Aurelia Metals Reports 10.5koz Gold and 3.8kt Zinc, Costs Decline at Peak Mine

Strong Operational Momentum

Aurelia Metals Limited (ASX: AMI) has reported a solid operational performance for the December 2024 quarter, reinforcing its position as a key player in the Australian base metals sector. The company’s production and cost metrics remain aligned with guidance, underscoring effective execution across its portfolio.

Notably, Aurelia achieved a significant milestone with the first concentrate produced from its Federation ore, signaling the successful transition of this project from development to commercial ramp-up. This milestone is a critical step in diversifying and expanding the company’s production base.

Production and Cost Performance

The quarter saw gold production at 10.5koz, copper at 1.2kt, zinc at 3.8kt, and lead at 4.2kt, all within the company’s forecast ranges. Operating costs demonstrated positive trends, with mining unit costs at the Peak mine declining to $112 per tonne, down from $134 per tonne earlier in the year. The all-in sustaining cost (AISC) for gold was reported at $1,860 per ounce for the quarter, reflecting improved operational efficiencies and strong by-product credits.

These cost improvements, combined with steady production volumes, have contributed to robust cash generation. Aurelia’s balance sheet remains healthy, with cash reserves of approximately A$96.7 million at quarter-end, supported by consistent operating cash flows from its Peak and Dargues operations.

Advancing Growth Projects

Beyond operational delivery, Aurelia is actively progressing its growth pipeline. The Federation mine is ramping up ahead of schedule, with mine development tracking ahead of plan and major surface works completed within budget. Exploration efforts continue to yield promising results across the Cobar district, including significant copper intercepts at Kairos, Hercules, New Cobar, and Jubilee North.

Meanwhile, studies for the Great Cobar project and Peak plant expansion are advancing towards final investment decisions expected in the current half. These initiatives aim to enhance throughput capacity and extend the company’s resource base, positioning Aurelia for sustained growth in a competitive market.

Sustainability and Safety Focus

Aurelia also reported steady improvements in safety and environmental metrics, maintaining a low total recordable injury frequency rate (TRIFR) and recordable environmental incident frequency rate (REIFR). The company’s commitment to safeguarding its social licence to operate remains a core priority, exemplified by community engagement activities such as the opening of the Cobar Community Hub.

Outlook

Looking ahead, Aurelia Metals is focused on expanding margins and cash flows through increased development rates at Peak, ramping up Federation to commercial production, and advancing its copper growth options. The company’s disciplined approach to capital allocation and operational execution will be critical as it navigates market conditions and delivers on its growth ambitions.