Austral Reports 634 Tonnes Copper Output in December Quarter, Eyes Growth

Recapitalisation and Strategic Outlook

Austral Resources Australia Ltd (ASX:AR1) entered 2025 with a clear focus on securing its long-term future through a carefully managed recapitalisation process. Despite some shareholder frustration over delays, the Board remains confident that postponing the equity raise will yield a stronger outcome that better reflects the company's asset quality and growth potential. The company is actively pursuing third-party partnerships to bolster its capital position and growth trajectory.

Chairman David Newling emphasised the company’s resilience and strategic patience, highlighting operational milestones achieved since the receivership period and the ramp-up of production from December 2024. The Board’s approach balances preserving shareholder value with the need for fresh capital to underpin expansion.

Operational Progress and Production Performance

Operationally, Austral made significant strides during the December quarter. The rapid onboarding of ReGroup as the new mining contractor facilitated the extraction of 3.12 million tonnes from the Anthill deposit in 2024, with 670,000 wet metric tonnes mined in the quarter alone at an average copper grade of 0.66%. The completion of the West Pit at Anthill ahead of the wet season marks a key operational achievement.

At the Mt Kelly processing facility, despite early mechanical setbacks and acid supply constraints, December saw a notable improvement in copper plating, producing 634 tonnes, exceeding targets. The crushing and stacking circuit’s mechanical rectifications set a foundation for more consistent output in 2025. Total cash from copper cathode sales reached approximately $20 million in the quarter, though operating cash outflows of $3.52 million reflect ongoing investment and operational costs.

Resource Expansion and Exploration Highlights

Austral’s exploration efforts continue to underpin its growth ambitions. The company secured environmental approval for drilling at the historic Lady Maggie copper mine, enabling a planned campaign in mid-2025. Regional exploration across 2,181 km2 of tenure rejuvenated the prospect pipeline, with new targets identified and several prospects elevated to drill-ready status despite a downsized exploration team.

Notably, a maiden Mineral Resource Estimate (MRE) for the Mt Kelly Heap Leach stockpile was released, revealing an inferred resource of 22.6 million tonnes grading 0.20% copper, containing approximately 44.6 kilotonnes of copper metal. This legacy stockpile offers a low-cost production pathway through potential re-mining and re-irrigation within the next 12 months, enhancing the company’s copper output profile.

Complementing this, a positive Scoping Study covering Lady Annie, Lady Brenda, Mount Clarke, and Flying Horse deposits projects a substantial copper production pipeline, with mineable resources estimated between 10.7 and 11.2 million tonnes grading around 1.16% copper, translating to 124 to 131 kilotonnes of contained copper. Approximately 90% of these resources fall within Measured or Indicated JORC classifications, underscoring their robustness.

Leadership and Corporate Developments

Leadership changes marked the quarter with CEO Dan Jauncey stepping down effective 31 October 2024, remaining on the Board as a Non-Executive Director to support the transition. The search for a new CEO is underway. Meanwhile, Angus Petersen was appointed Chief Financial Officer, bringing continuity and experience to the company’s financial management.

Austral’s securities remain suspended pending completion of the equity raise and recapitalisation. The company has committed to providing quarterly production guidance to enhance transparency and shareholder engagement, with March 2025 production estimates forecasting nearly 1,800 tonnes of copper produced.

Environmental and Sustainability Initiatives

Austral is proactively preparing for mandatory climate-related disclosures under emerging Australian Sustainability Reporting Standards. The company is conducting scenario analyses to assess climate risks and opportunities, developing a decarbonisation roadmap, and enhancing stakeholder communication through a dedicated sustainability web portal. These initiatives reflect Austral’s commitment to environmental stewardship and regulatory compliance.