How Is Rand Mining Expanding Gold Production Amid Rising Costs?
Rand Mining reported steady gold production and promising exploration results in the September 2025 quarter, alongside an improved cash position despite rising operating costs.
- Processed 78,296 tonnes of ore at 2.89 g/t producing 6,818 ounces of gold
- Rand’s attributable gold production was 1,705 ounces for the quarter
- Development progressed at Raleigh and Rubicon-Hornet-Pegasus underground mines
- Hornet open pit mining commenced with increasing ore grades
- Exploration drilling at Sadler and Ambition prospects revealed high-grade intercepts
Steady Production and Ore Processing
Rand Mining Ltd (ASX – RND) has delivered a solid operational update for the September 2025 quarter, processing 78,296 tonnes of ore at an average grade of 2.89 grams per tonne (g/t) through the East Kundana Joint Venture (EKJV) operations. This resulted in the production of 6,818 ounces of gold, with Rand’s 25% share amounting to 1,705 ounces. The ore was processed at the Mungari plant operated by joint venture partner Evolution Mining Limited.
Mining Development Progress
Development activities continued apace at the Raleigh underground mine and the Rubicon-Hornet-Pegasus underground complex. Notably, the Hornet open pit mine commenced production during the quarter, delivering increasing ore tonnages and improving grades, with September’s ore grade reaching 1.34 g/t and gold production of 2,590 ounces. These developments reflect Rand’s ongoing commitment to expanding its mining footprint and enhancing production capacity.
Exploration Highlights at Sadler and Ambition
Exploration drilling focused on the Sadler underground and Ambition prospects within the EKJV. Surface diamond drilling at Sadler intersected mineralised structures consistent with current mining zones, supporting potential resource extensions. Although assay results from Sadler are pending, the geological model remains promising. At Ambition, assay results from previous drilling revealed high-grade gold intercepts, including 0.6 meters at 15.09 g/t and 0.68 meters at 8.31 g/t, indicating a southward-plunging high-grade zone that could represent a new target for future drilling.
Financial Performance and Cash Position
Rand Mining’s financials showed a mixed picture. Cash and cash equivalents increased to $4.53 million by quarter-end, supported by slightly higher receipts from customers driven by improved gold prices. However, operating cash flow declined to $1.18 million from $1.83 million in the previous quarter, impacted by increased development and administration costs. Investing cash outflows reduced due to lower capital expenditure on property, plant, and equipment. The company did not execute any share buy-backs during the quarter.
Outlook and Next Steps
Looking ahead, Rand plans to continue drilling at Sadler to better define resource extensions, with over 1,000 meters of diamond drilling scheduled for the next quarter. Further infill drilling at Ambition aims to delineate the high-grade zones identified. The company’s ongoing development and exploration efforts, combined with a stable cash position, position it well to advance its gold production objectives despite the challenges of rising operating costs.
Bottom Line?
Rand Mining’s operational momentum and promising exploration results set the stage for potential resource growth, but rising costs warrant close attention.
Questions in the middle?
- When will assay results from the Sadler drilling be released, and how might they impact resource estimates?
- How will Rand manage rising development and administration costs to sustain operating cash flow?
- What is the expected production ramp-up timeline for the Hornet open pit mine?
