Aurelia Metals Eyes 40kt Copper Equivalent Production, $107M Cash in Hand

Aurelia Metals’ Strategic Growth Outlook

Aurelia Metals Limited (ASX, AMI) presented its Investor Day update on 19 June 2025, outlining a confident and disciplined approach to scaling its base metals production in Australia’s Cobar region. With a cash balance of $106.7 million and no drawn debt, the company is well-positioned financially to execute its growth plans without reliance on external funding.

Central to Aurelia’s strategy is a clear production target of approximately 40,000 tonnes of copper equivalent by fiscal year 2028, a significant increase from current levels. This growth is underpinned by the ramp-up of the Federation Project, the commencement of production at the Great Cobar Project in FY28, and optimisation of the Peak processing plant to increase throughput capacity to 1.1–1.2 million tonnes per annum.

Operational Discipline and Cost Efficiency

The company emphasises operational discipline, safety, and productivity improvements as foundational pillars. Mining costs are targeted to reduce to around $100 per tonne mined, driven by initiatives such as fleet standardisation, contractor management, and innovative mining techniques that have already reduced dilution and improved ore recovery rates.

Safety performance has improved markedly, with a 60% reduction in injury frequency over the past year, reflecting a culture of care and risk management maturity. These operational efficiencies are expected to translate into stronger cash flow generation, with Aurelia forecasting EBITDA exceeding $100 million for FY25 and operating cash flow between $105 million and $200 million by FY28 under spot metal price assumptions.

Exploration and Sustainability Initiatives

Aurelia’s extensive tenement package along the Rookery Fault offers significant exploration upside, with over 135 prospects identified and active drilling programs at Federation West and Nymagee. Recent discoveries have yielded high-grade zinc, copper, and silver assays, supporting the company’s track record of converting exploration success into operational mines within a four-year timeframe.

Sustainability remains a core focus, with ongoing rehabilitation at the Dargues site, community engagement through the Cobar Community Hub, and biodiversity offset projects generating credits for future use or sale. Energy and water intensity reduction targets at the Peak operation further demonstrate Aurelia’s commitment to responsible mining practices.

Capital Allocation and Future Outlook

Capital expenditure is balanced between sustaining investments and growth projects, with $70–85 million planned for FY25 and increasing in subsequent years to support the Federation ramp-up, Great Cobar development, and processing plant upgrades. The company maintains strict capital discipline, applying a minimum internal rate of return hurdle of 15% to new projects.

Looking ahead, Aurelia aspires to grow copper equivalent production beyond 80,000 tonnes over the next five-plus years, leveraging its mineral resources, infrastructure, and skilled workforce. The transition to a base metals dominant revenue mix is expected to strengthen the company’s market position amid evolving commodity demand dynamics.