Predictive Discovery Limited (ASX:PDI) completed its merger with Robex Resources, propelling gold production to 48,178 ounces in Q1 2026 and setting sights on 400,000 ounces annual production by 2029.
- Merger completed April 15, 2026
- March quarter gold production surged 308%
- All-in sustaining costs fell 37% to US$1,192/oz
- Bankan Project FEED awarded to Primero
- 2026 production guidance set at 198,000–220,000oz
Merger Completion Creates West African Gold Powerhouse
Predictive Discovery Limited’s merger with Robex Resources Inc., finalised on 15 April 2026, has instantly transformed the combined entity into a leading West African gold producer targeting 400,000 ounces per annum by 2029. The deal brings together PDI’s Tier-1 Bankan development project with Robex’s producing Kiniero and Nampala mines, forming a multi-mine operation with strong cash flow and growth potential. This milestone was anticipated in earlier merger updates, including the court approval in Québec and shareholder endorsements, setting the stage for operational integration and scale-up final approval from Québec.
Production and Cost Metrics Surge in March Quarter
The March 2026 quarter was a breakout period with total gold production soaring 308% quarter-on-quarter to 48,178 ounces. This leap was primarily driven by the ramp-up at Kiniero, which poured 38,178 ounces compared to just 790 ounces in December, complemented by steady output from Nampala. Gold sales followed suit, climbing 271% to 41,799 ounces, underpinning a revenue surge to US$200.8 million, a 321% increase. The average realised gold price improved 13% to US$4,806 per ounce, reflecting stronger market conditions.
Crucially, the all-in sustaining cost (AISC) across operations dropped 37% to US$1,192 per ounce, with Kiniero achieving an even more impressive AISC of US$1,043 per ounce. This cost efficiency reflects improved operational leverage and the commencement of lower-cost production at Kiniero, a key factor in the combined entity’s competitive positioning. The strong cash margin from operations reached US$139 million, providing a robust financial foundation for ongoing development and exploration.
Advances at Bankan Project and Capital Allocation
While production momentum builds, PDI’s flagship Bankan Gold Project continues to advance towards construction readiness. Front-end engineering design (FEED) has been awarded to Primero, with detailed process design, project layout, and tendering of long lead mechanical equipment actively progressing. Multiple tender packages, including for the power station and milling circuits, are underway, signalling imminent movement towards construction once the Exploitation Permit is granted.
The Bankan project’s development is strategically supported by the cash flow generated from Kiniero and Nampala, with Robex holding US$240.4 million in cash and US$130 million in debt as of 31 March 2026, while PDI retains US$22.2 million cash with no debt. Capital expenditure of A$54 million during the quarter was largely directed at Kiniero development, reflecting disciplined capital allocation that prioritises operational ramp-up and future growth funding.
Operational Details and Exploration Focus
Kiniero’s operational metrics underscore the rapid scale-up, with total material mined more than doubling to over 5.1 million tonnes and ore processed increasing nearly thirteenfold to 1.6 million tonnes. Metallurgical recovery improved to 90.1%, demonstrating enhanced process stability. Nampala maintained solid performance with a slight decrease in production but improved head grade and plant efficiency.
Exploration efforts remain focused on resource growth and mine life extension at Kiniero and Nampala, targeting near-mine zones and structural controls to support future production. At Bankan, environmental and social baseline studies continue alongside tendering activities, preparing for construction commencement post-Exploitation Permit issuance.
Safety and Guidance Outlook
Safety metrics were strong, with PDI recording zero recordable injuries and Robex improving its injury frequency rate. The combined group has set 2026 gold production guidance between 198,000 and 220,000 ounces, with Kiniero expected to contribute the majority. Cost guidance will follow in the June quarter after two full quarters of Kiniero production provide a clearer operational picture.
This quarter’s results and merger completion mark a pivotal moment for PDI, positioning it as a mid-tier gold producer in West Africa with a clear path to scale. The integration of Robex’s producing assets with PDI’s development pipeline creates a diversified portfolio, though upcoming cost guidance and Bankan permitting remain key near-term catalysts. The market will be watching how the combined entity manages the operational ramp-up and capital deployment to sustain growth beyond 2026.
Bottom Line?
The merger sets PDI on a fast track to mid-tier status, but upcoming cost details and Bankan’s permit remain critical to watch.
Questions in the middle?
- How will cost guidance in the June quarter reflect Kiniero’s ramp-up efficiency?
- What are the implications of unresolved permit revocations on exploration licences?
- How will the combined entity balance capital expenditure between production ramp-up and Bankan construction?