Aeris Resources Company Profile

Aeris Resources

TOP 10 AUSTRALIAN INDEPENDENT COPPER PRODUCER AND EXPLORER
Company Exposure

Copper

Company Listing

Aeris Resources

Stock Code

ASX:AIS

Company Overview



Aeris Resources Limited (ASX: AIS) is an established, top 10 independent Australian copper producer and explorer.

The Company’s core asset is its Tritton Copper Operations in New South Wales, which currently produces approximately 25,000‐30,000 tonnes of copper annually. The existing operations incorporate multiple mines and a 1.8 million tonne per annum processing plant. An exciting portfolio of highly prospective near mine and regional exploration projects present a pipeline for future growth and a clear opportunity to leverage the Company’s established infrastructure at Tritton.

Aeris also has a majority interest (70%) in the exciting Torrens Project in South Australia ‐ a joint venture with Argonaut Resources NL (ASX: ARE) exploring for iron‐oxide copper‐gold systems in the highly prospective Gawler Craton, which hosts BHP’s Olympic Dam operation. The anomaly footprint of Torrens is larger than that of Olympic Dam and following final Government approval in February 2018, on-the-ground exploration can now recommence.

Aeris has a highly experienced Board and management team and following a major debt and equity restructure in February 2018, Aeris Resources is in the best position the Company has been in for the last five years. With debt reduced, potential shareholder dilution reversed, and the capital structure simplified, Aeris Resources is now positioned to attract renewed interest from quality investors and trade on a normalised basis, reflective of the fundamental value and growth prospects of the Company. The restructure transaction will also allow Aeris Resources to take advantage of future M&A opportunities in the copper and gold sectors.

Investment Highlights


  • Production – Established copper producer (27kt guidance for FY18)
  • Strong Foundations – Tritton Copper Operations performing with 5+ years Life of Mine Plan and exploration upside
  • Experienced Board and management team – Proven track record with clear vision and strategy
  • Tritton Exploration – exciting brownfield opportunities and early results promising on current greenfield exploration work
  • Torrens Project – significant potential, approvals in place – drill ready
  • Price leverage – Strong leverage to copper price upside and exploration success
  • Future – Following capital and debt restructure, now in a position to explore growth opportunities
Financials (April 2018)

Shares Outstanding (fully diluted) –  467m
Market Capitalisation (fully diluted) – A$70m
Year High-Low Share Price – A$0.19 – 0.038
Cash (as at 31 Dec 2017) – A$9.5m
Debt – US$49m

Latest Announcements

Share Price Performance

Board & Management

Andre Labuschagne – Executive Chairman
Michele Muscillo – Non-Executive Director
Alastair Morrison – Non-Executive Director
Marcus Derwin – Non-Executive Director
Rob Brainsbury – CFO
Ian Sheppard – COO

Major Shareholders – Issued Shares

Special Portfolio Opportunity V Limited (PAG) – 50%
Bain Capital Credit – 7%
Glencore Finance – 5%
DJG Keet Investments – 5%

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Projects Overview


Tritton Operations
  • Proven copper producing district
  • Various producers and explorers in the region

 

Torrens Project:
  • Perfectly located between two major deposits in a known IOCG region
Tritton Operations Overview

  • Copper (Silver and Gold by-product)
  • Underground Long hole open stoping method
  • Ore Reserves: 10.5mt @ 1.5% Cu *
  • Mineral Resources: 21mt @ 1.5% Cu *
  • FY2018 Copper Production Guidance of 27,000 tonnes
  • Milling Capacity- Target 1.8mtpa (running above nameplate 1.6mtpa capacity)
  • Copper Recovery of c. 95%
  • 2017 Copper Conc. Prod: 100k dmt
  • 2017 Copper Conc. Grade: c. 23.4% Cu
  • 2017 Cu Production: 23.4kt
  • FY17 AISC: A$3.51/lb (U$2.65/lb) FY17 C1: A$2.60/lb (U$1.96/lb)
  • Transported from site by rail c. 700km to port at Newcastle
Tritton Underground Mine

  • Baseload ore source – 1.1mtpa-1.2mtpa
  • $10 million Ventilation Shaft – commissioned
  • Remnant pillars (high grade) – in production
  • Fleet renewal – ongoing
  • Mineralisation extends at depth – brownfields exploration potential to extend mine life
Murrawombie Underground Mine

  • Commenced in FY2017
  • Grade control drilling improved understanding of geology and grades
  • Higher grades targeted for LOM
  • Potential Upside – extensions at depth
Copper Hedging Contract

Aeris Resources subsidiary Tritton Resources Pty Ltd (Tritton) has entered a swap contract of 12,000 copper tonnes at an average price of A$8,670 per tonne with scheduled deliveries of 1,000 copper tonnes per month out to February 2019 with National Australia Bank (NAB) as the hedge counterparty. The swap contract also provides Tritton the opportunity to participate in the upside of the same schedule above an average price of A$10,170 per tonne.

5 Year LOM

  • Ore Reserves: 10.5mt @ 1.5% Cu *
  • Mineral Resources: 21mt @ 1.5% Cu *
5 year reserve life
  • 1.6 mtpa processed
  • Producing average 24ktpa
Feed from
  • Tritton underground
  • Murrawombie underground
  • Avoca tank underground
  • Murrawombie open cut
  • Budgery open cut
Potential upside to extend mine life
  • Tritton extensions at depth
  • Budgerygar access from Tritton
  • Tritton wings
  • Murrawombie extensions at depth
  • Avoca tank to be tested at depth

* as at 30 June 2017

Torrens Project

  • JV consisting of 70% Aeris / 30% Argonaut
  • Prospective for large IOCG type deposits in the mineral rich Gawler Craton which hosts the world class Olympic Dam (75km north west) and Carrapateena (50km south) deposits
  • Large 120km2 co-incident gravity and magnetic anomaly – anomaly footprint larger than that of Olympic Dam
  • Final approval to recommence on-ground exploration received from SA government (Febuary 2018) following 10 year process
  • Drilling to commence 2018
  • 10 geophysical targets with 20-30 planned holes
  • Expected depth is 700m to 1,500m
  • 6 drill holes completed between 1977 and 2008 – defined a large magnetite dominant with lesser hematite alteration system interpreted to form the distal component of a large IOCG system
  • Zones of anomalous copper mineralisation (≥0.1% Cu) were intersected from several drill holes with the most significant mineralised zone associated with TD2 (246m @ 0.1% Cu)

Contact Details

WEBSITE: www.aerisresources.com.au

EMAIL: info@aerisresources.com.au

PHONE: +61 7 3034 6200

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