Group 6 Metals Posts 19,294 mtu Tungsten Production, Cuts Debt by $81M

Operational Milestones and Safety

Group 6 Metals Limited (ASX – G6M) has delivered a standout quarter at its Dolphin Tungsten Mine on King Island, Tasmania, achieving record tungsten production and sales volumes. The company mined over 202,000 tonnes of ore, nearly doubling the previous quarter’s output, while maintaining a strong safety record with zero lost time injuries. This operational momentum was supported by ongoing improvements in workplace safety culture and the rollout of a new safety management system, Skytrust.

The open cut mining phase is scheduled to conclude at the end of July 2025, marking a strategic pivot to processing the substantial stockpiles accumulated; 572,000 tonnes at an average grade of 0.44% tungsten trioxide. This stockpile processing is expected to sustain operations for at least 12 months, providing a runway to upgrade the processing plant and prepare for the next phase – underground mining.

Financial Restructuring and Strengthened Balance Sheet

On the corporate front, Group 6 Metals has successfully completed a significant recapitalisation plan approved by shareholders in April 2025. This involved converting $81.1 million of debt into equity, issuing new shares, and securing a $7.5 million loan facility from the State of Tasmania. These measures have dramatically improved the company’s financial health, reducing near-term debt obligations to just $863,000 and boosting cash reserves to $7.6 million at quarter-end.

The recapitalisation has also enabled the company to bring its financial reporting up to date, a critical step towards reinstating its shares on the ASX. A proposed 1-for-100 share consolidation aims to streamline the share register, reduce price volatility, and attract institutional investors, positioning the company for sustainable growth.

Processing Plant Upgrades and Production Outlook

Incremental upgrades to the processing plant have yielded tangible results, with throughput increasing to over 52,000 tonnes for the quarter and record monthly concentrate production in June. Despite some one-off downtime costs, the plant’s resilience is improving, and further enhancements are planned to sustain and grow production rates. The company produced 19,294 metric ton units (mtu) of tungsten trioxide concentrate this quarter, a new high-water mark.

Looking ahead, the transition to underground mining is underway, leveraging historical data and the fortunate discovery of a well-preserved decline shaft to reduce development costs. While the exact timing of underground operations remains uncertain, management aims to commence within 12 months, unlocking the high-grade ore body’s full potential.

Market Context and Strategic Positioning

Global tungsten markets remain tight, with ongoing supply shortages exacerbated by Chinese export restrictions. This backdrop, combined with strategic stockpiling initiatives by Western governments, positions Group 6 Metals favourably to capitalise on rising tungsten prices. The company’s focus on operational efficiency, financial stability, and strategic mine development underscores its ambition to become a key player in the critical minerals sector.