Recovered grades at the Tennant Creek operations averaged approximately 1.15 grams per tonne during H1 FY26, reflecting the processing of lower-grade stockpile material and initial oxide ore during the ramp-up phase. Management has indicated that grades are projected to improve materially to approximately 2.22 grams per tonne in H2 as higher-grade open-pit ore enters the processing circuit at the Nobles CIL plant.
This grade inflection is the single most important near-term operational catalyst for the Tennant Creek operation. In gold mining, grade is the primary determinant of unit economics, as unit cost decreases with the increased number of units produced. The Nobles plant operates on a largely fixed cost base, processing costs, labour, and overheads do not scale linearly with the grade of ore processed. A near doubling of recovered grade therefore translates directly into lower all-in sustaining costs per ounce, improved margins, and stronger cash flow generation. The H1 AISC of approximately US$2,543 per ounce, while elevated, is a function of this ramp-up grade profile rather than structural cost inefficiency.
The grade trajectory also underpins the production guidance. Full-year guidance of 46,000 to 50,000 ounces, with only 15,560 ounces delivered in H1, implies a substantial H2 weighting of approximately 30,000 to 34,000 ounces. This step-up will be driven primarily by the combination of higher grades and improving plant throughput as the operation transitions from commissioning to steady-state performance. The Tennant Creek district’s historical reputation as Australia’s highest-grade gold province, with a JORC resource grading 4.4 grams per tonne, provides confidence that the grade uplift pathway is underpinned by geological fundamentals rather than selective mining assumptions.
For investors monitoring the Tennant Creek ramp-up, the H2 grade inflection is the near-term proof point that will determine whether elevated start-up costs give way to the structurally attractive unit economics that the district’s geology supports.