Aeris Resources - Quarterly Activities Report for June 2024
AERIS RESOURCES LIMITED (AIS) Share Update July 2024 Monday 29th
Aeris Resources Reports Strong Quarterly Production Despite Challenges
Aeris Resources Limited (ASX: AIS) has released its Quarterly Activities Report for the period ending 30 June 2024, highlighting strong production performance across its operations despite facing several operational challenges.
Instant Summary:
- Copper equivalent production of 10.2kt for the quarter at AISC of A$5.45/lb.
- Tritton operations exceeded production and grade expectations.
- Strong gold production at Cracow with costs in line with plan.
- Mt Colin mining ahead of plan but limited by toll processing capacity.
- Jaguar operations on care and maintenance with advanced restart studies.
- Stockman feasibility work on the Albion process continues.
Quarterly Performance Overview
Aeris Resources reported a copper equivalent production of 10.2kt for the June 2024 quarter, achieving an all-in sustaining cost (AISC) of A$5.45/lb. The company successfully met its FY24 production and cost guidance at both the group level and for its Tritton and Cracow operations.
Tritton operations in New South Wales performed exceptionally well, with copper production reaching 5.4kt at an AISC of $5.23/lb. This was driven by improved ore volumes from the Avoca Tank and Budgerygar mines. Operating and capital costs were below plan, contributing to the strong performance.
Cracow Operations
In Queensland, the Cracow operations reported strong gold production of 11.6koz at an AISC of A$2,533/oz. The operation met its annual production guidance, with all costs at the lower end of the guidance range. Ore mined for the quarter was ahead of plan, and mill throughput increased due to higher mined tonnes and stockpile feed.
Mt Colin and Jaguar Operations
Mt Colin mining activities in North Queensland were ahead of plan, but copper production was limited by the lack of available toll processing capacity. The operation produced 1.3kt of copper for the quarter, with significant stockpiles of mined ore available for processing in the following quarter.
The Jaguar operations in Western Australia remained on care and maintenance, with pre-feasibility work on restart options continuing. Exploration activities focused on testing high-priority targets for gold mineralisation in fresh rock.
Stockman Project
At the Stockman project in Victoria, metallurgical test work and engineering studies for the modified flotation flowsheet combined with the Albion process showed significant improvements in metal recoveries. Detailed test work and engineering of a simplified flotation plant at the mine site and downstream Albion processing plant are now proceeding.
Group Safety, Environment, and Community
Aeris recorded one lost time injury during the quarter, bringing the 12-month rolling LTIFR to 1.19. There were two reportable environmental incidents related to water flow recording issues at Tritton and the camp sewage treatment plant at Cracow.
The strong production performance and cost management at Tritton and Cracow positively impact Aeris Resources' stock, reflecting operational resilience. However, the limitations at Mt Colin due to toll processing capacity and the ongoing care and maintenance at Jaguar may temper investor enthusiasm. The advancements in the Stockman project are promising and could enhance future growth prospects.
Investor Reaction:
Analysts are likely to view the strong performance at Tritton and Cracow positively, while the challenges at Mt Colin and Jaguar may raise concerns. The progress in the Stockman project could be a catalyst for future growth, and investors will be keen to see the final valuation release and strategic responses from the company.
Conclusion:
Investors should monitor Aeris Resources' ongoing operational performance and the final valuation release. The company's ability to navigate challenges and capitalize on growth opportunities will be crucial in maintaining investor confidence. Subscribe to our newsletter for regular updates and in-depth analysis.