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- Aeris Resources (AIS) announces softer production from its Tritton copper and Cracow gold operations in the March quarter
- Tritton in NSW produced 4040 tonnes of copper at an AISC of $5.94 per pound, and Cracow in QLD produced 11,643 ounces of gold at an AISC of $1867 per ounce
- Aeris spent $13.9 million on life extension work at Tritton including developing the Budgerygar deposit with a MRE targeted before the end of June
- Due to lower grades at Cracow, the copper-gold miner reduced its FY22 production guidance to between 56,000 ounces and 59,000 ounces but guidance at Tritton remains the same
- Company shares are down 3.57 per cent to 13.5 cents
Aeris Resources (AIS) has reported softer production from its Tritton and Cracow operations over the March quarter.
Tritton
Located in New South Wales, the Tritton operation produced 4040 tonnes of copper which is a decline from the 4880 tonnes produced in the December quarter. It also marks the lowest amount of copper produced in a quarter since before the 2022 financial year.
Due to the lower production, all-in sustaining costs (AISC) came to $5.94 per pound, up from the $4.86 per pound AISC in the prior quarter.
The main contributor to production at Tritton was the Tritton underground mine which produced 222,000 tonnes of copper ore, followed by the Murrawombie underground mine which produced 133,000 tonnes of copper ore.
The Tritton operation processed 352,000 tonnes of ore which is lower than the 406,000 processed in the previous quarter due to a reduction in available mined tonnes.
On a positive note, higher copper grades at Tritton reportedly started coming through in March, reflecting a change to Aeris’ operating strategy implemented in January.
In terms of expenditure, Aeris Resources spent $13.9 million on life extension projects with work including the development of the Budgerygar deposit which is progressing on schedule. A mineral resource estimate is targeted before the end of June.
The company also said the access decline for the Avoca Tank deposit is on schedule and the Murrawombie Pit cut-back design is completed and a tender is underway.
Despite softer copper production this quarter, the company reaffirmed its FY22 guidance of 18,500 to 19,500 tonnes but hopes to increase this to between 20,000 and 22,000 in FY23.
Cracow
Located in Queensland, the Cracow gold operation produced 11,643 ounces of gold which is lower than the 15,869 ounces produced in the December quarter.
Like Tritton, Cracow’s March quarterly production was the lowest since before the 2022 financial year.
Due to softer gold production, AISC were higher at $1867 per ounce.
Total ore mined came from the Cracow underground mine, totalling 123,000 tonnes which was slightly higher than the previous quarter. The mine grade of 2.68 g/t was lower than the prior quarter’s 3.78 g/t mined grade. Aeris said its focus for the following quarter is on prioritising higher grade stoping fronts.
Positively, ore processed for the quarter, at 168,000 tonnes was in line with the previous quarter and the milling team achieved a new monthly throughput record of 60,893 tonnes in March.
The main mining areas of the historical Cracow goldfields are the Golden Plateau deposit and the Western Vein Field. The Golden Plateau deposit is expected to contribute to extending the Cracow operation’s mine life.
In terms of expenditure, Aeris spent $6.6 million on life extension projects, including exploration, during the quarter.
Due to lower grades, the copper-gold miner reduced its FY22 guidance for Cracow from 64,000 to 66,000 ounces of gold to between 56,000 ounces and 59,000 ounces at an AISC of $1775 per ounce and $1825 per ounce.
Aeris ended the March quarter with $73.8 million in cash and receivables.
Company shares were down 3.57 per cent to 13.5 cents at 12:20 pm AEST.
