Group 6 Metals Advances Underground Mining After Record Tungsten Output

Operational Milestones and Production Performance

Group 6 Metals has marked a significant operational milestone by completing the final stages of open cut mining at its Dolphin Tungsten Mine. The company mined a modest 6kt of ore and 1.5kt of waste during the quarter, shifting its focus to processing the accumulated stockpiles, which total 556kt at an average grade of 0.42% WO3. This stockpile processing is expected to continue for the next 12 months, providing a steady feed for the processing plant while preparations for the underground mining phase advance.

Despite early disruptions in July and August due to processing plant component failures, the company successfully addressed these issues through targeted repairs and replacements. This led to a rebound in September, where tungsten production hit a record monthly output of 8,305 MTU, matching the previous high set in June. Quarterly tungsten production totaled 17,293 MTU, slightly below the prior quarter but demonstrating strong momentum heading into the next period.

Financial Position and Capital Management

On the financial front, Group 6 Metals ended the quarter with $2.2 million in cash and access to $2 million in available debt facilities. The company secured a $3 million bridging debt facility from key lenders including Chrysalis Investments, Abex Limited, and Elphinstone Holdings, drawing $1 million by quarter-end and an additional $500k shortly after. These funds come with a 12% interest rate and mature in April 2027, providing crucial liquidity as the company transitions to underground mining.

Additionally, shareholders approved a 100 – 1 share consolidation aimed at simplifying the capital structure, reducing share price volatility, and enhancing appeal to institutional investors. This move is expected to support the company’s long-term growth prospects and facilitate its reinstatement on the ASX, a process that remains ongoing but is progressing steadily.

Strategic Outlook and Market Context

Group 6 Metals is operating against a backdrop of rising tungsten prices, driven by global supply constraints and geopolitical factors, notably restrictions on Chinese production and exports. The recent United States-Australia Framework for Securing Supply of Critical Minerals further bolsters the company’s strategic position, highlighting the Dolphin Tungsten Mine as a key Western source of this critical metal.

Looking ahead, the company is advancing detailed planning for the underground mining phase, leveraging a historical decline shaft intersected during open cut operations to reduce development costs. Concurrently, ongoing processing plant upgrades and ore sorting trials aim to improve throughput and metal recovery, potentially unlocking further operational efficiencies.

Executive Chairman Kevin Pallas expressed cautious optimism, noting the positive impact of the Recapitalisation Plan and business improvements on recent performance. While acknowledging the inherent risks in mining projects, he emphasized growing confidence in the company’s trajectory as it enters this new phase of development.