AIC Mines (A1M) H2 2024 earnings summary

Executive summary

• Achieved record copper production and cash flow at Eloise Mine, with 49,994 dmt concentrate containing 13,412t copper at an all-in sustaining cost of A$5.15/lb, and net mine cash flow of $23.1 million after $50.1 million capital investment, the highest since 2017.

• Statutory net profit after tax was $7.7 million, a $13.5 million improvement year-over-year, with EBITDA of $51.8 million, up $27.4 million from the prior year.

• Significant progress on Jericho development, including commencement of the Jericho link drive and approval of the mining lease, with plant expansion underway to increase copper production to 20,000 tpa.

• Exploration success increased Mineral Resources and Ore Reserves at Eloise and Jericho, with Jericho's copper in Mineral Resources up 59% and Ore Reserves up 86% year-over-year.

• Completed a $57.2 million placement to fund Jericho development, with $53.7 million net proceeds received by year-end.

Financial highlights

• Net revenue from concentrate sales rose to $180.5 million from $125.6 million year-over-year.

• Gross metal revenue: $174.8 million copper, $21.5 million gold, $5.1 million silver.

• Net assets increased to $219.1 million (from $154.3 million), with total assets at $266.8 million and cash and cash equivalents at $74.3 million.

• Net cash inflow from operating activities was $51.9 million, up from $22.9 million, driven by improved production and higher metal prices.

• No dividends declared or paid during the year.

Outlook and guidance

• Jericho development and Eloise plant expansion expected to lift copper production to over 20,000 tpa and gold to 7,500 oz p.a., reducing costs and de-risking production.

• Ongoing assessment of M&A opportunities focused on late-stage copper and gold projects in Australia.

• Continued focus on exploration to replace and grow Ore Reserves.