Aeris Resources (ASX:AIS) used a recent investor webinar to outline its rationale for acquiring Peel Mining and to provide an update on its operating mines and development pipeline, with management emphasizing longer mine life at Tritton, increased optionality in the Cobar region, and a balance of copper and gold exposure across the group.
Peel Mining transaction: structure, premium, and timeline
Management described the proposed Peel Mining acquisition as “complex,” but summarized it as a listed-level acquisition of Peel shares combined with a demerger of non-core assets. Aeris said Peel had been trading at AUD 0.16 and that Aeris offered AUD 0.19 per share, which it characterized as a 19% premium. The company said Peel shareholders would also retain exposure to other assets through an entity referred to as “NuCo,” with management citing a current NuCo valuation of about AUD 0.044 and describing this as bringing the total premium to around 46% for Peel shareholders.
The company said the demerger and transaction will proceed via a scheme of arrangement requiring various steps, including court approvals, and that it is targeting completion in late June or early July. Aeris also noted it has support from the Peel board and Peel’s major shareholder and said no employees will transfer to Aeris as part of the process—only assets, properties, and associated tenements.
Strategic rationale: extending Tritton and consolidating Cobar
Aeris said the transaction would “enhance the Tritton operations,” provide greater stability, and “de-risk the business,” helping underpin a ten-year planning horizon and supporting consolidation in the Cobar region. The company framed the acquisition as a way to increase copper resources (and add some gold), with a particular emphasis on extending Tritton’s mine life and enabling infrastructure and planning decisions to be made with more certainty.
As a pro forma snapshot, Aeris cited a market capitalization of AUD 670 million (as of the prior day in the presentation) and said it would pay AUD 175 million in equity value to Peel shareholders, implying a pro forma market capitalization of about AUD 850 million.
Operating base: Tritton Copper and Cracow Gold
Aeris reviewed its current operating footprint, stating it has two operating mines: the Tritton Copper Mine and the Cracow Gold Mine. Management said Tritton produces about 24,000 tonnes of copper metal, while Cracow produces around 40,000 ounces of gold. On a group basis, Aeris said it is targeting roughly 45,000 copper-equivalent tonnes.
The company also highlighted recent balance sheet positioning, stating it has AUD 86 million cash in the bank, raised capital in November, repaid its debt, and is now debt-free. Management said the company’s share price had risen from below AUD 0.20 in September to around AUD 0.60 more recently, and characterized Aeris as being in its best position “for a very long time” to execute on opportunities.
Tritton update: plant utilization, Murrawombie and Constellation
At Tritton, Aeris described a 1.8 million tonne processing facility and said that, on a combined basis following the regional consolidation strategy, it expects to control more than 3,000 square kilometers of exploration ground. Management said Tritton typically mines two to three sources to keep the plant fed.
Key near-term developments included:
- Murrawombie: Aeris said it is undertaking a cutback and using waste material to close old heap leach pads, which it said will save about AUD 8 million. The company said pre-strip is nearly complete and that it expects to be in production by the end of the current quarter, with significant tonnes mined early in FY2027 and processed across FY2027.
- Constellation: Management called Constellation the “key asset” in the portfolio, discovered four to five years ago and currently at 8 million tonnes grading 2% copper with “really good gold grades.” Aeris said current indications are to start with an open pit beginning about 8 meters below surface, then transition underground “at the right time.” The current plan described Constellation as supporting a ten-year mining schedule and remaining open at depth with high-grade intersections.
Aeris also said its two “baseload” projects are Constellation and Mallee Bull, which it said would feed the mill and keep it near 1.5 million tonnes per year without additional sources.
Exploration and growth projects: Avoca Tank, Cracow targets, Jaguar, Stockman, and Wirlong
The company said it is spending around AUD 25 million on exploration across the group, aimed at expanding the resource base. At Avoca Tank, a small high-grade copper deposit currently mining between 2% and over 3% copper, Aeris said it is drilling down-dip and testing areas outside the current resource structure. Management cited an intercept of “22 over 3%” copper and said it is awaiting additional results, with the goal of extending Avoca Tank’s life.
At Cracow, management said the operation has historically been a high-grade narrow vein orebody. Aeris noted it bought the mine five years ago when it was thought to have about three years of life, but said it now believes there is more potential than initially assumed. It highlighted the Golden Plateau target—an area of historical mining—where it is running a drill program and cited results including 5 meters at 12 grams per tonne and 19 meters at 0.9 grams per tonne, with higher-grade material in between. Aeris said it expects, if the target is defined over the next six months, it could support four to five years of open pit mining, alongside current production from the Western Mine Field, and that it intends to begin drilling the Southern Mine Field within the current quarter or financial year.
For Jaguar in Western Australia, which has been in care and maintenance for about three years following a zinc price drop, Aeris said it has set aside AUD 2 million for drilling to test multiple base metals targets and that drilling will start within the next few months. Management also pointed to gold optionality across the tenements, noting the ground sits between Thunderbox and King of the Hills and includes multiple gold anomalies.
At Stockman in Victoria, Aeris described a nearly 10 million tonne orebody grading 2% copper and 4.3% zinc with gold and silver, supported by reserves and a ten-year mine plan. The company said it is finalizing a feasibility study and has selected an improved flotation circuit as a lower-cost approach to boosting recoveries, after evaluating more expensive technologies. It also referenced exploration upside beyond the current focus area.
Management briefly discussed Wirlong as a “good deposit” of about 4 million tonnes, with an approved exploration decline and no landowner constraints because Aeris owns the land. However, it said Wirlong needs more drilling and is not a priority in the short to medium term. Aeris added that Wirlong is not included in its current ten-year mine plan and described it as upside beyond that timeframe.
Closing the webinar, management reiterated that it views the Cobar region as a consolidation opportunity and said that, with copper and gold prices described as near record levels, it sees the strategy as a way to reduce risk, invest more in exploration, and extend mine life to better withstand commodity cycles.
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.
