AIS - Aeris Resources

[Dona Ferentes]

hope AIS comes in with some news as it is my November competition pick. Now $0.16

Some discussion recently

Ally Selby (Livewire Markets) : Next up, we have copper exploration and mining company, Aeris Resources. It’s a bit smaller than our other stocks that we are discussing today. It has a market cap of $423 million. David, staying on you. Is it a buy, hold, or sell?

David Franklyn (Argonaut) : We rate Aeris a buy. They’ve got an undemanding valuation. It’s well managed. We expect that corporate activity will be a key feature of the group going forward. They’ve currently got a small copper operation in New South Wales and a gold mine in Queensland. We think there’s scope for some consolidation in the Cobar copper space. We know that Glencore are looking to sell their CSA copper mine, and they’ve shown that they’re acquisitive for gold assets. We are backing the management team there to add value over the course of the year.

Ally Selby: Tim, over to you. It’s also had a stellar 12 months. Its share price has risen around 216 per cent over that period. Is it a buy, hold, or sell?

Tim Serjeant (Eley Griffiths) : Buy, Ally. The asset base is improving. I think down the track we’re going to see better production, a better cost, and probably longer mine life. The business is now net cash having been capital constrained for a significant period of time. I like that. I think M&A can move the needle as David touched on, and I’m willing to back them on that strategy.

 

[Dona Ferentes]

Aeris’ Executive Chairman, Andre Labuschagne, said “These latest drilling results, including extending mineralisation a further 150m down plunge, continues to underpin our view that Constellation is a significant copper deposit.”

Work has now commenced on the initial Mineral Resource estimate, focused on the shallow portion of the Constellation deposit (where mineralisation is predominantly oxide and supergene) defined by the extensive RC drill campaign. The initial Mineral Resource estimate will be completed within the December quarter.

 

[brerwallabi]

AIS has announced their maiden MRE for the Constellation deposit at their Tritton tenement.
CONSTELLATION MAIDEN MINERAL RESOURCE
 Maiden Mineral Resource for the upper 200m of the Constellation deposit totalling 3.3 million tonnes at 1.4% copper, for 47,000 tonnes of copper metal, including:
― Indicated Mineral Resource for high-grade Supergene mineralisation of 0.5 million tonnes at 3.4% copper, for 18,000 tonnes of copper metal; and
― Indicated and Inferred Mineral Resource for Sulphide (Primary) mineralisation of 1.4 million tonnes at 1.6% copper, for 23,000 tonnes of contained copper1
 The Mineral Resource represents the potential open pitable portion of the deposit – optimisation of pit design underway
 An Exploration Target has been defined for primary mineralisation below the reported Mineral Resource.

Expect further news at the end of the March quarter as an updated resource estimate is announced after continued drilling at depth at a further exploration target.

Aeris’ Executive Chairman, Andre Labuschagne, said “This maiden Mineral Resource and Exploration Target for the Constellation deposit confirms our long-held view that Constellation is a significant copper deposit and will play an important role in extending the life of our Tritton Copper Operation.”
“To go from initial discovery to maiden Mineral Resource in just over 12 months is a fantastic outcome by our exploration team. What is also exciting is that Constellation remains open down-plunge.”
“Resource definition drilling continues and we are targeting to deliver an updated Mineral Resource by the end of the March 2022 quarter. In parallel, the various option studies are progressing well, including metallurgical test work. Preliminary indications from the metallurgical test work appear positive and we are targeting to deliver detailed results by the end of January 2022.”
Whilst all the above to me suggested a coming marked improvement in the share price the market did not react and the price continues to stagnate or be possibly consolidating between 15 to 17 cents.
I saw a cup and handle pattern had developed which had commenced at the start of 2019 which I believe is still in play so there are possibilities of the share exceeding the recent highs of August of 24.5 cents.

 

[brerwallabi]

 

[divs4ever]

MASSIVE SULPHIDES INTERSECTED BELOW AVOCA TANK RESOURCE
• Construction of Avoca Tank underground mine currently
underway, based on current Mineral Resource
• Exploration drill program has commenced targeting extensions to
copper mineralisation below the Mineral Resource footprint:
 Copper mineralisation intersected 75m down-plunge from the
current Mineral Resource
 Drill hole TATD046 intersected multiple sulphide lenses, including
2.2m thick massive to semi-massive sulphides (from 514.5m) –
assays pending
 Downhole electromagnetic surveying detected a large EM
conductor below the Mineral Resource
 Copper mineralisation remains open down-plunge
Established Australian copper-gold producer and explorer, Aeris Resources Limited
(ASX: AIS) (Aeris or the Company) is pleased to provide an update on preliminary
drill results from an exploration program at the Avoca Tank deposit, located within
the Company’s 100% owned Tritton tenement package in New South Wales.
Aeris’ Executive Chairman, Andre Labuschagne, said “We are currently
constructing the Avoca Tank underground mine, with production due to
commence in Q4 of FY23. Avoca Tank is a high-grade (+2%) copper deposit and
this drill program is designed to test for potential down-plunge extensions.”
“Intersecting massive sulphides 75m below the current Avoca Tank Mineral
Resource is a fantastic outcome. A down-hole EM survey was also completed and
has detected a large bedrock conductor, most of which remains un-tested.”
“We believe there is significant scope to increase the Avoca Tank Mineral Resource
with further drilling, which will commence in FY23 after underground access
development has been completed.”
2 | Page
Figure 1 – Oblique view looking west showing drill hole pierce points through the Avoca Tank
Mineral Resource. The massive sulphide intersection from TATD046 is shown by the black circle
(assays pending).
3 | Page
Technical Discussion – Diamond Drilling
The Avoca Tank copper mineralised system comprises a series of stacked, short strike
length (<100m) steeply dipping sulphide lenses containing high grade copper
mineralisation (+2% Cu).
A common feature of deposits within the Tritton tenement package is a long downplunge dimension. The Tritton, Constellation, Murrawombie and Kurrajong deposits
have all been traced over 1,000m down-plunge.
Drilling at the Avoca Tank deposit has to-date traced the mineralised system 350m
down-plunge, and remains open down-plunge. Little exploration work has been
undertaken at Avoca Tank since the completion of a resource definition drilling
program between 2012 and 2013, leading to the current Mineral Resource1.
Diamond drill hole TATD046 was recently completed and was designed to test the
down-plunge potential of the Avoca Tank mineralised system beneath the current
Mineral Resource.
TATD046 intersected three sulphide horizons. The most significant intersection is a
2.2m thick massive to semi-massive sulphide lens from 514.5m down hole. Visible
sulphides include pyrite with lesser chalcopyrite (assays pending). The sulphide
intersection is interpreted to be the down-plunge extension to the copper sulphide
lenses included within the current Mineral Resource.

===================================================================================================

DYOR

i hold AIS

careful there seems to be no assay results here , but does have a working gold mine and a copper project in development

let's see if this torpedoes my 11 cent top up order

 

[brerwallabi]

MASSIVE SULPHIDES INTERSECTED BELOW AVOCA TANK RESOURCE
• Construction of Avoca Tank underground mine currently
underway, based on current Mineral Resource
• Exploration drill program has commenced targeting extensions to
copper mineralisation below the Mineral Resource footprint:
 Copper mineralisation intersected 75m down-plunge from the
current Mineral Resource
 Drill hole TATD046 intersected multiple sulphide lenses, including
2.2m thick massive to semi-massive sulphides (from 514.5m) –
assays pending
 Downhole electromagnetic surveying detected a large EM
conductor below the Mineral Resource
 Copper mineralisation remains open down-plunge
Established Australian copper-gold producer and explorer, Aeris Resources Limited
(ASX: AIS) (Aeris or the Company) is pleased to provide an update on preliminary
drill results from an exploration program at the Avoca Tank deposit, located within
the Company’s 100% owned Tritton tenement package in New South Wales.
Aeris’ Executive Chairman, Andre Labuschagne, said “We are currently
constructing the Avoca Tank underground mine, with production due to
commence in Q4 of FY23. Avoca Tank is a high-grade (+2%) copper deposit and
this drill program is designed to test for potential down-plunge extensions.”
“Intersecting massive sulphides 75m below the current Avoca Tank Mineral
Resource is a fantastic outcome. A down-hole EM survey was also completed and
has detected a large bedrock conductor, most of which remains un-tested.”
“We believe there is significant scope to increase the Avoca Tank Mineral Resource
with further drilling, which will commence in FY23 after underground access
development has been completed.”
2 | Page
Figure 1 – Oblique view looking west showing drill hole pierce points through the Avoca Tank
Mineral Resource. The massive sulphide intersection from TATD046 is shown by the black circle
(assays pending).
3 | Page
Technical Discussion – Diamond Drilling
The Avoca Tank copper mineralised system comprises a series of stacked, short strike
length (<100m) steeply dipping sulphide lenses containing high grade copper
mineralisation (+2% Cu).
A common feature of deposits within the Tritton tenement package is a long downplunge dimension. The Tritton, Constellation, Murrawombie and Kurrajong deposits
have all been traced over 1,000m down-plunge.
Drilling at the Avoca Tank deposit has to-date traced the mineralised system 350m
down-plunge, and remains open down-plunge. Little exploration work has been
undertaken at Avoca Tank since the completion of a resource definition drilling
program between 2012 and 2013, leading to the current Mineral Resource1.
Diamond drill hole TATD046 was recently completed and was designed to test the
down-plunge potential of the Avoca Tank mineralised system beneath the current
Mineral Resource.
TATD046 intersected three sulphide horizons. The most significant intersection is a
2.2m thick massive to semi-massive sulphide lens from 514.5m down hole. Visible
sulphides include pyrite with lesser chalcopyrite (assays pending). The sulphide
intersection is interpreted to be the down-plunge extension to the copper sulphide
lenses included within the current Mineral Resource.

===================================================================================================

DYOR

i hold AIS

careful there seems to be no assay results here , but does have a working gold mine and a copper project in development

let's see if this torpedoes my 11 cent top up order

It’s been three months of patiently waiting.

 

[divs4ever]

not for me

i bought the first parcel at the end of November and a second parcel in January this year

the plan was to carefully accumulate

 

[brerwallabi]

not for me

i bought the first parcel at the end of November and a second parcel in January this year

the plan was to carefully accumulate

My entry was at 16cents since then it declined down to 12cents, I think it will be a 18months till we see the benefits of this investment.
It’s possible it might break out of the nasty downtrend, I will be watching with that expectation over the next few days.
A return to 16cents would see my blood pressure drop.

 

[Tropico]

AIS sems to have broken the downtrend and is testing resistance at $0.16 today. Also up from long term historical support/resistance at $0.12.
Possibly the start of an uptrend and a positive announcement would help. My pick for the April comp.

 

[Porper]

AIS sems to have broken the downtrend and is testing resistance at $0.16 today. Also up from long term historical support/resistance at $0.12.
Possibly the start of an uptrend and a positive announcement would help. My pick for the April comp.

This is the weekly chart. Falling wedge (ending diagonal triangle) terminated in the typical retracement zone. Breakout achieved...let's see if it sticks first as there are still a lot of false breakouts in this market. So far so good.

Disclosure: I hold

 

[divs4ever]

am surprised the new Capital Raise/acquisition/director/major investor announce wasn't mentioned today

sure there is a LOT to digest

but thought it might have drawn discussion

pros ?

new mines/exploration projects ( including two currently operating mines ) a new experienced director ( and possible financial lifeline )

cons?

sells 30% control to the new director

assets are now spread over several Australia states ( possible geo-political risks and dilution of focus )

future exploration projects , when they already have a project in development

shareholder dilution offset by a physically larger company

personally i was hoping this would become profitable ( div. paying ) sooner rather than later , this new move leaves that question wide open as does the strategy of the new director/large shareholder

 

[Dona Ferentes]

mention in the comp thread brought me to have a closer look

Aeris to acquire Round Oak Minerals Pty Limited from Washington H. Soul Pattinson (WHSP) for a purchase consideration of A$234 million.

TRANSACTION HIGHLIGHTS:
• “On strategy” transaction that transforms Aeris into a diversified, mid-tier producer with strong balance sheet to deliver organic growth pipeline
• Attractively priced acquisition at 1.9x FY23 EBITDA
• Delivers two cash generative, operating base metals mines in Qld and WA
• Introduces a long life copper/zinc development project in Vic
• Increases Aeris’ FY23 copper equivalent production by 81% to 63kt
• Adds significant high-grade ore reserve tonnes and increases Aeris’ long term exposure to copper
• Provides an excellent platform for further growth with both near mine extension opportunities and regional exploration upside
• Aeris to have a strong balance sheet with zero debt and ~$81m cash on completion
• WHSP to become Aeris’ largest shareholder 30% and Robert Millner, Chair of WHSP, to join Aeris Board as Non-Executive Director


Aeris has agreed to pay WHSP A$234 million upon closing of the Transaction, comprised of an A$80m cash payment and issue of 1,466.7 million ordinary shares in Aeris at an issue price of A$0.105 per share up to a total value of A$154m. The acquisition of Round Oak will be on a debt free basis and at completion of the Transaction will have $16.9 million in cash.

Aeris intends to fund the Cash Component through a fully underwritten A$117m equity raising conducted via an institutional placement4 and a 1 for 4.22 pro-rata, accelerated nonrenounceable entitlement offer

a typical SOL transaction.

 

[divs4ever]

am not sure the SOL deal is a good thing

( i hold AIS , SOL and BFG [ Bell Potter ] so maybe i will come out nicely )

did you note SOL will become a 30% stakeholder ( and supplying a Millner as a director )

am still wondering on the SOL logic behind the divestment , were they worried development costs in the project would balloon making it nonviable without scale ( extra cash-flow from the combined entity )

 

[tookie]

(Just here for the comp).

I’m sorry that I don’t have anything significant to bring to the table… my reason is purely based on the hopeful expectation that surely they’re due for an uptrend soon. Surely…

 

[divs4ever]

since i am not really ready to buy more AIS ( for something like 7.5c ) i wish us both luck

i do wonder what the sellers know , because SOL found a way to grab 30% and Bell Potter thinks they are a buy with a ( 12 month ) price target of 21 cents , so who is right ??

 

[Dona Ferentes]

AIS has completed the Round Oak purchase, from Soul Patts. Hasn't done much, with the SP near the year low, bouncing along the bottom at 6.7c

Aeris becomes Australia’s newest mid-tier miner:

• 4 operating mines
• A development project with +10 years of ore reserves
• Commodity portfolio focused on copper and zinc
• Highly prospective exploration portfolio
• Washington H. Soul Pattinson becomes Aeris’ largest shareholder
• Robert Millner joins Aeris board as Non-Executive Director

 

[moXJO]

I'm going to start dribbling into this stock. I'm looking at some copper plays and expect it to be longish holds.

Personally I think the dodgy crap that goes on in some of these mining stocks is worse than crypto.

So what's the story with the suppressed share price here?

 

[Dona Ferentes]

So what's the story with the suppressed share price here?

Dilution .... + I guess it's up to AIS management to get the runs on the board. The deal delivered two cash generative, operating base metals mines in Qld and WA, plus a long life copper/zinc development project in Vic.

After the AIS cap raise, WHSP received $80 million in cash (and $154 million in Aeris shares <holding 30%>) so there is further $35mill in cash for Aeris to get on with the job(s). Aeris has a strong balance sheet with zero debt and ~$81m cash on completion .

 

[divs4ever]

AIS has completed the Round Oak purchase, from Soul Patts. Hasn't done much, with the SP near the year low, bouncing along the bottom at 6.7c

Aeris becomes Australia’s newest mid-tier miner:

• 4 operating mines
• A development project with +10 years of ore reserves
• Commodity portfolio focused on copper and zinc
• Highly prospective exploration portfolio
• Washington H. Soul Pattinson becomes Aeris’ largest shareholder
• Robert Millner joins Aeris board as Non-Executive Director

has a lot to like ( i bought before and after the SOL deal ) but am bewildered about the slide

am thinking of adding more around 6.5 cents

 

[divs4ever]

I'm going to start dribbling into this stock. I'm looking at some copper plays and expect it to be longish holds.

Personally I think the dodgy crap that goes on in some of these mining stocks is worse than crypto.

So what's the story with the suppressed share price here?

just as puzzled as you , SOL/Millner is usually seem as a good ( but boring ) thing

and am still puzzled as to why SOL thought this was a good deal , Round Oak wasn't struggling before this

i hold SOL ( and BKW ) and AIS

( i started buying in after they bought the mine from EVN )