Aurelia Metals Surpasses FY24 Gold Production Guidance
AMI (AMI) Share Update July 2024 Wednesday 10th
Aurelia Metals Exceeds Gold Production Guidance for FY24
Aurelia Metals Limited (ASX: AMI) has announced its production and cash outcomes for the financial year ending 30 June 2024, showcasing strong performance across its operations.
Instant Summary:
- Gold production exceeded the upper end of guidance at 65.3kozs.
- Copper and zinc production were near the mid-point of guidance.
- Lead production was slightly below guidance at 18.7kt.
- Strong balance sheet with cash on hand of A$116.5M.
- Group All-in-Sustaining Cost (AISC) expected to be towards the lower end of the guidance range.
Production Outcomes
Aurelia Metals Limited (ASX: AMI) has reported its production outcomes for the financial year ending 30 June 2024. The company achieved gold production of 65.3kozs, surpassing the upper end of its guidance range of 60.0 – 65.0kozs. Copper and zinc production were near the mid-point of guidance, with 2.2kt of copper and 16.8kt of zinc produced. Lead production was just below guidance at 18.7kt, compared to the expected range of 19.0 – 22.0kt.
During the June quarter, Aurelia Metals produced 19.1kozs of gold, contributing significantly to the annual total. The company's Peak Gold Mine produced 29.8kozs for the year, while the Dargues Gold Mine contributed 35.6kozs.
Financial Performance
Aurelia Metals' financial performance remains robust, with cash on hand increasing to A$116.5M as of 30 June 2024, up from A$106.7M in the previous quarter. This increase was driven by strong sales during the June quarter. Additionally, the company has an undrawn US$24M Loan Note, resulting in total liquidity of over A$150M.
The Group All-in-Sustaining Cost (AISC) for FY24 is expected to be towards the lower end of the previously revised guidance range of A$2,000 – A$2,150/oz. This reflects the company's efficient cost management and strong production performance.
Management Commentary
Commenting on the production outcomes, Managing Director and Chief Executive Officer Bryan Quinn said, 'These June quarter results are the culmination of a lot of hard work across the business as we continue to improve our operating performance and set the business up for the future. The solid production and sales outcomes have resulted in a very healthy cash balance for Aurelia Metals, which is pleasing considering we are also funding our Federation Project.'
The strong production results and robust financial performance are likely to have a positive impact on Aurelia Metals' stock price. Exceeding gold production guidance and maintaining a healthy cash balance will boost investor confidence. The company's efficient cost management, reflected in the lower AISC, further strengthens its financial position.
Investor Reaction:
Analysts and investors have reacted positively to the announcement. The strong production results and healthy cash balance are seen as indicators of the company's solid operational performance and financial stability. Some investors have expressed optimism about the company's future prospects, especially with the ongoing development of the Federation Project.
Conclusion:
Investors should keep an eye on Aurelia Metals as the company continues to demonstrate strong operational and financial performance. The upcoming release of the June 2024 Quarterly Activities report on 24 July 2024 will provide further insights into the company's performance and future plans. Staying informed about the company's developments will be crucial for making informed investment decisions.