TGME Project Posts US$455M Post-Tax NPV with 13.1-Year Mine Life

Robust Project Economics Confirmed

The Revised Feasibility Study (FS) for Theta Gold Mines Limited’s TGME Gold Mine Project in South Africa delivers a compelling financial outlook. At a conservative base gold price of US$2,884 per ounce, the project forecasts a post-tax net present value (NPV) of US$455 million and free cash flow exceeding US$900 million over a 13.1-year life of mine (LoM). This positions TGME as a high-margin, long-life gold operation in one of the world’s premier gold regions.

The study highlights an all-in sustaining cost (AISC) of approximately US$1,181 per ounce, underscoring the project’s cost competitiveness. With an internal rate of return (IRR) of 77% post-tax and a rapid payback period of 29 months from the start of mining, the economics suggest strong value creation potential for shareholders.

Production and Operational Outlook

Production is scheduled to commence in the first quarter of 2027, with the TGME gold processing plant currently under construction. The initial phase includes four underground mines – Beta, Rietfontein, Frankfort, and Clewer-Dukes Hill-Morgenzon (CDM). Early cash flow is supported by reprocessing surface rock dumps and tailings storage facilities, which were previously unrecognised in mining plans.

The project plans a phased ramp-up to a steady-state production rate of 45,000 tonnes per month, with peak annual gold output expected to exceed 115,000 ounces. The modular plant design facilitates scalable expansion, with a clear pathway to increase production to 160,000 ounces per year as additional mines come online.

Funding and Development Progress

The company is actively progressing funding arrangements, including a live debt syndication process showing strong lender interest. Recent equity raises have secured approximately US$30 million, complemented by a discretionary US$10 million loan facility and a non-binding US$80 million funding agreement with Nebari Partners LLC. These initiatives underpin the project’s peak capital requirement of US$77 million.

Construction milestones are advancing, with key contracts executed for bulk earthworks, civils, roads, water management, and plant foundations. The project benefits from existing infrastructure and permitting in place, reducing development risk and supporting an execution-ready status.

Environmental, Social and Governance Commitments

The TGME project incorporates strong ESG principles, including initiatives to reduce carbon emissions, sustainable water and waste management, and responsible infrastructure design that minimises environmental footprint. Social programs focus on occupational health and safety, local economic growth, and skills development, aligning with South African mining charter requirements and community expectations.

Risks and Upside Potential

Key risks include gold price volatility, operating and capital cost fluctuations, and funding availability. The project’s economics are highly sensitive to gold price and exchange rate movements, but strong free cash flow provides a buffer against downside risks. Upside opportunities exist through resource expansion, metallurgical optimisation, and modular plant capacity increases, which could extend mine life and enhance returns.