Kingston Resources reported a 10% revenue increase to $15.8 million in Q1 FY26, driven by higher gold and silver output and successful flotation plant commissioning. Underground mining preparations are advancing, setting the stage for a production ramp-up.
- Revenue up 10% to $15.8 million with strong gold and silver sales
- Flotation plant commissioning lifts throughput to 43tph and cuts costs
- Open pit mining progressing at Pearse North and South
- Underground mining restart on track for November
- Robust balance sheet with $31 million cash and no debt
Revenue Growth and Production Gains
Kingston Resources has kicked off FY26 with a solid quarter, reporting a 10% increase in revenue to $15.8 million. This growth was underpinned by a 3% rise in gold production to 2,909 ounces and a remarkable 64% surge in silver sales to 25,039 ounces. The company realised average prices of $5,389 per ounce for gold and $63 per ounce for silver, reflecting favourable market conditions and operational improvements.
The commissioning of the new flotation plant at Mineral Hill was a pivotal development, enabling throughput to exceed design capacity with an average of 43 tonnes per hour in September. This upgrade not only boosted metal recoveries; gold recovery improved by nearly 15% to 70% for the quarter; but also drove a significant reduction in all-in sustaining costs to $2,942 per ounce in September, down from $3,906 for the quarter overall.
Mining Operations and Underground Preparations
Open pit mining activities advanced steadily at both Pearse North and Pearse South, with waste stripping and ore extraction progressing as planned. Notably, Pearse South is poised to deliver higher-grade ore in the coming weeks, which should further enhance production and margins in the second half of FY26.
Meanwhile, Kingston is gearing up to restart underground mining at the Southern Ore Zone. Preparations are well underway, including rehabilitation of portals, updating safety systems, and finalising equipment financing through Cat Finance. The company has recruited experienced underground operators and is acquiring a fleet of underground machinery, with the first units arriving imminently. This strategic move aims to leverage existing infrastructure and extend the mine life beyond current open pit operations.
Financial Strength and Strategic Outlook
Kingston’s financial position remains robust, with $31 million in cash and no debt following the repayment of a $15 million loan earlier this quarter. The company also raised nearly $0.9 million through the exercise of unlisted options, further bolstering its balance sheet. These funds provide Kingston with the flexibility to pursue its growth strategy aggressively, including exploration and resource development initiatives.
Looking ahead, the December quarter promises significant activity, including the arrival of surface and underground drill rigs to advance exploration at the Bogong Prospect and infill drilling at the Southern Ore Zone. Underground jumbo development is also slated to commence, marking a critical step in transitioning to underground production.
Sustainability and Community Engagement
Kingston continues to prioritize safety and community relations. Although the Total Recordable Injury Frequency Rate increased slightly this quarter due to one lost time injury, there were no environmental incidents reported. The company also maintained its support for the Condobolin community through initiatives like the local school breakfast club, demonstrating a commitment to social responsibility alongside operational progress.
Bottom Line?
With underground mining imminent and production efficiencies improving, Kingston is well positioned to accelerate growth and extend Mineral Hill’s mine life.
Questions in the middle?
- How will underground mining impact overall production volumes and costs in FY26?
- What exploration results can be expected from the Bogong Prospect drilling this quarter?
- Will the flotation plant optimizations sustain lower costs and higher recoveries long term?