Medallion Metals Brings Gold Production Forward 9 Months Using Existing Plant
Medallion Metals fast-tracks gold production at Forrestania with early processing strategy
Medallion Metals has secured board approval to accelerate production at its Forrestania Gold Project through an Early Production Strategy that leverages existing processing infrastructure. Processing operations at Forrestania are expected to commence in Q4 CY2026, approximately 9 months ahead of planned Ravensthorpe ore treatment, which remains on track for Q2 CY2027. The strategy utilises the existing Cosmic Boy Concentrator infrastructure to generate early cashflow while de-risking the processing plant ahead of Ravensthorpe commissioning.
The approach fundamentally changes Medallion’s production timeline and cashflow profile. By bringing forward revenue generation without disrupting the Ravensthorpe development schedule, the company transitions from pure developer to near-term producer while testing plant operations on simpler ore before processing Ravensthorpe’s gold-copper material.
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How the early production strategy works
The processing approach uses existing crushing, grinding and tank infrastructure at the Cosmic Boy Concentrator with only minor modifications, primarily through repurposing existing equipment for gold recovery. GR Engineering Services has independently reviewed the strategy and provided process design criteria to support implementation.
The Early Production Strategy utilises conventional carbon-based gold recovery methods and existing infrastructure, with final doré production completed through off-site carbon stripping and refining arrangements. Implementation capital is estimated at $2.1 million, inclusive of 25% contingency, and will be funded from existing cash reserves. Based on forecast production rates, capital is expected to be recovered rapidly following commencement of steady-state operations, targeted for early Q4 CY2026.
The modest capital outlay relative to the cashflow generation potential represents efficient use of existing infrastructure. Rather than leaving the Cosmic Boy Concentrator idle until Ravensthorpe ore arrives, Medallion captures value immediately while building operational capability.
Secured toll processing agreement underpins feed supply
Medallion has executed a Toll Processing Agreement with a private third party whereby the company will process a minimum of 200kt of material between September 2026 and May 2027. The amount of material may be increased, subject to agreed plant performance metrics.
Under the agreement, Medallion will receive a fixed fee of $100 per dry metric tonne of material processed, with no exposure to ore grade or metallurgical recovery. This fixed-fee structure provides predictable revenue with downside protection during the ramp-up phase, eliminating commodity price and grade risk for the toll processing component.
The contracted minimum volume secures baseline throughput while Medallion evaluates additional ore supply opportunities to fill remaining processing capacity ahead of Ravensthorpe ore deliveries.
What is toll processing and why does it matter for gold producers?
Toll processing refers to a commercial arrangement where a company processes third-party ore through its plant for a fee, rather than mining and processing its own material exclusively. The third party delivers ore to the processing facility, pays a processing fee per tonne, and retains ownership of the recovered gold or other metals.
For emerging producers, toll processing generates cashflow, utilises idle capacity, and de-risks plant operations before processing own ore. Fixed-fee toll arrangements eliminate commodity price and grade risk for the processor, because the fee is earned regardless of how much metal is recovered from the ore.
In Medallion’s situation, toll processing allows the company to commission and optimise the plant while generating revenue before Ravensthorpe ore arrives. The strategy builds operational experience, tests equipment performance, and identifies any technical issues on simpler gold ore before transitioning to more complex gold-copper material from Ravensthorpe.
Toll processing represents a capital-efficient pathway to production that reduces execution risk while building operational capability. Rather than maintaining an idle asset, Medallion monetises existing infrastructure immediately.
Processing capacity and production profile through to 2028
Under the Early Production Strategy, approximately 240kt of processing capacity is expected to be available ahead of commissioning of the expanded and modified process circuit for Ravensthorpe gold-copper ores. This capacity will be filled through a combination of Medallion-owned stockpiles, deposits, and third-party material.
The early processing circuit is expected to operate through Q1 CY2027, after which conventional processing for Ravensthorpe gold-copper ores commences Q2 CY2027 onwards. The transition allows Medallion to generate cashflow during the interim period while maintaining the Ravensthorpe development schedule.
| Period | Early Process (dmt) | Conventional Process (dmt) |
|---|---|---|
| Q4 CY2026 | 19,000 | 0 |
| Q1 CY2027 | 81,000 | 0 |
| Q2 CY2027 | 0 | 81,000 |
| Q3 CY2027 | 0 | 150,000 |
| Q4 CY2027 | 0 | 163,000 |
| Q1 CY2028 | 0 | 163,000 |
The throughput profile shows a clear pathway to steady-state production with meaningful volumes by late 2027. The ramp-up from 19,000 dmt in Q4 CY2026 to 163,000 dmt quarterly run-rate by Q4 CY2027 demonstrates the capacity expansion as the plant transitions from early processing to full-scale Ravensthorpe ore treatment.
Near-term catalysts and next steps
Under the Toll Processing Agreement, third-party ore deliveries to the Cosmic Boy Concentrator Run of Mine Pad are expected to commence in coming days. Tenders are currently being evaluated for construction and installation of the CIC circuit, whilst recommissioning of existing infrastructure will commence immediately using Medallion’s existing processing, maintenance and operations teams currently in place. Recruitment of additional operations and maintenance personnel is well advanced to support implementation of the Early Production Strategy.
Multiple de-risking milestones expected over coming months provide regular news flow and progress markers for investors:
- Third-party ore deliveries commencing imminently
- CIC circuit tender evaluation underway
- Recommissioning works beginning immediately
- Operations team recruitment well advanced
Management perspective
Managing Director Paul Bennett framed the strategic rationale behind the accelerated production timeline:
Paul Bennett, Managing Director
“The Board’s endorsement of the Early Production Strategy represents a significant milestone in Medallion’s transition to gold production. By leveraging the existing infrastructure at Forrestania, the strategy has the potential to bring forward production and cashflow while de-risking the processing plant ahead of planned Ravensthorpe ore treatment.”
Management’s emphasis on both value creation and risk reduction reflects the dual benefit of the strategy: generating revenue whilst testing plant operations before Ravensthorpe ore processing commences.
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Investment implications for MM8 shareholders
The Early Production Strategy delivers multiple value drivers for Medallion shareholders: accelerated production timeline, modest $2.1 million capital requirement, secured toll processing revenue, and preserved Ravensthorpe development schedule targeting Q2 CY2027 commissioning.
The strategy transforms Medallion from a pure development story to a near-term producer without compromising the company’s primary asset development. By commissioning the plant on simpler gold ore before transitioning to Ravensthorpe’s more complex gold-copper material, Medallion reduces technical execution risk whilst building operational track record.
The fixed-fee toll processing structure provides downside protection during the critical ramp-up phase, with Medallion earning $100 per dry metric tonne processed regardless of grade or recovery performance. This de-risks cashflow generation during the transition period whilst preserving optionality to process Medallion-owned stockpiles subject to available capacity.
Production operations are expected to commence Q4 CY2026, marking Medallion’s shift from developer to operating gold producer whilst maintaining the pathway to expanded Ravensthorpe production through 2027.
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