Weather Delays Concentrate Shipments, Testing AIC Mines’ Cashflow Resilience
AIC Mines reported solid copper production at Eloise with significant resource upgrades at both Eloise and Jericho, despite weather-related shipment delays. The company is progressing its processing plant expansion with a contract award expected soon.
- Eloise produced 3,004t copper at AISC of A$5.49/lb despite rain impacts
- Jericho Ore Reserves surged 77% in copper and 92% in gold
- Eloise Ore Reserves increased 12% copper and 20% gold after depletion
- EPC tender for Eloise plant expansion closed; contract award expected May 2025
- Operating cashflow of A$12.6 million; net mine cashflow near breakeven after capital
Production Performance and Weather Challenges
AIC Mines delivered on its production targets at the Eloise copper mine in Queensland during the March 2025 quarter, producing 3,004 tonnes of copper in concentrate at an all-in sustaining cost (AISC) of A$5.49 per pound. However, heavy rainfall in March caused road closures and difficulties in drying concentrate, resulting in a stockpile of 2,505 dry metric tonnes of concentrate valued at approximately A$9.7 million awaiting shipment. This weather disruption also impacted sales volume, with only 2,314 tonnes of copper sold during the quarter, which in turn affected cashflow.
Resource and Reserve Upgrades Signal Growth
Exploration and drilling campaigns completed in calendar year 2024 culminated in substantial upgrades to both the Jericho and Eloise Ore Reserves. Jericho’s Ore Reserves now stand at 6.1 million tonnes grading 1.8% copper and 0.4 grams per tonne gold, representing a 77% increase in contained copper and a 92% increase in contained gold. Eloise’s Ore Reserves also grew by 12% in copper and 20% in gold despite ongoing mining depletion, underscoring the success of resource definition drilling and the robustness of the deposit.
Advancing the Eloise Processing Plant Expansion
The company’s strategy to expand the Eloise processing plant from its current 725,000 tonnes per annum capacity to 1.1 million tonnes per annum is progressing well. The Engineering, Procurement and Construction (EPC) tender closed with strong interest from multiple contractors, and AIC Mines expects to award the contract in May 2025. This expansion is critical to accommodate increased ore feed from Jericho and support future production growth.
Exploration Success Extends Mineralisation
Exploration drilling at Jericho extended mineralisation at the northern end of the J1 Lens and identified new zones such as the Tucker shoot on the J2 Lens. The 2025 drilling campaign aims to convert inferred resources to indicated status at Matilda North and Jolly, facilitating earlier mining. Regional exploration around Eloise also yielded encouraging results, with targets like Eloise South showing promising copper-gold intersections that warrant follow-up.
Financial and Operational Outlook
Operating cashflow for the quarter was A$12.6 million, with net mine cashflow essentially breakeven after capital expenditure of the same amount. The company ended the quarter with A$30.9 million in cash, down from A$44.7 million at the end of 2024, reflecting ongoing investment in development and expansion projects. AIC Mines is actively progressing debt funding arrangements to support the Eloise plant expansion, with funding expected by the end of the June quarter. Safety performance saw a slight increase in recordable injuries, but no environmental incidents were reported.
Bottom Line?
With robust resource upgrades and a pivotal plant expansion on the horizon, AIC Mines is poised to accelerate growth—weather permitting.
Questions in the middle?
- How will the concentrate stockpile clearance in coming months affect cashflow and sales?
- What are the key terms and timeline for the anticipated debt funding to support the plant expansion?
- Can exploration success at Jericho and regional targets sustain long-term production growth?