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Highlights

  • Emerald Resources shares fell over 8% to AU$3.81 following a production update.
  • Q3 FY25 gold production is expected to be around 20,000 ounces, missing the 25,000–30,000 ounce guidance.
  • Operational challenges at the Okvau Gold Mine in Cambodia impacted production, while all-in sustaining costs (AISC) are expected to be within 20% of guidance.

Emerald Resources NL (ASX:EMR) is facing a rough trading session, with shares sinking over 8% to AU$3.81 in morning trade. The decline comes after the company released a production update for its flagship Okvau Gold Mine in Cambodia.

Lower-Than-Expected Gold Output

Emerald Resources successfully met its FY24 production guidance of 114,000 ounces of gold. However, the second half of FY25 is proving more challenging.

For Q3 FY25, the company anticipates gold production of around 20,000 ounces, well below its quarterly guidance of 25,000–30,000 ounces. This underperformance is attributed to earthworks and waste movements that restricted access to ore and limited the movement of earth-moving equipment. Additionally, some areas within the pit underperformed compared to reserve estimates.

Higher Production Costs in Q3 FY25

The company expects an all-in sustaining cost (AISC) for Q3 FY25 to be within 20% of its guidance range of US$1,100–$1,200 per ounce. This could further pressure margins, especially amid market fluctuations in gold prices.

Revised Full-Year Guidance

Despite the setback, Emerald Resources has maintained its full-year production outlook, now expecting:

  • Gold production of 105,000–115,000 ounces.
  • AISC between US$900–$1,000 per ounce.