36.75 ounces marks Aguia’s September gold production record

Três Estradas licence faces appellate setback

Aguia Resources Limited (ASX:AGR) is trying to keep its Brazilian phosphate operation moving after an appellate court majority found the environmental licensing for the Três Estradas Phosphate Project should be declared invalid. The written reasons for the 15 September decision have not yet been published, and the company says the ruling was based on an assumption that operations had not commenced.

Aguia says mining is already under way and that an immediate suspension would cause material operational harm. Its legal advisers intend to file a motion for clarification once the written decision is received, while environmental regulator FEPAM has indicated it plans to defend the legality of the licensing process. The company says operations are not expected to be interrupted, with a resolution anticipated by mid-November.

The ruling leaves Três Estradas exposed to a legal risk that is not yet resolved, even as local agricultural, industry and municipal groups have publicly expressed concern about the decision. Aguia has pointed to the first-instance ruling in its favour and the divided appellate outcome, but those arguments remain part of its planned legal response rather than a settled result.

Phosphate sales slowed by rain and limited working capital

Wet weather associated with El Niño interrupted the phosphate sales program during the quarter, although small cash sales continued. Aguia has about 30,000 tonnes of unprocessed ore on the run-of-mine pad, plus 1,600 tonnes of processed ore at Caçapava, which it says could support sales for roughly six months at the current production rate of about 4,000 tonnes per month.

“Commercial Business in the Region of João Pessoa.”

The stockpile is the practical buffer for the operation, after 30,000-tonne phosphate stockpile had already been identified as supporting early Pampafos sales. Aguia has 11,000 tonnes covered by long-term sales agreements, subject to working capital finance, while local bank SICREDI has approved BRL1.5 million, equivalent to about A$427,000, in credit for approved customers.

A new 25-kilogram bagging machine was scheduled for installation in October, which the company expects will allow it to supply smaller cattle, tobacco and agricultural producers unable to handle one-tonne bags. Aguia is also assessing a return to its Lucena phosphate project, where it reports a JORC Inferred Mineral Resource of 55 million tonnes at 6.42% P2O5, alongside a potential 41.4-million-tonne limestone resource. Lucena remains dependent on licence extensions, further studies and future technical work.

Santa Barbara sets production record

Colombian gold provided the quarter’s clearest operating progress. Santa Barbara produced 105 dry tonnes in September at an average run-of-mine grade of 10.88 grams per tonne gold, with third-party processing recovering 1,143.07 grams, or 36.75 troy ounces. Aguia reported gross revenue of A$218,000 based on a gold price of US$4,135 an ounce, and said Colombian corporate and operating costs were covered for the first time.

The result extended Santa Barbara’s record month, which had previously been reported as a 36.75-ounce September milestone. Aguia reduced its mine workforce by 15% during the month, bought additional equipment and is developing three shafts below the main levels of Veins 1 and 2. It is targeting production of more than 200 tonnes per month before the first quarter of 2027, compared with roughly 100 tonnes in September.

Cash position keeps financing in focus

Aguia completed a A$3 million placement during the quarter, issuing 176.5 million shares at 1.7 cents each. Since quarter-end, it has received a non-binding term sheet for US$3 million of working capital finance through a loan and royalty agreement, with due diligence continuing and funding not yet binding.

In the meantime, directors and key shareholders have provided A$300,000 in unsecured short-term loans carrying 12% annual interest. Cash stood at A$499,000 at quarter-end, while operating expenditure for the quarter was A$1.707 million. The company says its directors are also considering a restructuring that could separate the gold operations from phosphate, potentially involving a partial asset sale and a cash injection, although terms remain under negotiation and shareholder approval may be required.

The next hard evidence will come from the Brazilian court’s written reasons and Aguia’s clarification motion, not from the company’s expectation that operations will continue. At the same time, the proposed US$3 million facility must become binding, while Santa Barbara must turn a small but improving production base into the targeted higher monthly throughput.