How AIC Mines Plans to Double Copper Output with $77.6M Plant Expansion

Strong Financial Performance

AIC Mines Limited has delivered a strong financial performance for the year ended 30 June 2025, reporting revenues of $189.6 million, a 5% increase over the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 22% to $63.2 million, while net profit after tax nearly doubled to $15 million. This growth reflects both improved commodity prices and operational efficiencies.

Operational Excellence at Eloise

The Eloise copper mine continued its consistent performance, producing 12,863 tonnes of copper concentrate at an all-in sustaining cost (AISC) of A$4.98 per pound. This marks the eighth consecutive quarter of meeting production guidance, underscoring the mine's operational stability. The company achieved positive mine cash flow of $27.4 million after capital investments, supported by an average realised copper price of A$14,128 per tonne.

Strategic Expansion and Development

In a significant step towards growth, AIC Mines awarded a $77.6 million engineering, procurement, and construction (EPC) contract to GR Engineering Services Limited to expand the Eloise processing facility. The upgrade will increase throughput from 725,000 tonnes per annum to 1.1 million tonnes, with potential for further expansion. Construction is slated to begin in October 2025, targeting commissioning in late 2026.

Simultaneously, development of the Jericho copper deposit is progressing on schedule. The underground access drive has advanced over halfway to its planned 3,000-metre length, with first development ore expected by June 2026. This project is poised to boost production capacity and diversify ore sources, reducing operational risks.

Robust Funding Package Secured

To finance these growth initiatives, AIC Mines secured a comprehensive funding package. This includes a US$40 million prepayment facility linked to an offtake agreement with Trafigura Asia Trading Pte Ltd, and a $55 million equity placement to institutional and sophisticated investors. Additionally, a $25 million surety bond facility and a $10 million share purchase plan were successfully completed, strengthening the company's balance sheet with $60.9 million in cash at year-end.

Focused Exploration and Resource Growth

Exploration efforts remained focused on resource growth at Jericho, with new high-grade shoots discovered and mineralisation extending over a five-kilometre strike length. Regional projects including Cannington and Windsor saw targeted drilling and geophysical surveys, laying groundwork for future resource expansion. While some Western Australian and South Australian projects saw limited activity, the company continues to seek partners to advance these assets.

Executive Remuneration Aligns with Growth

Reflecting the company's growth phase, executive remuneration was adjusted with increased fixed salaries and performance-based incentives. Long-term incentives are tied to shareholder returns and resource growth metrics, aligning management interests with shareholder value creation. The FY23 long-term incentive tranche vested at 70%, driven by strong resource growth and relative share price performance despite absolute share price declines.

Risk Management and Governance

AIC Mines continues to manage operational, financial, environmental, and market risks prudently. The company maintains comprehensive insurance, adheres to stringent environmental regulations, and actively monitors commodity price and currency fluctuations. The Board and committees oversee risk management frameworks and governance, ensuring sustainable growth and compliance.