Tempest Minerals has reported a $4.62 million FY2026 loss after impairing $3.28 million of exploration assets, while cash fell to $969,693. The company retains exposure to Range gold drilling, the Remorse iron deposit and a $3.08 million Capricorn Metals shareholding, but says further funding will be needed to sustain exploration.
- $4.62 million FY2026 loss, up from $1.57 million
- $3.28 million impairment charge against exploration assets
- Cash fell to $969,693 while listed investments reached $3.08 million
- Range gold mineralisation extended across a 1.5 kilometre strike
- Remorse option remains conditional on mining lease and green steel milestones
Exploration Impairments Drive Larger Annual Loss
Tempest Minerals Limited (ASX:TEM) has reported a $4.62 million loss for the year ended 30 June 2026, almost three times the $1.57 million loss recorded a year earlier. The principal drag was a $3.28 million impairment of exploration expenditure, including costs associated with the Yalgoo tenements sold during the year and relinquished ground from the prior period.
That accounting charge reduced the carrying value of Tempest’s exploration and evaluation assets from $9.92 million to $2.94 million. Exploration and evaluation spending itself fell to $896,236 from $2.15 million, reflecting a portfolio that has been narrowed through disposals and withdrawals while capital is directed towards the company’s remaining projects.
Yalgoo Sale Leaves Cash and Capricorn Exposure
The Yalgoo gold tenement sale to Capricorn Metals Limited (ASX:CMM) delivered $500,000 in cash and 294,811 Capricorn shares, with the share component valued at $4 million at completion. Tempest sold 50,811 of those shares during the year for $699,004 and held 244,000 shares valued at $3.08 million at 30 June.
The transaction has materially changed Tempest’s balance sheet, but it has not removed the funding pressure typical of an exploration company. Cash declined from $1.78 million to $969,693, while operating activities consumed $1.26 million. Management said the going-concern assessment relies on its cash-flow forecast and the commercial realisation of assets, including the listed investments. The report also states that additional funding will be required to continue exploration and potentially progress projects into development.
Range Drilling Produces Shallow Gold Intersections
At the Range Project near Mt Magnet, Tempest completed about 1,500 metres of reverse-circulation drilling across 19 holes. The programme returned intersections including 3 metres at 3.2 grams per tonne gold from 58 metres, with a 1-metre interval at 5.9 grams per tonne, alongside further results of 3 metres at 1.9 grams per tonne and 2 metres at 1.2 grams per tonne.
Tempest says gold-bearing mineralisation has now been intersected over a 1.5 kilometre strike length and remains open along strike and down plunge. The results sit beside existing open-pit operations, but they remain exploration results rather than a mineral resource or an economic assessment. Follow-up drilling and assays will need to establish whether the continuity suggested by the early programme can be converted into something more substantial.
Remorse Resource Unchanged as GISA Option Awaits Conditions
Tempest continues to report an inferred JORC resource at the Remorse magnetite deposit of 63.5 million tonnes grading 30.6% iron at a 28% cut-off. No reserves have been calculated, and the company reported no change to the resource during the year.
The proposed share-based transaction with Green Steel & Iron Pty Ltd remains conditional. GISA has until 31 December 2026 to satisfy conditions including the grant of a mining lease over Remorse on acceptable terms and securing a site for a green steel facility, after which it has 90 days to exercise the option. Tempest also retains rights connected to the arrangement, including a potential reacquisition if key outcomes such as a successful IPO are not achieved within the specified period.
Portfolio Rationalisation Brings Fewer Active Bets
During the year, Tempest withdrew from the Elephant Project joint venture and terminated a proposed $2 million scrip acquisition of Zealandia Resources’ New Zealand gold portfolio after due diligence. The company retains the Five Wheels base-metals project in the Earaheedy region, along with its Range, Remorse and Halo interests in Western Australia.
The financial report presents a company with valuable assets on paper but limited cash generation. Its exploration commitments total $4.86 million, including $488,080 due within one year, while the Capricorn holding is exposed to market movements. The next test is therefore not simply whether Tempest can produce another encouraging drill result, but whether it can fund the work needed to turn those results and retained project interests into durable value.
Bottom Line?
Tempest has created liquidity through the Yalgoo sale, but the runway remains dependent on asset realisations, future funding and exploration results that are still too early to support development conclusions.
Questions in the middle?
- Can Range follow-up drilling demonstrate continuity and scale beyond the reported shallow intersections?
- Will GISA satisfy the mining lease and green steel site conditions before the Remorse option deadline?
- How long can the company fund exploration with $969,693 in cash and a portfolio of $4.86 million in exploration commitments?