AIS - Aeris Resources

[divs4ever]

CONDITIONAL PLACEMENT COMPLETED
Established Australian copper-gold producer and explorer, Aeris Resources Limited (ASX: AIS) (Aeris or the Company) is pleased to announce that the Conditional Placement (as announced to Shareholders on 28 April 2022 and approved by Shareholders on 24 June 2022) has successfully completed today.
Under the Conditional Placement, Aeris issued 162,781,913 shares to Paradice Investment Management Pty Ltd (Paradice), raising approximately $17.1m (before costs).
Following the issue, Paradice will hold approximately 9.9% of the issued capital of Aeris.

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DYOR

i hold AIS

 

[divs4ever]

Paradice buying a chunk isn't normally seen as a bad thing

and yet the SP is still below 7 cents

interesting

 

[Dona Ferentes]

Paradice buying a chunk isn't normally seen as a bad thing

It is within Paradice, for the analyst/ team that sold them the proposition of buying at 10.5c

 

[moXJO]

Paradice buying a chunk isn't normally seen as a bad thing

and yet the SP is still below 7 cents

interesting

High price of production and falling copper prices perhaps?

Possibly will hover at lows till we see the copper price recover.
I need to make sure what I'm "dribbling" into is going to survive any recessions that may drag on. Hoping that a changeover to evs/renewable is closer then what I want.

 

[divs4ever]

copper demand does not rely on RVs and renewables , in fact copper is used in a great deal of industry , hence the nickname 'Dr. Copper ' ( a guide to the global economy , at least the manufacturing/construction part of it )

now production costs that is a completely different ball of wax and could easily blowout , but the Millner guidance ( as a director ) should have it better placed than some dealing with those costs ( since SOL has controlled Round Oak for several years )

originally AIS was planning to use the gold mine income to fund the original copper project , so does the expanded company give it better scale or increase complexity and dilute focus , but would argue 'dribbling' ( or not ) is a better option than 'backing up the truck '

intending buyers should also be aware , companies ( where SOL have a 20% plus stake ) tend to be slow, quiet achievers NHC and CLV as two examples

 

[divs4ever]

13 May 2022

Round Oak Minerals’ assets ROM is an Australian copper and zinc producer with operating mines and development assets within three of Australia’s premier base and precious metals terranes: the producing Jaguar zinc-copper mine in WA; the producing Mt Colin underground copper-gold mine in QLD and the Stockman copper-zinc project in VIC.
The acquisition adds production source and commodity diversity for AIS. Previously exposed only to copper and gold, we estimate that AIS’ revenues will now have 15% and 5% exposure to zinc and silver, respectively, over FY23-FY30.
The Stockman development project has a planned life of +10 years which, together with Tritton, gives AIS two long-life assets which we believe create a strong foundation for growth.
We also view the acquisition as good value. AIS states an FY23e EV/EBITDA multiple of 1.9x for the deal (we estimate 2.1x FY23e EBITDA), with AIS trading on similar multiples in the lead-up to the deal.
If there is a downside, it is the price at which the new equity has been issued, leading to EPS dilution. However, we argue this is offset by likely multiple expansion, due to AIS’ increased scale, diversity and growth.

lifted from Bell Potter Research published May 2022

part of a much larger analysis

 

[divs4ever]

Aeris Resources (AIS) Although the demand outlook for copper has softened, we view AIS as currently trading at an extraordinarily deep discount and the most compelling ASX copper exposure.
While a smaller, riskier proposition than key peers, it now has an asset portfolio with four producing assets and a key growth asset, providing exposure to copper, gold and zinc.
Although a higher cost producer, we forecast AIS to be able to fund its growth through a lower copper price environment. It is debt free and a combination of exploration success and acquisition is driving positive step-changes for mine life extension and production growth, which we believe are not being recognised in the market. Buy, Price Target $0.21

from a different piece of Bell Potter Research

and yet the market disagrees

 

[moXJO]

from a different piece of Bell Potter Research

and yet the market disagrees

They often give buy signals then the stock dumps further.

 

[divs4ever]

yes , but the dilemma is , is that a warning ( to abandon ) or an opportunity

for example a few years back BPT went lower and lower and lower , i kept nibbling and am all smiles now , BUT it doesn't always work out that way ( some actually go to zero )

 

[moXJO]

yes , but the dilemma is , is that a warning ( to abandon ) or an opportunity

for example a few years back BPT went lower and lower and lower , i kept nibbling and am all smiles now , BUT it doesn't always work out that way ( some actually go to zero )

Tend to agree. I've had smaller stocks that were all good news. Only to dump into nothing.

Mismanagement is worse. I remember nms (I think Neptune) they got caught out on expansion and a ceo making all the wrong moves.

 

[divs4ever]

Tend to agree. I've had smaller stocks that were all good news. Only to dump into nothing.

Mismanagement is worse. I remember nms (I think Neptune) they got caught out on expansion and a ceo making all the wrong moves.

i was thinking more like ARI/OST which was no small company ( before it went into administration )

or BLY that has gone chapter 11 more times than letters in it's ticker code

 

[divs4ever]

FY22 PRODUCTION UPDATE
Established Australian copper-gold producer and explorer, Aeris Resources Limited
(ASX: AIS) (Aeris or the Company) is pleased to provide an update on FY22
production and AISC performance at its Tritton Copper Operations and Cracow
Gold Operations.
Tritton Copper Operations:
• FY22 copper production was 18,581t at AISC A$5.10/lb
FY22 copper production guidance: 18,500t – 19,500t @ AISC $4.60/lb - $4.85/lb
Cracow Gold Operations:
• FY22 gold production was 53,920oz @ AISC A$1,911/oz
FY22 gold production guidance: 56koz – 59koz @ AISC $1,775/oz - $1,825/oz
Comments from Aeris’ Executive Chairman, Andre Labuschagne:
“Our turnaround strategy at Tritton continues to deliver with 5,126t of copper
produced in the June quarter, enabling the production guidance to be achieved.
Unfortunately, Cracow again underachieved on its production targets, primarily
due to lower gold grades realised. Despite a challenging operating environment,
including COVID impacts, a tight labour market and inflation related price
increases, there were numerous significant achievements for Aeris in FY22.
Tritton recognized the need to change operating strategy mid-year and has
delivered improved production performance. Life extension (Budgerygar and
Avoca Tank) and exploration projects (Constellation) at Tritton were progressed
during the year and the Golden Plateau deposit at Cracow is an evolving
exploration story that we are quietly excited about.
And let’s not forget the transformational acquisition of Round Oak Minerals, which
means we start FY23 with four operating mines, a long-life development project in
Stockman, strong cash balance and no debt. Our focus is now well and truly on
delivering across our portfolio in FY23.”

Tritton FY22:
During the second quarter of FY22 we recognised that the operating strategy of “fill
the mill” was impacting production targets due to low-grade ore feed from the
Tritton mine. As a result, the Tritton team has implemented changes to the mine
plan, including increased cut-off grade for stope designs and a focus on dilution
control. Over the last 6 months we have seen this updated operating strategy take
effect, resulting in FY22 copper production being within guidance. This new strategy
of focusing on ore “quality over quantity” will accelerate in FY23 with new, highgrade ore sources at Budgerygar and Avoca Tank coming on-line.
AISC was slightly above the top end of our guidance, primarily as a result of cost
and labour market pressures, which are impacting the whole industry, but which we
are working hard to contain. New employment policies to reduce labour turnover
have been introduced and group-wide purchasing initiatives to reduce input costs
are being implemented.
Importantly, we also progressed life extension projects at Tritton during the year to
set the operation up for the future. Drilling continued at the exciting Constellation
deposit with a maiden Mineral Resource declared in December 2021 and an
update planned for the coming weeks. Development of the Budgerygar and
Avoca Tank deposits advanced in FY22 with both mines scheduled to contributed
to production this financial year. As well as improving head grade, these new ore
sources will allow greater production flexibility and reduced variability.
Cracow FY22
Our Cracow Gold Operations had a challenging year. Mined gold grades
underperformed compared to internal targets for FY22 due to the geology models
overestimating grades in areas outside the high-grade core of our Western Vein
Field deposits. Unfortunately, as a result, FY22 production guidance was not
achieved. A significant amount of work has been undertaken to address these
issues, with geological models rebuilt to increase grade confidence and improve
production planning for FY23. Productivity in remanent mining areas was also lower
than anticipated and planning assumptions for these areas have been revised.
The lower FY22 gold production was also the major contributor to the higher than
targeted AISC. In absolute $ terms, opex and sustaining capex were below internal
targets, reflecting a strong focus on cost management by the site team. Like Tritton,
Cracow was also impacted by labour availability and general cost inflation.
In FY22, we continued to focus on life extension opportunities at Cracow and
pleasingly, we have more priority targets now than when the operation was
acquired two years ago. Drilling at the historic Golden Plateau deposit returned
encouraging high-grade drill intersections and a maiden Mineral Resource is
planned for Q1 FY23. Golden Plateau offers the potential for a new, high-grade
production source for Cracow in the near term to offset declining grades in the
Western Vein Field.
3 | Page
This announcement is authorised for lodgement by:
Andre Labuschagne
Executive Chairman

i hold AIS , and am cautiously averaging down

i hold AIS , SOL , BKW

AIS is currently trading as AISDB ( a deferred settlement and consolidated )

 

[divs4ever]

the joy of consolidations ( as temporary as they might be )

 

[redsmartie]

I bought AISDB 38 cents and yesterday AIS opened 41.5 cents with high 48.5 cents, I could have bought and sold some parcels. Settlement is 25/7 for the stocks. Copper spot has now met the MA 9 indicator from below, crossed below MA 40 at $4.36 usd/lb back in June.

I hold AIS

 

[divs4ever]

I bought AISDB 38 cents and yesterday AIS opened 41.5 cents with high 48.5 cents, I could have bought and sold some parcels. Settlement is 25/7 for the stocks. Copper spot has now met the MA 9 indicator from below, crossed below MA 40 at $4.36 usd/lb back in June.

I hold AIS

looks to be turning into a trader's pet

take care

( very unusual for a company SOL has a big stake in )

i hold AIS ( and SOL )

 

[redsmartie]

I have moved the rest of my AIS holdings into the margin loan account. Hopefully sometime in the next 100 years we will get dividends.

It's not dead money!

 

[divs4ever]

I have moved the rest of my AIS holdings into the margin loan account. Hopefully sometime in the next 100 years we will get dividends.

It's not dead money!

good luck

SOL tends to be a long term investor , so it could take a while ( to start paying divs )

 

[Sean K]

I like the look of this chart. It looks like disaster.

WHSP holding 30% must have been a bit of a hit for their metals division. I'm not sure how the Round Oak Minerals buy from SOL worked when they're the major share holder here.

Looks like their AISC for Cu production is above POC. $6.89 at Jaguar? Yikes.

Maybe the Chairman can't bat.

 

[divs4ever]

yes the strategy puzzled me as well

( i hold AIS and SOL)

but then SOL normally plays a long game

so, are they looking at cost reduction across the larger company

keeping the production smoother ( via opening , closing and ramping up various projects ie keeping key staff on the payroll for the extended time )

am keeping this as a ( future ) copper play ( to balance the 'free-carried' OZL holding , despite being initially attracted by the gold mine acquisition )

 

[arco]

Potential Cup and Handle