- Aeris Resources (AIS) reports lower production from its Tritton copper and Krakow gold operations in the March quarter
- Tritton in New South Wales produced 4,040 tonnes of copper at an AISC of $5.94 per pound, and Krakow in QLD produced 11,643 ounces of gold at an AISC of $1,867 per ounce.
- Aeris has spent $13.9 million on life extension work at Tritton, including development of the Budgerygar field with targeted MRE before the end of June
- Due to lower grades at Krakow, the copper-gold miner cut its FY22 production forecast to between 56,000 ounces and 59,000 ounces, but the forecast at Tritton remains the same
- Shares of the company are down 3.57% at 13.5 cents
Aeris Resources (AIS) reported lower production from its Tritton and Krakow operations in the March quarter.
Located in New South Wales, the Tritton operation produced 4,040 tonnes of copper, down from 4,880 tonnes produced in the December quarter. It is also the lowest amount of copper produced in a quarter since before fiscal 2022.
Due to lower production, all-in sustaining costs (AISC) were $5.94 per pound, compared to $4.86 per pound AISC in the prior quarter.
The main contributor to Tritton’s production 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 prior quarter due to a reduction in available mined tonnes.
On a positive note, higher copper grades at Tritton reportedly began arriving in March, reflecting a change in Aeris’ mining strategy implemented in January.
In terms of spending, Aeris Resources spent $13.9 million on life extension projects with work including the development of the Budgerygar deposit progressing on schedule. A mineral resource estimate is expected before the end of June.
The company also said the drop in access for the The Avoca Tank deposit is on schedule, the Murrawombie pit reduction design is complete and a tender is underway.
Despite lower copper production this quarter, the company reaffirmed its FY22 forecast of 18,500 to 19,500 tonnes, but hopes to raise it to between 20,000 and 22,000 for FY23.
Located in Queensland, the Cracow gold mine produced 11,643 ounces of gold, which is lower than the 15,869 ounces produced during the December quarter.
Like Tritton, Krakow’s quarterly production in March was the lowest since before fiscal 2022.
Due to lower gold production, the AISC was higher at $1867 per ounce.
Total ore mined came from the Krakow underground mine, totaling 123,000 tonnes, which was slightly higher than the previous quarter. The mine grade of 2.68 g/t was lower than the mined grade of 3.78 g/t in the previous quarter. Aeris said its goal for the next quarter was to prioritize 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 goldfields of Krakow are the Golden Plateau deposit and the Western Vein field. The Golden Plateau deposit is expected to help extend the life of the Cracow mine.
In terms of expenses, Aeris spent $6.6 million on life extension projects, including exploration, during the quarter.
Due to lower grades, the copper-gold miner cut its FY22 forecast for Krakow from 64,000-66,000 ounces of gold to between 56,000-59,000 ounces at an AISC of $1,775. ounce and $1825 per ounce.
Aeris ended the March quarter with $73.8 million in cash and receivables.
Shares in the company fell 3.57% to 13.5 cents at 12:20 p.m. AEST.