Rising Costs and Heavy Capital Spend Pose Challenges for Greatland’s FY26 Ambitions

Strong FY25 Performance Sets Stage

Greatland Resources Limited has delivered a robust set of results for the June quarter and full fiscal year 2025, following its acquisition of the Telfer-Havieron assets. The company produced 198,319 ounces of gold, comfortably within its guidance range of 196,000 to 210,000 ounces, while achieving an all-in sustaining cost (AISC) of $1,849 per ounce; well below the forecasted $2,100 to $2,250 per ounce. This cost outperformance underscores operational efficiencies and effective cost management during the integration phase.

Alongside gold, copper production also contributed to the strong operational profile, with 3.7 kilotonnes produced in the quarter. The company’s cash flow generation was equally impressive, with $310 million in operating cash flow and a healthy cash balance of $575 million at quarter-end, leaving Greatland debt-free and with an undrawn $75 million working capital facility.

Operational Highlights and Resource Development

Telfer’s processing plant achieved a gold recovery rate of 84.2% for FY25; the highest since 2010; despite lower ore grades. This was driven by stable grinding and flotation operations and consistent feed to the pyrite flotation and concentrate circuits. Resource development drilling remains a key focus, with a record 240 kilometres planned for FY26, representing a 145% increase over the FY21-25 average. Drilling targets include extensions at West Dome Open Pit, Main Dome Underground, and West Dome Underground, aiming to extend mine life well beyond current estimates.

Safety improvements have been notable, with the total recordable injury frequency rate (TRIFR) more than halving to 6.0 in the seven months post-acquisition, reflecting a strong commitment to workforce wellbeing. Additionally, Greatland continues to engage closely with the Martu people and their prescribed body corporate, securing key mining lease renewals until December 2045, which provides regulatory and social license stability.

Advancing Havieron and FY26 Outlook

The Havieron project is progressing steadily, with permitting and early works underway. The feasibility study remains on track for completion in the December 2025 quarter, with early capital expenditure of $60 to $70 million earmarked for pre-final investment decision activities. These include underground mine development and critical infrastructure such as a reinforced concrete tunnel to manage surface water flow.

Looking ahead, Greatland has set ambitious FY26 guidance, targeting gold production between 260,000 and 310,000 ounces at an AISC of $2,400 to $2,800 per ounce. Growth capital expenditure is forecast between $345 million and $390 million, heavily weighted towards extending Telfer’s mine life and advancing Havieron towards development. This investment phase underscores Greatland’s strategy to build a sustainable, long-life gold-copper platform.

Market Position and Financial Strength

Greatland’s successful ASX listing, with minimal dilution and a modest $50 million capital raise, combined with a $440 million secondary sell-down by Newmont, positions the company well for its growth trajectory. The company maintains full exposure to gold prices while employing put options to provide downside protection, balancing risk and opportunity effectively.

Overall, Greatland Resources has demonstrated operational excellence and strategic clarity in its first full year post-acquisition, setting a solid foundation for growth and value creation in the coming years.