Auric Mining has delivered a stellar quarter with its Munda Starter Pit producing 46% more gold than forecast, driving a net profit of A$5.2 million and lifting cash reserves to A$42.2 million.
- Munda Starter Pit yields 8,886 ounces, 46% above budget
- FY2025 net profit rises to A$5.2 million
- Cash inflow of A$36.9 million boosts balance sheet
- Burbanks processing plant scoping study underway
- Planning advances for larger Munda Main Pit
Munda Starter Pit Surpasses Expectations
Auric Mining Limited (ASX:AWJ) has reported a standout performance from its Munda Starter Pit, producing 8,886 ounces of gold during the March 2026 quarter; 46% above the original budget of 6,100 ounces. This outperformance was driven by a reconciled head grade of 2.46 grams per tonne and an 89.5% recovery rate, significantly exceeding initial estimates.
The second processing campaign alone, representing the deeper section of the Starter Pit, delivered 6,168 ounces at an impressive 3.18g/t head grade. All bullion from this campaign was sold at an average price of A$7,178 per ounce through Auric's metal account at ABC Refinery. This strong operational result has bolstered Auric's cash and debtor position to A$46 million as of 31 March 2026, positioning the company in its strongest financial state to date. The Starter Pit’s success suggests that the Munda deposit is larger and richer than previously thought, prompting the company to begin detailed planning for the Munda Main Pit.
Financial Strength and Profitability
For the full year ended 31 December 2025, Auric reported a net profit after tax of A$5.2 million, nearly doubling the previous year’s result, alongside a 144% increase in revenue to A$20.6 million. Free cash flow rose to A$6.5 million, reflecting the transition from explorer to producer. The company maintains a clean balance sheet with no debt and remains unhedged, underscoring financial discipline amid rising gold prices.
The March quarter cash flow report reveals net operating cash inflows of A$36.9 million, largely driven by gold sales from Munda and final cash distributions from the Jeffreys Find joint venture. Cash and cash equivalents surged to A$42.2 million from just A$6.5 million in the previous quarter, providing Auric with ample liquidity to fund upcoming development plans.
Advancing Processing Capabilities with Burbanks
Integral to Auric’s growth strategy is the Burbanks Gold Processing Plant acquisition, completed in September 2025. The plant, located near Coolgardie, is fully permitted and capable of processing 180,000 tonnes per annum through a Carbon-in-Leach circuit. During the quarter, technical consultants led by Scott Bailey commenced a detailed scoping study to determine the optimal refurbishment and throughput options. Bringing processing in-house will reduce reliance on third-party toll milling and capture greater margins from Auric’s expanding ore base, including material from Munda and the recently acquired Lindsay's Gold Project.
Strategic Tenement Growth and Legal Proceedings
Auric’s portfolio now spans 521 square kilometres across six projects in the Widgiemooltha–Norseman region. The company added two new tenement applications during the quarter, including one at Spargoville and another at Lindsay’s, broadening its exploration footprint. However, some Lindsay’s tenements remain embroiled in Wardens' Court proceedings, with Auric managing litigation on M27/169 and the vendor Top Global Mining handling others. Despite these legal hurdles, Auric has commenced drill hole data compilation and structural mapping on Lindsay’s tenements, aiming to unlock near-term production potential.
Jeffreys Find Joint Venture Concludes
The Jeffreys Find Gold Mine joint venture with BML Ventures Pty Ltd wrapped up in the quarter, with Auric receiving a final cash distribution of A$2.2 million. The project delivered a total of 29,537 ounces of gold at an average sale price of A$3,792 per ounce, generating total sales revenue of A$112 million. Auric’s share of cash surplus from the venture reached approximately A$16.5 million from an initial investment of just A$1.2 million, significantly strengthening the company's financial foundation.
These outcomes build on Auric's recent $5.2M profit and strategic Munda expansion and surpassing gold production targets at Munda, highlighting a period of rapid growth and operational success.
Bottom Line?
Auric Mining’s robust cash flow and operational outperformance set the stage for scaling up at Munda and integrating Burbanks, but legal challenges at Lindsay’s and execution risks around plant refurbishment remain key watchpoints.
Questions in the middle?
- How will Auric prioritise capital allocation between Munda Main Pit development and Burbanks plant refurbishment?
- What is the timeline and likelihood for resolving Wardens' Court proceedings affecting Lindsay’s tenements?
- Will Auric maintain its unhedged gold price exposure amid volatile market conditions?