KGL Resources has secured A$11 million to accelerate development at its Jervois Copper-Silver-Gold Project, buoyed by soaring commodity prices and fresh leadership appointments. The company is progressing construction readiness and optimisation efforts while engaging with funding partners.
- Completed A$11 million capital raising to fund enabling works
- Appointed new CEO Sam Strohmayr and independent director Lindi Deguara
- Commodity prices for copper, silver, and gold hit record highs
- Advancing project optimisation and construction readiness ahead of FID
- Engaging with institutional investors and off-takers for funding
Capital Raising and Leadership Strengthening
KGL Resources Limited marked a pivotal quarter with the successful completion of an A$11 million capital raising aimed at advancing enabling works and project optimisation at its flagship Jervois Copper-Silver-Gold Project in the Northern Territory. This funding round attracted new institutional investors, including an increased stake by Resource Capital Fund VIII AIV-A, underscoring growing market confidence in the project’s potential.
Complementing this financial boost, KGL appointed Sam Strohmayr as its new Chief Executive Officer, effective late January 2026. Strohmayr brings three decades of global mining and metallurgical expertise, notably from senior roles at Glencore Zinc, where he managed complex operations and strategic initiatives. Additionally, the company welcomed Lindi Deguara as an independent non-executive director, whose extensive governance and legal experience is expected to enhance board oversight during this critical development phase.
Project Development and Optimisation Progress
With funding secured for initial enabling works, KGL is actively progressing site preparations including upgrades to the existing camp, civil infrastructure development, water supply installations, and front-end engineering for long lead process plant items. These activities lay the groundwork for full construction, which remains contingent on final project funding and a formal financial investment decision (FID) by the board.
In parallel, KGL is refining its mine plan and processing strategies to capitalise on the recent surge in metal prices. The optimisation efforts focus on expanding the open-cut resource within the current mine life and enhancing metal recovery rates, aiming to increase plant utilisation and improve capital efficiency. Tender processes for key contracts such as open-pit mining and civil works are underway, targeting firm offers to support the forthcoming FID.
Commodity Market Tailwinds and Strategic Positioning
The quarter saw copper, silver, and gold prices reach unprecedented levels, with copper climbing approximately 31% to around US$6 per pound, silver soaring by 270% to about US$120 per ounce, and gold nearly doubling to approximately US$5,600 per ounce. These price movements significantly exceed the assumptions used in KGL’s 2025 feasibility study update, enhancing the project’s economic outlook and financing appeal.
Market analysts forecast continued structural deficits in copper supply driven by rising demand from electrification, infrastructure expansion, and emerging technologies. This supply-demand imbalance is expected to widen through the 2030s, positioning development-ready projects like Jervois to meet critical market needs. The inclusion of copper and silver on strategic minerals lists further elevates the project’s profile among investors and off-takers focused on supply chain security.
Funding and Forward Outlook
KGL is actively engaging with a shortlist of potential funding partners and off-takers, supported by a forthcoming revised baseline economic model that will underpin strategic discussions and project delivery plans. The company’s cash position stood at A$10.8 million as of 31 December 2025, providing a solid runway for ongoing development activities.
With a new CEO at the helm and a strengthened board, KGL is poised to navigate the complex path toward full project financing and construction commencement. The company’s strategic focus on capital efficiency, operational optimisation, and stakeholder engagement will be critical as it seeks to capitalise on favourable market conditions and deliver value to shareholders.
Bottom Line?
KGL’s next steps in securing full project funding and delivering on optimisation will be crucial as commodity markets remain volatile but promising.
Questions in the middle?
- When will KGL finalise its financial investment decision and secure full construction funding?
- How will the new leadership team influence project execution and stakeholder relations?
- What impact will sustained high metal prices have on the project’s valuation and financing terms?