Rising Costs and New Open Pit Pose Challenges for Tribune Resources’ Growth
Tribune Resources reported steady gold production of 8,916 ounces in the June 2025 quarter, alongside significant exploration drilling and a stronger cash position.
- 8,916 ounces of gold produced, Tribune’s share 6,687 ounces
- 75,407 tonnes of ore processed at 3.85 g/t gold grade
- 10,661 metres of exploration drilling completed across key prospects
- Cash and cash equivalents increased to $12.449 million
- Production costs rose due to increased mining activity and new open pit operations
Gold Production and Processing
Tribune Resources Ltd (ASX – TBR) delivered a solid operational performance in the June 2025 quarter, processing 75,407 tonnes of ore at an average grade of 3.85 grams per tonne (g/t) through the East Kundana Joint Venture (EKJV) operations. This resulted in the production of 8,916 ounces of gold, with Tribune’s attributable share amounting to 6,687 ounces. The ore was processed at the Mungari plant operated by joint venture partner Evolution Mining Limited, achieving a strong recovery rate of 95.5%.
Mine Development and Underground Operations
Development work continued apace at the Raleigh underground mine and the Rubicon-Hornet-Pegasus underground complex. The quarter saw significant lateral and decline development metres completed, supporting ongoing ore extraction. Notably, the Hornet open pit mine commenced operations during the quarter, marking a new phase in surface mining activity within the EKJV.
Exploration Progress and Resource Definition
Exploration drilling was a highlight, with 10,661 metres completed across multiple prospects including Sadler, Hornet, and Ambition. At Sadler, diamond drilling focused on upgrading inferred resources to indicated status, with results confirming the continuity of mineralisation consistent with underground mining. Hornet drilling targeted open pit resource definition, intersecting mineralised zones that will inform upcoming mine sequencing. Ambition drilling confirmed a high-grade, southward plunging zone within a shear-hosted laminated vein, reinforcing the prospect’s potential.
Financial Position and Cash Flow
Tribune’s financial footing strengthened during the quarter, with cash and cash equivalents rising to $12.449 million from $9.187 million at the previous quarter’s end. Receipts from customers increased by $8.858 million, driven by higher gold sales volumes and improved gold prices. Production costs rose by $6.256 million, reflecting increased mining activity and the start of the Hornet open pit, while development costs decreased slightly. Exploration expenditure was $1.072 million, up modestly from the prior quarter. The company reported a net operating cash inflow of $5.926 million, underscoring operational cash generation.
Other Projects and Corporate Updates
Outside Australia, Tribune’s Ghanaian operations remained in planning phases with no drilling conducted, while the Diwalwal Gold Project in the Philippines saw no significant activity. The Seven Mile Hill Joint Venture reported assay results from late 2024 drilling, revealing multiple narrow zones of low to moderate gold mineralisation, including a high-grade intercept of 21.97 g/t over a metre. The company’s share buyback program remained in place but no shares were repurchased during the quarter. Payments to related parties were disclosed in line with governance requirements.
Bottom Line?
Tribune’s steady production and exploration momentum, combined with a stronger cash position, set the stage for potential resource upgrades and operational growth ahead.
Questions in the middle?
- How will the upcoming resource model updates at Sadler and Hornet impact reserve estimates?
- What are the prospects for expanding open pit operations beyond Hornet within EKJV?
- Will Tribune activate its share buyback program in the near term given current cash flows?