Beacon Minerals reported solid gold production of 7,365 ounces in the June quarter, maintaining steady operations at its Jaurdi Gold Project while emphasizing a strategy to retain gold bullion as a liquid asset.
- 7,365 ounces of gold produced in June quarter
- Gold sales of 3,900 ounces at $5,163/oz generating $20.1 million
- Record mill throughput exceeding 1 million tonnes per annum
- Gold bullion held at Perth Mint and in transit as strategic asset
- Stage 2 grade control drilling commenced at Iguana
Steady Production and Operational Highlights
Beacon Minerals Limited (ASX – BCN) has delivered a robust production update for the June 2025 quarter from its wholly owned Jaurdi Gold Project. The company produced 7,365 ounces of gold, aligning with its guidance and reflecting consistent mining and milling operations despite some operational challenges such as water delays and mechanical issues with the cone crusher.
Mining activity continued at the MacPhersons Project, with ore mined increasing to 117,884 bank cubic meters, up from the previous quarter. Waste to ore movements are decreasing, indicating improved operational efficiency. The company also completed the cut back of the MacPhersons eastern wall and maintained steady road haulage to the Jaurdi mill to support ore stock levels.
Record Mill Throughput and Gold Sales
One of the quarter’s highlights was the mill throughput, which reached an annualized rate exceeding one million dry metric tonnes per annum. This milestone was achieved despite constraints related to circuit retention times and a reduction in crushed feed size. The mill recovery rate stood at a solid 86.3%, contributing to the strong gold output.
Gold sales for the quarter amounted to 3,900 ounces at an average price of $5,163 per ounce, generating $20.1 million in revenue. This represents an improvement in realised gold prices compared to previous quarters, reflecting favourable market conditions. As of 30 June 2025, Beacon held 2,744 ounces of gold bullion at the Perth Mint and had 1,778 ounces in transit, underscoring its strategy to retain gold as a high-quality, liquid asset.
Strategic Asset Management and Growth Plans
Beacon’s management emphasized a cautious yet opportunistic approach to asset management. Executive Chairman and Managing Director Graham McGarry highlighted the company’s focus on maintaining sufficient cash reserves to cover three months of expenditure while retaining gold bullion to preserve purchasing power amid currency fluctuations. The board continues to review its gold sales strategy to balance cash flow needs with risk management and investor expectations.
Looking ahead, Beacon has commenced Stage 2 grade control drilling at the Iguana deposit, planning 343 holes totaling 18,000 metres. This drilling program aims to refine resource definition and support future production growth. The company’s guidance for the September 2025 quarter projects gold production between 6,800 and 8,000 ounces, indicating confidence in ongoing operational performance.
Financial Position and Market Outlook
Beacon Minerals reported a strong financial position with $14.38 million in cash on hand and no drawn finance facility, despite having access to $13.27 million in credit. The company’s market capitalization stood at approximately $114 million, supported by a stable share price. This financial flexibility positions Beacon well to navigate market volatility and invest in growth opportunities.
While operational challenges such as water delays and equipment maintenance remain, Beacon’s steady production, improved gold prices, and strategic bullion retention provide a resilient foundation. Investors will be watching closely as the company advances its drilling programs and adapts its sales strategy in response to evolving market dynamics.
Bottom Line?
Beacon Minerals balances steady production with strategic gold retention, setting the stage for growth amid market uncertainties.
Questions in the middle?
- How will ongoing drilling at Iguana impact resource estimates and production forecasts?
- What is the potential financial impact of operational constraints like crusher issues and water delays?
- How might fluctuations in gold prices influence Beacon’s bullion retention versus sales strategy?