Aeris Resources Raises $80M, Targets 40-49kt Copper Equivalent Production
Aeris Resources has completed an $80 million equity placement and launched a share purchase plan, strengthening its balance sheet and setting ambitious production targets for FY26. The company is also divesting non-core assets to focus on growth and exploration.
- Completed $80 million placement at $0.45 per share
- Non-underwritten share purchase plan targeting up to $10 million
- Repayment of $40 million WHSP term facility completed
- FY26 production guidance of 40-49kt copper equivalent
- Divestment of North Queensland assets underway
Equity Raise Strengthens Financial Position
Aeris Resources has successfully completed a non-underwritten placement raising $80 million at an offer price of $0.45 per share, representing a discount of 13.5% to the last closing price. This capital raising is complemented by a non-underwritten share purchase plan (SPP) targeting an additional $10 million from eligible shareholders. The proceeds are earmarked for immediate repayment of a $40 million term facility with Washington H. Soul Pattinson (WHSP), funding exploration and growth capital, and supporting general working capital needs.
Operational Outlook and Production Guidance
For fiscal year 2026, Aeris has set a robust production guidance of 40 to 49 thousand tonnes of copper equivalent, reflecting a 37% increase in copper production at its flagship Tritton operation. This guidance also includes gold and silver outputs, with 44 to 56 thousand ounces of gold and 240 to 293 thousand ounces of silver expected. The company is focused on operational improvements, including processing stockpiled ore from the Murrawombie Pit and advancing the Constellation project, which is on track for a potential mine life extension starting FY27.
Strategic Asset Management and Growth Initiatives
Aeris is actively divesting non-core North Queensland exploration assets for up to $15.5 million, expected to complete by December 2025. This move aligns with its strategy to concentrate on core producing operations and development projects such as Tritton, Constellation, and Cracow. Exploration remains a priority, with plans for extensive drilling programs targeting resource extensions and new discoveries, including at the Southern Vein Field and Golden Plateau.
Capital Structure and Market Position
Post-placement, Aeris boasts a market capitalization of approximately $534 million and a net cash position of $62 million, having eliminated debt through the recent repayment. Major shareholders include Washington H. Soul Pattinson with a 26.4% stake. The company’s strengthened balance sheet provides a solid platform to pursue growth opportunities and manage operational risks amid volatile commodity markets.
International Offer Restrictions and Compliance
The equity raise and share purchase plan are subject to various international offer restrictions, limiting participation to eligible investors in Australia and New Zealand and excluding offers in jurisdictions such as the United States, Hong Kong, and the European Union. Aeris has emphasized compliance with these regulations to ensure a smooth capital raising process.
Bottom Line?
With a strengthened balance sheet and ambitious production targets, Aeris Resources is poised for growth, but investors will watch closely how exploration results and asset sales unfold.
Questions in the middle?
- How will the non-underwritten nature of the SPP affect final capital raised and shareholder dilution?
- What are the timelines and risks associated with the Constellation project’s development and approvals?
- Could Aeris pursue strategic partnerships to unlock value at Stockman and Jaguar projects?
