Theta Gold Mines (TGM) H2 2025 earnings summary

Executive summary

• Construction and civil engineering commenced at the TGME Gold Mine Project in South Africa, marking a transition from development to construction, with bulk earthworks and water management scheduled for September 2025.

• The first three mines and the gold plant footprint are fully permitted, with Mining Right MR 83 renewed until 2038, and a formal decision to mine was made in June 2025.

• An optimised feasibility study completed in September 2025 shows a post-tax NPV of $504M at a $2,710/oz gold price, with a 14.5-year mine life and annual average EBITDA of $124M.

• The company secured a $35M loan facility from the Industrial Development Corporation of South Africa and raised $18.3M in equity during FY25, with additional private placements and option conversions post-year-end.

• ESG initiatives include a preliminary carbon footprint report, water management, biodiversity conservation, and strong community engagement, with 622,761 fatality-free shifts achieved as of July 2025.

Financial highlights

• Loss after tax for FY25 was $6.89M (FY24: $6.39M), mainly due to exploration write-offs, finance costs, and pre-development expenses.

• Capitalised expenditure on the balance sheet increased to $18.5M (FY24: $16.6M).

• Cash and cash equivalents at year-end were $5.6M, with net proceeds of $10.5M raised from share issues and $2.3M from option conversions.

• Key metrics from the feasibility study: post-tax NPV $504M, IRR 71%, peak capital $79M, AISC $1,101/oz, and payback in 30 months.

• Revenue forecast over LOM is $3.1B, with undiscounted free cash flow of $1.2B post-tax.

Outlook and guidance

• First gold production targeted for Q1 2027, with a modular plant design supporting expansion to 160,000 oz/year by year five.

• Focus on finalising funding, completing construction, and moving more resources into proven and probable reserves.

• Ongoing exploration and phased development of up to 43 historical mines to enhance production profile.