Admiralty Resources increased quarterly iron ore concentrate production at its Mariposa project by 32% to 41,792 tonnes, even as adverse weather suspended mining. The result relied on stockpiled ore while the processing plant remained in commissioning and the company carried A$9.66 million of drawn debt facilities.
- 41,792 tonnes of concentrate produced, up 32% quarter on quarter
- Mining suspended by adverse weather, with processing fed from stockpiles
- 50,071 dry metric tonnes delivered to CMP after quarter end
- A$1.104 million cash at quarter end, against A$9.660 million drawn facilities
- Environmental statement planned for expansion to 160,000 tonnes per month
Mariposa production rises on stockpiled ore
Admiralty Resources NL (ASX:ADY) lifted quarterly iron ore concentrate production at its Mariposa project to 41,792 tonnes, a 32% increase on the previous quarter, despite weather forcing a suspension of mining during the September quarter. The processing plant continued running on ore stockpiled over the mine’s operating life, producing concentrate at an average grade of 65% Fe.
Total ore processed reached 90,587 tonnes, up 12.5% from the prior quarter. Monthly concentrate output was 11,608 tonnes in July, 16,912 tonnes in August and 13,272 tonnes in September. The company subsequently delivered 50,071 dry metric tonnes of 66% FeT concentrate to Compañía Minera del Pacífico on 7 October, covering deliveries made across August, September and October.
The operating improvement comes as Mariposa moves beyond the pre-production phase covered in the company’s Mariposa pre-production push, but the quarter also exposes the distinction between processing capacity and mine continuity: production was sustained, while mining itself was not. Admiralty plans blasting and waste-rock removal in October, alongside further work at the Soberana and La Chulula iron ore areas.
Commissioning and expansion remain unfinished
Mariposa’s processing plant remains in commissioning and optimisation, with new equipment being tested and adjusted to improve stability and capacity. Management expects the equipment to be operating properly by the end of 2026, after which it expects monthly processing volumes to increase significantly. A planned modification to the fine ore bin and installation of air cannons will require a one-week production shutdown.
Admiralty is also advancing a proposed expansion to 160,000 tonnes of iron concentrate per month. Environmental consultants have been engaged to prepare a Declaración de Impacto Ambiental, with submission expected within the next 12 months. Separately, the company’s one-million-tonne expansion plan includes completed thickener and tower mill work, while the tailings filter press and conveying pipeline remain in progress. A request for industrial water supply is still under review after changes to the proposed pipeline route.
The infrastructure build follows the Mariposa grid transmission line, which had been commissioned earlier in the year to provide direct grid power. The latest filing does not disclose the capital requirement for the planned expansion or give a sales price for the concentrate delivered to CMP, leaving the economics of the ramp-up only partly visible.
Cash improves, but debt remains substantial
Cash and cash equivalents rose to A$1.104 million at quarter end from A$327,000 three months earlier. Admiralty reported net operating cash inflow of A$369,000, helped by A$651,000 in customer receipts and a A$467,000 VAT refund, while financing activities added A$398,000 through A$462,000 of new borrowings partly offset by A$64,000 of repayments.
That stronger cash balance should not be confused with a debt-light position. The company had A$10.338 million of financing facilities at quarter end, with A$9.660 million drawn and A$678,000 unused. The Smart East Global convertible loan facility carries a 12% annual interest rate and is due to mature on 31 December 2026; an unsecured Shanghai Long Sheng facility also matures on that date. The report records no exploration or development payments during the quarter, while production payments were A$207,000 and corporate and administrative costs were A$414,000.
Drilling targets resource upgrade
Admiralty completed 1,059 metres of drilling across the Soberana Iron Ore District and Kuojin Copper District, with results under review by qualified person Sergio Alvarado. Mariposa’s JORC 2012 mineral resource remains unchanged at 105.6 million tonnes, including measured, indicated and inferred material, while estimated ore reserves remain 36.3 million tonnes containing approximately 14 million tonnes of 65% Fe concentrate.
The company says an infill drilling campaign is intended to upgrade inferred resources to measured and indicated categories during the second half of 2026. That work, however, is separate from the immediate operating test: whether Mariposa can keep mining, processing and shipping consistently once stockpiles are no longer doing the heavy lifting.
Bottom Line?
The quarter shows real production progress, but the next test is sustained mined supply, completed commissioning and a credible funding path for expansion before debt maturities arrive.
Questions in the middle?
- Can Mariposa maintain concentrate output once adverse-weather disruption ends and stockpile reliance reduces?
- Will the processing plant achieve stable performance by year-end without further material shutdowns?
- How will Admiralty fund the planned capacity expansion while A$9.66 million of facilities remain drawn and key loans mature in December 2026?