Aurelia Metals Needs to Keep Costs Under Control - Jefferies
25 June 2025
Aurelia Metals needs to show it can control costs after resetting expectations at last week's strategy day. The company provided guidance for FY 2026 operating expenses of A$275 million-A$315 million. That was higher than Jefferies's forecast of A$240 million. Aurelia said the 46% on-year growth in costs was partly driven by the transition of its new Federation mine to commercial output. Also, mining unit costs at its Peak operation remain high. Analyst Daniel Roden says the revised FY 2026-FY 2028 cost base is 23% higher than forecast. So, the bank resets its near-term earnings view. "Execution on cost control will be key to restoring margin traction and delivering Aurelia's A$105 million-A$200 million FY 2028 operating cash flow target," Jefferies says. Aurelia Metals Price Target Cut 13% to A$0.28/Share by Jefferies
AMI Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
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