How Did Emerald Resources Achieve a Record A$87.6m Profit Amid Resource Expansion?

Financial Performance Highlights

Emerald Resources NL (ASX – EMR) has delivered a record profit after tax of A$87.6 million for the year ended 30 June 2025, up 9% from A$80.7 million in the prior year. This milestone was underpinned by a 16% increase in gold revenue to A$430.4 million, reflecting a 33% rise in the average gold sale price to US$2,770 per ounce. Despite a 14% decline in gold production to 98,110 ounces at the flagship Okvau Gold Mine in Cambodia, the company maintained strong cost discipline with an all-in sustaining cost (AISC) of US$1,075 per ounce, positioning Emerald among the lowest-cost gold producers globally.

Operational and Resource Growth

The Okvau Gold Mine, commissioned on time and on budget in 2021, has produced over 409,000 ounces of gold at an average AISC of US$863 per ounce since start-up. The mine’s updated ore reserve stands at 13.6 million tonnes grading 1.5 grams per tonne gold for 650,000 ounces, representing a 245,000-ounce increase from the previous estimate. Exploration beneath and near the Okvau pit continues to support resource growth, with promising drill results at prospects such as Okvau North and Granite Hill.

Emerald’s growth pipeline is further bolstered by significant resource upgrades at its 100% owned Memot Gold Project in Cambodia and the Dingo Range Gold Project in Western Australia. The Memot resource increased by 30% to 31.4 million tonnes at 1.3 grams per tonne for 1.34 million ounces, while Dingo Range’s resource grew 35% to 39.9 million tonnes at 1.1 grams per tonne for 1.36 million ounces. Both projects are advancing through feasibility studies and development planning, with infrastructure investments underway, including a 256-room camp at Dingo Range.

Balance Sheet and Corporate Developments

Emerald has strengthened its financial position by fully repaying its US$60 million Sprott debt facility in April 2025, becoming a debt-free and unhedged gold producer. At year-end, the company held A$237.7 million in cash, bullion, and listed investments. The divestment of the Southern Cross Gold Project to Golden Horse Minerals Limited was completed, with Emerald retaining a 20.5% equity stake in Golden Horse, expanding its exposure to Western Australia’s Southern Cross gold region.

ESG and Community Engagement

Emerald continues to prioritize environmental and social governance (ESG) with a commitment to carbon neutrality in Cambodia. The Phnom 1500 reforestation project has planted over 114,000 trees to date, contributing to habitat restoration and biodiversity enhancement. The company also emphasizes local employment, with 84% of its Cambodian workforce being local nationals and women representing 21% of the team. Safety remains a core focus, with zero lost time injuries reported during the year and an industry-leading total recordable injury frequency rate (TRIFR) of 0.45.

Outlook

Looking ahead, Emerald targets gold production of 105,000 to 120,000 ounces at Okvau in FY26, with ongoing exploration and development to extend mine life and increase output. The company is progressing permitting and feasibility for Memot and Dingo Range, aiming to become a multi-mine producer exceeding 300,000 ounces annually across two continents. The Board and management remain focused on delivering sustainable growth while maintaining strong governance and community relationships.