AIC Mines (A1M) Q2 2026 earnings summary

Executive summary

• December quarter delivered strong operational performance at Eloise, meeting production and cost guidance despite significant weather and geological challenges, with 3,202t copper and 1,501oz gold in concentrate produced.

• Record quarterly mine production at Eloise under current ownership, with 189,000 tons of ore mined.

• Large ore and concentrate stockpiles built up due to weather-related logistics issues, impacting cash flow timing.

• Progressed Eloise plant expansion to 1.1Mtpa and Jericho mine development, with significant resource growth potential confirmed by drilling.

• Strong net mine cash flow of $11.5 million after $14.1 million capital investment, with $44.9 million cash at bank at quarter end.

Financial highlights

• Eloise produced 3,202 tons of copper in concentrate at an all-in sustaining cost of AUD 4.87/lb ($3.26/lb) and all-in cost of AUD 5.22/lb ($3.50/lb), both within FY26 guidance.

• Metal sales for the quarter totaled $54.9 million, benefiting from higher copper and gold prices.

• Eloise mine operating cash flow was $25.6 million; net mine cash flow after capital investment was $11.5 million.

• Group cash flow for the quarter was negative $22.9 million, reflecting heavy investment in expansion and development.

• Approximately AUD 8 million in copper concentrate stockpiled at quarter-end, expected to boost March quarter results.

Outlook and guidance

• Eloise is on track to meet full-year production and cost guidance, having produced half of annual guidance at the halfway mark.

• March 2026 quarterly production expected to be similar to December 2025, at 3,100–3,300t Cu and 1,500oz Au.

• Eloise plant expansion to 1.1Mtpa is on schedule for commissioning in December 2026; stage two expansion to 1.5Mtpa under engineering review.

• If current commodity prices persist, Eloise could generate AUD 30 million more cash flow than originally forecast over the next six months.

• Updated mineral resource and ore reserve estimate expected in April, potentially shifting 1.5 million tpa production from aspirational to planned.