Eloise Expansion and Jericho Development: Can AIC Mines Sustain Growth?

Steady Production and Financial Strength

AIC Mines has delivered a solid quarterly performance at its Eloise copper mine in North Queensland, producing 3,324 tonnes of copper and 1,722 ounces of gold in concentrate. This marks the ninth consecutive quarter where production has met company guidance, underscoring operational consistency. The mine generated an operating cash flow of $27.1 million and a net mine cash flow of $11.8 million after capital expenditure, reflecting strong financial health.

Costs remained within forecast ranges, with all-in sustaining costs (AISC) at $4.97 per pound of copper sold and all-in costs (AIC) at $5.29 per pound. The slight dip in copper grades processed during the quarter was attributed to drawdown of lower-grade stockpiles, with expectations for grade improvement in the coming quarter as mining shifts to higher-grade zones.

Jericho Project Development Accelerates

Significant progress has been made on the Jericho copper deposit, located just four kilometres from Eloise. The underground access drive is now only 380 metres from intersecting the high-grade J1 lens near the Jolly shoot. This proximity opens the door to earlier access to the Jolly shoot, which could de-risk and expedite the ramp-up of mining activities at Jericho.

Drilling results from Jericho have been encouraging, with multiple intercepts confirming the continuity and high-grade nature of mineralisation. Notably, the discovery of a new J0 lens parallel to the J1 lens adds further upside potential. The development of Jericho is integral to supplementing ore feed for Eloise and supporting the planned processing plant expansion.

Eloise Processing Plant Expansion Underway

Construction has commenced on expanding the Eloise processing plant from its current capacity of 725,000 tonnes per annum to 1.1 million tonnes. GR Engineering mobilised to site and earthworks are progressing on schedule and within budget. The expansion is designed to minimise disruption to ongoing operations, with commissioning targeted for the December 2026 quarter.

This capacity increase, combined with Jericho’s development, is forecast to boost annual copper production to over 20,000 tonnes from fiscal year 2028 onwards, positioning AIC Mines for significant growth.

Exploration and Regional Prospects

Exploration activities continue to advance, with drilling programs underway at multiple prospects within the Eloise Regional Project. New mineralised zones have been identified, including high-grade intersections at the Deeps West and the J0 lens at Jericho. Ground electromagnetic surveys have also been completed at the Windsor and Cannington projects, revealing new conductors for future testing.

The company is strategically realigning its exploration portfolio to prioritise copper projects in Queensland and more advanced-stage opportunities, reflecting a focused growth strategy.

Financial Position and Outlook

AIC Mines closed the quarter with $67.8 million in cash and an undrawn US$40 million prepayment facility with Trafigura Asia Trading, providing ample liquidity for ongoing development. The recent equity placement and share purchase plan raised a combined $21.5 million, further strengthening the balance sheet.

With copper prices recently trading above US$5.00 per pound and gold prices also elevated, the company anticipates improved realised prices and stronger cash flow in the near term. Production guidance for the December quarter remains steady, with expectations to maintain copper output between 3,200 and 3,400 tonnes.