Predictive Discovery reported a 33% increase in gold production to 64,026 ounces in Q2 2026, driven by Kiniero’s operational ramp-up and advancing development at the Bankan project.
- Kiniero mine throughput 50% above nameplate capacity
- Gold production up 33% to 64,026oz in June quarter
- Bankan project FEED completed and key contracts awarded
- US$13.8M capital gains tax settled post-merger
- Cash and bullion holdings rise to US$364.3M
Kiniero Mine Outperforms Expectations
Predictive Discovery Limited (ASX:PDI, TSX:PDI) delivered a robust operational quarter ending June 2026, with gold poured rising 33% quarter-on-quarter to 64,026 ounces. The standout contributor was the Kiniero gold mine in Guinea, where plant throughput surged to approximately 9.0 million tonnes per annum; 50% above its nameplate capacity. Gold recovery also improved slightly to 90.5%, resulting in 54,252 ounces poured, a 42% increase from the previous quarter.
The mine’s processing plant optimization and stable metallurgical performance underpin these gains, with ore processed up 38% to 2.22 million tonnes. Meanwhile, the stripping ratio dropped from 1.4 to 1.0, reflecting more efficient waste removal and mining operations. Despite a modest 2% dip in head grade to 0.86 grams per tonne, Kiniero’s cost control remained strong, with all-in sustaining costs (AISC) at US$1,254 per ounce, albeit up 13% from the March quarter due to the normalization of mining costs following the processing of pre-mining stockpiles.
Nampala Maintains Steady Output Amid Increased Stripping
The Nampala gold mine in Mali contributed a steady 9,774 ounces during the quarter, slightly down 2% from the prior period but maintaining consistent operational metrics. Ore mined fell 31% to 454,188 tonnes, with a corresponding rise in the stripping ratio to 4.4 as waste movement was prioritized to access future ore zones. Processing throughput remained stable at just under 500,000 tonnes, with head grade steady at 0.71 grams per tonne and gold recovery marginally improved to 86.5%. However, AISC increased 16% to US$1,974 per ounce, driven by higher sustaining capital expenditure and intensified stripping activity.
Bankan Project Advances Toward Construction
On the development front, Predictive Discovery made significant strides at the Bankan Gold Project, one of West Africa’s largest undeveloped gold assets. The company completed front-end engineering design (FEED) for the process plant and commenced detailed design in July 2026. Major contracts were awarded for critical infrastructure, including a 40MW power station to Hyundai Heavy Industries, grinding mills to NCP International, and tailings storage facility design to Knight Piésold.
Procurement is progressing with 23 long-lead mechanical equipment packages tendered and eight under evaluation. The company is also advancing environmental and social initiatives alongside technical workstreams, aiming to maintain the US$463 million capital cost estimate from the Definitive Feasibility Study with ongoing efforts to reduce upfront capital requirements.
Regulatory Update and Merger Tax Settlement
Predictive Discovery is navigating new regulatory terrain in Guinea following a government decree mandating domestic refining of gold to a minimum purity of 95.5% before export, effective after a 90-day transition ending 6 October 2026. The company has shipped approximately 33,838 ounces post-decree, generating provisional receipts of about US$135.7 million, and does not anticipate material impacts on its 2026 production guidance. It is actively exploring options including on-site refining to comply with the new rules.
Additionally, the company agreed to pay US$13.8 million in capital gains taxes and duties related to its April 2026 merger with Robex Resources. This settlement provides fiscal certainty, with no further tax claims expected in Guinea arising from the transaction or subsequent reorganisation.
Financial Strength and Strategic Moves
At quarter-end, Predictive Discovery held US$364.3 million in cash and bullion, including US$80 million in restricted cash and 22,444 ounces of gold bullion. Operating cash margin was robust at US$112 million despite merger-related and royalty buyback costs totaling US$45 million. The company maintains a disciplined capital allocation approach, balancing operational cash flow with investment in exploration and development.
Exploration efforts continued to focus on resource growth near existing mines, with over 11,500 meters drilled at Kiniero and 4,277 meters at Nampala in the quarter. Notably, PDI made a US$10 million strategic investment for an 11.8% stake in Awalé Resources, gaining exposure to the Odienné gold-copper district in Côte d'Ivoire, further diversifying its portfolio.
Corporate governance updates included a change in auditor to Grant Thornton Audit Pty Ltd and a proposed company name change to “PDI Gold Limited,” alongside a planned 5-for-1 capital consolidation to optimize the share structure.
Bottom Line?
Predictive Discovery’s operational momentum at Kiniero and steady cash generation set a solid foundation, but the evolving Guinea refining mandate and Bankan’s capital execution will be critical to watch in the coming quarters.
Questions in the middle?
- How will the new Guinea refining decree affect PDI’s export logistics and costs beyond the transition period?
- What are the risks and potential cost pressures as Bankan moves from design to construction?
- Can PDI sustain Kiniero’s throughput above nameplate capacity while maintaining or reducing AISC?