How Will Horizon Minerals Navigate Processing Delays and Asset Sales to Boost Gold Output?

Strong Progress at Phillips Find

Horizon Minerals Limited has provided an encouraging update on its Phillips Find gold project, reporting the completion of three processing campaigns that yielded nearly 5,000 ounces of gold from almost 99,000 tonnes of ore. Mining operations for the first phase are drawing to a close, with a substantial stockpile of approximately 120,000 tonnes of high-grade ore and an additional 22,000 tonnes of lower-grade material now ready for processing.

Due to mining volumes exceeding initial plans, Horizon’s joint venture partner, BML Ventures, has secured a binding toll milling agreement to treat 120,000 tonnes of high-grade ore at a nearby facility. This move is expected to accelerate processing, with haulage already underway and treatment scheduled for the December quarter of 2025. The remaining ore will be processed at Focus Minerals’ Three Mile Hill plant in January 2026, ensuring a steady flow of production into the new year.

Boorara Faces Temporary Processing Bottlenecks

Meanwhile, mining at the Boorara project is progressing well and is expected to conclude within the current quarter. The company has amassed significant ore stockpiles across high, medium, and low grades, with nearly 289,000 tonnes of high-grade ore alone. High-grade ore is being processed under an agreement with Norton Gold Fields at the Paddington Mill.

However, Horizon has encountered a short-term challenge as Paddington Mill prioritises its own ore feed, resulting in a roughly 45% reduction in ore haulage volumes for all customers, including Horizon, since mid-October. This has deferred some expected cash flow from the December 2025 and March 2026 quarters into later periods. Encouragingly, Paddington anticipates resuming contracted haulage volumes by early December, which should restore processing momentum.

Balance Sheet Strength and Strategic Asset Sale

On the financial front, Horizon Minerals reported an estimated unaudited cash balance of $33.2 million at the end of October 2025. The high-grade Boorara stockpile alone is projected to generate $25.7 million in free cash flow based on current gold prices and net realisable value calculations. Adding to this, the company expects to receive an additional $30 million by the end of January 2026 from the proposed sale of its Lake Johnston asset to Forrestania Resources.

Managing Director Grant Haywood expressed optimism about the company’s trajectory, highlighting the strong cash flow potential from Phillips Find and the strategic steps underway to become a mid-tier gold producer in the Western Australian Goldfields. While the temporary processing delays at Boorara are not ideal, the company’s robust cash position and upcoming asset sale provide a solid foundation for growth.