AR1 - Austral Resources Australia

[Dona Ferentes]

Up and down like the the proverbial.. .. now 21c

One promotional blurbster likes it:

Austral stands alone among ASX-listed copper producers.

Austral is the cheapest of the lot. Yet, it is the most advanced down the copper market value chain.

Other producers deliver a concentrate which is then sold on to smelters. Austral goes a step further, selling a 99.9% pure copper cathode that gives it far higher payabilities and exposure to changes in the price of copper metal.

Morningstar has an undervalued rating on AR1, currently trading at 21c, putting a fair value on its shares of 46c.

It’s not the only company that rates AR1 highly amid what is a bullish copper outlook – Peloton Capital resource analyst Ian Spence has placed a 50c price target on the stock, 2 and a half times its current going rate.

Its Mt Kelly Heap Leach plant near Mt Isa is the only one operated by an ASX company using the solvent extraction electrowinning production method, producing 130,000t of LME A-grade copper cathode since 2007.

“AR1 is a rare, substantially de-risked opportunity to invest in an established domestic copper producer with realistic strong aspirations of attaining substantial share price growth through increased revenue from planned scheduled increased production as well as leverage upside from a planned fully funded aggressive exploration and resource development drive,” Spence said in his February 28 note.

“Whilst there are plenty of junior copper companies currently listed on the ASX, only a tiny few are currently able to take advantage and leverage off current and forecasted high copper prices by producing physical metal.”

 

[Dona Ferentes]

Up and down like the the proverbial.. .. now 21c.

Still around 21c, a bit of a slippery slope

 

[rcw1]

Good evening
rcw1 has chosen ARI for the April 2023 competition.
Nice

Copper cathode producer Austral Resources could be a standout bargain as copper demand rises with the energy transition - Stockhead

Few metals have the long term momentum of copper, a commodity essential to the transition to clean, green transport and renewable energy.

stockhead.com.au

Says it all really.

Mount Isa wet is long gone.

Happy days.

Kind regards
rcw1

 

[Dona Ferentes]

rcw1 has chosen ARI for the April comp

And thanks for getting ahead of me, saves sweating over it now being 26c and maybe having its run already


March was another record revenue month for Austral: Despite the
extreme rain event in Mt Isa, Austral continues to produce exceptional results

Highlights
• Outstanding sales revenue in Q1 2023 of A$35.55 million sees Austral reduce senior debt to A$21.1 million, Thiess repaid A$5.66 million (and total payables down at 60 days to A$8.9 million).
• March 2023 sales revenue of A$11.6 million despite the extreme rain event in Mt Isa. Total operating costs for March 2023 are expected to be substantially lower than previous months.
• Total costs for January and February 2023 (including selling costs, royalties, and exploration expenditures) were ~US$2.76 per lb. The company's copper operation had more than 1,000 mm of cumulative rainfall since the start of 2023.
• Another exceptional month in March 2023 saw Austral successfully continue plating copper cathode and resume mining in three days following a suspension due to an access road issue caused by more than ~500mm of rain. There were also zero safety and environmental incidents to report, a testament to the focused and dedicated Austral team and our contractors. Thiess remain over 11% ahead of the mining schedule.
• Every month in 2023 has resulted in positive operational cashflows for Austral despite the Mt Isa Shire being declared a natural disaster zone. The Company’s EBITDA for January and February 2023, excluding March, was A$6.6 million. Detailed financials shall be available in the upcoming Quarterly report.

 

[rcw1]

Good evening
Some nice gain last 3 days or so culminating in today's 8.47% gain.

Holding

Have a nice evening.

Kind regards
rcw1

 

[Dona Ferentes]

'Tis the season of the Quarterlies.

June 2023 Quarterly Activities Report

Highlights:
Anthill Copper Operation
• Production – Copper Production of 2,315 tonnes (down -13% QoQ) for Q2 2023 at an AISC of US$3.05/lb Cu sold due primarily to a reduced total ore stacked for processing, impacted by the severe wet weather event in the previous quarter (causing numerous road closures) and planned mill shutdown completed in March for mill line replacement.
• Cashflow Positive – Copper sales of 2,250 tonnes in the June quarter generated net revenue of A$27.3 million, operating cash flow of A$9.1 million and net mine cashflow of A$2.4 million (following one-off pre-stripping costs A$6.69 million).
• Improved Outlook “Future-proof” Anthill – Accelerated Pre-Strip operation of East Pit Stage 2 will help ensure the Company’s Anthill mining operation has the optionality of accessing 3 ore bodies, which will de-risk the mining operation prior to the next wet season and for the next 2 years, will reduce mining costs as the strip ratio for each pit will decrease significantly as follows:
• East Pit Stage 1: Current strip ratio of 1:1 (Waste to Ore) at 275m RL will drop to 0.4:1.
• East Pit Stage 2: Current strip ratio of 8:1 for one remaining bench, then drops to 0.9:1 at the 300m RL.
• West Pit: Current strip ratio of 1:1 at 285m RL will drop to 0.6:1 on next bench.

Corporate
• On 30 June 2023, Austral Resources held A$2.4 million in cash at bank.
• Total operating site costs, for Q2 2023, including mining, processing, and maintenance, were A$18.2 million (down -17% QoQ).
• A$7.32m paid to Thiess for Q2 2023 and total payables at 60 days for other suppliers reduced to A$8.8 million.
• As of 30 June 2023, net outstanding debt of A$55.9m including Wingate, Glencore, and the Harvey Family Office and Thiess deferred payments of A$11.7m.
• The Company has received offers from multiple financiers to refinance its existing debt and for accelerated growth. The refinancing is due to be completed in the September quarter 2023.

 

[Dona Ferentes]

Trading halt is requested pending the release of an announcement in relation to a corporate financing.
.
16c.

 

[Dona Ferentes]

Trading halt is requested pending the release of an announcement in relation to a corporate financing.
.
16c.

and here we are ... 3 months later. and what have we got? Aha, last trade was 16c..... but way back late Aug ; because the TH became a suspension, which is ongoing. The latest quarterly is out, but I'm not even going to look.

 

[Dona Ferentes]

Recapitalisation update
On 20 June 2024, Austral entered into a Framework Agreement for the quarantining of secured debt under the Antill Project Agreement and the recapitalisation of the Company. The Board has sought to pursue the arrangements in the Framework Agreement since this date with the view to preserve existing shareholder and supplier value, not to enter into voluntary administration with a view to recapitalise, similar to other copper companies in the Mt Isa region that have either voluntarily or involuntarily pursued this course of action in recent times.

The Board has sought to ensure that it balances the requirement for new equity alongside existing shareholders to the benefit of all stakeholders. The Board does acknowledge that this strategy may be a source of frustration for some shareholders as the recapitalisation remains incomplete at the date of this announcement. The Board is actively pursuing third party opportunities to secure the long term growth of the Company and to ensure that the recapitalisation is reflective of the prospectivity and growth potential of the Company.

Operational highlights
Whilst the recapitalisation remains incomplete, the Company has progressed several operational objectives, particularly during the second half of 2024 (i.e. the post-receivership period):
• Successful rapid onboarding of Re:Group as the new mining contractor with a total of 3.12m tonnes mined from Anthill during 2024;
• Optimisation of the remaining mining pits by CSA Global to extend the Company’s mine life out beyond 2030;
• Completion of the first phase of work by WSP to conclude a JORC Inferred Mineral Resource Estimate of 22.6 million tonnes grading @ 0.20% Cu for 44.6kt Cu metal within the Austral Heap Leach stockpile;
• The crushing and stacking circuit had significant mechanical refurbishment in the December quarter, allowing for a stepped increase in copper output from December 2024, and establishing a solid foundation for 2025 and beyond;
• Successful integration of Anthill and Lady Annie Safety Management Systems in the December quarter;
• Continued compliance with all Qld Mines Inspectorate audits during 2024, with no outstanding actions or directives in any area of operations of the Company;
• No Environmental compliance issues during 2024; and
• The appointment of Angus Petersen as the Chief Financial Officer of the Company from 22 November 2024. Angus joined Austral in March 2021 and had been in the role of Acting Chief Financial Officer since August 2023.