Kingsgate Consolidated Ltd reported a record September quarter at its Chatree Gold Mine, with gold production surging 18% to nearly 24,000 ounces and silver output exceeding 200,000 ounces. Strong metal prices and operational efficiencies lifted cash and bullion holdings to A$115 million.
- Record quarterly gold production of 23,922 ounces at Chatree
- Silver production surpasses 205,000 ounces with improved recoveries
- All-in sustaining costs (AISC) margin reaches a record US$1,581 per ounce
- Total cash, bullion, and doré increase 36% to A$115 million
- Exploration drilling yields significant gold and copper intercepts at T and Singto prospects
Operational Excellence Drives Record Production
Kingsgate Consolidated Ltd has delivered an outstanding performance in the September 2025 quarter, posting its strongest production figures since restarting operations at the Chatree Gold Mine in Thailand. Gold output climbed 18% quarter-on-quarter to 23,922 ounces, while silver production topped 205,841 ounces. This surge reflects both higher-grade ore access and operational efficiencies, with processing plants running above their nameplate capacity at an annualised rate of approximately 5.8 million tonnes.
Improved recoveries, 82.2% for gold and 62.7% for silver, further bolstered output, supported by a newly installed custom gearbox on the Plant #1 SAG mill enhancing reliability and reducing downtime. Mining activity also intensified, with total material mined increasing 21% to 5.42 million tonnes, positioning Chatree for sustainable growth.
Financial Strength and Cost Discipline
The company’s financial health strengthened significantly, with total cash, bullion, and doré rising 36% to A$115 million. Kingsgate benefited from robust metal prices, achieving an average realised gold price of US$3,461 per ounce and silver at US$39.53 per ounce. The all-in sustaining cost (AISC) per ounce sold was US$1,880, yielding a record margin of US$1,581 per ounce, underscoring strong cost control and operational leverage.
Notably, the AISC (pre-royalties) improved to US$1,166 per ounce, aided by mining higher-grade zones and increased silver credits. The company also reduced its debt balance from A$51.9 million to A$48.6 million through scheduled repayments, further enhancing financial flexibility.
Exploration Success and Growth Prospects
Exploration drilling at the T Prospect within the Chatree South-East Complex returned significant gold intercepts, including 20 meters at 3.30 grams per tonne and 19 meters at 2.08 grams per tonne, indicating promising extensions of mineralisation. At the Singto Prospect, initial drilling identified copper mineralisation with intercepts such as 23 meters at 0.25% copper, supporting ongoing deep drilling plans.
These results feed into an updated Group Mineral Resources and Ore Reserves statement, which now stands at 3.6 million ounces of gold and 86 million ounces of silver in resources, with reserves of 1.5 million ounces of gold and 51 million ounces of silver. Kingsgate remains on track to meet its FY26 guidance of 93,000 to 103,000 gold equivalent ounces at an AISC (pre-royalties) between US$1,550 and US$1,750 per ounce.
Sustainability and Community Engagement
Beyond operational achievements, Kingsgate’s subsidiary Akara Resources received national awards recognizing its corporate social responsibility and environmental stewardship. Initiatives such as forest restoration projects and a pilot durian-planting program demonstrate a commitment to sustainable development and community support, particularly in flood-affected areas of Phichit Province.
Corporate and Regulatory Developments
Kingsgate continues to engage constructively with the Thai government following recent political changes, with the arbitration period under the Thailand-Australia Free Trade Agreement extended to mid-November 2025. Meanwhile, capital expenditure plans for FY26 focus on operational safety and efficiency improvements, including new mining equipment leases and plant upgrades, supported by a strong cash position.
Bottom Line?
Kingsgate’s record quarter at Chatree sets a robust foundation for FY26, but ongoing exploration and regulatory developments will be key to sustaining momentum.
Questions in the middle?
- How will quarterly production variability impact Kingsgate’s FY26 financial outlook?
- What are the implications of the TAFTA arbitration extension on Kingsgate’s strategic plans?
- Can exploration successes at T and Singto prospects translate into meaningful resource upgrades?