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Highlights

  • The Eloise mine recorded its highest production since 2017, producing 49,994 dmt of concentrate with 13,412 tonnes of copper.
  • Eloise mine produced 3,213 tonnes of copper in 1Q FY25 with an operating cash flow of AUD 14.8 million.
  • AIC Mines targets 12,500 tonnes of copper and 5,000 ounces of gold in FY25. The Jericho project is expected to increase annual copper production to over 20,000 tonnes.

AIC Mines Limited (ASX:A1M) is an ASX-listed resource company which focuses on creating a diverse portfolio of gold and copper assets through acquisition, development and exploration. The company operates the Eloise copper mine, located in North Queensland, along with multiple exploration projects with potential for gold and copper.

In the financial year 2024 (FY24), Eloise mine recorded its highest annual production since 2017. During the reported period, the production stood at 49,994 dmt of concentrate, containing 13,412 tonnes of copper, with an all-in sustaining cost of AUD 5.15/lb.

The reported period saw 43.7% YoY increase in its revenue to AUD 180.5 million and 140.5% YoY increase in cash and cash equivalents to AUD 74.3 million. In FY24, profit after tax reached AUD 7.7 million, up from loss after tax of AUD 5.8 million in previous corresponding period.

Financial performance in recent quarter

During the first quarter of FY25, reliable production was recorded from the Eloise mine, with copper in concentrate of 3,213 tonnes and AISC of AUD 5.05 per pound sold. During the reported period, net mine cash flow was positive with copper sales of 2,936 tonnes along with sales of by-product silver and gold. In 1QFY25, the operating cash flow stood at AUD 14.8 million, with cash balance of AUD 62.2 million.

Outlook

The company intends to expand its portfolio through targeted exploration, strategic acquisition and development. In FY25, the company targets production of 12,500 tonnes of copper and 5,000 ounces of gold from the Eloise Copper Mine, with an AISC of nearly AUD 5.25 per pound.

The transformation of the Jericho project is anticipated to improve production at Eloise to more than 20,000 tonnes per annum.

A1M has created a strategy to transform the Eloise Copper Mine into a cornerstone asset with the aim of achieving sustainable ore production rate of 600,000 tonnes per annum.

Share performance of A1M

A1M shares closed 2.67% lower at AUD 0.365 apiece on 22 October 2024. In the last one year, A1M’s share price has increased by almost 28.07%, while in the past three months, it has surged by 8.96%.

52-week high of A1M is AUD 0.615, recorded on 21 May 2024, and 52-week low is AUD 0.26, recorded on 28 February 2024.

A1M Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 22 October 2024. The reference data in this report has been partly sourced from REFINITIV.