Medallion Eyes Revenue From Spare Plant Capacity in TG Metals Stockpile Deal
Medallion Metals has executed a non-binding Term Sheet with TG Metals (ASX:TG6) for a proposed Ore Processing and Profit Share arrangement to process approximately 60,000 dry metric tonnes of gold-bearing stockpiles from TG Metals’ Van Uden Gold Project through Medallion’s Cosmic Boy Concentrator (CBC) at the Forrestania Gold Project. If a binding agreement is executed, the arrangement will provide additional processing feed for Medallion’s Early Production Strategy (EPS) with no impact on the Ravensthorpe Gold Project development schedule or targeted first production.
What the proposed deal delivers for Medallion
The arrangement is designed to utilise available spare capacity at the CBC ahead of planned Ravensthorpe ore treatment. This proposed feed source complements the recently announced Toll Processing Agreement (TPA) (ASX announcement 15 July 2026), lifting total feed sources to approximately 260kt.
Under the commercial structure outlined in the Term Sheet, Medallion will first recoup a capital charge plus agreed operating costs associated with recovering, transporting and processing the stockpiles. The remaining pre-tax operating profit will then be shared equally (50:50) with TG Metals. Medallion will make provisional payments following completion of each processing batch, with final reconciliation undertaken on an open-book basis using actual operating costs, metallurgical performance and gold sales proceeds.
| Component | Detail | Investor Impact |
|---|---|---|
| Stockpile Volume | ~60kt Van Uden material | Incremental feed source |
| Total Feed Sources (with TPA) | ~260kt | Utilises spare CBC capacity |
| Profit Split | 50:50 after cost recovery | Shared upside, downside protected |
| Ravensthorpe Schedule | No impact | Flagship timeline intact |
Who does what
Under the proposed arrangement, responsibilities are divided as follows:
- Medallion: Recovering, transporting and processing the stockpiles, including tailings management. Ore will be processed in discrete campaigns through the CBC.
- TG Metals: Remains responsible for payment of applicable royalties.
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Why processing infrastructure matters in the Forrestania goldfield
A concentrator, or processing hub, is a facility that takes raw ore and extracts valuable minerals through crushing, grinding and concentration. Owning such infrastructure in a mining district creates strategic value, particularly when neighbouring explorers have discovered ore but lack the facilities to process it. This creates a “pathway to monetise” their stockpiles.
In this context, toll processing refers to Medallion charging a fee to process another company’s ore through its plant, while a profit share arrangement means both parties split the net proceeds after costs are recovered. For investors, control of regional processing capacity can position a company as a consolidation point or value catalyst for the district.
This commentary from Managing Director Paul Bennett suggests potential for the CBC to become a focal point for unlocking value as exploration activity increases.
Paul Bennett, Managing Director
“This proposed arrangement with TG Metals makes commercial sense for both parties by allowing Medallion to utilise available capacity at the Cosmic Boy Concentrator while providing a neighbouring explorer with a pathway to monetise its gold stockpiles. While the Forrestania region is an established goldfield, it remains significantly underexplored for gold over the past 25 years. Establishing a gold processing capability at Forrestania places us in a unique position to be a catalyst to unlock value across the district.”
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The investment case and what comes next
The proposed arrangement represents accretive, low-risk incremental cash flow potential using existing and spare infrastructure, whilst the flagship Ravensthorpe Gold Project development remains on track. Management’s stated focus on “execution and cashflow” positions this as a near-term revenue opportunity without diverting capital or management attention from the primary production target.
The Term Sheet is subject to customary conditions precedent, including due diligence and required approvals. Ore deliveries and processing are expected to commence following satisfaction of those conditions. However, as the Term Sheet is non-binding, there is no guarantee the parties will execute a binding Ore Processing and Profit Share Agreement. If a binding agreement is executed, Medallion will announce the material terms to the ASX.
No revenue estimates, processing grades or gold ounce figures have been disclosed in the announcement.
The arrangement, if finalised, positions Medallion as a regional processing hub in the Forrestania district. By monetising spare plant capacity ahead of Ravensthorpe ore delivery, the company aims to generate near-term cash flow whilst maintaining development momentum on its core asset. The conditional nature of the agreement means investors should await confirmation of binding terms before attributing material value to the proposed arrangement.
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