Aeris Resources (ASX:AIS) used its Q2 FY2026 quarterly presentation to highlight what management described as an unusually supportive commodity price backdrop, with gold “hitting $5,500 an ounce,” copper “close to $6 a pound,” and silver “at $120+.” The company reiterated that it is positioned as a producer through its two operating mines—Tritton (copper, with gold and silver by-products) and Cracow (gold)—and said the current environment provides an opportunity to strengthen the balance sheet, de-risk the business, and fund organic growth.
Quarterly output, cash balance, and rail disruption
Management reported copper-equivalent production of 10,100 tonnes for the quarter and said operating costs and capital spending were “well managed.” Aeris closed the quarter with cash and receivables of more than A$106 million, which the presenter described as the highest level seen in the business.
Tritton: lower quarter-on-quarter production, Murrawombie progress, and drilling results
Tritton’s production was lower quarter-on-quarter, though management said the result—about 5,000 tonnes—was in line with internal forecasts. The company attributed the lower output to two factors:
- Higher “overflow” tonnes in Q1 from Murrawombie Stage 1 that had been processed then, and
- A 10-day processing plant shutdown in Q2 to complete major infrastructure replacements.
Aeris said the Murrawombie open pit was ongoing and that first production from the pit was expected in the current quarter. The company also noted that about A$23 million of the quarter’s A$41 million in capital and exploration spend related to Murrawombie pre-strip, which management said should be completed in the current quarter, enabling a shift into ore production.
During mining at Murrawombie, Aeris encountered geotechnical issues high in the oxide area and redesigned the pit accordingly. Management said the updated pit design and grade control model indicated “around 1,700 additional tons of metal” that could be mined, representing a potential revenue uplift “without mining a lot more” than planned. Stage two ore was still expected to be delivered during the current quarter, though management said it would be slightly delayed due to the geotechnical issues, with additional tonnes expected to come out “fairly early in FY 2027.”
On exploration, Aeris highlighted drilling at Avoca Tank, describing the target as potentially separate from and offset to the existing Avoca Tank orebody. Management cited drilling intersections including “32 m at 3.2%” and “9 m at 1.65%,” and said a 13-hole program was underway, with two additional holes believed to have intersected copper and assays pending.
At Tritton’s Constellation project, Aeris said it received development consent in December, calling it a “big step forward.” The company reiterated a timing target to begin construction in Q1 FY2027 and said this aligned with plans to progress the project in the first half of FY2027.
Cracow: above-plan gold production and Golden Plateau drilling begins
Aeris described Cracow as a consistent performer over the last two to three years and said the mine again delivered above internal plans in Q2, producing 11,000 ounces of gold. Management said costs remained well managed and noted it had spent capital to add another tailings storage facility (TSF) lift, which it said was completed ahead of schedule by “quite a few months.”
The company also said drilling had commenced at Golden Plateau, an open-pit target that management characterized as “really exciting” and potentially “significant value for the business” if successful. Aeris outlined a 7,000-meter drill program and said a second drill rig was mobilized during the month. Management said the focus was to drill, define a resource, and develop a mine plan, with an objective to have a mine plan in place in the first half of FY2027. The company said success at Golden Plateau could help extend Cracow toward a five-year-plus mine life.
Projects, asset sales, and balance sheet update
Aeris said it has three development projects—Jaguar, Stockman, and Constellation—and reiterated a corporate priority of extending mine life at its operating assets. At Jaguar, the mine remains on care and maintenance, and management said it was working to reduce maintenance costs to the “bare minimum.” Base metal drilling was expected to start in the current quarter, targeting eight base metal prospects that management said had not been tested before, with drilling planned over the next two quarters. In response to a question, management said a restart decision for Jaguar would likely be at least two years away, noting it could take roughly 18 months to drill out and define a resource if a target is found.
At Stockman, Aeris said it had completed test work and was focusing on a “simple flotation process” and an updated feasibility study. In the Q&A, management said it planned to release a feasibility study before the end of the financial year.
The company also provided an update on the sale of its North Queensland assets, saying government approvals for transfers had been received and that the process was in its final stages, with completion expected in the current quarter or “in the next month.” Management said A$6.5 million of restricted environmental bond cash would return to the business after completion and reiterated that about A$11 million would come back on completion, with an additional deferred payment later.
On funding, Aeris said it raised A$80 million and an additional A$20 million-plus via a share purchase plan, and used proceeds to repay debt. Management said the company has now repaid A$40 million of Soul Patts debt and is “debt-free” with A$100 million-plus in the bank.
Hedging, shareholder questions, and silver contribution
In the Q&A, management said it had about 10,000 ounces of gold hedging outstanding, equating to roughly another six months of hedging, with the policy to be reviewed later. Management said there were no current plans to hedge additional gold or copper, though it noted the company had put in place “QP hedging” for copper to protect against pricing volatility during the buyer’s settlement window.
Management also addressed questions on dividends, saying it would “love” to reach that point but that the short- to medium-term focus would be developing projects and ensuring adequate capital for investments such as Constellation.
On silver, management said annual production is around 240,000 ounces and suggested that at current spot prices, silver could contribute “up to A$30 million” to results over a 12-month period, with most silver produced at Tritton.
The presenter closed by characterizing the quarter as a good one overall, stating that while Tritton was lower quarter-on-quarter, it performed within plan and the company remained on track for a stronger final six months of the financial year.
About Aeris Resources (ASX:AIS)
Aeris Resources Limited, together with its subsidiaries, engages in the production, sale, and exploration of copper, zinc, gold, and silver in Australia. The company's primary operating assets include the Tritton Copper Operations located near the town of Nyngan in central New South Wales; and Cracow Gold Operations situated near the town of Theodore in Central Queensland. It also holds interests in the Jaguar mine located in Western Australia; Mt Colin mine situated in North-West Queensland; and Stockman project located in Victoria.
