Kaiser Reef has repaid the gold loan used to acquire its Henty mine in Tasmania after producing 6,263 ounces of gold in the September quarter, lifting its cash and bullion holdings to A$40 million.
The repayment is expected to release about A$600,000 a month in operating cash flow. The company’s underlying cash flow for the quarter reached A$5.6 million, more than covering A$2.8 million in debt and deferred payments and allowing its net cash and bullion position to rise by A$2.8 million.
Henty produced 5,692 ounces of gold and 5,259 ounces of silver during the period, while Kaiser Reef’s Maldon project in Victoria contributed a further 572 ounces of gold. Total production rose from 6,000 ounces in the previous quarter.
The company made a final delivery of 104 ounces of gold in October, completing repayment of the 1,872-ounce Auramet gold loan. The facility had helped fund the acquisition of Henty.
Kaiser’s only remaining gold delivery obligation is a deferred payment to Catalyst Metals, requiring 50 ounces a month until October 2030. The company said repaying the principal acquisition loan from Henty’s own cash flow represented an important milestone.
“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,” managing director Brad Valiukas said.
“We have completely repaid the Auramet gold loan, on schedule, with the final delivery made in October. The gold loan helped us acquire Henty, and repaying it from Henty’s own cash flow is an important milestone for Kaiser.”
Henty supports Kaiser Reef’s growth plans
The result follows a significant improvement in Kaiser Reef’s annual performance. The company moved from a statutory loss of A$20.24 million in 2025 to an after-tax profit of A$16.8 million in 2026, supported by A$44.7 million in operating cash inflow.
Henty’s ore reserve remains at 198,000 ounces of gold, while its total resource stands at 429,000 ounces following an update that offset mining depletion. Kaiser is also working with Flynn Gold to process ore through Henty’s 300,000-tonne-a-year plant and has applied to expand its tailings capacity by two million tonnes.
Maldon’s gold output has increased for three consecutive quarters and is up 65 per cent since March. The project is centred on the permitted 200,000-tonne-a-year Porcupine Flats processing facility and the Union Hill deposit, which has an inferred resource of 187,000 ounces grading 4.44 grams of gold per tonne.
Underground development began at Union Hill during the quarter, providing access for diamond drilling beneath existing workings at Maldon’s Eaglehawk, Linscott’s, Ladies and Sailors Reefs targets. Surface exploration is also continuing, alongside airborne magnetic and radiometric surveying.
Kaiser Reef has set a total production target of about 32,000 ounces for the 2027 financial year and has no gold-price hedging in place. Its overall resource is estimated at 615,000 ounces, from 5.53 million tonnes grading 3.46 grams of gold per tonne.
