Nativo Resources (LSE:NTVO) has unveiled a revised development strategy for its La Patona Gold Ore Processing Plant in Peru, splitting the project into three construction phases designed to reduce upfront capital requirements and bring the operation into production more quickly.
The phased approach is intended to accelerate initial cash flow while lowering execution risk as the company progresses towards becoming a gold producer.
Three-Stage Rollout Targets Earlier Cash Generation
Under the updated plan, the La Patona processing facility will be built in stages, beginning with an initial throughput capacity of 70 tonnes per day before expanding to 110 tonnes per day and ultimately reaching 350 tonnes per day as operating cash flow supports future growth.
The plant will incorporate both flotation and cyanidation processing circuits, together with on-site smelting facilities, allowing Nativo to process gold ore through multiple recovery methods.
Management said the revised structure enables the company to match expansion with operational performance, limiting capital exposure during the early stages of the project.
Funding Strategy Combines External Finance and Operating Cash Flow
The first phase of development is expected to require capital expenditure of approximately US$2.03 million before contingency costs.
Nativo intends to fund the initial build using a combination of project finance, royalty streaming agreements and equity funding. Subsequent expansion phases are expected to rely largely on cash generated by the operation itself.
According to the company, engineering work and cost estimates have now been completed, leaving the project ready for construction. First gold production remains targeted for late 2026, marking an important step in Nativo’s transition from exploration and development into commercial production.
Financial Position Remains an Area to Watch
Despite progress at La Patona, Nativo continues to face financial challenges typical of companies at the development stage.
The business currently generates no revenue and continues to report widening losses, negative shareholders’ equity and ongoing cash outflows while advancing its projects.
Technical indicators also remain weak, with the shares trading below major moving averages, while valuation continues to be affected by negative earnings and the absence of a dividend.
About Nativo Resources Plc
Nativo Resources Plc is a precious metals company focused on gold mining and processing projects in Peru, including the Tesoro Gold Concession.
Its strategy combines primary gold production with the processing of third-party ore and the recovery of gold from historical tailings, providing multiple potential revenue streams.
The La Patona Gold Ore Processing Plant is expected to process both company-owned and externally sourced ore, positioning the business as a regional processing hub while supporting its long-term growth strategy in Peru’s gold sector.
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