Operational Challenges at Tritton Tested, But Aeris Stays on Track

Steady Production Amid Operational Hurdles

Aeris Resources Limited has reported a solid operational and financial performance for the second quarter of fiscal year 2025. The company maintained a consistent copper equivalent production of 10.2 kilotonnes, supported by improved cost efficiencies across its portfolio. Despite some operational setbacks at the Tritton operations, these issues have been addressed, and the company remains confident in meeting its full-year production guidance.

The Tritton mine experienced a dip in copper output to 3.9kt during the quarter, impacted by labour availability, dewatering challenges at Tritton Deeps, and delays in the paste fill plant at Budgerygar. However, management reports these challenges have been resolved, with an improved production forecast for the second half of the year, bolstered by stronger underground mining and the addition of open pit ore from Murrawombie.

Cost Management and Cash Flow Strength

Cost control remains a highlight for Aeris, with the group’s all-in sustaining costs (AISC) reduced to A$4.93 per pound of copper equivalent. This improvement reflects disciplined operational management and enhanced metallurgical recoveries, particularly at the Mt Colin mine, where copper production rose to 1.9kt at a notably low AISC of A$2.84/lb. The Cracow gold operation also delivered robust results, producing 12.2koz of gold at an AISC of A$2,488 per ounce, outperforming plan and generating strong free cash flow.

Financially, Aeris closed the quarter with cash and receivables totaling A$33 million, supported by an increase in cash flow from operations to A$33.2 million. The company’s debt position remains stable at A$40 million, and the renewal of its ANZ banking facility to July 2025 provides flexibility to support refinancing and strategic initiatives.

Advancing Growth Projects and Resource Development

On the exploration and development front, Aeris completed a 70-hole resource definition drilling program at the Constellation project, with assay results confirming strong correlation with existing copper lodes. An updated Mineral Resource Estimate is targeted for release in the March quarter, which could enhance the project’s valuation and development prospects.

Meanwhile, the Jaguar project in Western Australia remains on care and maintenance, but the company has presented a restart scenario to the board that delivers attractive economic metrics. Studies are advancing to full feasibility, with planned mill and infrastructure upgrades to support a potential restart. This project represents a significant growth opportunity for Aeris, leveraging known resources at Bentley and the high-grade Turbo lens.

Strategic Outlook and Next Steps

Looking ahead, Aeris plans to focus on improving production at Tritton, commencing the Murrawombie pit cutback, and processing final stockpiles at Mt Colin. The company is also reviewing divestment options for its North Queensland assets and progressing the Jaguar feasibility study. Completion of refinancing arrangements remains a key corporate priority to underpin these initiatives.

Overall, Aeris Resources demonstrates resilience and operational discipline in a challenging environment, while positioning itself for growth through resource expansion and project development. Investors will be watching closely as the company delivers on its guidance and advances its strategic projects.