Key Highlights

• According to the company, Bankan is expected to produce about 250,000 ounces a year over more than 12 years, based on a definitive feasibility study dated 25 June 2025.

• Management targets group production of more than 400,000 ounces a year by 2029 once Bankan is operating.

• For the year to 30 June 2026, PDI reported Revenue of US$202.9 million, against nil in the prior year, and Gross Profit of US$26.8 million.

• It still posted an operating loss of US$77.4 million and a net loss of US$63.7 million.

How a Merger changed the company

How is PDI Gold (ASX:PDI) paying for its next stage of growth? The company, which earlier coverage called Predictive Discovery, completed its merger with Robex Resources on 15 April 2026. That deal brought the producing Kiniero and Nampala mines into the group alongside Bankan, and management now says it intends to finance the Bankan Gold Project from operating cash flows rather than relying only on new equity.

That is a change of profile. PDI moved from a developer reliant on Capital raising to a producer reporting gold sales, although it still has a major project to build and some complicated financing arrangements to manage.

What the company does

PDI Gold is a West African gold producer and developer. Its two operating mines are Kiniero in Guinea, the larger of the two, and Nampala in Mali. Its main revenue driver is gold, sold at prevailing market prices and reported in US dollars, so the realised gold price and ounces sold largely determine revenue.

The flagship development asset is Bankan in Guinea. According to the company, Bankan is expected to produce about 250,000 ounces a year over more than 12 years, based on a definitive feasibility study dated 25 June 2025. Management targets group production of more than 400,000 ounces a year by 2029 once Bankan is operating. Those are company targets, not results.

Results and operating performance

For the year to 30 June 2026, PDI reported revenue of US$202.9 million, against nil in the prior year, and gross profit of US$26.8 million. It still posted an operating loss of US$77.4 million and a net loss of US$63.7 million. Robex was consolidated only from 15 April, so the year largely reflects the old Predictive Business plus about two and a half months of the enlarged group.

The group poured 60,214 ounces, sold 45,635 ounces and achieved an average realised price of US$4,439 an ounce. In the three months to 30 June, all-in sustaining costs were US$1,254 an ounce at Kiniero and US$1,974 an ounce at Nampala.

Operating cash flow for the year was positive at US$48.2 million. Year-end cash was US$193.7 million, plus US$81.5 million of restricted cash.

September quarter update

On 5 October 2026 the company reported unaudited September quarter output of 52,866 ounces. Kiniero poured 45,599 ounces, milling 2.3 million tonnes at 0.69 grams per tonne with recovery of 88.3 per cent. Plant throughput was above nameplate capacity. Nampala poured 7,267 ounces from 0.42 million tonnes at 0.63 grams per tonne, with output affected by access to additional ore as a pit cutback progressed.

Kiniero sold 61,149 ounces in the quarter, exceeding what it poured, because a substantial portion of gold held at 30 June was converted to cash.

Guidance and Bankan

For calendar 2026, group guidance is 198,000 to 220,000 ounces at all-in sustaining costs of US$1,300 to US$1,500 an ounce. Kiniero is guided at 157,000 to 174,000 ounces and Nampala at 41,000 to 46,000 ounces. Management says it remains on track, but guidance is an estimate and the Mining sector regularly revises such ranges.

Bankan is described as approaching construction-ready status. On 29 July 2026 the company also completed a US$10 million Investment giving an 11.6 per cent stake in Awalé Resources.

Sector conditions and competitive position

Gold producers have benefited from high prices, with PDI's realised price averaging US$4,439 an ounce in the year to June. Profitability, however, depends on costs. Nampala's higher cost per ounce than Kiniero illustrates how mine-by-mine Economics differ, and the group's guided costs sit within a range that leaves margins sensitive to the gold price.

PDI competes with other West African and Australian-listed producers for capital, contractors and skilled people. Its advantage is a long-life development asset in Bankan, while its limitation is concentration in two countries, Guinea and Mali, rather than a diversified global portfolio.

Index membership and capital structure

The index provider announced that the company, then listed as Predictive Discovery, would join the S&P/ASX 200 before the open on 23 March 2026. It does not appear in the June or September 2026 removal lists we hold, so we treat it as a constituent.

The company completed a five-for-one share consolidation, leaving 988,014,707 shares on issue at 30 September 2026, compared with 4,896,587,885 at 30 June before consolidation.

Material risks and developments to watch

Debt is a significant feature. A US$130 million senior secured Sprott facility, originally raised by Robex for Kiniero, is fully drawn. Its Interest Rate is 6.50 per cent a year plus the greater of three-month CME Term SOFR or a 3.50 per cent floor. A gold-linked additional interest payment began on 30 June 2026 and runs for 15 quarters, and the company carries a US$127.1 million embedded derivative Liability related to it. Higher gold prices therefore raise that obligation as well as revenue.

Restricted cash tied to the Facility is released only after the Mansounia Exploitation Permit and mining convention are received, and the company says there is no assurance this will occur. Guinea also introduced a gold refining decree with a transition period that ended on 6 October 2026. The company does not expect a material effect on 2026 guidance, but regulatory changes in West Africa can alter fiscal terms, export arrangements and operating conditions.

Other risks include cost inflation, grade variability, Bankan execution and political conditions in Guinea and Mali. Watch the full September quarterly report, Bankan's development progress, permit outcomes and delivery against the 2026 guidance range.