- Austral Resources (AR1) has reported a 158 per cent increase in quarterly operating cash flow to $13.6 million in Q1 2023
- Copper sales generated revenue of $35.55 million, up 17 per cent from the previous quarter, with copper production averaging 30.7 tonnes per day, up 14 per cent
- Despite challenging weather conditions, including over 1000 mm of rain, the company reduced total operating site costs by 12 per cent to $21.9 million
- AR1’s EBITDA reached a record high of $8.7 million over the quarter, with an EBITDA margin of over 24.5 per cent driven by higher copper sales, increased production, and lower costs
- AR1 shares were up 1.56 per cent, trading at 32.5 cents at 1:07 pm AEDT
Copper producer Austral Resources (AR1) has reported a boost to its operating cash flow of 158 per cent to $13.6 million over the March quarter.
Copper sales in the quarter generated net revenue of $35.55 million — up 17 per cent from the previous quarter.
Production of copper averaged 30.7 tonnes per day, up 14 per cent quarter-on-quarter (QoQ), although it was sold at an all-in sustaining cost (AISC) of US$2.79 (A$4.11) per pound — 24 per cent lower than the previous quarter.
The positive results came despite challenging weather conditions in Queensland Gulf Country where the company’s projects lie, with more than 1000 mm of rain recorded for the quarter.
Total operating site costs for the quarter were $21.9 million — down 12 per cent.
AR1’s quarterly EBITDA jumped to a record high of $8.7 million, with an EBITDA margin of over 24.5 per cent driven by higher copper sales (up 18 per cent QoQ) coupled with increased production (up 6 per cent QoQ) and lower costs.
The company reduced its Wingate senior secured debt to $21.1 million, and, as of March 31, 2023, AR1 had $6.1 million in cash.
“This quarter has been outstanding as our team successfully navigated a challenging
environment not only for the company but all associated with Austral Resources,” Austral Managing Director Dan Jauncey said.
“With over one metre of rain over the three months, we delivered better-than-expected March quarter results and a great start to 2023. The fact that we continued production and processing is a testament to the team on site, management, contractors, and suppliers.
“The exploration season has just started for us; in the June quarter, Austral will be looking at oxide extensions at Lady Annie and Anthill and also continuing drilling at Lady Colleen, Lady Annie, and Flying Horse.
“I could not be happier with how things are tracking currently, and this will be another solid quarter with strong news flow.”
The company is continuing its focus on the Lady Colleen deposit, within its Mt Kelly operation, saying its development will be “transformational” and, alongside the Anthill project, could boost annual production to over 25,000 tonnes of copper cathode and concentrate per annum.
AR1 shares were up 1.56 per cent, trading at 32.5 cents at 1:07 pm AEDT.