustainable mining practices.

With a seasoned management team and a clear roadmap, Emerald Resources is navigating short-term operational challenges while laying the groundwork for a robust multi-mine future.