Beacon starts Jaurdi upgrade early as gold production accelerates

Jaurdi production climbs as throughput improves

Beacon Minerals Limited (ASX:BCN) produced 6,250 ounces of gold at its Jaurdi Gold Project in the September 2026 quarter, a 19% increase on the 5,241 ounces reported for June. The operation milled 265,877 dry tonnes at an 86.1% recovery rate, with throughput running at an annualised rate above 1.05 million tonnes.

The stronger quarter also translated into higher sales. Beacon reported 8,300 ounces sold at an average price of $5,998 an ounce, generating reported sales receipts of $49.78 million. At the end of September, 1,635 ounces were in transit and another 1,546 ounces were held in the company’s Perth Mint metal account, meaning not all reported production had yet been converted into completed sales.

Plant upgrade enters wet commissioning

Wet commissioning of the Jaurdi plant upgrade began on 13 October, ahead of the previously indicated schedule. Beacon said the upgrade is expected to have a positive effect on December-quarter production, although the company has not provided a separate quantified uplift attributable to the project.

The upgrade was previously described as an $11.5 million mill project in coverage of Beacon’s FY2026 results, when commissioning had been scheduled for November. The start of wet commissioning is therefore the next practical test for the project, with operating performance more important than the schedule milestone itself.

Iguana ore returns to the mill blend

Milling of Iguana ore at the Lady Ida operation recommenced on 1 July, while Geko ore made up 5% of the mill feed blend. Beacon said 5,893 ounces of the quarter’s reported production were attributable to the Lady Ida joint venture under the earn-in and joint venture agreement, with the remaining 357 ounces coming from low-grade Geko stockpiles and credited to Beacon’s metal account.

The company’s December-quarter production guidance is 5,500 to 6,500 ounces. That range brackets the September result, so the immediate question is whether the upgraded plant can lift throughput or recovery without creating a more uneven operating profile during commissioning.

Shareholder returns reduce the cash balance

Beacon entered the quarter with a substantial shareholder-return program. It paid a fully franked cash dividend of $0.10 per share, totalling $11.63 million, on 21 July, and distributed 36 million Forrestania Resources shares in an in-specie dividend on 14 August. The company valued the combined dividends at $25.85 million when declared.

Cash on hand stood at $27.69 million at 30 September, alongside $0.20 million held at the joint venture level. Beacon also raised $1.76 million through the exercise of 1,467,600 listed options during the quarter. Those figures provide useful balance-sheet context as the plant upgrade moves from construction into commissioning, particularly because the filing does not disclose upgrade spending incurred during the September quarter.