How Is Aeris Resources Balancing Production and Strategic Asset Sales in Q1 FY26?
Aeris Resources reported solid Q1 FY26 results with steady copper and gold production, disciplined cost management, and advancing divestment plans for non-core assets.
- Group copper equivalent production of 10.3kt in Q1 FY26
- Tritton copper production steady at 6.1kt with AISC of A$4.24/lb
- Cracow gold production on plan at 8.9koz with additional 20koz added to mine plan
- Advancement of Constellation and Golden Plateau exploration and development
- Progress on North Queensland asset divestments and debt repayment target by August 2026
Operational Performance
Aeris Resources has kicked off FY26 with a solid first quarter, delivering a group copper equivalent production of 10.3 kilotonnes. The company’s flagship Tritton operation in New South Wales maintained steady copper output at 6.1kt, with all-in sustaining costs (AISC) holding firm at A$4.24 per pound. This consistency underscores Aeris’s operational discipline amid ongoing market volatility.
Meanwhile, the Cracow gold mine in Queensland produced 8,900 ounces of gold, aligning with the company’s guidance despite some operational challenges. Notably, a review of remnant mineralisation in Cracow’s Western Vein Field has added an incremental 20,000 ounces of gold to the mine plan, providing a welcome boost to the asset’s life and value.
Exploration and Development Progress
Exploration efforts remain a key pillar of Aeris’s strategy. The company intersected mineralisation 400 metres down plunge from the current resource at Avoca Tank, part of the Tritton complex, signaling potential for resource extension. At Cracow, a new grade model for the Golden Plateau deposit has been developed to support internal planning, with a 7,000-metre drilling program scheduled to commence in November 2025. Additionally, an airborne magnetic and radiometric survey covering the entire 890 square kilometre tenement package aims to identify new greenfield targets.
On the development front, the Constellation project is advancing with ongoing open cut and underground mine design, metallurgical testwork, and infrastructure planning. Permitting and environmental approvals are progressing, setting the stage for future production ramp-up.
Strategic Asset Management and Financial Position
Aeris is actively pursuing divestment options for its North Queensland assets, including the Stockman project where test work and processing assessments are underway. The company aims to unlock value from non-core holdings while focusing capital on core operations and growth projects.
Financially, Aeris closed the quarter with cash and receivables totaling A$46.4 million, supported by strong operating cash flow of A$53.1 million. The company maintains a disciplined approach to capital expenditure, investing A$25 million in growth capital at Murrawombie Pit for waste stripping to support ore delivery in the second half of FY26. Aeris also plans to repay its debt by August 2026, reflecting a commitment to strengthening its balance sheet.
Outlook and Guidance
FY26 production and cost guidance remain consistent with prior estimates, with copper production expected between 24,000 and 29,000 tonnes and gold production between 44,000 and 56,000 ounces. The company’s focus on operational delivery, exploration-led growth, and strategic asset sales positions it well to navigate the evolving market landscape.
Bottom Line?
Aeris’s steady operational results and strategic asset rationalisation set the stage for disciplined growth and debt reduction in FY26.
Questions in the middle?
- How will the divestment of North Queensland assets impact Aeris’s capital allocation and growth plans?
- What are the potential timelines and scale for resource upgrades at Avoca Tank and Golden Plateau?
- How might commodity price fluctuations and hedging strategies affect Aeris’s financial performance in the coming quarters?
