Rand Mining Faces Cost Pressures Despite Production Boom
Rand Mining Ltd reported a significant 96% increase in gold mined during the December 2025 quarter, driven by heightened activity at the Hornet open pit and strong processing through Evolution Mining’s Mungari plant. The company also posted improved cash flows amid ongoing exploration efforts.
- 96% increase in gold mined quarter-on-quarter
- 16,585 tonnes processed at 3.29 g/t gold grade
- Rand’s share of gold mined reached 3,252 ounces
- Exploration drilling continues at Sadler and Golden Hind deposits
- Cash receipts and operating cash flow improved despite no share buyback
Operational Highlights
Rand Mining Ltd (ASX, RND) has delivered a robust operational performance for the December 2025 quarter, with gold production from the East Kundana Joint Venture (EKJV) nearly doubling compared to the previous quarter. The company processed 16,585 tonnes of ore at a grade of 3.29 grams per tonne through Evolution Mining Limited’s Mungari processing plant under a toll treatment agreement, recovering 1,680 ounces of gold attributable to Rand.
Mining activity was sourced from three key areas within EKJV, the Rubicon-Hornet-Pegasus underground mine, Raleigh underground mine, and the Hornet open pit. Notably, the Hornet open pit contributed significantly with 194,430 tonnes mined at 2.24 g/t, yielding 14,027 ounces of gold. Rand’s share of total ore mined from all sources was 38,923 tonnes at 2.6 g/t, producing 3,252 ounces of gold; a 96% increase on the previous quarter, primarily due to intensified operations at Hornet.
Exploration and Resource Development
Exploration drilling continued apace during the quarter, with 5,205 metres of diamond drilling completed across the EKJV area targeting resource extensions at the Sadler and Golden Hind deposits. While assay results for several drill holes were received, there has been no material change to the previously reported mineral resource estimates. The company remains focused on resource definition to underpin future production growth.
Financial Performance and Cash Flow
Rand Mining’s financials reflected the operational momentum, with receipts from customers rising by $5.33 million to $15.98 million for the quarter, buoyed by both higher sales volumes and stronger gold prices. Operating cash flow improved by $4.23 million despite a $2.16 million increase in production costs linked to higher mining activity. Development and exploration expenditures decreased, helping to offset cost pressures.
Cash and cash equivalents stood at $3.34 million at quarter-end, down from $4.53 million previously, influenced by dividend payments and capital investments, including $705,000 on property, plant, and equipment. The company maintained its share buyback program but did not repurchase any shares during the quarter.
Governance and Compliance
Rand Mining reported no safety or environmental incidents during the quarter, underscoring its commitment to operational discipline. Payments to related parties, including director fees and management services, were disclosed transparently in line with ASX requirements. The company’s exploration results were compiled and verified by qualified personnel in accordance with the JORC Code, ensuring compliance and reliability of reported data.
Looking ahead, Rand Mining’s focus will be on sustaining production growth at EKJV, advancing exploration outcomes, and managing costs to enhance shareholder value.
Bottom Line?
Rand Mining’s strong production surge and solid cash flow set the stage for a pivotal year ahead as exploration results and operational efficiencies come into sharper focus.
Questions in the middle?
- Will upcoming assay results from ongoing drilling at Sadler and Golden Hind lead to resource upgrades?
- How will Rand manage production costs amid increased mining activity to maintain profitability?
- What are the prospects and timeline for extending the current share buyback program?
