Aurelia Metals Boosts Gold Output, Secures A$150M Financing, Advances Growth Projects

Gold Production Surges, Prompting Guidance Upgrade

Aurelia Metals (ASX:AMI) has lifted its FY26 gold production guidance to 45-50koz, up from the previous 35-45koz, after delivering 13koz in the March quarter; the highest quarterly gold output this financial year. This increase is largely due to prioritising higher value gold ore at the Peak operation, which also saw a rise in gold grade to 2.65g/t in copper ore mined. Copper production guidance was revised downward to 2.5-3.0kt, reflecting a strategic shift in the mining sequence to favour gold-rich stopes over copper.

The company’s focus on gold has translated into robust free cash flow, with Cobar Region operating cash flow after sustaining capital at $36.2 million for the quarter. Aurelia’s cash balance grew to $94.7 million, excluding restricted cash, bolstered by strong metal prices, including a realised gold price of A$6,316/oz, up from A$5,703/oz in the prior quarter.

This operational momentum is supported by the Peak plant processing a record 197kt of ore, up from 187kt in December, achieving gold recoveries of 94.8%, zinc recoveries of 86.2%, and maintaining high lead and copper recoveries. The ramp-up in throughput and metal recoveries underpins the company’s confidence in delivering strong production and cash flow in Q4 FY26 and beyond.

Balance Sheet Strengthened with A$150M Financing Package

Aurelia has executed a A$150 million senior secured financing commitment with Citi, Credeq (on behalf of Swiss Re), and HSBC, comprising a A$110 million Rehabilitation Bonding Facility and a A$40 million Revolving Credit Facility. This deal nearly doubles Aurelia’s rehabilitation bonding capacity and releases approximately A$38 million of restricted cash, boosting proforma liquidity to over A$130 million.

The financing package features no scheduled limit reductions or further cash backing requirements during the extended terms, enhancing Aurelia’s financial flexibility as it advances growth projects and operational expansion. This new facility replaces existing arrangements and is expected to reach financial close in Q4 FY26.

The company’s strengthened liquidity position and refinancing success come amid ongoing global diesel supply concerns, which Aurelia reports are being managed without disruption due to long-term contracts. Cost guidance remains unchanged despite potential rises in logistics and fuel-linked expenses.

Growth Projects on Track to Boost Capacity

Key growth initiatives are progressing well, with the Peak plant expansion aiming to increase throughput capacity from 800ktpa to 1.1-1.2Mtpa. The tailings thickener installation is complete and commissioning began in April, while the tertiary ball mill project is underway with commissioning planned for Q1 FY27. These upgrades are expected to improve metal recoveries and reduce cyanide consumption, contributing to cost efficiencies.

The Great Cobar copper development project remains on schedule and budget, with 431m of mine development completed this quarter for a total of 1,385m to date. Ventilation upgrades and infrastructure works are advancing, with stoping activities planned to commence in the second half of FY28. Federation Mine continues to outperform plan, with ore mined increasing 42% quarter-on-quarter to 108kt and gold grades rising 11% to 1.37g/t, supporting the company’s goal of 40,000 tonnes copper equivalent production by FY28.

Exploration efforts at Federation recently extended the high-grade Federation West mineralisation down-dip by approximately 70m and discovered the new Harley Lens, a promising polymetallic zone near current workings. This adds to the growth pipeline in the Nymagee District and underlines the potential for further resource expansion. Underground and surface drilling programs are planned to continue through Q4 FY26.

Safety and Corporate Updates

Aurelia’s safety performance improved with the Group Total Recordable Injury Frequency Rate (TRIFR) decreasing to 7.72 from 9.62, despite one recordable injury during the quarter. The company has rolled out behavioural safety programs and increased focus on contractor leadership to mitigate risks. A minor environmental incident involving a contractor’s truck was recorded but deemed low severity.

On the corporate front, Franklyn (Lyn) Brazil rejoined the board as a Non-Executive Director, bringing prior experience from his previous tenure. Meanwhile, the search for a new Managing Director and CEO to succeed Bryan Quinn is well advanced, with Quinn expected to remain until July 2026 to ensure a smooth leadership transition.

Aurelia’s March quarter results build on a series of operational successes and strategic initiatives, including the recent extended Federation mineralisation and the secured A$150M financing boost, positioning the company to capitalise on favourable commodity prices and growth opportunities.