Impact: Neutral
Aeris released its Q4/FY23 quarterly activities report, with total annual production coming in slightly below revised guidance, while operating and capital costs were within guidance. Although Cu and Zn production was pre-released, we noted in our producer preview report that Aeris would likely struggle to meet the lower end of Au guidance due to operational challenges at Mt. Colin and Jaguar. Due to these issues Aeris withdrew its EBITDA guidance for FY23 (was A$50-70M). The company ended FY23 with a cash balance of A$19.5M. Although we do not yet provide estimates for Aeris, consensus FY23 EPS is -A$0.11. Overall, despite a challenging quarter operationally the company kept costs in check and made progress advancing its flagship Tritton Operations as development of the Avoca Tank and Budgerygar deposits were completed. The two deposits are a source of higher-grade ore and are expected to ramp up over FY24.
