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Introduction & Market Context
Aurelia Metals (ASX:AMI) released its September 2025 quarterly update on October 21, highlighting production growth across its operations while advancing key development projects. The company’s share price remained steady at A$0.265 following the release, having traded between A$0.165 and A$0.345 over the past year.
The presentation comes amid Aurelia’s strategic pivot toward increasing copper production, with the company maintaining a bullish outlook on copper fundamentals. This aligns with CEO Bryan Quinn’s previous statements emphasizing the company’s "self-funded growth" approach and optimistic view of the copper market.
Quarterly Performance Highlights
Aurelia reported solid production figures for the September quarter (Q1 FY26), showing improvements across most metals compared to the previous quarter. Gold production increased to 10.4 koz from 7.3 koz, while copper production rose to 0.5 kt from 0.3 kt in the June quarter.
As shown in the following production and costs summary:
The company maintained strong zinc production at 6.5 kt, though slightly lower than the previous quarter’s 7.5 kt. Lead production also decreased marginally to 3.8 kt from 4.9 kt. These figures position Aurelia well against its FY26 guidance ranges for gold (35-45 koz), copper (3.0-4.0 kt), zinc (24-32 kt), and lead (14-22 kt).
Group operating costs increased significantly to A$70.0 million in the September quarter compared to A$43.6 million in the June quarter, reflecting the company’s investment in growth initiatives. This aligns with previous earnings information indicating operating costs of A$367 per tonne, which the company expects to decrease to A$328 per tonne by year-end.
Operational Updates
The Peak mine demonstrated substantial productivity improvements, with development meters reaching 1,379 in the September quarter—a significant increase from 1,041 in the June quarter. The company also reported a 14% reduction in Peak mining unit costs due to higher mined volumes and reduced spending.
The following chart illustrates the development progress at Peak:
The Federation mine continues to exceed expectations, with commercial production achieved in Q1 FY26. Development meters increased by 31% to 1,481 in the September quarter, while ore mined grew by 19% to 63 kt, ahead of the year-to-date plan.
The Federation mining performance is visualized in these charts:
The Great Cobar Copper Growth Project is progressing according to plan, with mining crews and equipment mobilized in July. The project is now fully resourced, with 448 meters of mine development completed during the quarter. Surface and underground infrastructure projects are advancing well, with early engagement with raisebore contractors to secure availability and pricing for construction of a fresh air raise.
Resource Growth and Exploration
Aurelia reported significant growth in mineral resources and ore reserves, strengthening the company’s long-term production outlook. The Group Mineral Resource estimate increased by 12% to 29Mt, while the Peak Copper Mineral Resource grew by 19% to 19Mt.
The following summary highlights the resource and reserve growth:
The Group Ore Reserve estimate increased by 17% to 5.5Mt, with the Peak Copper Ore Reserve showing impressive growth of 50% to 3.0Mt. The Group Production Target stands at 8.6 million tonnes, reflecting approximately an 8-year life at an expanded processing rate.
Exploration at Nymagee has yielded promising results, including the discovery of two new lenses and extension of Nymagee North. Recent drilling highlights include intercepts of 7.0m @ 2.2% Cu and 22g/t Ag, as well as 4.3m @ 2.7% Cu, 1.8g/t Au, 3.6% Zn, 1.7% Pb and 95g/t Ag. Drilling is ongoing with additional downhole electromagnetic surveys planned for November 2025.
Financial Position
Aurelia’s cash balance decreased to A$88.1 million at the end of September 2025, down from A$110.1 million at the end of June 2025. This reduction reflects the company’s investment in growth projects, with A$10.9 million allocated to Cobar Region Growth Capital (Federation A$3.8M, Great Cobar A$5.9M, Peak expansion A$1.1M) and A$4.8 million to exploration activities.
The following waterfall chart illustrates the changes in the company’s cash position:
Despite the decrease, Aurelia maintains a strong liquidity position of A$124 million when including its A$36 million loan note. This aligns with the A$124 million liquidity figure mentioned in the company’s previous earnings report, providing sufficient funding for its ongoing growth initiatives.
Forward Outlook
Aurelia’s key focus areas include maintaining disciplined capital allocation, improving productivity, safely ramping up Federation, delivering Great Cobar project milestones, and developing a pipeline of low-cost growth options. The company is targeting 40ktpa of copper equivalent production by FY28, reflecting its strategic shift toward increased copper production.
The following slide outlines the company’s strategic priorities:
The company is also investing in process plant upgrades to increase processing capacity to 1.1-1.2Mtpa, with projects focused on tailings and process water management (A$9.6M), a tertiary ball mill (A$8.6M), and crushing and materials handling improvements (A$7.8M).
These initiatives, coupled with ongoing exploration success and resource growth, position Aurelia Metals for sustainable growth in the coming years, particularly in its copper production, which the company expects to comprise 50% of its ore mix in the future.
Full presentation:
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