Theta Gold’s TGME plant reaches 72% as first gold target moves into view

TGME plant passes the 70% construction mark

The physical build at Theta Gold Mines’ (ASX:TGM) TGME Gold Project is moving into its more consequential phase, with approximately 72% of plant construction complete at 30 September. Twin ball mills have been installed, structural steel erection is nearing completion around the gold room and mill building, and civil works have advanced across the crushing, milling, carbon-in-leach, thickener and elution circuits.

“Installation of Twin Ball Mills”

“Installation of conveyors to feed ball mills Figure 8: Team observation of conveyors.”

Caption and image © Theta Gold Mines Limited. From “Quarterly Activities & Cashflow Report - 30 September 2026”, 30 Oct 2026.

The progress marks a shift from foundations towards equipment installation and commissioning preparation. More than 72% of the total concrete volume has been poured, while conveyors, process vessels, water infrastructure, roads and process ponds have advanced in parallel. The company’s earlier TGME construction milestones had identified structural steel, concrete and tailings works as key fronts; the latest update shows those fronts continuing to move towards an operating plant.

Debt funding begins to reach the construction site

The quarter also converted financing commitments into project cash. Theta completed its first US$37 million drawdown from the US$90 million senior secured bond facility on 9 September, after completing a US$18.6 million equity raising and option exercise that satisfied the final equity condition attached to the debt.

At quarter end, the group held US$37.7 million in cash and reported US$52.989 million of unused bond funding. A further drawdown is anticipated in early November, subject to applicable conditions including cost-to-complete tests. The facility carries a fixed 12.75% coupon and has a four-year term, making the pace and cost of construction spending important as Theta moves towards commissioning. The funding package had been established in the US$90 million bond issue, but the latest quarter is the first period in which the company reports primary debt being deployed into execution.

Rietfontein licence closes one permitting gap

The company secured a 15-year Water Use Licence for Rietfontein during the quarter, completing water-use licence coverage across all four mines included in the TGME development plan. The approval covers underground dewatering and water reuse, storage, stream crossings, pollution-control infrastructure and rehabilitation of the historic tailings facility following remining.

That approval is subject to a statutory 90-day appeal period. Separately, the Department of Mineral and Petroleum Resources remains in the final stages of reviewing the Environmental Authorisation application for the Rietfontein Underground Mine. The licence therefore removes one permitting hurdle, but does not by itself complete the regulatory pathway for that mine.

Q1 2027 production target still depends on execution

“Gold Production profile”

The immediate schedule calls for crushing and screening equipment to arrive in South Africa in early fourth quarter 2026, followed by continued mechanical installation and commissioning work ahead of planned first gold in Q1 2027. Theta says non-critical works have been deferred to keep critical activities available for installation and the production timetable.

The company’s February feasibility study outlines a base case of 871,000 ounces recovered over a 13.1-year mine life, but that scenario includes Inferred Mineral Resources and remains a production target rather than an assured outcome. The next tests are practical rather than promotional: whether the remaining plant packages arrive on schedule, whether the next bond drawdown is released, and whether construction can transition into commissioning without a material cost or timing setback.