Aurelia Metals Surpasses FY26 Gold Targets with Record Cash Flow and Enhanced Balance Sheet
Aurelia Metals (ASX:AMI) exceeded its FY26 gold production guidance, delivering 50.4koz of gold and reporting its highest quarterly operating cash flow since 2018. The company also secured a new $150 million financing facility, bolstering liquidity as it advances key growth projects.
- Gold production beats revised FY26 guidance at 50.4koz
- Record quarterly operating cash flow of $53.1 million in Cobar region
- New $150 million senior secured financing facility completed
- Peak plant achieves record throughput with strong metal recoveries
- Great Cobar and New Occidental projects progress on schedule
Gold Production Outperforms Amid Strategic Mining Focus
Aurelia Metals closed FY26 with gold production of 50.4koz, surpassing its revised guidance range of 45-50koz. This outperformance was driven by prioritising high-value gold stopes in the Peak South mine, a strategy that boosted output but also increased mining unit costs due to the complexity of these stopes. Base metals production remained within guidance, with copper at 2.5kt, zinc at 28.3kt, and lead at 17.8kt, underpinning a balanced metals portfolio.
The Federation mine notably ramped up ore mined to 112kt, exceeding plan by approximately 30kt for the year, with significant improvements in metal grades, gold grades rose 56% quarter-on-quarter to 2.14g/t, zinc grades increased 20% to 9.29%, and lead grades climbed 45% to 6.24%. These grade enhancements contributed materially to production and cash flow.
Record Operating Cash Flow and Strengthened Liquidity
Strong metal production translated into an operating cash flow of $53.1 million for the quarter in the Cobar region, the highest since 2018. The company’s cash balance rose to $143.9 million from $94.7 million in the prior quarter, with total liquidity reaching $183.9 million following the completion of a new $150 million senior secured financing package. This facility, arranged with Citi, Credeq (on behalf of Swiss Re), and HSBC, includes a $110 million Rehabilitation Bonding Facility and a $40 million Revolving Credit Facility, replacing previous facilities and releasing $45.2 million in restricted cash.
The refinancing is expected to lower the overall cost of finance and improve Aurelia’s financial flexibility, with no amortisation or cash backing requirements on performance bonds for the term of the facility.
Operational Momentum at Peak Plant and Growth Projects
The Peak processing plant achieved record throughput, processing 230kt of ore in the quarter, up from 197kt previously, while maintaining excellent metal recoveries, gold recovery remained steady at 95.0%, lead recovery improved to 91.6%, and copper recovery edged up to 89.1%. Ore stockpiles on the run-of-mine (ROM) pad climbed to a record 104kt, providing a buffer that derisks near-term production as plant expansion projects progress.
Plant upgrades are on track to increase throughput capacity from 800ktpa to 1.1-1.2Mtpa, with the new 22m tailings thickener commissioned and operational. The tertiary ball mill project is advancing with concrete foundations poured and steel structure installation underway, targeting commissioning in Q1 FY27. These enhancements aim to boost metal recoveries and reduce cyanide consumption.
Meanwhile, the Great Cobar copper development project continues to advance according to schedule, with 438m of mine development completed in the quarter and major ventilation works finalised. Preparations for the ventilation shaft and grid connection agreements are progressing, positioning the project for its next phase of development.
New Occidental Tailings Project Offers Low-Cost Gold Production
Aurelia completed a prefeasibility study for the New Occidental Tailings Retreatment Project, which involves reclaiming and processing two gold-bearing, dry-stacked tailings stockpiles near the Peak plant. The project requires modest capital expenditure of $3.3 million and is forecast to produce approximately 32,000 ounces of gold over 10 years, with a robust post-tax NPV of $42 million and an IRR of 258% based on an average gold price of A$5,017/oz.
This initiative not only adds incremental gold production but also improves environmental and closure outcomes at the site. A feasibility study is underway, targeting first production in FY28.
Leadership Transition Amid Strong Operational Foundation
As Aurelia enters FY27 with solid operational momentum and a strengthened balance sheet, CEO Bryan Quinn announced his planned departure effective 24 July 2026. CFO Martin Cummings will step in as interim CEO, with Leigh Collins appointed interim CFO, ensuring leadership continuity during the search for a permanent CEO. This transition comes at a pivotal time as Aurelia executes on growth projects and seeks to capitalise on its expanded Cobar Basin footprint, including an earn-in agreement with Legacy Minerals for highly prospective tenements adjacent to its operations.
Bottom Line?
Aurelia Metals enters FY27 with a strong cash position, record production momentum, and key projects advancing, but the impact of rising mining costs and leadership change will be closely watched.
Questions in the middle?
- Will Aurelia sustain gold production above guidance as it prioritises complex stopes?
- How will the commissioning of the tertiary ball mill influence throughput and costs in FY27?
- What strategic moves will the new leadership pursue to capitalise on the expanded Cobar Basin portfolio?
