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Introduction & Market Context
Aurelia Metals (ASX:AMI) released its March 2025 quarterly update on April 23, highlighting strong operational performance and progress on key growth projects. The gold and base metals producer, which operates primarily in the Cobar Basin of New South Wales, saw its stock close at $0.31 on April 22, representing a 6.9% daily gain and positioning the company near its 52-week high of $0.32.
The March quarter results demonstrate continued momentum in Aurelia’s production metrics and financial position, with particular strength in gold grades and cash generation from its Peak mine operations.
Quarterly Performance Highlights
The company reported a strong quarter with production on track to meet FY25 guidance across all metals. Key highlights include the continued ramp-up of the Federation mining project, approval of the Great Cobar investment in April, and a $10 million increase in cash balance during the quarter.
As shown in the following production and cost table, Aurelia produced 16.6 koz of gold in the March quarter, bringing the year-to-date total to 38.0 koz against full-year guidance of 40-50 koz:
Other notable production figures include 0.5 kt of copper for the quarter (2.4 kt year-to-date vs. guidance of 2.5-3.5 kt), 3.2 kt of zinc (9.3 kt year-to-date vs. guidance of 14-20 kt), and 3.5 kt of lead (10.8 kt year-to-date vs. guidance of 13-19 kt).
The company’s All-In Sustaining Cost (AISC) for the quarter was $1,593/oz, an improvement from the year-to-date average of $1,918/oz. Group operating costs for the quarter totaled $49.9 million, with year-to-date costs of $152.8 million tracking within the full-year guidance range of $185-220 million.
Operational Performance
The Peak mine demonstrated particularly strong performance, with a March quarter AISC of $1,353/oz and an impressive AISC margin of 66%. Development rates at Peak have shown a step change, with the company targeting further increases above 1,000m per quarter.
A notable achievement was the significant improvement in gold grade mined, which reached 3.54 g/t in the March quarter, more than triple the 1.08 g/t reported in the March 2024 quarter. This substantial grade improvement has been a key driver of the mine’s strong financial performance.
The following chart illustrates the steady improvement in development rates and gold grade at the Peak mine:
The Federation project continues to track ahead of plan in terms of mine development, with major surface works now complete. The company noted that trucking delays in February impacted haulage movements to Peak, but recovery is on track for the June quarter. Importantly, the project remains within its approved budget.
Aurelia also reported improvements in sustainability metrics, with both the Total (EPA:TTEF) Recordable Injury Frequency Rate (TRIFR) and Recordable Environmental Incident Frequency Rate (REIFR) showing declining trends over the past year.
Growth Projects and Future Outlook
Aurelia presented a clear sequence of growth projects focused on the Cobar Basin, with the Federation Project already delivered in FY25 and several initiatives planned through FY28.
The company’s growth strategy is illustrated in the following timeline:
A significant development is the Great Cobar Project, which received investment approval in April. This project involves a twin decline from the Jubilee orebody commencing in July 2025, with first ore expected in 2028 and an initial targeted mining rate of 500ktpa from FY30.
The Great Cobar development will be implemented using owner mining to maximize synergies with existing operations. The project includes a 600m ventilation shaft to be reamed in 2027 and new power supply and surface infrastructure upgrades at New Cobar in 2028.
Aurelia’s overall processing capacity target is 1.1-1.2Mtpa, with approximately 50% copper/gold ore and 50% zinc/lead ore.
Financial Position
The company’s financial position strengthened during the quarter, with the cash balance increasing from $96.7 million in December 2024 to $106.7 million by March 2025. This improvement was primarily driven by strong cash flow from Peak operations, which generated $44.6 million during the quarter.
The following waterfall chart details the movement in Aurelia’s cash position:
Major cash outflows during the quarter included $19.3 million for growth capital, $4.2 million for exploration, $5.3 million for corporate expenses, tax, interest and other items, $1.3 million for care and maintenance, and $4.5 million for financing cash flows.
With a loan note of approximately $38 million, Aurelia’s total liquidity position stands at approximately $145 million, providing a solid foundation for the company’s planned growth initiatives.
Looking ahead, Aurelia’s key focus areas include safely delivering on FY25 guidance, ramping up Federation to commercial production, implementing productivity and cost reduction projects at Peak, finalizing Peak Plant optimization studies, preparing for Great Cobar project development, and continuing exploration programs at Federation and Nymagee.
Full presentation:
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