Kantra Copper builds momentum with stronger cash flow and two growth projects

Production growth pushes quarterly cash flow higher

Kantra Copper Limited (ASX:KAN) has extended its run of operational improvement, producing 3,419 tonnes of copper in the September quarter, up 7.8% from the June quarter and marking the fifth consecutive quarter of production growth. Net group cash flow climbed 71.6% quarter-on-quarter to $14.2 million, while cash increased by $11.9 million to $44.1 million at quarter-end.

Revenue rose 14.8% to $73.2 million, helped by higher payable copper sales and a stronger realised copper price of A$18,096 a tonne. Operating mine cash flow reached $32.1 million, lifting the margin to 43.8%. The figures are unaudited, and the quarter also benefited from the timing of concentrate sales, with receivables increasing to $8.6 million and 472 tonnes of copper concentrate held at quarter-end.

Costs remain within guidance despite higher fuel prices

All-in sustaining cost fell to A$5.44 a pound of payable copper sold from A$5.76/lb in the June quarter. Year-to-date AISC stood at A$5.78/lb, near the lower end of Kantra’s A$5.75 to A$6.25/lb 2026 guidance range. Higher throughput and improved fixed-cost absorption more than offset increased fuel costs and government royalties.

Kantra has revised 2026 major capital expenditure guidance to A$15 million to A$17 million, incorporating Emily Star development and Coburn pre-feasibility work. The company spent A$4.9 million on major capital during the quarter, including A$2.2 million on Emily Star, A$1.8 million on the Kavanagh North exploration drive and A$0.6 million on Coburn.

Emily Star adds a funded underground growth front

Surface portal construction for Emily Star began during the quarter after the board approved the project as Kanmantoo’s third underground mining front. Kantra estimates remaining capital requirements at A$20 million to A$22 million, in addition to A$2.9 million already spent, and expects stoping to begin in the second half of 2027. The project will proceed under the existing environmental approval, with an update scheduled for submission later this year.

The growth program is also drawing on a substantial drilling database. Kantra’s 2026 Mineral Resources and Ore Reserves update incorporates 82,756 metres drilled across the operation and was scheduled for release by the end of October. Underground work included 14,597 metres during the quarter, while the Kavanagh North exploration drive advanced 118 metres and brought forward planned drilling to December.

Coburn metallurgy removes a key project question

Kantra’s Coburn copper project, formerly known as Mutooroo, is progressing through its pre-feasibility study with a central technical hurdle now better defined. Subsequent to quarter-end, testing found copper recoveries above 90% and gold recoveries above 50% using the existing Kanmantoo processing flowsheet and reagent suite. The result follows the Coburn metallurgy results, which reported the same recovery thresholds and identified rail logistics and deposit variability as remaining issues.

The study is also examining rail logistics, operating costs and an initial drilling program of about 1,000 metres across six to eight holes. Kantra says an airborne survey has been completed to support environmental baseline studies, while stakeholder engagement continues. The company remains subject to its staged farm-in agreement with Havilah Resources.

New hedge book changes the cash-flow profile

Kantra closed its remaining 850 tonnes of copper hedges with Freepoint at an average A$14,707/t, which adversely affected quarterly revenue and cash flow. It then established a new program with Commonwealth Bank of Australia covering 3,600 tonnes of forecast payable copper production through August 2027 at an average fixed price of A$20,046/t; 3,600 tonnes remained hedged at an average A$20,099/t at quarter-end.

The new arrangement is intended to provide greater cash-flow certainty while leaving most forecast production exposed to prevailing copper prices. That balance will become more visible in the December quarter, when production, realised pricing and the hedge book can be assessed together.