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Andrew Todd
Multi-asset gold producer Kaiser Reef has topped up its coffers to an impressive $40 million in cash and bullion after churning out 6263 ounces of gold during the September quarter from its operations in Tasmania and Victoria.
The company’s production was split across its two tier-1 Australian assets, with the cornerstone Henty gold mine in Tasmania delivering an improved 5692 gold ounces and 5259 ounces of silver, while its Maldon project in Victoria chipped in another 572 ounces of gold.
A solid quarter means Kaiser is closing in on a major milestone, with the company confirming it will fully repay its Auramet gold loan this month. The debt was instrumental in funding its acquisition of the Henty mine and clearing it marks a pivotal turning point for a producer now hitting its stride.
Quarter-on-quarter, Kaiser has continued to build momentum. Total production rose from 6000 ounces in June to 6263 ounces in September, while Maldon continued its upward march, lifting output from 346 ounces to 437 and now 572 ounces across three consecutive quarters, a 65 per cent jump since March.
‘The gold loan helped us acquire Henty, and repaying it is an important milestone for Kaiser.’
Kaiser Reef managing director Brad Valiukis
The company’s turnaround is also showing up on the bottom line, swinging from a $20.24 million loss in FY2025 to a $16.8 million statutory after-tax profit in FY26, backed by a hefty $44.7 million cash inflow from operations. With FY27 production targeted at around 32,000 ounces and no hedging in place, the gold producer appears well positioned to capture more upside should bullion keep building.
Kaiser Reef managing director Brad Valiukas said: “Kaiser delivered 6263oz of gold across Henty and Maldon during the quarter, while increasing cash and bullion to A$40 million, paying down debt and advancing Maldon. We will completely repay the Auramet gold loan this month, as scheduled. The gold loan helped us acquire Henty, and repaying it is an important milestone for Kaiser.”
The company’s transformation into a genuine cash-generating producer results from a deliberate two-pronged strategy. While Henty acts as the workhorse, backed by a 199,000-ounce ore reserve and a six-year mine life, the Maldon project in Victoria’s legendary Golden Triangle offers a compelling high-grade growth opportunity.
The historic Victorian goldfield has already surrendered an impressive 1.75 million ounces of gold at a remarkable average grade of 28g/t, making it one of the country’s notable high-grade historic producers.
The project’s Union Hill deposit alone hosts a 187,000-ounce inferred resource grading a healthy 4.44g/t gold, while existing underground access and additional gold-bearing stockpiles offer Kaiser further opportunities to feed its processing plant.
Importantly, the company is not starting from scratch on either front. With a conventional 300,000-tonne-per-annum processing plant already humming away at Henty and a fully permitted 200,000-tonne-per-annum carbon-in-leach facility operating at Maldon, Kaiser isn’t short of infrastructure to turn buried ounces into cash at the bank.
With its balance sheet firing and acquisition debt almost gone, Kaiser is locking in for its next push. The strategy is simple: use cash from one gold-producing operation to bankroll growth at the other, lifting output and building gold reserves in Victoria’s Golden Triangle – one of the world’s great gold districts.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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