Theta Gold Mines (ASX:TGM) has unlocked US$1.2 billion ($1.81 billion) in free cashflow from a 6 million ounce gold resource at the TGME Gold Mine Project in South Africa, following completing an optimised Feasibility Study.
The study delivers an improved base case project economics and increased life of mine of 14.5 years – positioning the TGME Project as a long-life, high-margin gold operation.
As part of the study, TGME’s post-tax value has increased to US$504 million – representing a US$285 million increase – which is largely driven by higher gold prices. The gold price stood at US$3,863 per ounce at the time of writing.
The project also has a post-tax internal rate of return of 71% at an all-in sustaining cost of US$1,101 per ounce.
Theta Gold, which has a market capitalisation of $243.34 million, says the study outlines a peak capital expenditure requirement of US$79 million.
First production is targeted for Q1 2027, with ramp up to deliver 120,000 ounces of gold per year at 5.55 grams per tonne. Phase one mining will include four mines – Beta, Frankfort, CDM, and Rietfontein.
Theta Gold notes 43 historical mines are also included in the TGME tenements, which leaves upside for further expansion.
On track to become mid-tier producer
Chairman Bill Guy says the study has confirmed the mining method, technical aspect, and the strong economic viability of the 540,000 tonnes per year mining and processing operation.
“The stand-alone carbon in leach plant is to be constructed in modules using technology that enhances the design efficiency and construction of the metallurgical plant, with the optionality to expand production capacity in the future as additional mines are brought into production,” Guy says.
“The definitive FS uses a base gold price of US$2,170 per ounce with an all-in sustaining cost of US$1,101 per ounce, thus displaying the financial robustness of the project which delivers a capital payback of US$79 million in 30 months.”
Guy adds once up to seven mines are brought into production, an annual production of in excess of 160,000 ounces per year will make Theta “one of South Africa’s most significant, mid-tier listed gold doré producing companies”.
In mid-September 2025, the company transitioned from development to construction, beginning earthworks and civil engineering activities at the TGME Gold Mine Project.
Key contracts have been locked in with construction partners PICM and Mainpro to deliver the earthworks and civil phase of the project – with civil engineering works to begin in Q4 2025, as Mining.com.au reported.
Theta Gold Mines is a gold developer targeting transitioning to producer by early 2027.
Write to Aaliyah Rogan at Mining.com.au
Images: Theta Gold Mines
