Gold production in Colombia is picking up speed
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Aguia Resources commenced gold and silver production at the Santa Barbara project in Colombia in early 2025. For Warwick Grigor, this is a crucial milestone: “We’re in production – we’re not just talking about it,” he emphasizes.
As with any new underground operation, there were typical commissioning hurdles, but the start-up phase is going according to plan. “We are only a few months behind the original schedule. In the last three months we have specifically restructured the management and operational processes – this is now starting to have an impact.” Production is expected to increase continuously in the coming months. “We are already pouring good gold and will continue to increase the yield over at least six months,” said Grigor. At the same time, Aguia is pushing ahead with an active drilling program: “We see great exploration potential in Colombia. Our target is two to four million ounces, and we continue to drill continuously.”
High salaries and low costs
The economic viability of the project is based on exceptionally high grades. “We have around 30 grams per tonne at the inlet and 10 to 15 grams at the mill – making us one of the most cost-effective producers,” explains Grigor. The company expects to reach operational break-even in October. “We have invested around ten million dollars – we can recoup this amount within twelve months,” says Grigor.
Aguia pursues a clear strategy: production and exploration in parallel. “We generate cash flow as we evolve the resource model, so we avoid burning through years of capital before revenue flows.”
Phosphate project in Brazil shortly before production starts
In addition to the gold business, Aguia is building up a second pillar, the phosphate project in Brazil near Caçapava do Sul. This project is about to start production and impresses with strong key figures. “The project is technically simple and very cost-effective to implement,” explains Grigor. By using an existing system, the investment costs were reduced from the original around A$25 million to under A$5 million.
“Our manufacturing costs are around A$65 per tonne, while current selling prices are around A$200 – that gives a gross margin of around 200 percent,” he says. With a JORC compliant resource of approximately 100 million tonnes and a planned launch in spring 2026, Aguia expects annual returns of A$20 million to A$22 million EBITDA. “This is a very attractive economics, especially relative to our current market capitalization of around A$35 million,” said Grigor. Bank financing has already been secured via the Brazilian development bank BRDE. “We expect to start production in March or April 2026,” he confirms.
Two projects, one goal: sustainable cash flow
With the combination of gold production and phosphate development, Aguia has found a clear strategic direction. “We now have two functioning cash flow drivers, which is a strong foundation for our further growth,” emphasizes Grigor. The short-term focus is on stabilizing gold production and increasing revenues. At the same time, preparations for phosphate production are to be completed. “Once both projects are fully operational, we will be able to generate strong profits and significantly expand our position in the market.”
In the medium term, a spin-off of the phosphate business is also conceivable. “First we want to build up cash flow – then we will examine strategic options such as a spin-off or a partial listing.”
“We have laid the foundation, now comes the harvest phase”
Grigor looks ahead optimistically: “Aguia is in a much stronger position than it was just a few years ago. We produce gold, are preparing to launch phosphates and have two projects that complement each other – precious metals for short-term cash flows, agricultural raw materials for long-term stability.” He expects a noticeable operational and financial improvement for 2026: “With the gold project in full operation and the phosphate project shortly thereafter, we will show what potential lies in Aguia Resources. Now the phase begins where our work really pays off.”
