Emerald Resources (ASX: EMR) has provided a production update for the March 2025 quarter, with gold output from the Okvau Gold Mine expected to be around 20,000 ounces—slightly below initial guidance.
Why the Lower Production?
Several operational challenges affected production this quarter, including:
- Restricted access to key areas due to earthworks and waste movements related to ongoing cutback activities.
- Limited ore availability in the later part of the quarter.
- Unexpected underperformance in certain pit areas compared to reserve expectations.
Despite these temporary setbacks, All-In Sustaining Costs (AISC) for the quarter are expected to be within 20% of guidance.
What’s Next? Updated Production and Cost Outlook
Emerald Resources expects a strong recovery over the next three quarters, with production forecasted at the upper end of guidance:
- June 2025 Quarter: 25Koz – 30Koz at AISC of US$900 – US$1,000/oz
- September 2025 Quarter: 25Koz – 30Koz at AISC of US$900 – US$1,000/oz
- FY25 Full-Year Guidance: 105Koz – 115Koz at AISC of US$900 – US$1,000/oz
- FY26 Outlook: 110Koz – 125Koz, with AISC aligned to the life-of-mine estimate of US$966/oz
Long-Term Growth Remains on Track
While cutback activities have temporarily impacted production, they are essential for extending the open-pit mine life and laying the groundwork for early underground access. Forward-looking grade control suggests that the lower-than-expected reserve performance this quarter is an isolated issue rather than a trend, and plant recovery remains strong at ~85%, despite a lower processed head grade.
Emerald remains confident in its long-term outlook, with higher production expected in the coming quarters as mining operations move into more favorable areas.
