Greatland Gold has provided investors with a clear path to ‘significant cash flow’ from its Telfer gold mine and confirmed plans to expand its flagship Havieron assets with cash generated from production, which is set to commence in 2028.
The company released an in-depth outlook for production and expansion plans for both Telfer and Havieron on Tuesday.
Greatland Gold unveiled its initial ore reserve at the Telfer gold-copper mine, delivering 712K ounces of gold and 23K tonnes of copper, alongside a two-year production outlook that extends operations through to FY27.
Recently acquired Telfer has had a strong start to production, and the company sees ‘continued high volume gold production from Telfer into a strong gold price environment is expected to generate significant cash flow.’
The updated Telfer outlook, announced less than five months after Greatland’s acquisition of the mine, extends the pre-acquisition plan by a further 18 months.
According to the company’s projections, dual train production will continue with an annual average output of 280,000 to 320,000 ounces of gold and 7,000 to 11,000 tonnes of copper.
For 2026, production is expected to reach up to 340,000 ounces of gold at an all-in sustaining cost (AISC) of A$2,400 to A$2,600 per ounce, while FY27 is projected to yield 260,000 to 300,000 ounces at an AISC of A$2,750 to A$2,950 per ounce. Telfer is now a serious gold extraction operation.
“Greatland has made a tremendous start to our ownership of Telfer, producing over 90,000 ounces of gold and generating over A$250 million in free cash flow in the March 2025 quarter,” said Greatland Managing Director, Shaun Day.
Investors will be encouraged that the company is locking in higher gold prices by securing downside protection through gold put options for a significant portion of its anticipated production over the next couple of years, with a weighted average strike price of A$4,071 per ounce across 266,008 ounces of gold.
Greatland also provided an upbeat assessment of the outlook for its flagship Havieron asset. The company highlighted that the Feasibility Study will target an expanded mining rate of 4.0 to 4.5 million tonnes per annum, representing an increase of 43% to 60% from the initial 2.8 million tonnes per annum.
The first gold production from Havieron is expected to be in 2028.
Havieron has ore reserve grades of 3.0g/t gold and 0.44% copper across 25 million tonnes, with indicated resource grades of 2.6g/t gold and 0.33% copper across 50 million tonnes.
Greatland Gold anticipates that the integration of high-grade Havieron ore will dramatically reduce the overall cost of production while sustaining higher volume production.
“Augmenting production with high grade Havieron ore feed, expected to begin during FY28, is expected to result in a step change reduction in AISC and sustained higher volume annual production. Havieron is a world-class ore body with exceptional ounces per vertical metre, resulting in excellent cost efficiency,” Shaun Day said.
Future expansion of Havieron is expected to be largely self-funded from future Havieron cash flows, with the Feasibility Study targeted for completion in the second half of 2025.
Greatland Gold shares were 2% higher at the time of writing and are 120% higher on the year.