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- Aurelia Metals (AMI) reports an increase in gold, zinc and lead production from its New South Wales operations during the September quarter
- While production increased at the Dargues, Hera and Peak mines for the most part, copper production fell 68 per cent to 463 tonnes due to lower processing and a lower feed grade
- The company says the Q1 performance went to plan when considering the full-year production guidance of 87,000 ounces at an AISC of $1900 per ounce
- Looking ahead, Aurelia is focused on the Federation mine discovery in the Cobar basin but exploration has been paused while the company seeks out funding options
- Company shares end the day 20 per cent in the green to close at 12 cents
Aurelia Metals’ (AMI) shares are up more than 17 per cent after releasing its quarterly report for the three months to the end of September.
The company reported a slight three per cent quarter-on-quarter (QoQ) increase in gold production to 22,530 ounces of gold across the Dargues, Hera and Peak mines in New South Wales.
It also experienced a 31 per cent QoQ increase in lead production to just under 6200 tonnes and a 25 per cent increase in zinc production to 6828 tonnes.
However, due to lower processing and a lower feed grade, copper produced fell 68 per cent from 1425 tonnes in the June quarter to 463 tonnes in the September quarter.
Group all-in sustaining costs (AISC) were $2643 per ounce compared to $2803 per ounce in the previous quarter due to lower QoQ sustaining capital expenditure which was partially offset by lower volumes of base metals’ by-product sales.
Aurelia started the quarter with $76.7 million in cash but after operating expenditure across its three mines, exploration, repaid debt, and other capital costs, the company ended the September quarter with $46.5 million in cash.
Overall, the company said the performance of the first quarter of FY23 went to plan when considering the full-year production guidance of 87,000 ounces at an AISC of $1900 per ounce.
The company’s forward focus is primarily on the Federation mine in the Cobar basin of New South Wales. A recently completed feasibility study outlined the Federation project as one of the highest-grade base metals projects in Australia with a strong technical and economic case.
Exploration at the mine has been paused for now while Aurelia explores funding options to ensure it has an “optimal” capital structure for the next stage of growth.
Company shares ended the day 20 per cent in the green to close at 20 cents.
