AIC Mines Targets 25,000 Tonnes Copper by FY29 with Jericho Ramp-Up
AIC Mines projects copper production growth to 18,500 tonnes in FY27, driven by Jericho mine's commercial start and accelerated Eloise plant expansion.
- FY27 copper production guidance of 17,500–18,500 tonnes
- Jericho mine commercial production begins March 2027 quarter
- Stage 1 Eloise plant expansion on track for Dec 2026 commissioning
- Stage 2 expansion accelerated to achieve 25,000 tonnes per annum by FY29
- US$50 million prepayment facility secured with Trafigura as buffer
Jericho Mine Boosts FY27 Production Outlook
AIC Mines (ASX:A1M) is gearing up for a significant production leap in FY27, forecasting 17,500 to 18,500 tonnes of copper in concentrate at an all-in sustaining cost (AISC) of A$4.80 to A$5.20 per pound. This projection blends output from its flagship Eloise copper mine and the Jericho mine, which is slated to commence commercial production in the March 2027 quarter. The Jericho ramp-up is pivotal, expected to drive a 50% increase in combined production by the second half of FY27.
Processing Plant Expansion Underway
The company is advancing its Stage 1 processing plant expansion at Eloise, designed to increase throughput from 725ktpa to 1.1Mtpa. Construction progress is strong, with commissioning targeted for the December 2026 quarter. This upgrade is critical to handle the increased ore feed from Jericho as underground development accelerates. A Stage 2 expansion aiming for 1.5Mtpa throughput is scheduled for completion by December 2028, expected to underpin a further production boost to 25,000 tonnes of copper concentrate annually by FY29.
Capital Expenditure and Financial Buffers
FY27 capital investment is front-loaded to support both the processing plant expansion and underground development at Jericho. Total mine sustaining and growth capital expenditures are estimated at $139.8 million, including $50 million allocated to Jericho access drives and development. To mitigate commissioning risks, AIC Mines has secured an additional US$10 million on top of its existing US$40 million prepayment facility with Trafigura Pty Ltd, bringing the total facility to US$50 million. Notably, US$20 million of this remains undrawn, providing a financial buffer.
Resource Growth and Production Targets
Recent drilling success has lifted combined Mineral Resources by 10% to 31.2 million tonnes grading 2.0% copper and 0.4g/t gold, and Ore Reserves by 14% to 10.2 million tonnes grading 1.9% copper and 0.4g/t gold. The production outlook through FY29 anticipates copper concentrate output rising from 17,500–18,500 tonnes in FY27 to 25,000–27,000 tonnes by FY29, with Jericho's share growing from 28% to 54%. The company’s guidance prudently incorporates a conservative long-term copper price of A$11,000 per tonne and includes a modest proportion of Inferred Mineral Resources, which carry inherent geological uncertainty.
Regulatory Approvals and Infrastructure Status
All essential environmental approvals, mining leases, and compensation agreements for Eloise and Jericho are in place or progressing through final decision stages. The Jericho Mining Lease was granted in May 2024 for a 10-year term, and recent environmental authority amendments support processing plant expansion and tailings dam capacity increases. Surface infrastructure at Eloise will continue to serve both mines, while Jericho-specific underground access and ventilation infrastructure are being developed as planned.
Bottom Line?
Jericho’s ramp-up and Eloise’s plant expansion set the stage for a substantial copper output increase, but execution risks and commodity price volatility warrant close attention.
Questions in the middle?
- How smoothly will Jericho transition from development to commercial production in early 2027?
- Will the Stage 2 plant expansion proceed on schedule and within the $15 million budget?
- How might fluctuating copper and gold prices affect the accelerated capital expenditure plans?
