Wiluna Mining has emerged from a disrupted September quarter with a $180 million IPO, no secured debt and a renewed exploration program. The transformation came after a CIL tank rupture halted processing, drove 91 redundancies and left the company with $18.7 million in cash at quarter end.
- $180 million IPO completed after quarter end and $40 million Byrnecut debt repaid
- CIL tank rupture halted processing and tailings retreatment
- 1,868 ounces produced before operations stopped, with $12.3 million in bullion sales
- 91 site and corporate positions made redundant
- Resource definition and exploration drilling now underpin the potential restart plan
IPO clears Wiluna’s secured debt
Wiluna Mining Corporation Limited (ASX:WMC) has reset its balance sheet, but not yet its operating business. The company completed its $180 million IPO after the September quarter, re-listed on the ASX on 22 October and used the proceeds to repay the remaining $40 million Byrnecut secured loan in full. It now describes itself as debt free, a significant change from the $40 million balance still outstanding at quarter end.
The capital reset was the culmination of the company’s $180 million IPO, which had been presented as funding for a potential mine restart after processing revenue stopped. The IPO was priced at A$0.65 a share, while the company’s quarter-end cash balance had fallen to $18.7 million from $46.5 million three months earlier.
CIL tank rupture ends near-term processing
The immediate problem remains operational. A CIL tank ruptured on 25 July, spilling slurry into the plant containment bund and processing area. Wiluna said the spill was contained, with no injuries or impact on the adjacent environment, but processing operations were suspended and the company later decided not to spend the capital needed to reinstate the tank.
That decision ended surface processing, tailings retreatment and the anticipated start of third-party toll treatment. Before the rupture, Wiluna processed 185,529 dry tonnes of tailings and produced 1,868 ounces of gold at a 33.9% recovery rate. It sold 2,116 ounces for $12.3 million during the quarter, but operating cash flow was negative $21.3 million, partly reflecting clean-up costs and redundancy payments.
Exploration becomes the bridge to a restart
With near-term production suspended, Wiluna is concentrating on drilling and underground infrastructure. A 7,679-metre, 42-hole grade control program at Golden Age was completed during the quarter, with results expected in the December quarter. The company also began resource definition drilling at Happy Jack Lower in October, targeting roughly 45% of the existing 3.5 million-ounce Inferred underground resource.
Surface RC drilling started in October across the Wiluna Northwest area, including Adelaide, Squib, Starlight, Moonlight and Lone Hand. Regional drilling is expected to begin in the first quarter of calendar 2027. The company is also installing a Golden Age underground substation, replacing pumps on the 1205 Level and planning a power upgrade for Happy Jack North. Its wider restart ambition follows the $40 million debt repayment, which left the company without secured borrowings.
Workforce cuts and unresolved compliance matters
The operational suspension carried a substantial human and financial cost: 91 site-based and corporate positions were made redundant. Wiluna is also planning the removal of the failed CIL Tank 4 and is working through an Improvement Notice covering other redundant plant, with the equipment to be considered as part of its broader process rationalisation.
Legal uncertainty remains separate from the restart program. There were no updates to the ASIC proceeding during the quarter, while a Supreme Court of Western Australia matter brought by former executive chair Milan Jerkovic is scheduled for a final hearing on 23 November. No restart date or production guidance was provided in the quarter report, leaving drilling results, plant plans and cash use as the next practical tests of the IPO-funded strategy.
Bottom Line?
Wiluna has bought itself time and removed secured debt, but the investment case now turns on whether drilling can convert a restart plan into a workable operating model before the new capital is consumed.
Questions in the middle?
- How quickly will Golden Age and Happy Jack drilling produce resource data that can support a restart decision?
- What capital and engineering work will be required before processing or toll treatment can resume?
- How will Wiluna manage cash burn, regulatory obligations and unresolved legal matters while generating no processing revenue?