How Is AIC Mines Turning Higher Metal Prices Into Record Half-Year Profits?

Financial Performance Highlights

AIC Mines Limited has posted a strong financial performance for the half year ended 31 December 2025, with revenue increasing to $110.6 million, up 19% from the previous corresponding period. Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 59% to $48.6 million, while net profit after tax more than doubled to $17.4 million. These gains were largely driven by higher realised copper and gold prices, which averaged A$15,845 per tonne and A$5,839 per ounce respectively, reflecting a favourable commodity price environment.

Despite a slight reduction in copper sales volumes due to extreme weather disruptions in late December, the company managed to maintain cost discipline, reducing cost of sales and achieving an all-in sustaining cost (AISC) of A$4.92 per pound of copper, slightly improved from the prior year. Basic earnings per share rose to 2.23 cents, signalling enhanced shareholder value.

Operational Stability at Eloise Mine

The Eloise copper mine continued to deliver reliable production, producing 6,526 tonnes of copper concentrate in the half year, closely matching the prior year’s output. The mine sustained consistent throughput and recovery rates, with ore mined and processed at grades near 1.9% copper. Notably, Eloise has now met production guidance for ten consecutive quarters, underscoring operational stability.

However, the period was not without challenges. Record rainfall in Northwest Queensland in December temporarily hindered concentrate drying and transport logistics, leading to a concentrate stockpile of nearly 2,000 dry metric tonnes at period end. While this impacted sales volumes, the company’s strong cash flow from operations of $51.2 million reflects resilience in its core mining activities.

Progress on Jericho Development and Eloise Expansion

Development of the Jericho copper deposit, located just four kilometres from Eloise, remains on track. The access drive connecting Eloise’s decline to Jericho advanced to 2,281 metres, nearing a critical geological lens crossing. Meanwhile, the Eloise processing plant expansion to increase capacity from 725,000 to 1.1 million tonnes per annum is progressing well, with earthworks and concrete works substantially complete and structural construction set to begin in the March 2026 quarter.

The expanded plant commissioning is scheduled for October 2026, positioning the company for increased throughput and production growth. Engineering design for a further stage two expansion to 1.5 million tonnes per annum is already underway, indicating a forward-looking growth strategy.

Exploration and Financial Position

Exploration efforts continued to yield promising results, particularly at Jericho where drilling extended high-grade copper mineralisation over a 5-kilometre strike length. Regional exploration across multiple projects, including Cannington and Windsor, also advanced with geophysical surveys confirming new targets for follow-up.

Financially, AIC Mines ended the half with a robust cash balance of $44.9 million and an undrawn US$40 million prepayment facility linked to its Jericho offtake agreement. The company also increased its equipment financing facility to $20 million, with $14.1 million drawn, supporting ongoing capital expenditure. Total assets rose to $423.5 million, reflecting investments in mine development and plant expansion.

Outlook and Market Position

With no dividends declared, AIC Mines is clearly prioritising reinvestment into its growth projects. The combination of steady production, disciplined cost management, and strategic capital deployment positions the company well to capitalise on favourable copper market dynamics. The upcoming commissioning of the expanded Eloise plant and Jericho mine development will be key milestones to watch.