Aeris Resources Limited (ASX: AIS), an Australian copper producer and explorer, has released its quarterly results for the three months ending 31 December 2019.
New freshwater pipeline commissioned late January and delivering water to Tritton
December quarter copper production of 5,451 tonnes @ C1 cash cost of A$3.61/lb ― copper production impacted by lower ore grades and lower processing rates in December due to water quality ― C1 cash costs impacted by lower production ― ~40kt ore stockpile provides capacity to catch-up some of the lost production
Copper production guidance updated to between 23,500 tonnes and 24,500 tonnes (previously 24,500 tonnes) at a C1 cash cost of between A$2.80/lb and A$2.95/lb
Ground-based EM surveys completed – new bedrock conductor identified
Positive drilling results at Murrawombie continue to show potential to extend at depth and to the north
PAG Debt Facilities (Tranches A & B) extended to mature on 1 July 2021
Interest due up to 30 June 2020 to be capitalised
Cash and receivables of $17.1M at quarter end
Copper production of 5,451 tonnes for the December quarter was lower compared to the previous quarter (6,835 tonnes) due to lower copper ore grades and reduced processing rates in December due to water quality issues. Ore mined, at 427,875 tonnes, was in-line with the previous quarter (427,313 tonnes).
Supply of fresh water from the Macquarie River system to the Tritton Operations via the Gunningbar Creek off-take was halted by WaterNSW in November. From mid-November the Tritton Operations commenced utilising water stored on-site whilst the new water pipeline between the Tritton processing plant and the Nyngan-Cobar pipeline was completed.
The new pipeline was completed in mid-January with the first water being delivered to the Tritton processing plant in late January. The pipeline ensures that the FY20 water allocation can now be delivered. There has been no communication from WaterNSW with respect to deliveries against water allocations in FY21.
Tritton mine ore production at 296kt was similar to the previous quarter (300kt). Whilst the copper grades, at 1.43%, were lower than the previous quarter (1.58%), the stope mining sequence is following the mine plan and copper grades were as expected for the quarter.
Murrawombie Underground Mine (Murrawombie) Murrawombie ore production at 129kt was slightly higher than in the previous quarter (126kt), although mined copper grades of 1.57% were lower than the previous quarter (1.86%) due to mine sequencing.