Medallion Metals Locks in $50M Fixed-Price Build Contract Targeting Q2 2027 Gold Output
Key Takeaways
- Medallion Metals has executed a binding $50 million lump sum EPC contract with GR Engineering Services for the Cosmic Boy Concentrator refurbishment — matching the $49 million feasibility study estimate almost exactly.
- GR Engineering originally built Cosmic Boy in 2009, bringing deep institutional knowledge of the plant and Ravensthorpe mineralogy that materially reduces execution risk on the refurbishment.
- Construction is already underway — GRES personnel and subcontractors are on site, earthworks are complete, and concrete pouring is expected to commence in the first week of September 2026.
- Processing at Cosmic Boy is targeted to commence October 2026 on third-party ore under the Early Processing Strategy, with first mine production from Kundip targeted Q2 2027.
- Progress is running in parallel at Forrestania, where second ball mill components arrive at Port of Fremantle on 17 September 2026 and early processing of third-party ore is expected to begin in early October 2026.
Medallion Metals locks in $50M EPC contract for Cosmic Boy Concentrator
Medallion Metals (ASX: MM8), through its wholly owned subsidiary Myamba Minerals Pty Ltd, has executed a $50 million lump sum Engineering, Procurement and Construction (EPC) contract with GR Engineering Services Limited (ASX: GNG) for the refurbishment and modification of the Cosmic Boy Concentrator (CBC). This is a binding contract, not a letter of intent, covering the full design, procurement, construction and commissioning of a standalone facility capable of producing copper concentrate and gold doré from Ravensthorpe Gold Project ore at a targeted throughput of 650,000 tonnes per annum.
The $50 million contract value sits in line with the $49 million estimate from the Ravensthorpe Gold Project Feasibility Study, providing early confirmation that costs are tracking to plan. It replaces the preceding $7.6 million Early Works Agreement (EWA) that commenced in June 2026, under which front-end engineering and design (FEED) was completed and long-lead items were ordered.
Managing Director Paul Bennett
“The contract value has been agreed in line with the Feasibility estimate and on terms that provide cost certainty. Its execution is another important operational step that brings us closer to production.”
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Why GR Engineering is the right partner for this build
The selection of GR Engineering Services (GRES) is not a cold-start relationship. GRES originally designed and constructed Cosmic Boy in 2009, bringing detailed institutional knowledge of the existing plant and extensive familiarity with Ravensthorpe mineralogy. That history makes the transition from FEED to full EPC considerably lower risk than bringing in a new contractor at this stage.
Key indicators that the project is already in motion:
- GRES completed the FEED programme under the Early Works Agreement
- Long-lead items are being procured and are progressing
- Site earthworks for the expanded plant footprint are complete
- GRES personnel and subcontractors are already on site
- Concrete pouring is expected to commence in the first week of September 2026
The transition from FEED to full EPC scope is underway, with the same contractor already mobilised on site.
What is an EPC contract and why does it matter for investors?
An Engineering, Procurement and Construction (EPC) contract means a single contractor takes full responsibility for designing the facility, sourcing all materials, and physically building it. The “lump sum” structure is the critical detail for investors: the price is agreed at $50 million, providing cost certainty through to commissioning.
This contrasts with the earlier Early Works Agreement, which was a preparatory phase covering FEED and site readiness. The EPC is the full build. For Medallion shareholders, the practical implication is cost certainty from here to commissioning, removing one of the most common sources of financial risk in mine development projects.
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Development advancing across both project sites
Progress is running across both the Forrestania Gold Project (FGP) and Ravensthorpe Gold Project (RGP). The table below captures the current status and near-term timelines at each site.
| Site | Key Milestone | Status | Timeline |
|---|---|---|---|
| Forrestania (FGP) | Surface earthworks | Complete | — |
| Forrestania (FGP) | Second ball mill components | In transit | Arrive Port of Fremantle 17 Sep 2026 |
| Forrestania (FGP) | Early Processing (third-party ore) | Stockpiling underway | Processing expected early Oct 2026 |
| Ravensthorpe (RGP) | Box cut excavation | Preparation underway | Scheduled to commence Sep 2026 |
| Ravensthorpe (RGP) | Mine development / first production | Infrastructure relocating | First production targeted Q2 2027 |
At Ravensthorpe, civil works and infrastructure readiness activities are progressing ahead of the box cut excavation. Accommodation rooms are being relocated from Forrestania to the Ravensthorpe camp, and mine offices and underground infrastructure are being relocated from Spotted Quoll to RGP in preparation for mine development.
The near-term production sequence is now clearly defined. Processing at Cosmic Boy is expected to commence in October 2026, initially on third-party ore under the Early Processing Strategy, while mine development at Kundip advances towards first production targeted in Q2 2027.
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