AIC Mines builds momentum as Jericho and Eloise expansion near commissioning

Record earnings fund AIC Mines’ next growth phase

AIC Mines Limited (ASX:A1M) has reported its strongest year to date, with revenue rising 29% to A$245.2 million and net profit after tax almost tripling to A$41.5 million in FY26. Operating cash flow more than doubled to A$107.0 million, giving the Queensland copper producer a stronger internal funding base as it pushes Jericho towards production and expands the Eloise processing plant.

The result benefited heavily from higher realised metal prices. Copper averaged A$17,247 a tonne, compared with A$14,128 a tonne in FY25, while gold averaged A$6,121 an ounce. Copper sales volumes, however, edged down to 12,112 tonnes from 12,295 tonnes, meaning the earnings uplift was not simply a volume story. EBITDA rose to A$108.1 million from A$63.2 million, while the reported basic earnings per share increased to 5.27 cents from 2.60 cents.

Eloise delivers while Jericho moves into the operating system

Eloise produced 13,064 tonnes of copper and 6,621 ounces of gold in concentrate, achieving production and cost guidance for the third consecutive year. Payable copper production from the mine was 12,257 tonnes at an all-in sustaining cost of A$4.99 a pound. Despite a particularly wet season that disrupted concentrate drying and haulage, Eloise generated A$120.5 million in operating mine cash flow and A$63.3 million after capital investment.

Jericho is now moving from development concept to operating asset. The access drive reached the Jolly shoot in February, four months ahead of schedule, and development ore was blended with Eloise material to produce on-specification concentrate. A blended trial returned 25% copper concentrate at 92.3% recovery, while a single-feed trial returned 24% copper concentrate at 90.3% recovery. The company says Jericho ore is now routinely being blended and processed.

The plant and Jericho timetable has since advanced further, with Jericho first-stoping production reported in the September quarter. In the annual report, AIC Mines says the expanded Eloise plant remains scheduled to commission and ramp up in the December 2026 quarter, lifting throughput from 725,000 tonnes a year to 1.1 million tonnes. The project was 81% complete at 30 June, and the new ball mill had been installed.

Resources grow, but expansion is drawing on debt

Combined Mineral Resources across Eloise and Jericho reached 31.2 million tonnes grading 2.0% copper, containing 631,800 tonnes of copper. Combined Ore Reserves rose to 10.2 million tonnes grading 1.9% copper, containing 191,000 tonnes of copper. Jericho accounted for much of the movement, with contained copper in Mineral Resources up 17% and contained copper in Ore Reserves up 16% against the prior estimates.

That growth has come alongside a more leveraged balance sheet. Cash fell to A$41.7 million from A$60.9 million, while interest-bearing liabilities rose to A$56.6 million from A$12.8 million, excluding lease liabilities. AIC Mines drew A$45.2 million under its Trafigura prepayment facility during the year and increased the total facility to US$50 million, with US$20 million undrawn at 30 June. The facility’s debt-service coverage covenant is expected to be tested for the first time on 31 March 2027.

Leadership changes accompany the production ramp-up

The report also records a leadership handover at a consequential point in the company’s development. Clint Donkin has taken over as Managing Director and CEO, while Aaron Colleran has moved to Non-Executive Chairman and Josef El-Raghy has retired from the Board. The transition had been announced in Clint Donkin leadership transition before the annual report was released, and the company presents the change as part of its next phase of growth.

The immediate test is less rhetorical than operational: commissioning the expanded plant, converting Jericho development into dependable feed and maintaining cash generation while debt is serviced. AIC Mines also faces a familiar mining-company sensitivity set, including copper prices, diesel costs, water availability and underground execution. Its first climate disclosure reported Scope 1 and 2 emissions of 57,155 tonnes of carbon dioxide equivalent, but no formal decarbonisation targets or climate transition plan.