Operator Availability and Permit Risks Loom as Aurelia Advances Key Projects
Aurelia Metals has successfully met its FY25 production and cost guidance, while advancing key mining projects and maintaining a robust cash position of $110 million.
- FY25 production and cost guidance fully achieved
- Federation mine ramp-up progressing as planned
- Peak mine development surpasses 1,000 metres quarterly target
- Strong cash balance of $110 million supports growth
- Great Cobar project development commenced with FY26 capital guidance
Meeting Production and Cost Targets
Aurelia Metals Limited (ASX, AMI) has reported a solid operational quarter ending June 2025, successfully achieving its full-year production and cost guidance for FY25. The company produced 45,400 ounces of gold, alongside significant quantities of copper, zinc, and lead, all within the targeted ranges. Group operating costs and all-in sustaining costs remained within forecast, underscoring disciplined financial management amid ongoing operational challenges.
Federation Mine and Peak Development Momentum
The Federation mine continues its ramp-up in line with expectations, with ore mined reaching 53,000 tonnes for the quarter and a total of 106,000 tonnes for the fiscal year. Meanwhile, the Peak mine exceeded its quarterly development target by advancing 1,041 metres, reflecting strong execution on underground development. These milestones are critical as Aurelia seeks to optimise ore sequencing and reduce dilution, with a dedicated productivity team focusing on unit cost improvements and equipment availability.
Advancing Growth Projects and Exploration
Capital expenditure remains focused on growth, with $71.6 million invested in FY25, including $10.8 million at Federation and $4.3 million at the newly commenced Great Cobar project. Development at Great Cobar began in July 2025, with key equipment delivered and recruitment completed, setting the stage for a planned 2.1-kilometre decline development in FY26. Exploration programs at Nymagee and Federation West continue to yield promising high-grade copper, zinc, and lead intersections, supporting Aurelia’s organic growth strategy.
Financial Strength and Sustainability Focus
Aurelia maintains a strong cash balance of $110 million, bolstered by disciplined capital allocation and positive cash flow from operations. The company also reports steady improvements in safety metrics and environmental incident rates, reinforcing its commitment to sustainable mining practices. Plant recoveries for zinc and lead continue to improve, contributing to operational efficiency and margin expansion.
Looking Ahead
With key projects progressing within budget and a robust pipeline of low-cost growth options, Aurelia Metals is well positioned to expand margins and cash flow. The company’s focus on productivity, safety, and strategic capital deployment will be critical as it navigates the challenges of mining operations and pursues its copper growth ambitions.
Bottom Line?
Aurelia’s strong operational execution and financial discipline set the stage for sustained growth and value creation in FY26 and beyond.
Questions in the middle?
- How will operator availability challenges at Peak mine impact future production?
- What are the timelines and risks associated with the Peak plant expansion permits?
- Can exploration success at Nymagee and Federation West translate into significant resource upgrades?
