Weather Disruptions Test AIC Mines’ Concentrate Sales and Delivery

Steady Production and Financial Strength

AIC Mines has delivered a solid operational performance for the December 2025 quarter at its Eloise copper mine in North Queensland. The underground operation produced 3,202 tonnes of copper and 1,501 ounces of gold in concentrate, meeting its production and cost guidance for the tenth consecutive quarter. The all-in sustaining cost (AISC) was reported at A$4.87 per pound of copper sold, reflecting efficient cost management despite challenging weather conditions.

Financially, Eloise generated a net mine cash flow of $11.5 million after capital investments of $14.1 million. This strong cash flow was achieved despite significant disruptions caused by extreme rainfall in December, which led to concentrate stockpiling and temporary logistical challenges at the Mt Isa smelter.

Progress on Plant Expansion and Development

The company is advancing its major project to expand the Eloise processing plant from 725,000 tonnes per annum to 1.1 million tonnes per annum. Construction is over 30% complete, with earthworks and concrete foundations well underway. Structural and mechanical works are scheduled to commence in the March 2026 quarter, with commissioning planned for December 2026. This expansion aims to support increased production capacity and underpin future growth.

Simultaneously, development at the nearby Jericho copper deposit is progressing steadily. The underground access drive is nearing a critical geological lens, with approximately 90 metres remaining to cross the J1 Lens at Jolly. The Jericho project is expected to supplement ore feed to the Eloise plant and facilitate further expansion opportunities.

Exploration Success Reinforces Resource Potential

Resource definition drilling at Eloise Deeps and Lens 6 has returned exceptional widths and grades, confirming the continuity of high-grade mineralisation. Notable intercepts include 30.1 metres grading 4.7% copper and 1.0 gram per tonne gold at Deeps ED560, and 17.0 metres grading 2.5% copper and 1.2 grams per tonne gold at Lens 6 ED558. These results bolster confidence in the mine’s long-term viability.

At Jericho, step-out drilling has identified significant mineralisation down-dip of existing resources, with intercepts such as 5.0 metres grading 1.3% copper and 0.1 grams per tonne gold from 740 metres depth. This highlights the potential for material resource growth at the southern end of the deposit, supporting plans for accelerated development.

Exploration Portfolio and Regional Activity

Beyond Eloise and Jericho, AIC Mines is actively exploring a broad portfolio of copper, gold, and base metal projects across Queensland and New South Wales. Recent drilling at regional prospects near Eloise has yielded promising results, including high-grade copper intersections at Eloise South and anomalous mineralisation at Arlington and Kevin Downs South. The company is prioritising projects with strong copper potential and advancing exploration to build future growth pipelines.

Despite the quarter’s weather-related challenges, AIC Mines ended December 2025 with $44.9 million in cash and an undrawn US$40 million prepayment facility, providing financial flexibility to support ongoing development and exploration activities.