Heavy Rain Delays Okvau Ore Access, But Emerald Stays Debt Free and Funded
Emerald Resources' Okvau Gold Mine production dipped in Q1 due to heavy rains, yet the company holds firm on its FY2026 output targets and ambitious expansion plans.
- September quarter gold production at Okvau falls to ~22,000 ounces due to heavy rainfall
- All-in sustaining costs (AISC) for the quarter estimated at US$1,150/oz
- FY2026 production guidance steady at 105,000–120,000 ounces with AISC around US$966/oz
- Emerald remains debt free and fully funded for multiple project developments
- Expansion projects include Okvau underground, Memot Gold Project in Cambodia, and Dingo Range in Australia
Production Impacted by Weather
Emerald Resources NL (ASX – EMR) reported a softer gold output for the September 2025 quarter at its flagship Okvau Gold Mine in Cambodia, producing approximately 22,000 ounces, below initial guidance. The shortfall was primarily attributed to heavy rainfall, including a significant 24-hour event delivering 114mm of rain, which hampered pit dewatering and delayed access to about 5,000 ounces of high-grade ore planned for extraction late in the quarter.
Maintaining Financial and Operational Guidance
Despite the weather-related disruption, Emerald reaffirmed its full-year 2026 production guidance of 105,000 to 120,000 ounces, with all-in sustaining costs (AISC) expected to align with the life-of-mine estimate of approximately US$966 per ounce. For the September quarter specifically, AISC is anticipated to be higher at around US$1,150 per ounce, reflecting the operational challenges faced.
Strategic Growth on Track
Emerald remains well-positioned financially, boasting a cash, bullion, and listed investments balance of A$303.6 million as of September 30, 2025, and operating free of debt and hedging. This strong balance sheet underpins the company’s ambitious growth strategy, which includes the underground expansion of Okvau, pit extensions, and near-mine exploration prospects expected to come online during calendar year 2026.
Additionally, Emerald is advancing the development of a second standalone operation at the Memot Gold Project in Cambodia, which holds an indicated and inferred open pit resource of 1.34 million ounces of gold. The company is also preparing to launch its first Australian operation at the Dingo Range Gold Project, featuring a resource of 1.36 million ounces, further diversifying its asset base and production profile.
Environmental and Governance Commitments
Emerald emphasizes its commitment to environmental and social governance, targeting net positive impacts near its mining operations. The company adheres to international standards and local regulations, aiming for carbon-neutral operations in Cambodia. This focus on sustainability aligns with broader industry trends and investor expectations.
Looking Ahead
While the recent weather setback is a reminder of the operational risks inherent in mining, Emerald’s robust financial position and clear development roadmap suggest resilience. The company’s goal to become a multi-mine producer exceeding 300,000 ounces annually within 18 months remains firmly in sight, contingent on successful execution of its expansion projects.
Bottom Line?
Emerald’s weather-induced production hiccup is temporary; the company’s growth trajectory and financial strength keep its multi-mine ambitions well within reach.
Questions in the middle?
- How will Emerald mitigate future weather-related disruptions at Okvau and other sites?
- What is the timeline and expected production uplift from the Okvau underground expansion?
- How will the development of Memot and Dingo Range projects impact Emerald’s cost structure and overall output?
