Kingsgate Builds Cash Reserves Amid Steady Gold Output in Q2 FY26
Kingsgate Consolidated has reported a solid second quarter with over 20,000 ounces of gold produced, boosting cash and bullion holdings by 56%. The company maintains its FY26 guidance while reshaping its A Pit for future gains.
- Fourth consecutive quarter exceeding 20,000 ounces of gold production
- Total half-year production, 44,879 ounces gold, 363,382 ounces silver
- Cash, bullion, and doré holdings surged to A$179 million, up 56% from prior quarter
- FY26 production guidance maintained despite ongoing A Pit reshaping
- Recent refinancing deal executed to support financial flexibility
Consistent Production Performance
Kingsgate Consolidated Limited has delivered another quarter of robust gold and silver output, producing 20,957 ounces of gold and 157,542 ounces of silver in the December 2025 quarter. This marks the fourth consecutive quarter where gold production has surpassed 20,000 ounces, underscoring operational stability amid ongoing mine development activities.
For the first half of fiscal year 2026, Kingsgate has accumulated 44,879 ounces of gold and 363,382 ounces of silver, positioning the company well within its annual production targets. The steady output reflects the company’s ability to maintain momentum even as it undertakes significant reshaping of the A Pit, a key area for future optimisation.
Strong Cash Position and Financial Strategy
Alongside production results, Kingsgate reported a substantial increase in its cash, bullion, and doré holdings, which rose approximately 56% quarter-on-quarter to reach A$179 million. This cash build includes restricted cash of A$20 million and proceeds of A$14 million from the exercise of warrants by Nebari, a strategic investor.
The company’s recent refinancing deal, executed in early January 2026, further strengthens its financial position, providing additional liquidity and flexibility to support ongoing operations and development projects. This move signals management’s proactive approach to balancing growth ambitions with prudent financial management.
Outlook and Operational Focus
Managing Director and CEO Jamie Gibson emphasised that the December quarter was expected to be the weakest of the year due to the reshaping work at the A Pit. However, he expressed confidence that the company is on track to deliver a stronger second half, aligning with the midpoint of FY26 production guidance.
Investors and analysts will be keenly awaiting the detailed December 2025 Quarterly Report, scheduled for release later this month, which is expected to provide further insights into operational progress, cost management, and the impact of the A Pit reshaping on future production profiles.
Bottom Line?
Kingsgate’s steady production and strengthened cash reserves set the stage for a potentially stronger second half, but the market will watch closely how A Pit developments translate into future growth.
Questions in the middle?
- What are the detailed terms and implications of the recent refinancing deal?
- How will the reshaping of the A Pit affect production costs and output in FY27?
- Can Kingsgate sustain or improve production levels amid ongoing mine development?
