AIC Mines Beats Cost Targets as Eloise Expansion and Jericho Development Advance

Eloise Delivers Consistent Production with Lower Costs

AIC Mines (ASX:A1M) has maintained its run of steady output at the Eloise Copper Mine, producing 3,432 tonnes of copper contained in concentrate during the March 2026 quarter. This marks the eleventh consecutive quarter where production guidance was met, with an all-in sustaining cost (AISC) of A$4.18 per pound of copper sold, comfortably below the company’s FY26 guidance range of A$4.85 to A$5.25. The all-in cost (AIC) was also lower at A$4.49 per pound.

Higher grades mined in the quarter, averaging 2.42% copper compared to 1.94% in December 2025, contributed to improved unit costs despite challenging weather conditions. The wet season brought 1,175mm of rainfall, leading to a minor uncontrolled release of mine-affected water, although without noticeable environmental impact. Eloise’s concentrate stockpile was reduced to 1,719 dry metric tonnes by quarter-end, with sales catching up following dry spells in January and March.

Processing Plant Expansion and Jericho Development Progress

The expansion of Eloise’s processing plant to 1.1 million tonnes per annum remains on schedule for commissioning in December 2026. Engineering, procurement, and construction (EPC) contract progress reached 60%, with construction at 31% complete, ahead of plan. Notably, the new ball mill arrived onsite shortly after quarter-end, marking a major milestone in the upgrade.

Meanwhile, development at the nearby Jericho copper deposit, which will supplement Eloise’s ore feed, is advancing well. The Jericho access drive crossed the J1 lens four months ahead of schedule, confirming geological models and reducing ramp-up risk. Approximately 12,000 tonnes of Jericho ore are stockpiled on the ROM pad, with a metallurgical trial planned for late April.

Critical to Jericho’s ramp-up is the JS3 ventilation shaft, with raise-boring scheduled for completion in the June quarter and operational status expected by June 2026. This will enable mining to commence at the Jolly shoot and support ore production in line with the expanded plant’s commissioning.

Resource Growth Underpins Future Production

Both Eloise and Jericho reported increases in Mineral Resources and Ore Reserves following 2025 drilling campaigns. Eloise’s contained copper resources rose 3% to 150,700 tonnes, while Jericho’s resources jumped 17% to 444,900 tonnes of copper. Ore Reserves also improved, with Eloise adding 400 tonnes and Jericho 17,400 tonnes of contained copper.

The drilling confirmed continuity of high-grade mineralisation in key zones such as the Deeps and Lens 6 at Eloise, and northern extensions at Jericho’s J1 lens. These results support planned production growth and mine-life extensions.

These resource updates build on the company’s recent announcements of significant resource growth and reinforce the potential for sustained output increases. The drilling programs and mine development are well aligned with the processing plant expansion, setting the stage for higher throughput and output in the coming years. This progress follows the company’s recent resource growth reports that highlighted similar positive trends.

Financial Performance and Cost Pressures

Metal sales for the quarter reached $72 million, boosted by strong copper and gold prices. Operating mine cash flow was $42.2 million, with net mine cash flow of $27.7 million after capital expenditure of $14.5 million. The company ended the quarter with $31.1 million in cash.

However, rising diesel prices driven by geopolitical tensions in the Middle East pose a risk to cost guidance. Diesel costs for April are approximately 50% higher than year-to-date averages, potentially adding $0.40 to $0.50 per pound to AISC and AIC in the June quarter. Indirect cost increases are expected in haulage and charter flights, though the total impact remains uncertain.

Despite these headwinds, the Eloise mine remains on track to exceed its full-year production guidance of 12,800 to 13,100 tonnes of copper in concentrate. The company is closely monitoring diesel supply and pricing, as well as weather-related operational risks that have affected concentrate drying and sales timing.

Exploration Momentum Continues

AIC Mines has recommenced its 2026 exploration drilling program across the Eloise Regional Project, targeting 12 prospects with approximately 9,000 metres of drilling. This includes follow-up work at Eloise South, Arlington, and Defiance, as well as new drilling at the Oro Grande prospect funded in part by a Queensland Government grant.

The exploration push aims to identify new copper and gold deposits to support future production growth beyond Eloise and Jericho. Earlier in March, the company kicked off this program, underscoring its commitment to expanding its resource base near existing infrastructure.