Aeris’ Gold Hedge Could Limit Upside Beyond Mid-2026

Aeris Resources’ Strategic Gold Hedging Move

Aeris Resources Limited (ASX – AIS), a well-established Australian copper and gold producer, has taken a significant step to manage its gold price exposure by entering into a forward hedging agreement. The company has secured unsecured Australian dollar gold hedges for nearly 20,000 ounces at a forward price of A$5,145.75 per ounce with Macquarie Bank Limited.

Hedging Half of FY26 Gold Production

This hedging contract covers approximately 50% of the targeted midpoint of Aeris’ FY26 gold production at its Cracow Gold Operations. The deliveries under this agreement are scheduled monthly and will mature between August 2025 and June 2026. By locking in this price, Aeris aims to provide greater revenue certainty and protect against potential downside risks in the gold market over the coming year.

Context Within Aeris’ Portfolio and Market Strategy

Cracow Gold Operations is a key asset in Aeris’ portfolio, which predominantly focuses on copper but maintains a strong precious metals presence. The company’s decision to hedge a substantial portion of its gold output reflects a cautious but proactive approach to managing commodity price volatility. This move aligns with Aeris’ broader strategy of maintaining a lean operating model while pursuing organic growth and exploration opportunities.

Implications for Investors and Market Perception

For investors, this hedging arrangement signals Aeris’ intent to stabilise cash flows and reduce earnings volatility amid uncertain gold price dynamics. Partnering with a reputable institution like Macquarie Bank further underscores the company’s commitment to prudent financial management. However, the announcement leaves some questions unanswered, such as the full scope of FY26 production guidance and the proportion of gold production left unhedged, which will be critical for assessing overall exposure.

Looking Ahead

As Aeris progresses through FY26, the effectiveness of this hedging strategy will become clearer, particularly in how it balances price protection with potential upside participation. The company’s ongoing exploration and development projects may also influence future hedging decisions and production profiles.