FY25 HALF-YEAR RESULTS

• Aeris Resources Limited (ASX:AIS) announced its FY25 half-year results, showcasing improvements across key financial metrics.
• Revenue increased to $292.7 million, up from $286.3 million in HY24, driven by higher commodity prices and increased gold production.
• The cost of sales decreased by 15% to $233.1 million, compared to $272.9 million in HY24.
• Gross profit surged by 347% to $59.6 million, a significant increase from $13.3 million in HY24.
• Net profit after tax reached $29.6 million, a substantial improvement from a loss of $18.8 million in HY24.
• The company generated positive cash flow from operations of $58.3 million, a significant turnaround from $0.1 million in HY24.
• Drawn debt remained unchanged at $40.0 million.
• Production is on track to meet group annual guidance.
• Unrestricted cash increased to $26.4 million, and net assets rose to $302.0 million.
• Adjusted EBITDA improved significantly to $84.8 million, compared to $44.6 million in HY24.
• Basic earnings per share increased to 3.1 cents, compared to a basic loss per share of 1.9 cents in HY24.

Score: 8

Explanation: The document presents a highly positive outlook with significant improvements in financial performance, strong cash flow, and a clear path towards meeting annual guidance. The sentiment is strong due to the substantial turnaround from a loss to a profit and the positive trajectory indicated by management.

• Revenue increased to $292.7 million (HY24: $286.3 million) due to higher commodity prices and increased gold production.
• Cost of sales decreased by 15% to $233.1 million (HY24: $272.9 million).
• Gross profit increased by 347% to $59.6 million (HY24: $13.3 million).
• Net profit after tax increased by 257% to $29.6 million (HY24: loss of $18.8 million).
• Positive cash flow from operations reached $58.3 million (HY24: $0.1 million).
• Unrestricted cash increased to $26.4 million.
• Net assets increased to $302.0 million.
• Adjusted EBITDA improved to $84.8 million (HY24: $44.6 million).
• Basic earnings per share increased to 3.1 cents (HY24: loss per share of 1.9 cents).

• Increased revenue driven by higher commodity prices and increased gold production.
• Lower cost of sales leading to improved profitability.
• Significant increase in gross profit and net profit after tax.
• Positive cash flow from operations, enabling reinvestment into capital and exploration.
• Stronger balance sheet with increased unrestricted cash and net assets.
• Production is on track to meet group annual guidance.
• Improved operational performance and cost control.
• Basic earnings per share increased to 3.1 cents.

• Jaguar mine remained on care and maintenance, incurring costs of $4.6 million.

• Reliance on commodity prices and gold production for revenue growth.
• Environmental bonding requirements impacting cash flow, with $15.0 million in restricted cash.
• The company uses non-IFRS financial information metrics, which may not be directly comparable to other companies.

Aeris is well-positioned to deliver a strong full-year result to shareholders, with operational performance continuing to improve and the refinancing of the ANZ Contingent Instrument facility in its final stages. Production is on track to meet group annual guidance.

• Aeris Executive Chairman, Andre Labuschagne, said The FY25 Half-Year delivered very pleasing financial results for Aeris and demonstrate the improved performance of operations in FY25.
• Costs have been well managed across the group, enabling cash flow from operations to increase significantly from approximately breakeven in FY24 Half-Year to $58.3 million this half year.

The announcement reflects a positive trend in the mining sector, driven by higher commodity prices and increased production efficiency. Aeris's performance aligns with the broader industry focus on cost management and operational improvements to enhance profitability.

• Companies like Sandfire Resources and OZ Minerals (now part of BHP) have also focused on operational efficiency and cost control to improve profitability in a fluctuating commodity price environment.
• Aeris's gross profit margin improvement of 347% is significant and indicates a strong operational turnaround, potentially outperforming some of its peers in terms of margin expansion during the same period.
• The increase in cash flow from operations to $58.3 million allows for reinvestment in growth projects, similar to how other mid-tier miners allocate capital.

• Shareholders will benefit from the improved financial performance and increased profitability.
• Employees may experience increased job security and potential for bonuses due to the company's success.
• Customers can expect continued supply of resources due to the company's stable operations.
• Suppliers may see increased business opportunities due to the company's growth.
• Creditors will have increased confidence in the company's ability to meet its financial obligations.

• Continue to focus on operational cost control and efficiency improvements.
• Progress the Constellation drill program and Budgerygar paste fill plant at Tritton.
• Finalize the refinancing of the ANZ Contingent Instrument facility.
• Continue to investigate strategic merger and acquisition opportunities.

• 31 December 2024: End of FY25 Half-Year period
• 27 February 2025: ASX/Media Release date for FY25 Half-Year Results