Highlights

  • Hemi's 10.5Moz Ore Reserve at 1.5 g/t gold underpins a 12-year mine life averaging 530,000 oz per annum.
  • DFS AISC of approximately A$1,295/oz offers exceptional cash margins against current Australian Dollar gold pricing.
  • Underwritten institutional debt facilities and substantial cash reserves have substantially de-risked capital expenditure.
  • DEG shares closed at $2.46, up 97.35% over twelve months, commanding a market capitalisation of $5.92 billion.

Standing at the threshold of becoming one of Australia's five largest gold producers, De Grey Mining(ASX:DEG) is securing the financing framework for Hemi — a 10.5-million-ounce tier-one discovery in the Pilbara that has already delivered a 97% share price gain over twelve months as investors price in construction.

From Discovery to Development Giant

Discovered in late 2019 beneath shallow transported cover in the Mallina Basin, approximately 60 kilometres south of Port Hedland, Hemi transformed the Pilbara into a world-class gold metallogenic province. De Grey holds 100% of the project and commands extensive regional tenure covering over 1,500 square kilometres.

An S&P/ASX 200 constituent, De Grey shares closed at $2.46 on 2 October 2026, establishing a market capitalisation of $5.92 billion. The stock has risen 97.35% over the trailing twelve months on institutional conviction in the company's producer transition.

DFS Economics and Processing Design

The Definitive Feasibility Study outlined an initial 12-year mine life producing an average of approximately 530,000 ounces of gold per annum, peaking at over 570,000 ounces in years two through five. The project is underpinned by a JORC Ore Reserve of 10.5 million ounces, comprising 121 million tonnes at an average grade of 1.5 g/t gold.

Hemi's processing design features a large-scale 10Mtpa comminution and pressure oxidation autoclave circuit to treat refractory intrusion-hosted ores. DFS life-of-mine AISC is estimated at approximately A$1,295/oz, delivering extraordinary cash margins against current Australian Dollar gold pricing above A$3,800/oz.

Financing Progress and Infrastructure Advantage

The critical development in late 2026 is finalisation of comprehensive project debt financing and early earthworks ahead of a formal Final Investment Decision. Underwritten institutional debt facilities and substantial cash reserves have substantially de-risked the capital required to bring Hemi to production.

The asset benefits from premier regional infrastructure — sealed highways, high-voltage transmission lines, and gas pipelines within the project area — reducing civil construction costs relative to more remote Pilbara developments.

Development Risks and Corporate Interest

Developing a mega-scale greenfield processing complex involves capital expenditure inflation across autoclave components, engineering procurement lead times, power supply contracting, and statutory environmental compliance.

The company remains subject to potential corporate consolidation interest from domestic and international gold majors, while project cash flows remain exposed to volatility in global gold prices.