Kingston Resources reported a 14% increase in quarterly revenue to $18.1 million despite a geotechnical setback, while underground mining development gains momentum and resource estimates grow by 29%.
- 14% quarter-on-quarter revenue increase to $18.1 million
- Geotechnical hazard delays high-grade ore mining at Pearse South
- Underground mining development and blasting commenced
- Mineral resource base expands 29% to 10 million tonnes
- Strong cash position of $24.9 million plus $7.4 million in environmental bonds
Financial Performance and Operational Challenges
Kingston Resources has delivered a solid financial performance in the December 2025 quarter, with net revenue rising 14% quarter-on-quarter to $18.1 million. This growth was driven by gold and silver sales from its Mineral Hill operations, with realised gold prices averaging A$6,353 per ounce, reflecting the buoyant precious metals market. However, the quarter was not without operational challenges. A geotechnical hazard at the Pearse South open pit required a redesign of the pit and additional waste stripping, which delayed access to higher-grade ore and deferred approximately 1,000 to 1,200 ounces of gold production into the second half of the financial year.
Open Pit Operations and Transition to Underground Mining
Despite the setback, Kingston’s open pit operations are positioned for a strong second half of FY26, with improving feed grades noted in January as mining progresses at Pearse South. The company’s proactive risk management and safety protocols enabled early identification and swift remediation of the geotechnical issue, mitigating further disruption. Meanwhile, the transition to underground mining is well underway. Development and blasting activities have commenced, with long-hole production drilling scheduled for April. Key underground infrastructure upgrades, including ventilation drives and refurbishment of magazines, are progressing, setting the stage for a smooth operational shift.
Resource Growth and Exploration Prospects
Kingston’s resource base has expanded significantly, with updated mineral resource estimates showing a 29% increase to 10 million tonnes. Notably, measured and indicated resources now comprise 60% of the total, enhancing confidence in the mine’s long-term potential. The Southern Ore Zone and Parker’s Hill areas saw substantial resource upgrades, and a maiden resource was declared at the Red Terror prospect, highlighting promising copper and gold mineralisation. Regional exploration drilling at the Bogong and Long Panel prospects is ongoing, with assay results expected shortly, potentially unlocking further value.
Capital Investment and Sustainability
Capital expenditure during the quarter included $4.66 million on the construction of the tailings storage facility and $1.25 million on processing plant upgrades aimed at increasing throughput and preparing for underground ore processing. Kingston also enhanced its safety systems in preparation for underground operations, although the total recordable injury frequency rate increased slightly to 3.7. Importantly, there were no reportable environmental incidents, and the company maintains $7.4 million in cash-backed environmental bonds, underscoring its commitment to responsible mining practices.
Looking Ahead
Looking forward to the March quarter, Kingston plans to ramp up high-grade open pit production at Pearse South and advance underground decline development. The market eagerly awaits assay results from recent regional and underground drilling programs, which will be critical in shaping the mine’s future production profile and growth trajectory. With a robust cash position of nearly $25 million and ongoing operational progress, Kingston Resources is well placed to capitalise on strong commodity prices and extend the life of its Mineral Hill asset.
Bottom Line?
Kingston’s strategic underground transition and resource growth set the stage for a pivotal second half of FY26.
Questions in the middle?
- How will the geotechnical hazard impact overall FY26 production forecasts?
- What do upcoming assay results from Bogong and Long Panel mean for future resource expansion?
- How smoothly will the underground mining transition proceed amid operational complexities?