Kantra Copper in the green as higher output drives cash generation

• Higher copper output lifts September-quarter cash generation
• Annual production and cost guidance remains unchanged
• Emily Star construction advances as the next resource update approaches

Special Report:Kantra Copper has lifted copper production and lowered unit costs at its Kanmantoo mine, helping drive a 72% jump in net group cash flow during the September quarter.

The South Australian operation produced 3,419t of copper, up 7.8% from the June quarter, while all-in sustaining costs fell to A$5.44/lb payable copper sold from A$5.76/lb.

Kantra Copper (ASX:KAN) reported unaudited net group cash flow of A$14.2m, compared with A$8.3m three months earlier. Cash at September 30 stood at A$44.1m, excluding A$350,000 of restricted cash, up A$11.9m over the quarter.

The operating improvement came as the company invested in Emily Star’s development and progressed studies into processing ore from the regional Coburn project through Kanmantoo’s existing plant.

More tonnes through the plant

Kanmantoo processed 429,000t of ore, up from 401,000t, with copper recovery improving to 96.2% from 95.5%.

Higher throughput spread fixed costs across a larger production base, helping lower unit operating costs despite higher fuel costs. Total mine operating costs rose 1.7% to A$41.1m.

Stronger sales and prices also contributed. Payable copper sold increased to 3,386t from 3,027t, while the average realised copper price rose to A$18,096/t from A$17,096/t.

Revenue increased 14.8% to A$73.2m, with the copper uplift partly offset by lower gold by-product credits. Operating mine cash flow reached A$32.1m, up 37.5%, before sustaining and growth expenditure and other group costs.

Kantra maintained its 2026 production guidance of 12,750–14,000t after producing 9,709t year to date. Year-to-date AISC is A$5.78/lb payable copper sold against annual guidance of A$5.75–6.25/lb.

“Year-to-date AISC of $5.78/lb remains at the lower end of our guidance range, reflecting the benefits of higher production rates and disciplined cost management across the operation,” said Kantra Copper CEO and managing director Bob Fulker.

Building the next mining front

Surface portal construction began at Emily Star during the quarter, with A$2.2m spent on development.

The approved third underground mining front is intended to improve operational flexibility. Kantra expects Emily Star to replace some lower-level Kavanagh production while supporting a 2Mtpa ore throughput run rate, allowing fixed costs to be spread across more tonnes.

Stoping is expected to begin in the second half of 2027. Development is proceeding under the existing environmental program, with approval of an updated program expected before stoping.

At Kavanagh North, the exploration drive advanced 118m during the quarter, establishing a platform for deeper drilling. Earlier completion has brought diamond drilling forward to the December quarter from early 2027.

“Beyond operational delivery, we continued to advance initiatives aimed at extending mine life and creating future growth options. The 2026 Mineral Resources and Ore Reserves update remains on track for release this month and incorporates approximately 82,000 metres of drilling completed across the 2025 and 2026 drilling campaigns,” Fulker said.

The update uses an August 3 drill-results cut-off.

Kantra also maintained its revised annual major capital guidance of A$15–17m, covering Emily Star development and Coburn pre-feasibility work.

At Coburn, formerly Mutooroo, post-quarter composite testwork returned copper recovery above 90% and gold recovery above 50% using Kanmantoo’s flowsheet and reagents.

Those results support further assessment of an existing-plant processing pathway. Variability testwork and rail logistics studies remain part of the evaluation, with transport costs and processing performance important to the pre-feasibility study.

Coburn remains subject to a staged farm-in agreement with Havilah Resources. Kantra is planning roughly 1000m of drilling across six to eight holes to support metallurgical, geological and environmental studies.

This article was developed in collaboration with Kantra Copper, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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