Dolphin underground ore begins to reshape Group 6 Metals’ tungsten ramp-up

Dolphin reaches another processing record

Group 6 Metals Limited (ASX:G6M) has pushed the Dolphin Tungsten Mine to a new quarterly processing record, handling 81,098 tonnes of ore in the three months to 30 September. The milestone marks continued plant improvement, but it did not translate into higher concentrate production: average feed grade fell to 0.29% WO₃ and output declined to 13,712 MTUs, from 21,297 MTUs in the June quarter.

The lower grade was expected during the transition from stockpile-fed operations to underground mining. Dolphin processed accumulated open-cut ore while the first underground material became available for blending. Ore stockpiles stood at 207,000 tonnes at quarter-end, estimated to contain about 49,000 MTUs of WO₃ at an average grade of 0.24%.

Underground ore starts to change the feed mix

Underground activity made tangible progress during the quarter, with 31,517 tonnes of waste and 5,144 tonnes of ore mined. Development advanced 1,375 metres, slightly ahead of schedule, including rehabilitation, stripping and new development work under the three-year HMR Drilling Services contract. The company said more than 12,000 tonnes grading 0.48% WO₃ had been delivered to the run-of-mine stockpile during October, already exceeding the September quarter’s underground ore total.

That is the operational hinge in the report. The Dolphin underground contract had previously established the three-year mining framework, and the latest figures show the project moving from mobilisation into ore delivery. Group 6 Metals says higher-grade underground material is expected to lift blended feed grades, although the timing and scale of any improvement depend on mining progress, ore availability and plant performance.

Cash generation remains positive despite the transition

The mine generated A$14.7 million in net operating cash flow during the quarter, after A$38.1 million in customer receipts. Capital investment totalled A$9.6 million, comprising A$5.7 million of underground development and A$3.9 million in property, plant and equipment. Cash therefore increased by about A$4.8 million to A$54.1 million, with a further A$2.5 million of unused facilities available.

That balance provides room to fund the current development program and meet remaining loan repayments due on 30 April 2027, according to the company. The debt schedule is not trivial: the Appendix 5B reports A$23.4 million drawn across loan facilities, alongside a mobile equipment facility, with the listed debt arrangements carrying 12% interest where specified. Related-party payments during the quarter included interest, directors’ remuneration and equipment-related purchases, totalling A$587,000 in operating payments and A$11,000 in financing-related payments.

Throughput gains now face the grade test

The quarter’s numbers capture both sides of Dolphin’s transition. Plant throughput rose from 77,953 tonnes in the June quarter to 81,098 tonnes, while WO₃ production fell from 21,297 MTUs to 13,712 MTUs and sales declined to 12,782 MTUs. The company also reported that tungsten markets remained divided, with limited Western processing capacity supporting elevated ammonium paratungstate prices while Chinese domestic prices weakened and buyers kept purchases close to immediate requirements.

Group 6 Metals’ earlier record throughput milestone was built largely on stockpiled ore; the new phase must demonstrate that underground supply can raise grade without undermining plant reliability or cash flow. The next quarterly report should provide a clearer read on whether October’s higher-grade deliveries are becoming a repeatable operating pattern rather than an early snapshot of the ramp-up.