After a $65.3 million Cobar cash-flow record, Aurelia Metals (ASX:AMI) reaffirms FY27 guidance with Peak expansion close

Aditi Sarkar

28 October 2026 04:12 PM AEDT

After a $65.3 million Cobar cash-flow record, Aurelia Metals (ASX:AMI) reaffirms FY27 guidance with Peak expansion close

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Highlights

Aurelia Metals generated $65.3 million of Cobar operating cash flow after sustaining capital, its highest quarterly result since 2018.
Cash rose to $160.7 million from $143.9 million, giving $200.7 million of total liquidity with the undrawn facility.
Quarterly production reached 16.2 thousand ounces of gold, with gold, copper and zinc output all above the June quarter.
Peak plant expansion to 1.1-1.2 million tonnes a year is expected to deliver expanded throughput by the second quarter's end.

At Cobar, Aurelia Metals (ASX:AMI) just delivered the strongest quarter of operating cash flow its Cobar operations have seen since 2018. The September 2026 quarter also brought higher gold, copper and zinc output, a bigger cash pile and a plant expansion edging toward commissioning. A new chief executive and a water problem at Federation add some texture.

Production, cash flow and guidance

Cobar operations generated $65.3 million of operating cash flow after sustaining capital in the quarter, compared with $53.1 million in the June quarter. FY27 guidance was reaffirmed in the 28 October 2026 report.

Group production was 16.2 thousand ounces of gold, 1.3 thousand tonnes of copper, 8.3 thousand tonnes of zinc and 5.2 thousand tonnes of lead. Gold, copper and zinc were all above the June quarter, when output was 15.3 thousand ounces, 0.9 thousand tonnes and 7.6 thousand tonnes respectively. Lead eased from 5.4 thousand tonnes. FY27 guidance remains 50 to 60 thousand ounces of gold, 2.5 to 3.5 thousand tonnes of copper, 26 to 34 thousand tonnes of zinc and 17 to 25 thousand tonnes of lead.

Balance sheet and sales

Cash at the end of the quarter was $160.7 million, up from $143.9 million. With an undrawn $40 million revolving credit facility, total liquidity was $200.7 million.

Gross sales revenue was $165.5 million, and net revenue after treatment and refining charges was $162.6 million. The company sold 13.7 thousand ounces of gold at a realised $6,074 per ounce, 5.9 thousand tonnes of zinc at $5,981 per tonne, 4.0 thousand tonnes of lead at $2,990 per tonne and 1,472 tonnes of copper at $20,886 per tonne. No strategic hedging was executed in the period.

Mines and processing

At the Peak mine, 148 thousand tonnes of ore were mined, of which 136 thousand tonnes was copper ore. At Federation, ore mined was 97 thousand tonnes, down from 112 thousand tonnes, with July downtime and operator shortages cited. Higher-than-planned water inflow slowed decline development there to 1,147 metres.

The focus for the second quarter of FY27 is dewatering and re-establishing services, with normal development rates expected from the third quarter. The company does not expect an impact on FY27 metal production guidance.

The Peak plant processed 226 thousand tonnes of ore. Recoveries were 93.0 per cent for gold, 84.4 per cent for zinc, 90.8 per cent for lead and 90.1 per cent for copper.

Plant expansion and Great Cobar

Processing capacity is being expanded from 800 thousand tonnes a year to between 1.1 and 1.2 million tonnes a year. Final regulatory approval to operate at the higher rate was received in August 2026, and the process water project is complete. A tertiary ball mill and cyclone are due to be tied in during October, followed by a commissioning ramp-up. Expanded throughput is expected by the end of the second quarter of FY27.

At the Great Cobar project, 506 metres of development were completed, taking the total to 2,380 metres. The company said capital budget and schedule remain on track, with raisebore rig mobilisation and a pilot hole planned for the second quarter of FY27.

Exploration, Dargues and corporate

Exploration spending of $4.0 million included drilling at Peak South, New Cobar and Nymagee, with assays pending for most programs and expected in the second quarter of FY27. An airborne gravity gradiometry survey of 7,915 line kilometres is expected to start early in that quarter.

At Dargues, part of the plant was sold for $1.2 million, with removal due in the second quarter of FY27. Contractor mobilisation for tailings storage facility capping is planned for the same quarter, with completion by the end of the third quarter of FY27.

Steve Badenhorst became managing director and chief executive on 6 October 2026. Chief development and technical officer Andrew Graham has resigned and will leave in November.

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