How Will Kingston Resources Deploy $95M From Misima Sale to Boost Growth?
Kingston Resources has completed the $95 million sale of its Misima Gold Project, bolstering its balance sheet and enabling accelerated growth at its Mineral Hill mine in NSW. The company reports strong operational progress and promising high-grade drilling results.
- Misima Gold Project sold to Ok Tedi Mining Ltd for $95 million
- Received $50 million cash post-quarter, enabling full $15 million debt repayment
- Annual cost base reduced by $5 million following divestment
- Mineral Hill mine production ramping up with flotation processing commissioned
- High-grade underground drilling results support resource expansion and mine plan confidence
Transformational Misima Sale Strengthens Kingston
Kingston Resources has marked a pivotal moment with the completion of the $95 million sale of its Misima Gold Project in Papua New Guinea to Ok Tedi Mining Limited. The transaction, finalized in July 2025, delivered an immediate $50 million cash inflow, significantly strengthening Kingston’s financial position. This milestone enables the company to fully repay its $15 million debt facility and reduce its annual cost base by approximately $5 million, streamlining operations and enhancing financial flexibility.
Mineral Hill, The New Growth Focus
With the Misima divestment behind it, Kingston is turning its full attention to expanding its Australian footprint, primarily through the Mineral Hill gold and copper mine in New South Wales. The June quarter saw 2,637 ounces of gold sold at an average price of A$5,124 per ounce, generating $14.3 million in revenue. The commissioning of the flotation processing circuit marks a significant operational upgrade, transitioning from dore production to concentrate sales, which is expected to improve recoveries and throughput in the coming quarters.
Encouraging Drilling Results Bolster Confidence
Underground diamond drilling at Mineral Hill’s Southern Ore Zone has yielded impressive high-grade gold and copper intercepts, including standout results such as 8.8 meters at 42.51 grams per tonne gold and 1.77% copper. These results not only validate the current mine plan but also hint at potential resource extensions both laterally and at depth. The company is actively consolidating this data to refine its Mineral Resource estimates, underpinning future production growth.
Strategic Outlook and Operational Momentum
Kingston’s management is optimistic about the path ahead. The company plans to accelerate near-mine and regional exploration activities, commence studies to increase production scale at Mineral Hill, and pursue additional Australian-based gold and copper opportunities. The transition to flotation processing has temporarily impacted gold recoveries, but optimization efforts are underway, with recovery rates expected to rebound to forecast levels. The addition of Pearse South open pit ore in the December quarter is anticipated to materially lift gold grades and payable output by 55% in FY26, a substantial increase from FY25’s 12,000-ounce production.
Sustainability and Community Engagement
Kingston continues to prioritize safety and environmental stewardship at Mineral Hill, reporting an improved Total Recordable Injury Frequency Rate and ongoing dust and lead exposure monitoring. Community engagement remains active, with support for local initiatives such as the Condobolin Public School Breakfast Club and participation in regional forums. Meanwhile, environmental monitoring at the former Misima site continues to provide valuable data to local communities, reflecting Kingston’s commitment to responsible mining practices.
Bottom Line?
Kingston’s strategic pivot post-Misima sale sets the stage for accelerated growth and operational scale-up at Mineral Hill, with market watchers keenly awaiting the next phase of exploration and production results.
Questions in the middle?
- How will Kingston allocate the remaining deferred payments from the Misima sale?
- What impact will the flotation circuit optimization have on Mineral Hill’s production costs and recovery rates?
- Which new Australian gold and copper assets is Kingston targeting for acquisition or exploration?
