Group 6 Metals has posted a dramatic FY26 turnaround, with revenue reaching $129.0 million and net profit after tax rising to $148.2 million. The stronger balance sheet now faces its next test: converting stockpile-fed production and newly started underground mining into repeatable cash generation.
- Revenue climbed 508.5% to $129.0 million
- Net profit after tax reached $148.2 million
- Cash rose to $49.3 million while borrowings fell to $21.2 million
- Underground mining began at Dolphin in June
- FY27 hinges on higher grades, plant productivity and tungsten pricing
Revenue and profit move sharply higher
Group 6 Metals Limited (ASX:G6M) has turned a $32.1 million FY25 loss into a reported $148.2 million net profit for FY26, as the Dolphin Tungsten Mine moved from commissioning and stabilisation toward commercial-scale output. Revenue rose 508.5% to $129.0 million, while gross profit reached $85.7 million from a prior-year loss of $8.5 million.
The headline result is substantial, but it is not a clean measure of operating performance. G6M said reported net profit included non-cash effects from its recapitalisation, warrant arrangements and the reversal of a prior impairment, alongside stronger realised tungsten pricing and higher concentrate sales volumes. The presentation also states that financial and operational figures are unaudited unless otherwise noted.
Operations supplied the underlying lift. Dolphin processed 272,421 tonnes during the year at an average feed grade of 0.57% WO₃, producing 88,911 MTU of tungsten and selling 92,964 MTU. Plant remediation across crushing, screening, grinding, gravity separation and concentrate handling helped improve availability and recovery, according to the company.
Recapitalisation leaves a stronger balance sheet
G6M ended June with $49.3 million in cash, up from $7.6 million, while total borrowings declined 19.4% to $21.2 million. Net assets swung from a negative $5.1 million to $155.1 million, with the company attributing the balance-sheet reset to its recapitalisation and related accounting effects. Total assets rose to $209.3 million, including $90.8 million of property, plant and equipment.
That financial repair gives Dolphin more room to fund the next operating phase, but the ownership structure is tightly held. Six substantial holders controlled 94.7% of issued capital as at 7 September, with Christopher Ellis and Elphinstone Holdings together holding 48.7%. Such concentration can support aligned decision-making, while also leaving a relatively small portion of the register outside the largest holders.
Underground transition becomes the FY27 test
Open-cut mining in the current sequence was completed in the first quarter, leaving a 295,000-tonne stockpile grading 0.26% WO₃ to feed the plant into FY27. Feed grades eased during FY26 as lower-grade stockpiles were processed, and G6M expects blending with fresh underground ore to lift the average grade during the December 2026 quarter. The Dolphin Reserve grade is stated as 0.92% WO₃.
Underground activity began at the end of June under a contract with HMR Drilling. G6M expects access to higher-grade ore to improve the production profile and operating margins, but those outcomes remain forward-looking. Ore sorting, fine tungsten recovery and power-generation initiatives are also being advanced as potential ways to reduce unit costs.
The company is benefiting from stronger APT tungsten pricing, which it says reflected tightening supply, Chinese production and export restrictions, and demand from defence, mining, energy and technology sectors. That market support helped lift realised offtake revenue in FY26, but it also leaves the earnings trajectory exposed to the price environment as the mine moves from stockpile processing to underground production.
Bottom Line?
The recapitalisation has bought G6M financial breathing room; the decisive evidence will come from FY27 grades, underground development, unit costs and cash flow rather than the headline profit alone.
Questions in the middle?
- Can underground ore lift head grade and production consistently from the December 2026 quarter?
- Will plant remediation and recovery initiatives reduce unit costs as stockpile feed gives way to underground ore?
- How much of FY27 earnings can be sustained if tungsten APT prices weaken?