How Is Aurelia Metals Accelerating Growth with Federation and Great Cobar?
Aurelia Metals has kicked off FY26 with robust production and cost management, driven by the ahead-of-schedule ramp-up at its Federation mine and promising progress at Great Cobar.
- Group quarterly production – 10.4koz gold, 0.5kt copper, 6.5kt zinc, 3.8kt lead
- Federation mine development and ore mined exceed budget expectations
- Peak mine productivity improvements reduce mining costs and increase throughput
- Great Cobar project mining commenced with 448m development completed
- Cash on hand at $88.1M after $10.9M invested in growth projects
Strong Start to FY26
Aurelia Metals Limited (ASX – AMI) has reported a solid start to the 2026 financial year, with production and operating costs tracking in line with company plans. The group produced 10,400 ounces of gold, alongside significant quantities of copper, zinc, and lead during the September quarter. Operating costs rose to $70 million, reflecting the inclusion of the newly commercial Federation mine costs.
Federation Mine Surpasses Expectations
The Federation mine continues to ramp up ahead of schedule, with underground development increasing to 1,481 metres and ore mined rising to 63,000 tonnes, surpassing the budget year-to-date. The ore stockpile at Federation grew to 23,000 tonnes, ready for processing at the Peak plant. This accelerated development is a key driver behind the company’s confidence in exceeding previously forecast production volumes for FY26.
Peak Mine Productivity Gains
At the Peak operation, productivity improvements are delivering tangible results. Mine development metres increased by over 30% compared to the previous quarter, while mining costs dropped to $121 per tonne. The processing plant throughput rose to 191,000 tonnes, with zinc recoveries improving to 85.5%. These operational efficiencies are critical as the company transitions towards a base metals-dominant production profile.
Great Cobar Project Progress
The Great Cobar project, a high-grade copper development, commenced mining as planned on 1 July 2025. The project achieved 448 metres of development in the quarter, maintaining momentum and confidence in meeting its capital and schedule targets. Infrastructure works, including ventilation shaft planning and power installations, are advancing steadily, setting the stage for future growth.
Financial Position and Exploration Highlights
Cash on hand decreased to $88.1 million after investing $10.9 million in growth projects across Federation, Great Cobar, and Peak. Despite this, the balance sheet remains robust with approximately $124 million in available liquidity. Exploration drilling at Nymagee and other districts yielded promising results, extending mineralisation zones and uncovering new lenses, which could underpin future development options.
Governance Update
In corporate developments, Chair Peter Botten announced his intention to retire following the upcoming Annual General Meeting. The Board has initiated a search for a successor, while welcoming Rachel Brown as a new Non-Executive Director, bringing extensive legal and governance expertise to the company.
Bottom Line?
With Federation ramping ahead of plan and Great Cobar on track, Aurelia Metals is poised for a transformative year, though close attention to cost metrics and exploration outcomes will be key.
Questions in the middle?
- How will Federation’s ramp-up impact overall production costs in coming quarters?
- What potential does the Great Cobar project hold for extending Aurelia’s copper output?
- How might the Board renewal influence strategic priorities and investor confidence?
