Austral Gold Limited has restarted commercial production at its Casposo mine, driving a 170% surge in quarterly sales revenue to US$23.8 million and strengthening its financial position with reduced debt and increased cash reserves.
- Casposo mine resumes commercial production, contributing 4,283 gold equivalent ounces
- Quarterly production rises to 7,152 gold equivalent ounces including Guanaco output
- Sales revenue jumps 170% quarter-over-quarter to US$23.8 million
- Net financial debt reduced to US$16.1 million, cash holdings increase to US$10.5 million
- Exploration programs planned across Argentina and Chile for 2026 with resource updates due
Operational Revival at Casposo
Austral Gold Limited marked a significant operational milestone in the fourth quarter of 2025 by restarting commercial production at its Casposo mine in Argentina. After completing commissioning in September, the mine produced 4,283 gold equivalent ounces (GEOs) during the quarter, substantially contributing to the company's total production of 7,152 GEOs, which also includes output from the Guanaco mine in Chile.
This restart not only signals a return to productivity at Casposo but also underpins Austral Gold’s improved financial performance, with quarterly sales revenue soaring by US$15 million, a 170% increase from the previous quarter, reaching US$23.8 million. The company’s average gold selling price was an impressive US$4,187 per GEO, reflecting favourable market conditions.
Financial Strengthening and Cost Efficiency
Alongside production gains, Austral Gold strengthened its balance sheet, ending the quarter with US$10.5 million in cash and cash equivalents. Net financial debt fell sharply by US$11.2 million to US$16.1 million, aided by scheduled loan repayments and prudent financial management. Net current liabilities also decreased by US$10.4 million, highlighting improved liquidity and operational cash flow.
Cost management was a key feature of the quarter. The Casposo operation delivered a competitive cash cost (C1) of US$1,401 per ounce and an all-in sustaining cost (AISC) of US$1,652 per ounce, while Guanaco’s costs also declined quarter-over-quarter. These efficiencies were driven by higher production volumes and operational improvements, including the resumption of the Guanaco agitation leaching plant following a temporary shutdown due to a workplace fatality earlier in the year.
Exploration and Growth Prospects
Looking ahead, Austral Gold is actively planning exploration programs across its Argentine and Chilean assets for 2026. These include both brownfield projects near existing operations and greenfield targets with potential for new discoveries. The company anticipates releasing updated Mineral Resource and Reserve estimates for the Guanaco district in March-April 2026, which could provide further clarity on the scale and longevity of its assets.
Additionally, Austral Gold continues to manage its equity investments strategically, notably in ASX-listed Unico Silver Limited. The company has partially sold shares to fund option exercises and support working capital, reflecting a balanced approach to capital allocation amid growth initiatives.
Outlook and Market Position
Austral Gold’s Q4 2025 report paints a picture of a company emerging from a challenging period with renewed operational momentum and financial resilience. The restart of Casposo, combined with improved production at Guanaco and disciplined cost control, positions Austral Gold well to capitalise on favourable gold market dynamics. The upcoming exploration results and resource updates will be critical in shaping investor confidence and the company’s growth trajectory.
Bottom Line?
Austral Gold’s operational restart and financial gains set the stage for a pivotal 2026, with exploration and resource updates poised to define its next growth phase.
Questions in the middle?
- How will the updated Guanaco Mineral Resource and Reserve estimates impact Austral Gold’s valuation?
- What are the potential risks and timelines associated with the planned exploration programs in Argentina and Chile?
- How sustainable are the current production cost reductions amid fluctuating gold prices and operational challenges?