How Is Aurelia Metals Surpassing Production Targets at Federation Mine?
Aurelia Metals reports a strong December quarter with production ramp-ups ahead of schedule at Federation Mine and robust progress across its Peak and Great Cobar projects, underpinning solid cash flow and a healthy balance sheet.
- Federation Mine ramp-up exceeds plan with ore mined 21% above year-to-date targets
- Peak plant operating at full capacity with excellent gold and zinc recoveries
- Great Cobar copper project development progressing on schedule amid strong commodity prices
- Operating costs remain in line with FY26 guidance, supporting robust cash flow
- Safety initiatives intensified following four recordable injuries in the quarter
Strong Production Momentum at Federation and Peak
Aurelia Metals Limited (ASX, AMI) has delivered a robust December 2025 quarter, highlighted by a Federation Mine ramp-up that is running ahead of plan. Ore mined at Federation was 21% higher than the year-to-date target, with development metres sustained at approximately 1,500 metres per quarter. This operational momentum bodes well for the company’s ambition to exceed planned FY26 production volumes.
Meanwhile, the Peak plant continues to perform strongly, processing ore at plant capacity with throughput rates now between 1.1 and 1.2 million tonnes per annum. Gold and zinc recoveries remain excellent, supported by ongoing efficiency programs in mine development. These factors combine to underpin significant cash generation from strong gold production.
Advancing Growth Projects Amid Favourable Market Conditions
The Great Cobar copper project is progressing steadily, with mine development reaching target rates and infrastructure projects, including shaft tendering, well underway. The project’s economics benefit materially from current high copper and gold spot prices, which enhance the potential returns from this asset.
Plant upgrades at Peak, such as the commissioning of a new thickener and tertiary ball mill, are on track to improve copper and zinc recoveries and increase throughput capacity. These enhancements are expected to be commissioned between late FY26 and early FY27, positioning Aurelia Metals for sustained production growth.
Exploration Success and Safety Focus
Exploration efforts at Nymagee continue to yield promising results, with drilling confirming extensions at key lenses including Nymagee North and the Metropolitan lens. These findings support the company’s strategy to grow its resource base and extend mine life.
On the safety front, Aurelia Metals recorded four reportable injuries during the quarter, prompting the implementation of enhanced contractor onboarding, increased supervisory engagement, and a site-wide behavioural safety program commencing in February. These measures reflect the company’s commitment to maintaining a safe working environment amid operational expansion.
Financial Position and Outlook
Financially, Aurelia Metals maintains a robust balance sheet with strong liquidity. Operating cash flow remains solid after sustaining capital expenditure, and growth capital investments are disciplined and focused on key projects. The company’s operating costs are in line with FY26 guidance, supporting its cash flow generation and funding of exploration and development activities.
Looking ahead, Aurelia Metals is targeting approximately 40,000 tonnes per annum of copper equivalent production by FY28, driven by continued ramp-up at Federation, maximising throughput at Peak, and delivering milestones at Great Cobar. The company’s disciplined capital allocation and operational execution will be critical to achieving these goals.
Bottom Line?
Aurelia Metals’ strong operational execution and disciplined growth strategy set the stage for a transformative production leap by FY28.
Questions in the middle?
- Can Federation Mine sustain its accelerated ramp-up through FY27 without cost overruns?
- How will ongoing safety initiatives impact operational continuity and workforce morale?
- What are the prospects for further exploration success at Nymagee and other regional assets?
