$1.69 million FY26 loss as ACDC prepares 2,500 metre drilling program

Nevada drilling becomes ACDC’s next major test

ACDC Metals Limited (ASX:ADC) is heading into its most consequential exploration test since acquiring the Mount Jackson gold-silver project, with up to 2,500 metres of reverse-circulation drilling planned across roughly 10 holes in Q4 CY2026. The Nevada project has grown from 48 claims covering about 3.6 square kilometres to 164 claims spanning approximately 13.3 square kilometres, giving the company a much larger exploration canvas before its maiden campaign.

Early field results provide encouragement, but not yet a resource estimate. Selective rock-chip samples from the Pegasus Zone returned gold grades of up to 2.35 grams per tonne, while a sample from the previously under-tested 3 Shaft Zone returned 14.9% copper and 0.16 grams per tonne gold. Historical drilling also recorded intervals including 25.91 metres at 1.94 grams per tonne gold in hole PC-34A, although those results pre-date ACDC’s work and do not establish the size or economic viability of a deposit.

Geophysics narrows the initial target set

ACDC completed a 615 line-kilometre airborne magnetic and radiometric survey across the enlarged claim package. The company says the interpretation identified targets near historical workings and drilling, with magnetic features coinciding with known gold, silver and copper mineralisation at Pegasus and 3 Shaft.

Further geophysical work, including an induced polarisation survey under evaluation across the two priority zones, is intended to refine drill locations and test for sulphides. The stated program will therefore move the Mount Jackson story from historical intersections and surface sampling to new company-generated drilling data, where the continuity, thickness and grade of mineralisation can be tested more directly.

Goschen Central secures a longer runway

While Nevada supplies the near-term exploration catalyst, Goschen Central remains ACDC’s flagship development asset. The company received a 10-year Retention Licence over the full former EL5278 area, including its JORC 2012 mineral resource, following work on mineralogy, metallurgy, marketing and a scoping study.

ACDC’s latest mineralogy work found heavier-mineral assemblages were stronger in the higher-grade parts of the deposit. The company plans to assess the fine fraction, test a five per cent wireframe extension and seek conversion of inferred tonnes to indicated material. It has also applied for an additional 9 square kilometres adjoining the retention licence, with that application still progressing.

Loss widens as exploration assets are rationalised

The operational progress came alongside a materially weaker financial result. ACDC reported a net loss of $1.694 million for FY26, compared with $694,477 a year earlier, while earnings per share fell to a loss of 2.17 cents from 0.94 cents. The result included an $806,428 write-off of exploration expenditure on relinquished Douglas and Watchem tenements, as well as $95,226 in pre-exploration acquisition expenses.

Cash increased to $2.454 million at 30 June 2026 from $2.026 million, helped by $1.285 million in share-issue proceeds during the year and a $250,000 insurance receipt linked to a GST matter. The accounts also record a $550,140 liability assessed by the Australian Taxation Office after an external service provider misappropriated funds; insurance reimbursed $250,000, while recovery of the balance remains ongoing. Net assets nevertheless fell to $9.372 million from $10.130 million.

Post-year-end funding adds cash and dilution

After year-end, ACDC issued 19.34 million shares at five cents each under a non-renounceable entitlement offer, raising $967,000 before costs, followed by a further $9,000 from 180,000 shares issued in August. Subscribers received free options exercisable at 7.5 cents, while additional options were issued to placement participants, contractors and the lead manager.

The funding supports the company’s stated exploration and project-development plans, but it also expands the potential equity base. At the date of the directors’ report, ACDC disclosed 120.144 million ordinary shares, alongside a substantial pool of options and performance rights. The balance between Mount Jackson drilling, Goschen optimisation and the company’s pre-pilot rare earth processing technology will determine how quickly that capital is consumed and whether another raise is eventually required.