Kingsgate Consolidated has delivered a stellar December quarter, boosting cash reserves by 56% and maintaining robust production guidance for FY26 amid favourable gold and silver prices.
- Chatree Gold Mine produced 20,957 ounces of gold and 157,542 ounces of silver
- Total cash, bullion, and doré increased to A$179 million, a 56% rise this quarter
- All-in Sustaining Cost (AISC) pre-royalties at US$1,234 per ounce for 1HFY26, outperforming guidance
- Refinancing deal reduces borrowings by 68%, improving liquidity and lowering debt costs
- Termination of Thailand-Australia Free Trade Agreement arbitration removes legal uncertainty
Operational Momentum at Chatree
Kingsgate Consolidated Ltd has wrapped up 2025 as one of the ASX’s top performers, with its Chatree Gold Mine continuing to deliver consistent production and operational improvements. The December quarter saw Chatree produce 20,957 ounces of gold and 157,542 ounces of silver, marking the fourth consecutive quarter exceeding 20,000 ounces of gold. Gold recovery rates have steadily improved, reaching 83.7% this quarter, underscoring operational efficiencies.
Mining activities focused on expanding ore access in A-Pit West, supported by the completion of a new, larger Run of Mine facility designed to optimise ore blending for processing. The processing plants are running above capacity at an annualised rate of 5.6 million tonnes, well beyond their nameplate 5 million tonnes per annum, highlighting strong throughput performance.
Financial Strength and Cost Discipline
Financially, Kingsgate has significantly bolstered its liquidity position, with total cash, bullion, and doré rising by approximately 56% to A$179 million. This surge was driven by strong bullion sales and operational cash flows, alongside a cash inflow from warrant exercises. The company’s All-in Sustaining Cost (AISC) pre-royalties for the half-year was US$1,234 per ounce, comfortably outperforming full-year guidance and delivering a record AISC margin of US$1,871 per ounce in the December quarter.
Gold sales for the quarter totalled 18,559 ounces at an average realised price of US$4,167 per ounce, a 20% increase from the previous quarter. Silver sales, while down in volume, maintained revenue levels due to a 46% jump in realised prices. Kingsgate’s unhedged gold position maximises exposure to these favourable price movements, enhancing cash flow generation.
Strategic Refinancing and Debt Reduction
In a decisive move to strengthen its balance sheet, Kingsgate executed a refinancing deal that slashed total borrowings by 68%, from approximately A$47 million to A$15 million. This was achieved through a new US$25 million standby loan facility with Nebari Natural Resources Credit Fund II and related entities, providing both immediate debt reduction and liquidity flexibility. The refinancing also improved the cost of debt and deferred principal repayments for six months, easing near-term financial pressures.
Regulatory and Community Developments
On the regulatory front, the termination of arbitration proceedings under the Thailand-Australia Free Trade Agreement removes a significant legal overhang, providing greater certainty for Kingsgate’s Thai operations. The company also continues to advance its Nueva Esperanza silver-gold project in Chile, with ongoing geological assessments and metallurgical testing underway.
Community engagement remains a priority, with Kingsgate’s Thai subsidiary Akara Resources hosting health initiatives, cultural events, and infrastructure projects that reinforce local ties and sustainability commitments. Recognition for workplace safety and health further underscores the company’s operational excellence beyond production metrics.
Looking Ahead
With production on track to meet FY26 guidance of 93,000 to 103,000 gold equivalent ounces and costs trending favourably, Kingsgate is well positioned to capitalise on strong precious metals markets. The company’s strategic refinancing and operational discipline provide a solid foundation for growth, while ongoing exploration and development projects offer potential upside.
Bottom Line?
Kingsgate’s robust cash position and cost control set the stage for a confident FY26, but commodity price volatility and project execution remain key watchpoints.
Questions in the middle?
- How will Kingsgate’s unhedged gold exposure impact earnings if metal prices fluctuate sharply?
- What progress and timelines can investors expect from the Nueva Esperanza project in Chile?
- Will the recent refinancing enable Kingsgate to pursue further growth or acquisitions?