AIS
Aeris Resources Limited
ASX
INVESTOR PRESENTATION - NOOSA MINING INVESTOR CONFERENCE
Sentiment:
Presentation
17 July 2024 11:02 PM
Aeris Resources, an Australian mid-tier base and precious metals producer, highlights diversified production, growth opportunities, and a strategic focus on copper during its Noosa Mining Conference presentation in July 2024.
Delay expected
Delays in toll processing for Mt Colin have resulted in a significant buildup of ore stockpiles.
Summary
- Aeris Resources is an Australian mid-tier producer of base and precious metals.
- The company has a diversified production base with operations at Tritton, Cracow, and North Queensland.
- Aeris produced 27.1kt of copper, 55.3koz of gold, and 240.4koz of zinc in FY24.
- The company's market capitalization is A$218 million, with A$25 million in cash and A$40 million in debt, resulting in an enterprise value of A$233 million.
- Tritton is a cornerstone asset, having produced 430kt of copper since 2005, with a FY24 production of 19.7kt of copper.
- Cracow has produced over 1.5Moz of gold since 2004, with FY24 production of 46koz of gold.
- The company is advancing development projects such as Barbara and Jaguar, and is conducting a feasibility study for Stockman.
- Aeris is targeting a Mineral Resource upgrade at the Constellation deposit in Q3 FY25.
- Toll processing for Mt Colin will continue into Q2 FY25.
Sentiment
Score: 7
Explanation: The presentation highlights positive production results, growth opportunities, and a focus on copper, but also acknowledges risks and challenges, resulting in a moderately positive sentiment.
Highlights
- Aeris Resources is a mid-tier base and precious metals producer with operations in Australia.
- The company's mining portfolio includes a large Mineral Resource inventory.
- Tritton, a 100% owned asset, has produced 430kt of copper since 2005 and is targeting 19-24kt copper production in FY24.
- Cracow has produced +1.5Moz gold since first production in 2004, with FY24 production guidance of 38-48koz Au.
- The Constellation deposit has a Mineral Resource of 6.7Mt at 1.9% Cu and 0.6g/t Au, with a drill program underway to upgrade the resource in Q3 FY25.
- The Barbara project has an updated resource of 2.2Mt at 2.0% Cu and 0.2g/t Au, with feasibility studies underway.
- The Jaguar project has a Mineral Resource of 8Mt @ 1.1% Cu, 5.6% Zn, 1.3g/t Au and 215g/t Ag.
- Stockman has a 12-year mine plan producing up to 850ktpa from a single deposit (Currawong), with a feasibility study targeted for completion in the second half of 2024.
Positives
- Aeris has diversified production from three operations.
- There are significant internal growth opportunities to increase production and extend mine lives.
- All sites are located in tier 1 mining jurisdictions.
- The company is leveraged to copper, which is critical for electrification.
- The balance sheet has been strengthened.
- The Murrawombie Pit cut back will save c.$8M in rehabilitation costs.
- Increased ore recovery from Mt Colin extends the mine life into October 2024.
Negatives
- Mt Colin mine production is ahead of plan, but delays in toll processing have resulted in a significant buildup of ore stockpiles.
- The Jaguar project transitioned to care and maintenance in Q1 FY24.
Risks
- Forward-looking statements are subject to change without notice and involve known and unknown risks and uncertainties.
- Investors are cautioned against placing undue reliance on forward-looking statements, especially considering the current economic climate and significant volatility.
- Complex metallurgy at Stockman impacts recoveries.
Future Outlook
Aeris is focused on internal growth opportunities to lift production and extend mine lives, with a strategic emphasis on copper.
Industry Context
Aeris Resources operates in the Australian mining sector, focusing on base and precious metals. The company's emphasis on copper aligns with the increasing demand driven by electrification trends. They compete with other mid-tier miners in Australia.
Comparison to Industry Standards
- Aeris Resources' production of 19.7kt of copper in FY24 from Tritton can be compared to other mid-tier copper producers in Australia, such as Sandfire Resources, which operates the DeGrussa copper mine.
- Cracow's gold production of 46koz Au in FY24 can be benchmarked against similar-sized underground gold mines operated by companies like Evolution Mining.
- The Mineral Resource of 6.7Mt at 1.9% Cu and 0.6g/t Au at the Constellation deposit is comparable to other copper-gold deposits being developed by companies like AIC Mines.
- The Stockman project's feasibility study and potential to produce a high-grade Cu concentrate and a bulk Cu/Zn/Au/Ag concentrate using the Albion Process can be compared to similar polymetallic projects being pursued by companies like Heron Resources.
Stakeholder Impact
- Shareholders may benefit from the company's growth opportunities and strategic focus on copper.
- Employees are impacted by the ongoing operations and development projects at various sites.
- Customers are affected by the production of copper, gold, and zinc.
- Suppliers are involved in providing goods and services to the company's mining operations.
- Creditors are exposed to the company's debt obligations.
Next Steps
- Continue drill program at Constellation deposit targeting Mineral Resource upgrade in Q3 FY25.
- Complete mining study on underground, open pit and heap leach at Constellation following resource update.
- Advance EIS and permitting activities for a future mining operation at Constellation.
- Further drilling planned at Apollo / Coronation West structures in FY25.
- Prepare foundation geophysical data sets to identify drill targets at Southern Vein Field.
- Continue toll processing for Mt Colin into Q2 FY25.
- Undertake feasibility studies on a potential underground operation at Barbara.
- Update restart study for Jaguar in Q1 FY25.
- Complete metallurgical test work and engineering design for Albion Process at Stockman, with FS completion targeted in the second half of 2024.
Key Dates
- 2004: First gold production at Cracow
- 2005: Operations began at Tritton
- 28 June 2023: Barbara Mineral Resource Update
- 17 June 2024: Group Mineral Resource and Ore Reserve Statement
- July 2024: Noosa Mining conference presentation
- 2 July 2024: Stockman Feasibility Study Update
- October 2024: Mt Colin mine life extended to this date
- Second half 2024: Targeted completion of Stockman Feasibility Study
- Q1 FY24: Jaguar transitioned to care and maintenance
- Q2 FY25: Stripping expected to commence at Murrawombie Pit
- Q2 FY25: Toll processing to continue for Mt Colin
- Late FY25: First ore to mill at Murrawombie Pit
- Q1 FY25: Restart study update due for Jaguar
- Q3 FY25: Target conversion of 2Mt 3Mt of Inferred Mineral Resource to an Updated Mineral Resource at Constellation
Keywords
copper, gold, zinc, mining, resources, production, exploration, Aeris Resources
AIS
Aeris Resources Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
7 May 2025 7:31 PM
Market Announcement
- The announcement concerns a capital raising by Aeris Resources Limited.
Delay expected
27 April 2025 7:52 PM
Quarterly Report
- Underground ore production was impacted by delays to stope filling at Budgerygar due to a failure of the newly commissioned paste pump.
- Ramp up to full production at Murrawombie Pit was slower than expected due to the contractor having difficulty securing skilled operators.
Better than expected
30 March 2025 7:12 PM
Mineral Resource Update
- The document contains better than expected results due to the significant increase in copper and gold resources at the Constellation deposit, with a substantial upgrade to the Indicated Mineral Resource.
Better than expected
26 February 2025 5:48 PM
Half-Year Results
- The company's financial results for HY25 are significantly better than HY24, with increased revenue, lower costs, and a substantial improvement in profitability.
Capital raise
2 February 2025 7:45 PM
Quarterly Report
- The ANZ facility was renewed to July 2025 to facilitate the refinancing process.
- The company is working to complete refinancing.
Delay expected
2 February 2025 7:45 PM
Quarterly Report
- There were delays to the paste fill plant at Budgerygar.
Delay expected
30 January 2025 6:03 PM
Quarterly Report
- The new paste fill pump and reticulation system at the Budgerygar mine was delayed due to overseas supplier issues.
Capital raise
27 November 2024 12:21 AM
Annual General Meeting Results
- The AGM approved the issuance of an additional 10% of the issued capital over a 12-month period.
Capital raise
14 November 2024 2:57 AM
Facility Extension Announcement
- The refinancing process implies the company is seeking additional capital, though the specific method is not detailed.
Better than expected
29 October 2024 6:34 PM
Quarterly Report
- Tritton and Cracow exceeded production expectations, resulting in better than expected overall production.
- The AISC was lower than expected, indicating better cost management.
Delay expected
29 October 2024 6:23 PM
Quarterly Operational Report
- The completion of mining activities at Mt Colin is now expected in late November 2024.
Better than expected
29 October 2024 6:23 PM
Quarterly Operational Report
- Copper equivalent production exceeded expectations, reaching 10.2kt for the quarter.
- All-in sustaining costs (AISC) were lower than anticipated at A$5.32/lb.
Better than expected
24 October 2024 10:55 PM
Annual Report
- Despite lower overall revenue, Aeris Resources significantly exceeded expectations for Adjusted EBITDA, demonstrating improved operational efficiency and benefiting from higher commodity prices.
Capital raise
24 October 2024 10:52 PM
Annual General Meeting Notice
- Resolution 3 proposes issuing up to an additional 10% of the issued capital over a 12-month period.
- Funds raised would be used for exploration, assessing investment opportunities, and working capital.
Delay expected
29 July 2024 11:29 PM
Company Presentation
- Mt Colin's copper production was below guidance due to limited toll processing availability, indicating a delay in processing mined ore.
Delay expected
29 July 2024 7:52 PM
Quarterly Activities Report
- Mining activities at Mt Colin are now expected to continue until early Q2 FY25, which is later than the previously expected late Q4 FY24.
Delay expected
17 July 2024 11:02 PM
Presentation
- Delays in toll processing for Mt Colin have resulted in a significant buildup of ore stockpiles.
Worse than expected
10 July 2024 7:20 PM
Missing type for ID: 3564
- ASX:AIS announces worse than expected results.
Better than expected
10 July 2024 7:20 PM
Missing type for ID: 3564
- ASX:AIS announces better than expected results.
Better than expected
3 July 2024 7:39 PM
Metallurgical Testwork Results
- The metal recoveries are better than the original conventional flotation flowsheet.
Worse than expected
2 July 2024 6:21 PM
Exploration Update
- The DHEM results suggest that the targeted copper lodes are deeper than initially anticipated, which could increase exploration costs and delay potential production.
Delay expected
16 June 2024 7:22 PM
Group Mineral Resource and Ore Reserve Statement
- The Jaguar Ore Reserve has not been updated since the previous reporting period (end December 2022).
Worse than expected
16 June 2024 7:22 PM
Group Mineral Resource and Ore Reserve Statement
- The document contains worse than expected results due to the overall decrease in Group Ore Reserve tonnage.
Better than expected
7 May 2024 6:22 PM
Exploration Update
- The new IP anomaly is larger than the one associated with the existing Canbelego Main Lode, suggesting the potential for a larger copper deposit.
Worse than expected
29 April 2024 8:01 PM
Quarterly Report
- Tritton's metal production was impacted by labour and equipment availability, leading to lower than expected output.
Delay expected
29 April 2024 7:04 PM
Quarterly Activities Report
- Mt Colin toll processing and copper production are behind schedule.
- Due to reduced processing runs through the year, copper production is forecast to be below guidance for FY24 at Mt Colin.
Better than expected
8 April 2024 7:05 PM
Exploration Update
- The document contains better than expected results because new geophysical surveys have identified significant new copper targets in close proximity to known, high-grade copper mineralisation at the Canbelego deposit.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.