How Will Aeris’ $90M Equity Raise Fuel Its Copper and Gold Growth?
Aeris Resources has announced a significant $90 million equity raise through a placement and share purchase plan, aiming to strengthen its balance sheet and fund key growth projects. The raise comes with a discount to recent share prices and supports the company’s strategic expansion and operational improvements.
- Non-underwritten placement raising $80 million at $0.45 per share
- Share purchase plan targeting up to $10 million from eligible shareholders
- Proceeds allocated to debt repayment, exploration, growth capital, and working capital
- FY26 production guidance of 40-49kt copper equivalent with operational improvements
- Strategic initiatives include asset divestments, project development, and exploration ramp-up
Equity Raise Details and Pricing
Aeris Resources Limited (ASX – AIS), an established mid-tier Australian base and precious metals producer, has unveiled a $90 million equity capital raising comprising an $80 million non-underwritten placement and a $10 million non-underwritten share purchase plan (SPP). The placement price is set at $0.45 per share, representing a 13.5% discount to the last closing price and a 16.6% discount to the five-day volume weighted average price (VWAP) prior to announcement. Eligible shareholders in Australia and New Zealand are invited to participate in the SPP, capped at $30,000 per investor.
Use of Proceeds and Financial Position
The capital raised will primarily be used to repay Aeris’ $40 million term facility with major shareholder Washington H. Soul Pattinson (WHSP), thereby reducing debt and associated fees. Additionally, $20 million is earmarked for growth capital and exploration, including accelerated drilling programs at key assets such as Cracow’s Golden Plateau and the Constellation project. The remaining $14.8 million will support general working capital and cover offer costs. Post-raise, Aeris anticipates a net cash position of approximately $62 million, significantly strengthening its balance sheet.
Operational Outlook and Strategic Initiatives
For fiscal year 2026, Aeris projects copper equivalent production between 40,000 and 49,000 tonnes, reflecting a 37% increase in copper output at its flagship Tritton operation. The company highlights operational efficiencies, including processing stockpiled ore from Murrawombie Pit to run the mill above nameplate capacity. The Constellation project is progressing on schedule with a maiden open pit ore reserve declared, supporting a 5-7 year mine life and potential underground expansion. Aeris is also advancing exploration with an ambitious 80,000-metre underground drilling program targeting resource extensions at Tritton and other deposits.
Asset Portfolio and Growth Strategy
Aeris is actively managing its portfolio by divesting non-core North Queensland exploration assets for up to $15.5 million, expected to complete by December 2025. The company is also focusing on unlocking value at the Stockman project through potential strategic partnerships and advancing the Jaguar project with targeted exploration to extend mine life beyond ten years. These initiatives align with Aeris’ broader strategy to realise shareholder value through operational delivery, resource growth, and disciplined capital management.
Risk Considerations and Market Context
The company acknowledges various risks including commodity price volatility, operational challenges, regulatory changes, and geopolitical uncertainties such as ongoing international conflicts that may impact supply chains and market conditions. The equity raise is non-underwritten, introducing some uncertainty regarding the final amount raised. Aeris cautions investors to consider these factors alongside the company’s forward-looking statements and strategic plans.
Bottom Line?
Aeris’ equity raise marks a pivotal step in funding its growth ambitions and strengthening financial resilience, but execution risks and market volatility remain key watchpoints.
Questions in the middle?
- Will Aeris secure full subscription under the non-underwritten share purchase plan?
- How will commodity price fluctuations impact Aeris’ operational and financial performance in FY26?
- What progress will be made on regulatory approvals for the Constellation project in the coming quarters?