Aeris Resources’ $110M Debt Refinancing Raises Questions on Future Liquidity
Aeris Resources Limited reported a robust financial turnaround for FY25, posting a $45.2 million profit and a 68% rise in adjusted EBITDA, underpinned by steady copper and gold production and strategic refinancing.
- 7% revenue increase to $577 million
- 224% surge in gross profit to $115 million
- Adjusted EBITDA climbs 68% to $179.6 million
- Net profit after tax of $45.2 million vs prior year loss
- Refinanced $110 million debt facilities with Washington H. Soul Pattinson
Financial Turnaround
Aeris Resources Limited has delivered a striking financial turnaround for the year ended 30 June 2025, reporting a net profit after tax of $45.2 million compared to a loss of $24.3 million in the previous year. Revenues rose 7% to $577 million, driven by higher commodity prices, while gross profit soared 224% to $115 million. Adjusted EBITDA climbed 68% to $179.6 million, reflecting improved operational efficiencies and cost control.
Operational Highlights
The company’s core operations at Tritton Copper and Cracow Gold remained stable, producing 19,398 tonnes of copper and 45,126 ounces of gold respectively. Notably, the Tritton operation achieved record mill feed rates supported by stockpiled ore, while Cracow enhanced gold recovery through processing upgrades. The North Queensland operations transitioned to care and maintenance, with rehabilitation underway. Exploration efforts continued, including a significant resource upgrade at the Constellation project and ongoing drilling at Avoca Tank and Cracow’s Western Vein Field.
Strategic Refinancing and Financial Position
Aeris successfully refinanced its debt facilities, executing a three-year $60 million Guarantee Facility and extending a $50 million Term Facility with Washington H. Soul Pattinson (WHSP). This refinancing replaced the previous ANZ Guarantee Facility and extends debt maturity to August 2026, providing financial flexibility. The company maintained compliance with all financial covenants and ended the year with a positive net asset position of $317.8 million and cash reserves of $28.2 million.
Governance and Remuneration
The Directors remain confident in Aeris’s going concern status, supported by strong cash flows and operational performance. The remuneration report highlights executive and director compensation aligned with company performance, including short-term and long-term incentives tied to shareholder value creation. Recent executive appointments have strengthened the leadership team, with a focus on sustaining growth and operational excellence.
Outlook and Exploration
Looking ahead, Aeris is advancing a feasibility study on the Constellation project, which recently saw a 24% increase in contained copper and a 29% increase in gold resources. The company is also pursuing divestment options for non-core North Queensland assets and planning a drill program to test high-priority targets at the Jaguar tenements. Hedging arrangements for gold production at Cracow have been established to manage price volatility.
Bottom Line?
Aeris Resources’s strong FY25 performance and strategic refinancing set the stage for growth, but upcoming feasibility outcomes and commodity price shifts will be critical to watch.
Questions in the middle?
- How will the Constellation feasibility study impact future production and reserves?
- What are the prospects and timing for divestment of North Queensland assets?
- How might commodity price volatility and geopolitical risks affect Aeris’s earnings in FY26?
