I understand the strategic ambition to position Aeris as a copper-focused producer; however, based on historical performance, the company has yet to demonstrate consistent operational capability in managing copper or base metal assets effectively. This appears to be acknowledged (at least indirectly in this current investor presentation). For instance, since acquiring Round Oak Minerals from WHSP, the Tritton mill has consistently operated below its 1.8Mtpa nameplate throughput capacity. I understand they are seeking to address this through the Constellation and Murrawombie pits/mines. (thankfully).
On the gold side Cracow has historically been a reliable asset, yet in FY23 it only generated $29 million in EBITDA... Does anyone have insight into whether Cracow is also operating below mill capacity? Personally, I’d like to see a stronger push into greenfield exploration within the Cracow tenement, which could potentially deliver better returns and long-term profitability. From an ROI perspective this seems more attractive than continued investment into the Jaguar mine, particularly if the company also considered hedging or collaring some of the future gold production from any new discoveries; however I have not calculated any of this in detail just my top of the ehad thoughts.
AIS Price at posting:
18.0¢ Sentiment: None Disclosure: Held
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