Tungsten mine facing critical test

Embattled tungsten miner Group 6 Metals is facing a critical test of its financial and operational recovery, with its June 2025 Quarterly Activities Report due to be lodged with the ASX by the end of this month.

The company, which has been suspended from trading since September 27, 2024, released its most recent ASX update on Monday, publishing its Interim Financial Report and Accounts for the half-year ended 31 December 2024.

The report revealed a $23 million net loss for the first half of FY25, following the $133.6 million full-year loss reported for FY24 in the company’s overdue annual report, lodged 1 July 2025.

The company’s June quarterly report, due by 31 July, is expected to provide updates on production, cash flow and cost containment.

It will be closely scrutinised by regulators and investors as Group 6 Metals works to lift its suspension from the ASX and demonstrate ongoing financial viability.

 G6M is attempting to restore investor confidence following a prolonged period of financial distress and underperformance at its King Island mine and delays in meeting ASX reporting requirements.

The company operates the Dolphin Tungsten Mine in Grassy.

During the half-year reporting period, it mined 257,000 tonnes of ore, but processed only 79,000 tonnes, citing mechanical failures and labour shortages.

A total of 433 tonnes of concentrate was shipped at an average grade of 58 per cent.

In its interim filing, the company acknowledged production inefficiencies and confirmed efforts are under way to improve performance through plant upgrades and operational changes.

“The recapitalisation boosted cash reserves to $18.3 million and reduced net liabilities to under $1 million”, the Interim report said.

 The company’s balance sheet at 31 December showed $1.01 million in cash, and total liabilities of $115.4 million, with net current liabilities of $77.2 million.

Group 6 Metals also held a negative equity position of $81.1 million prior to a substantial recapitalisation completed in April. Under the recapitalisation plan, $81.1 million in loans and creditor balances were converted into equity.

A further $5.9 million was raised through a share issue, and the company secured a $7.5 million loan from the State of Tasmania, which was fully drawn in May.

The state government also converted an earlier $10 million loan into equity, becoming a 12 per cent shareholder.

The company also disclosed it had renewed its King Island exploration licence through to December 2026, supporting future resource development at the site.