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.