Austral Gold Limited has reported a return to profitability in FY25, driven by the reopening of its Casposo Mine and a significant increase in gold equivalent production. The company also strengthened its balance sheet through a successful private placement and equity investments.
- FY25 net profit after tax of US$14.7 million reversing prior losses
- Reopening of Casposo Mine contributed 4,283 gold equivalent ounces in Q4
- Total FY25 production reached 15,392 gold equivalent ounces
- Net cash from operating activities turned positive at US$9.3 million
- Post-year private placement raised approximately US$5.9 million
Return to Profitability
Austral Gold Limited has marked a significant turnaround in its financial performance for the year ended 31 December 2025, reporting a net profit after tax of US$14.7 million. This result reverses a loss of US$27.1 million in the previous year and represents the company's first profit since FY20. The improved bottom line reflects a combination of operational ramp-up and favourable commodity prices.
Operational Highlights: Casposo Restart and Production Growth
The reopening of the Casposo Mine in Argentina during FY25 was a pivotal development, contributing 4,283 gold equivalent ounces (GEOs) in the fourth quarter alone. Alongside the Guanaco Mine Complex in Chile, which produced 11,109 GEOs, Austral Gold achieved total production of 15,392 GEOs for the year. This production volume, while modest, sets the stage for a nearly twofold increase in 2026, with guidance set between 27,000 and 33,000 GEOs.
Financial Strength and Cost Management
Revenue rose 39.1% to US$51.2 million, buoyed by higher production and a 52% increase in the average realised gold price to US$3,576 per ounce. Operating cash flow turned positive, generating US$9.3 million compared to a cash outflow of US$6.5 million in FY24. Despite increased production costs, the company maintained a disciplined approach, with a C1 cash cost of US$2,264 per GEO and an all-in sustaining cost (AISC) of US$2,501 per GEO.
Balance Sheet and Strategic Investments
Austral Gold's cash position improved substantially, ending FY25 with US$10.5 million in cash and cash equivalents, up from US$3.6 million the prior year. Net financial debt decreased to US$16.0 million from US$23.0 million, reflecting improved operational cash flow and prudent financial management. Post year-end, the company raised approximately US$5.9 million through a private placement and exercised options to increase its stake in Unico Silver, underscoring its commitment to strategic equity investments as a pillar of growth.
Exploration and Future Outlook
Exploration efforts remain focused on near-mine and brownfields targets in Argentina and Chile, including the Manantiales and Juncal projects. A technical report for Casposo estimates an after-tax net present value of US$72.7 million over a 74-month mine life, supporting the company’s confidence in the asset’s long-term potential. With production guidance nearly doubling in 2026, Austral Gold is positioning itself for a robust growth phase, though it remains mindful of the inherent risks in mining operations and commodity markets.
Bottom Line?
Austral Gold’s FY25 results signal a promising recovery, but sustaining momentum will depend on execution at Casposo and market conditions.
Questions in the middle?
- Can Austral Gold sustain cost efficiencies as production scales up in 2026?
- What are the key risks to achieving the near-term production guidance of up to 33,000 GEOs?
- How will the company leverage its equity investments to support exploration and development?