AIS
Aeris Resources Limited
ASX
MARCH QUARTERLY REPORT PRESENTATION
Sentiment:
Quarterly Report
29 April 2024 8:01 PM
Aeris Resources reports Q3 FY24 results with copper equivalent production of 9.1kt, impacted by labour and equipment availability at Tritton, while maintaining FY24 guidance.
Worse than expected
Tritton's metal production was impacted by labour and equipment availability, leading to lower than expected output.
Summary
- Aeris Resources reported a copper equivalent production of 9.1kt for Q3 FY24 at an AISC of A$5.31/lb.
- Tritton's metal production was affected by labour and equipment availability, but contract labour and additional equipment are now in place to improve Q4 production.
- Mt Colin mine ore production is 10% higher year-to-date than planned, but toll processing and copper production are behind schedule.
- Jaguar is on care and maintenance, with exploration focusing on gold potential while a PFS is underway.
- Stockman feasibility work on the Albion process is ongoing.
- FY24 guidance is maintained across the board.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While there were operational challenges at Tritton, the company maintains its guidance and has plans to improve production. Positive developments at Mt Colin and Cracow contribute to the balanced outlook.
Highlights
- Copper equivalent production reached 9.1kt for the quarter at an AISC of A$5.31/lb.
- Mt Colin mine ore production is 10% higher year-to-date than planned.
- Cracow is on track to achieve the upper end of production guidance and the lower end of operating and capital cost guidance for FY24.
- Mt Colin mine life has been extended into Q1 FY25 due to increased ore recovery.
- Closing cash and receivables stand at $28.3 million, with cash at $19.4 million.
Positives
- Mt Colin mine ore production is 10% higher year-to-date than planned.
- Cracow is on track to achieve the upper end of production guidance and the lower end of operating and capital cost guidance for FY24.
- Mt Colin mine life has been extended into Q1 FY25 due to increased ore recovery.
- Trade payables and other creditors balance reduced by $13.4 million to $73.9 million.
Negatives
- Tritton's metal production was impacted by labour and equipment availability.
- Toll processing and copper production at Mt Colin are behind schedule.
Risks
- Labour and equipment availability could continue to impact production at Tritton.
- Fluctuations in commodity prices could affect overall financial performance.
- Delays in toll processing could impact copper production at Mt Colin.
Future Outlook
Aeris Resources expects strong Q4 performance, maintaining FY24 guidance with copper production around the mid-point and operating/capital costs at the bottom end of guidance. Cracow is on track to achieve the upper end of production guidance and lower end of cost guidance.
Management Comments
- Contract labour and additional equipment are now in place at Tritton to lift production in Q4.
- Mining operations at Mt Colin are ahead of plan due to strong performance from the cave zone.
- Burnvoir Corporate Finance is advising on refinancing the company's debt and bonding facilities.
Industry Context
Aeris Resources operates in the mid-tier base and precious metals sector in Australia, with operations in Queensland, New South Wales and Western Australia. The company's performance is influenced by commodity prices, operational efficiencies, and exploration success. They are focused on copper and gold production, with additional exposure to zinc and silver.
Comparison to Industry Standards
- AISC for copper production varies widely across the industry, with some major producers like BHP and Rio Tinto achieving lower costs due to economies of scale and integrated operations.
- Gold production costs at Cracow (A$2,679/oz) are relatively high compared to some low-cost gold producers like Newmont or Barrick Gold, but are within the range for smaller, underground operations.
- The focus on extending mine life and improving operational efficiencies is a common strategy among mid-tier miners to enhance shareholder value.
Stakeholder Impact
- Shareholders: Mixed impact due to production challenges at Tritton offset by positive developments at other sites.
- Employees: Potential for increased workload and pressure to meet production targets.
- Customers: Continued supply of copper and gold, although potential for short-term disruptions.
- Suppliers: Ongoing business relationships, with potential for increased demand as production ramps up.
- Creditors: Debt refinancing process underway, indicating potential changes in financial structure.
Next Steps
- Ramp up production at Tritton to deliver strong Q4.
- Drilling at Constellation deposit to improve resource confidence.
- Maintain production levels at Cracow to achieve upper end of guidance range.
- Continue Apollo and other Western Vein Field drilling to extend mine life.
- Barbara feasibility study and EIS.
- Stockman Albion process test work and engineering.
- Diamond drilling at Heather Bore gold prospect at Jaguar.
- Continue to tightly manage capital and operating costs across the group.
Key Dates
- 28 April 2022: Reference to ASX Release of Aeris regarding Stockman Production Targets.
- 28 June 2023: Reference to ASX release Barbara Mineral Resource Update.
- March 2024: Reference to March 2024 Quarterly Report regarding drilling at the Bazsickle structure.
Keywords
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.