AIS
Aeris Resources Limited
ASX
JUNE QUARTERLY REPORT PRESENTATION
Sentiment:
Company Presentation
29 July 2024 11:29 PM
Aeris Resources reports Q4 FY24 results, achieving production and cost guidance for FY24 at the group level, Tritton, and Cracow, while Mt Colin's production fell short due to toll processing availability.
Delay expected
Mt Colin's copper production was below guidance due to limited toll processing availability, indicating a delay in processing mined ore.
Summary
- Aeris Resources reported increased copper equivalent production of 10.2kt for Q4 FY24 at an AISC of A$5.45/lb.
- Tritton performed well with higher production and grades due to increased volumes from Avoca Tank and Budgerygar mines.
- Cracow showed strong gold production.
- Mt Colin mining was ahead of plan, but lower copper production resulted from toll processing availability.
- Exploration was conducted at Constellation (Tritton), Cracow, and the gold target at Jaguar.
- Jaguar is on care and maintenance, with a restart study well advanced.
- Stockman feasibility work on the Albion process continues.
- Production and cost guidance were achieved for FY24 at the group level and at Tritton and Cracow.
- Mt Colin production was below guidance due to the availability of toll processing windows.
- Closing cash and receivables were $33.4 million, including $24.8 million in cash, excluding $10M restricted cash for environmental bonding.
- Trade payables and other creditors balance steady at $73.2 million.
- The debt position remained unchanged at $40 million.
- The process to refinance debt and bonding facilities is well advanced, with several term sheets received.
- FY25 production guidance of 40-48kt Cu eq.
Sentiment
Score: 7
Explanation: The report presents a mix of positive and negative results, with overall guidance achieved but some operational challenges. The advanced stage of debt refinancing is a positive sign.
Highlights
- Copper equivalent production increased to 10.2kt for the quarter at an AISC of A$5.45/lb.
- Tritton's performance improved with higher production and grades from Avoca Tank and Budgerygar mines.
- Cracow achieved strong gold production.
- Group level production and cost guidance achieved for FY24 at Tritton and Cracow.
- FY25 guidance improved due to majority production from higher grade Avoca and Budgerygar.
- Closing cash and receivables of $33.4 million with cash of $24.8 million.
- Metallurgical test work at Stockman Project demonstrated a step change improvement in recoveries can be achieved through the Albion process.
Positives
- Increased copper equivalent production in Q4.
- Strong performance from Tritton operations.
- Solid gold production at Cracow.
- Achieved production and cost guidance for FY24 at the group level, Tritton, and Cracow.
- FY25 guidance improved due to majority production from higher grade Avoca and Budgerygar.
- Metallurgical test work at Stockman Project demonstrated a step change improvement in recoveries can be achieved through the Albion process.
Negatives
- Mt Colin's copper production was below guidance due to limited toll processing availability.
- Ore processing below forecast at Mt Colin due to lack of available toll processing windows.
Risks
- Reliance on toll processing availability for Mt Colin operations.
- Volatility in commodity prices affecting revenue.
- Uncertainties related to exploration results.
- Potential delays in permitting for the Barbara project.
- Risks associated with restarting Jaguar operations.
Future Outlook
FY25 guidance includes copper production of 27-32kt, gold production of 50-62koz, silver production of 200-240koz, and copper equivalent production of 40-48kt. FY25 guidance improved due to majority production from higher grade Avoca and Budgerygar.
Industry Context
The report reflects the performance of a mid-tier base and precious metals producer in the Australian market, with operations spanning copper, gold, silver, and zinc. The company's focus on exploration and development projects aligns with industry trends aimed at expanding resource bases and extending mine life.
Comparison to Industry Standards
- It is difficult to compare Aeris Resources directly to other companies without specific benchmarks for mid-tier Australian base and precious metals producers.
- Companies like Sandfire Resources and OZ Minerals (before its acquisition by BHP) could be considered peers in terms of scale and commodity focus.
- The AISC of A$5.45/lb for copper equivalent production would need to be benchmarked against industry averages to determine its competitiveness.
- The Albion process being explored at Stockman is used by companies such as Glencore.
Stakeholder Impact
- Shareholders will be impacted by the overall financial performance and future guidance.
- Employees are affected by operational performance and project developments.
- Customers are impacted by production levels and product availability.
- Suppliers are affected by operational activities and capital expenditure.
- Creditors are impacted by the company's debt position and refinancing activities.
Next Steps
- Finalisation of tenders for Murrawombie Pit mining contract at Tritton.
- Continuation of Constellation drill program at Tritton.
- Exploration results from Apollo and Coronation West prospects at Cracow.
- Completion of mining at Mt Colin operation.
- Completion of Barbara feasibility study and determination of permitting pathway.
- Restart options study for Jaguar.
- Exploration results from Heather Bore drilling at Jaguar.
- Refinancing of debt and bonding facilities.
Key Dates
- 28 June 2023: Barbara Mineral Resource Update ASX release
- November 2024: Budgerygar
- 4 July 2024: Stockman Project Flotation & Albion Leach Testwork Results ASX release
Keywords
production, copper, gold, Aeris Resources, Tritton, Cracow, Mt Colin, Jaguar, Stockman, exploration, guidance, Albion process
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.
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