Mariposa Iron Ore Mining Falls 18.8% as Expansion Infrastructure Progresses

Production Decline at Mariposa Despite Ongoing Ramp-Up

Admiralty Resources NL (ASX:ADY) reported a notable decline in mining and iron ore concentrate volumes at its Mariposa magnetite project in Chile for the March quarter 2026. Total mining dropped 18.8% to 96,005 tonnes, while concentrate production fell 5.8% to 42,992 tonnes, with an average iron grade holding steady at 65%. This represents a pullback from the previous quarter’s output, although the company continues its production ramp-up phase.

While the reasons for the quarterly decline were not explicitly detailed, the mineral processing plant remains operational, pending the final electrical connection to additional crushing and grinding equipment expected to enhance efficiency and throughput. This infrastructure advance could signal improved volumes in coming quarters.

Second Overseas Shipment and Infrastructure Milestones

In a commercial milestone, Admiralty successfully exported 58,087 tonnes of iron ore concentrate aboard the MV DAWN FZ from Las Losas Port, bound for customers in China. This marks the company’s second overseas shipment facilitated by global commodity trader Trafigura, underpinning Admiralty’s growing market presence. The shipment builds on the company’s earlier sales contracts and export activities, reinforcing its commercialisation efforts.

Infrastructure progress was significant during the quarter, with the installation and commissioning of the substation and transmission line now complete, enabling the crucial electrical connection for processing operations. Additional construction activities are underway, including foundations for tailings filter press systems, dust control netting, and employee facilities. Admiralty is also advancing water supply arrangements through contracts and pending permits with Agrosuper, critical for sustained mining operations.

Drilling Campaign and Expansion Plans

The company completed 763 metres of geological drilling in March, deploying two newly acquired drilling machines. This equipment is slated for redeployment to Admiralty’s El Cojin copper mine after the campaign. A comprehensive geological report is expected once drilling concludes.

Admiralty’s ambitious one million tonne expansion plan is progressing steadily. Key foundations for vibrating screens, filter press equipment, and tailings systems have been poured, with steel structure installations underway. Power infrastructure rectifications are ongoing, and concentrate stockpile works continue, positioning the project for a substantial capacity increase.

Corporate Governance and Audit Developments

Following an Extraordinary General Meeting on 28 April 2026, Admiralty appointed In.Corp Audit & Assurance Pty Ltd as its new auditor. In.Corp is now handling audits for the outstanding 30 June 2025 financial statements and the 31 December 2025 half-year review. The change aims to better align audit capabilities with the operational scale as Mariposa advances toward full production.

Despite active engagement with auditors and advisers, the company continues to face delays in lodging its audited annual financial statements for FY 2025, citing dependencies beyond its direct control. This ongoing issue has contributed to Admiralty’s prolonged trading suspension, a situation mirrored by other entities on the ASX’s long-term suspended list. The company remains committed to resolving these matters promptly while maintaining transparency with stakeholders.

Other Chilean Projects and Regulatory Engagement

Outside Mariposa, Admiralty plans waste rock blasting and material transport activities at the Soberana and La Chulula projects, with potential land use agreements under consideration with ASX-listed Hot Chili Limited (ASX:HCH). Regulatory processes continue, including environmental impact statement reviews for Mariposa transport logistics, with submissions expected by May 2026.

These developments come amid Admiralty’s broader operational context, including its prior capital management challenges and export contracts with Trafigura, which have been pivotal in sustaining project momentum. The company’s infrastructure and production updates reflect ongoing efforts to transition from preproduction toward commercial-scale iron ore mining.

Admiralty’s recent quarterly report provides a snapshot of a company navigating the complexities of scaling mining operations while addressing financial and regulatory hurdles. The next quarters will be telling in whether production volumes rebound as infrastructure upgrades come online and audit issues resolve.

Second overseas shipment and ongoing audit delays remain key threads in Admiralty’s unfolding narrative.