Beacon Minerals Boosts Gold Output, Advances Iguana Drilling, and Launches Share Buy-Back

• Gold production rose 20% to 7,365 ounces with stable cash costs of A$2,824/oz
• Completed largest-ever grade control drilling at Iguana, confirming high-grade mineralisation
• Executed option agreement to acquire Wealth of Nations tenements near Jaurdi plant
• Completed 40, 1 share consolidation and announced on-market buy-back of up to 9.39 million shares
• Strong cash position of A$14.38 million and no gold hedging commitments

Production Gains and Operational Efficiency

Beacon Minerals Limited (ASX, BCN) delivered a robust June 2025 quarter, producing 7,365 ounces of gold; a 20% increase over the previous quarter; driven by a mill throughput of 254,819 dry tonnes. The company’s Jaurdi processing plant operated at an annualised run rate of 1 million tonnes, with plans underway to upgrade capacity to 1.2 million tonnes per annum. This throughput improvement was supported by a reduction in crushed ore feed size and a blend of higher-grade MacPhersons ore with stockpiled lower-grade Geko material.

Cash operating costs remained stable at A$2,824 per ounce, excluding royalties and stock adjustments, reflecting operational discipline despite increased mining volumes. The all-in sustaining cost (AISC) rose slightly to A$3,719 per ounce, influenced by capital expenditure and inventory movements. Gold sales for the quarter amounted to 3,900 ounces at an average price of A$5,163 per ounce, generating receipts of A$20.1 million.

Exploration Momentum at Iguana and Wealth of Nations

Beacon’s exploration efforts intensified with the completion of a 201-hole reverse circulation drill program totaling 10,854 metres at the Iguana deposit within the Lady Ida Project. Results confirmed high-grade mineralisation both in-situ and in lateritic material, enhancing geological confidence in the Stage 1 Pit mining inventory. A second phase of grade control drilling commenced in July, aiming to upgrade a significant portion of the initial pit to the Measured Resource category.

In parallel, Beacon executed an option agreement to acquire tenements at the historic Wealth of Nations mine, located just 10 kilometres northwest of the Jaurdi processing plant. Initial drilling at Wealth of Nations focused on de-risking the acquisition, with results under evaluation. This strategic move expands Beacon’s footprint in a historically productive gold region, potentially adding to its resource base.

Capital Structure and Corporate Developments

Post-quarter, Beacon completed a 40, 1 consolidation of its issued capital, reducing the number of shares to approximately 105.7 million and listed options to 13.3 million. This consolidation aims to streamline the capital structure and enhance the appeal of the share price to a broader investor base.

Additionally, the company announced an on-market share buy-back program authorized to repurchase up to 9.39 million shares, backed by a $12 million allocation. The buy-back is discretionary and subject to market conditions, intended to improve shareholder returns and capital efficiency while maintaining flexibility for future growth opportunities.

Financial Position and Outlook

Beacon ended the quarter with a strong cash balance of A$14.38 million and holds 2,744 ounces of gold at the Perth Mint plus 1,778 ounces in transit. The company has drawn $7.8 million from a $13.27 million finance facility, supporting ongoing capital works and exploration activities. Notably, Beacon holds no gold hedging commitments, reflecting confidence in its operational cash flow and gold price exposure strategy.

Looking ahead, the company plans to continue drilling at Iguana and other Lady Ida prospects, including the Lizard deposit, with resource updates expected to further define and potentially expand the mineral inventory. The proposed mill upgrade, while not yet committed, could enhance recovery rates by 2-3%, potentially recouping capital costs within 2 to 2.5 years. Beacon’s focus remains on maximising production efficiency and advancing exploration to underpin sustainable growth.

Bottom Line?

Beacon Minerals is positioning itself for growth with rising production, expanding resources, and strategic capital moves; but the market will watch closely for drilling results and mill upgrade decisions.

Questions in the middle?

• Will the proposed mill upgrade proceed given the recent cost escalations and exploration success?
• How will the acquisition of Wealth of Nations tenements impact Beacon’s resource base and production profile?
• What is the timing and scale of the on-market share buy-back, and how might it influence the stock price?