Highlights

  • PDI shares have gained more than 72% over the past year following the completion of its Merger with Robex Resources and stronger gold production growth.
  • March quarter gold production surged 308% to 48,178 ounces, supported by the ramp-up of the Kiniero operation.
  • The combined group generated strong operational Cash Flow, with cash margins reaching US$139 million and average all-in sustaining costs falling 37%.

Predictive Discovery Limited (ASX:PDI) has attracted increasing investor attention after completing its transformational merger with Robex Resources and delivering sharply stronger quarterly production and financial results.

The company’s shares recently traded at AUD 0.74 despite modest weakness during the latest session, while remaining up more than 72% over the past year. The strong longer-term performance reflects growing market confidence in the company’s transition from a pure exploration-focused Business toward a larger-scale West African gold production and development group.

The merger with Robex Resources Inc., completed on 15 April 2026, represents a major strategic milestone for Predictive Discovery. The combined group is targeting annual gold production of approximately 400,000 ounces by 2029, significantly expanding the company’s scale and operational profile within the gold Mining sector.

Gold Production Growth Drives Market Interest

One of the strongest drivers behind recent investor optimism has been the rapid increase in gold production during the March 2026 quarter.

Combined production from the Kiniero and Nampala operations reached 48,178 ounces during the quarter, representing a 308% increase compared with the December 2025 quarter.

The sharp production increase was primarily driven by the continued ramp-up of the Kiniero operation, which has quickly emerged as a central asset within the combined group’s portfolio.

Gold sales also rose substantially to 41,799 ounces, up 271% from the previous quarter. Management stated that stronger production volumes and expanding operational capacity supported the improvement.

At the same time, prevailing gold prices remained highly supportive for producers during the quarter. Predictive Discovery reported an average realised gold price of US$4,806 per ounce, representing a 13% increase from the previous quarter.

The combination of rising production and stronger realised pricing significantly improved financial performance and strengthened investor confidence in the merged company’s Earnings potential.

Lower Costs Improve Operational Margins

Another major highlight from the quarterly update was the substantial improvement in operating costs.

Average all-in sustaining costs across the combined operations declined 37% to US$1,192 per ounce during the quarter. Management attributed the improvement primarily to the commencement of lower-cost production at Kiniero and improved Operating Leverage from higher production levels.

Kiniero itself achieved an All-In Sustaining Cost of US$1,043 per ounce during the quarter, reinforcing investor optimism regarding the project’s profitability profile.

Lower production costs are particularly important in the mining sector because they strengthen resilience across Commodity price cycles while supporting stronger free cash flow generation.

The reduction in costs also contributed to a substantial increase in operational cash margins, which reached US$139 million during the quarter.

For investors, the strong Margin profile demonstrated the financial benefits of scaling production across the merged asset base.

Revenue and Cash Flow Expand Sharply

The company’s financial performance improved materially alongside stronger operational outcomes.

Revenue from operations surged to US$200.8 million during the March quarter, representing a 321% increase compared with the previous quarter.

The growth reflected both higher gold sales volumes and stronger realised gold pricing.

Cash generation also strengthened significantly. Robex’s cash balance increased to US$240.4 million at the end of March 2026, up 46% from the previous quarter. In addition, the company held gold bullion valued at approximately US$14.6 million.

Predictive Discovery separately maintained cash reserves of approximately A$32.5 million and remained Debt-free prior to the merger completion.

The combined financial position has strengthened market confidence that the enlarged group possesses the Liquidity and Balance Sheet flexibility necessary to support future development activities.

Investors generally view strong cash generation as especially important for mining companies pursuing expansion projects in Capital-intensive operating environments.

Kiniero Becomes the Core Growth Engine

The Kiniero gold project is increasingly emerging as the central growth asset within the combined group.

Management confirmed that Kiniero production ramp-up continued successfully during the quarter, supporting both higher production and lower operating costs.

The operation is expected to contribute between 157,000 and 174,000 ounces of gold production during 2026, representing the majority of total group guidance.

The project’s operational performance is being closely monitored by investors because successful execution at Kiniero will likely play a major role in determining whether the combined company can achieve its long-term 400,000-ounce annual production target by 2029.

The strong initial cost performance at Kiniero has also improved investor confidence regarding the asset’s long-term economic potential.

At the same time, management indicated that cost guidance for 2026 will be released during the June quarter following two full quarters of production at the operation.

Bankan Development Planning Continues

Beyond current production growth, Predictive Discovery also continued advancing development planning activities for the Bankan Project during the quarter.

The company stated that front-end engineering and design work progressed in collaboration with the Robex development team following the contract award to Primero.

Preparation for long-lead procurement packages also advanced, with several tender packages already issued.

The Bankan Project remains strategically important because it represents a significant future production growth opportunity for the combined company.

Investors are paying close attention to project execution timelines, funding requirements, and development Economics as the company progresses toward future construction and expansion decisions.

The company’s strengthened cash position following the merger may improve flexibility as it evaluates future development pathways.

Exploration Focus Supports Long-Term Resource Growth

In addition to current operations, exploration activities during the quarter focused heavily on resource growth and near-mine target generation across the company’s West African portfolio.

Management stated that exploration programs are primarily aimed at expanding existing mineral resources and identifying additional ore sources capable of supporting long-term production growth at both Kiniero and Nampala.

For gold producers, continued resource replacement and reserve expansion are critical components of sustaining long-term operational life and future production capacity.

Investors are therefore likely to remain focused on future exploration updates as the company seeks to build scale beyond its current production profile.

Gold Market Conditions Continue Supporting Sentiment

Broader gold market conditions have also played a significant role in supporting investor sentiment toward Predictive Discovery shares.

Gold prices remained elevated during the March quarter amid ongoing geopolitical uncertainty, Central Bank Demand, and global macroeconomic Volatility.

Higher gold prices generally improve producer profitability, project economics, and investor appetite for gold mining equities.

The company’s strong operational leverage to gold prices became evident through the significant increase in revenue and cash margins reported during the quarter.

However, investors remain mindful that gold producers continue facing risks associated with operational execution, regional geopolitical conditions, and future commodity price volatility.

Conclusion

Predictive Discovery’s latest quarterly update marked an important transition point for the company following the completion of its merger with Robex Resources. Strong production growth, sharply improved cash generation, lower operating costs, and rising gold prices all contributed to stronger investor sentiment and substantial share price gains over the past year. The Kiniero operation is rapidly emerging as the key driver of future production and profitability growth, while ongoing development planning at Bankan adds further long-term expansion potential. As the enlarged company integrates operations and advances its West African growth strategy, investors are likely to remain focused on execution, production consistency, and future project development milestones.