Beacon Minerals Reports 7,310 Oz Gold Production and $53.5M Sales
Beacon Minerals reported a solid December quarter with 7,310 ounces of gold produced and a 23% rise in realised gold prices, driving revenue to $53.47 million. The company is transitioning mining operations while maintaining strong recovery rates and shareholder returns.
- 7,310 ounces of gold produced in December quarter
- Gold sales of 8,350 ounces at $6,403/oz, 23% price increase
- Mill recovery improved to 88%, 93% for Lady Ida stockpiles
- Raised $4.28 million from listed options exercised
- Paid fully franked dividends totaling 5 cents per share
Steady Production Amid Transition
Beacon Minerals Limited (ASX – BCN) has delivered a robust production update for the December 2025 quarter from its wholly owned Jaurdi Gold Project. The company produced 7,310 ounces of gold, hitting the upper end of its guidance range. This steady output comes as mining activities at the MacPhersons Project wind down and preparations ramp up at the Lady Ida and Iguana laterite sites.
Mining volumes remained consistent with the previous quarter, despite operational constraints in the MacPhersons Pit. The company is advancing the pre-stripping of laterite ore at Iguana and expects to complete the transition from MacPhersons to Lady Ida by March 2026. This shift is critical for sustaining production levels in the coming quarters.
Improved Recovery and Strategic Sales
Mill throughput was steady at 258,482 dry tonnes, with overall recovery rates improving to 88%. Notably, processing of Lady Ida stockpiles and laterites between 12-31 December achieved an impressive 93% recovery rate, underscoring operational efficiencies. Gold sales reached 8,350 ounces at an average price of $6,403 per ounce, a significant 23% increase from the previous quarter, generating $53.47 million in revenue.
Beacon’s management continues to adopt a strategic approach to gold sales, balancing the need to cover monthly operating costs with opportunistic selling to capitalise on favourable gold prices. The company also holds 3,675 ounces of gold at the Perth Mint and has 1,031 ounces in transit, reflecting a cautious stance on inventory management.
Financial Strength and Shareholder Returns
During the quarter, Beacon raised $4.28 million through the exercise of 3.57 million listed options, bolstering its cash position to $36.05 million. The company also paid fully franked dividends totaling 5 cents per share, reflecting confidence in its cash flow and profitability. With a market capitalisation of $403.25 million and a share price of $3.69, Beacon is well positioned to navigate the operational transition ahead.
Joint venture partner Geoda/Lamerton (GL) continues to contribute to operating costs related to processing Lady Ida ore stockpiles, as per the earn-in agreement, which helps share financial risks during this phase.
Looking Ahead
Beacon has provided guidance for the March 2026 quarter, forecasting gold production between 6,800 and 7,200 ounces. The company’s focus remains on optimising recovery rates and managing gold sales to maximise returns amid fluctuating market conditions. Executive Chairman Graham McGarry emphasised the board’s active role in timing sales to capture improved prices, signalling a disciplined approach to capitalising on gold market dynamics.
Bottom Line?
Beacon’s disciplined production and sales strategy positions it well for the operational shift ahead, but market volatility will test its agility.
Questions in the middle?
- How will the transition from MacPhersons to Lady Ida impact production costs and recovery rates?
- What is Beacon’s strategy for managing gold inventory amid fluctuating prices?
- How significant will GL’s contribution be to operating costs moving forward?
