Alara Resources Achieves Record Copper Sales Despite Oman Shipping Challenges

Record Sales Amid Geopolitical Shipping Disruptions

Alara Resources Limited (ASX:AUQ) marked a milestone in the June 2026 quarter, achieving its highest-ever quarterly copper concentrate sales from the Al Wash-hi Majaza Mine in Oman. The operation dispatched 11,169 wet metric tonnes (WMT) of concentrate, containing roughly 2,077 tonnes of copper, alongside a record 1,556 ounces of gold in concentrate. June also saw the highest monthly dispatches since production began, with 6,602 WMT shipped to Sohar Port.

This record sales performance came despite persistent regional geopolitical tensions disrupting shipping logistics. Vessel diversions, port congestion, container shortages, and additional handling requirements delayed cargo movements, leaving 4,399 WMT of concentrate stockpiled at Sohar Port awaiting vessel allocation at quarter-end. Even so, Alara managed to maintain sales momentum through close coordination with shipping lines and port authorities, highlighting operational resilience in a challenging environment.

Production and Operational Excellence Above Nameplate Capacity

The Al Wash-hi Majaza Copper-Gold Mine and Concentrator sustained production above nameplate capacity during the quarter. Mine run-of-mine (ROM) production reached 293,611 WMT, with concentrate production totaling 10,902 WMT. Mining operations advanced according to plan, reaching the 365 mRL level and setting a strong foundation for FY2027’s strategy focused on lateral pit development and improved ore exposure.

Operational improvements included optimized bench heights; 5-metre benches for ore to improve selectivity and reduce dilution, and 10-metre benches for waste to enhance efficiency. These practices, combined with new geotechnical and hydrogeological data under review, underpin ongoing pit optimisation and Life-of-Mine planning. Infrastructure upgrades, notably the completion of a new Heavy Earth Moving Machinery workshop, are expected to boost maintenance efficiency and equipment reliability.

Legal Victory and Pending Appeal in Oman Courts

On the legal front, the Primary Court of Ibra in Oman dismissed all substantive claims against Al Hadeetha Resources LLC (AHRL) and Omani government authorities, ruling that all project permits and licences were lawfully issued and that plaintiffs failed to prove environmental damage or causality. The court also ordered plaintiffs to pay costs, affirming the project’s compliance with Omani law and environmental standards.

However, the claimants have lodged an appeal with the Court of Appeal, with a hearing scheduled for November 2026. Alara and AHRL remain committed to defending the case and maintaining regulatory compliance. This legal clarity, at least for now, removes a significant overhang on operations.

Exploration Advances with Drilling and Airborne Survey

Exploration activity remained robust, with the completion of Phase 2 brownfield drilling at Al Wash-hi Majaza, comprising 6,810 metres across 36 holes targeting the southern orebody extension. Assay results are pending, but the drilling aims to support resource expansion and improve geological confidence for future mine planning.

Complementing drilling, a major airborne electromagnetic (HeliTEM) survey covered the entire 1,448 km² Block 22B concession, acquiring 6,132 line kilometres of geophysical data. Data processing and interpretation are underway, expected to identify conductive anomalies linked to copper mineralisation and guide next-stage exploration targeting.

Financial Position and Capital Raising

Financially, Alara reported positive net cash from operating activities of A$21.4 million for the quarter, with cash and equivalents rising to A$27.3 million. The company maintains sizeable loan facilities secured against its Oman assets, including a major OMR 37.18 million (A$139.8 million) loan from Sohar International Bank.

To fund ongoing exploration at Block 22B, Block 8, and Daris projects, Alara launched a partially underwritten rights issue in July 2026 aiming to raise approximately A$3.84 million at $0.032 per share. The proceeds will also support general working capital and corporate costs. This capital raise complements operational cash flow and underpins continued development efforts.

Health, Safety and Environmental Commitment

Safety and environmental stewardship remain priorities, with zero lost time injuries recorded over 427,936 safe man-hours during the quarter. The processing plant celebrated one million safe man-hours without LTI, reflecting a mature safety culture. Environmental monitoring confirmed compliance with noise and air quality standards, and the company marked World Environment Day by planting 82 saplings across the mine site.