Kiniéro keeps PDI Gold on track despite Nampala setback

Kiniéro carries a stronger cash-generating quarter

PDI Gold Limited (ASX:PDI, TSX:PDI) delivered a mixed but cash-rich September quarter, with its newer Kiniéro operation in Guinea offsetting weaker performance at Nampala in Mali. Group gold poured fell 17% from the June quarter to 52,865 ounces, but sales jumped 37% to 66,928 ounces as bullion produced in the prior quarter was shipped. Revenue rose 30% to US$282.9 million, while cash and bullion increased 11% to US$404.6 million.

The result generated a US$176 million cash margin from operations, based on US$284 million in customer receipts less US$108 million in operating costs. PDI Gold said it remained on track for 2026 group production of 198,000-220,000 ounces, relying on continued performance at Kiniéro and initiatives intended to improve Nampala.

Kiniéro maintains throughput despite lower grades

Kiniéro poured 45,599 ounces during the quarter, down 16% from June, but milled 2.281 million tonnes, up 3%, at an average throughput of 1,095 tonnes per hour. Recovery eased to 88.3% from 90.5%, while head grade fell 20% to 0.69 grams per tonne as lower-grade stockpiled material supplemented mined ore during the wet season.

Even with those operating pressures, Kiniéro’s AISC was broadly stable at US$1,246 an ounce. Gold sales rose 59% to 61,149 ounces, lifting revenue from the mine 51% to US$258.1 million. Exploration also remained active, with 128 holes drilled for 21,122 metres during the quarter as the company pursued near-mine oxide resources and deeper hard-rock extensions, building on its Kiniéro drilling campaign.

Nampala cutback leaves costs exposed

Nampala was the clear weak point. Production fell 26% to 7,266 ounces and sales dropped 45% to 5,779 ounces, with lower ore availability following ongoing cutback work. Ore mined fell 43%, milled tonnes declined 16% and head grade slipped to 0.63 grams per tonne. A 2,712-ounce shipment was deferred into early October, further distorting the quarter’s sales and unit-cost figures.

Nampala’s AISC rose 48% to US$2,914 an ounce, well above the group’s US$1,390 an ounce. PDI Gold attributed the increase primarily to shipment timing, but also pointed to lower throughput, lower grade and increased stripping activity. Recovery improved marginally to 87%, suggesting the immediate issue was ore access and operating scale rather than plant recovery.

Bankan procurement advances while execution risks remain

At the Bankan Gold Project in Guinea, detailed process-plant engineering was approximately 20% complete and remains scheduled for completion in the second quarter of 2027. Mechanical equipment procurement was substantially complete, with US$18 million paid towards the Ball/SAG mills and power station. First mill deliveries are expected in December 2026, while the first power-station delivery is scheduled for the second quarter of 2027.

The project is becoming more tangible on the ground, but it remains a capital-intensive development rather than an operating asset. PDI Gold spent US$43 million on capital expenditure during the quarter, including the Bankan equipment payments, Kiniéro capital works and exploration. The company’s earlier Bankan permit test remains relevant to the project’s eventual execution, alongside construction, funding, approvals and delivery risks identified in the filing.

Balance sheet provides room for the next phase

PDI Gold finished September with US$365 million in cash and 9,464 ounces of bullion, valued at US$39.5 million, while debt remained US$130 million under the Sprott senior secured facility. The group also reported US$81.5 million of restricted cash. Financing outflows included US$18 million in interest and gold-price participation payments, highlighting the cost of carrying the facility as Bankan development accelerates.

Safety and permitting add less comfortable edges to an otherwise strong quarter. Three recordable injuries lifted the rolling 12-month Total Recordable Injury Frequency Rate from 1.8 to 2.0, although Kiniéro passed 9.1 million hours and Nampala 2.7 million hours without a lost-time injury. With one quarter left in 2026, the immediate test is whether Nampala’s cutback delivers the promised recovery without eroding the cash advantage created by Kiniéro.