August 30, 2023
Aeris Resources Ltd. (ASX:AIS, Not Rated, Taylor Combaluzier) published its FY23 financial statements that saw a loss of A$139.3M (or -A$0.202/sh) due to operational challenges at its Tritton operations and Jaguar operations (EPS was A$0.018 in FY22). The company reported revenue of A$612.5M (+58% YoY) on the back of production of 51.5kt CuEq (read more). Adjusted EBITDA was A$32M (-66% YoY), while net profit after tax was -A$139.8M (versus A$6M in FY22). Aeris finished FY23 with a cash balance of A$19.5M (was A$138M at the end of FY22). For FY24, Aeris has guided for 40 – 50kt of CuEq production, total operating costs (A$M) of A$381M – A$459M, and total capital costs of A$124M – A$150M. Aeris also provided a development update on its 100%-owned Jaguar project in Western Australia, where mining ceased last week, ore processing has finished, and care and maintenance planning is underway. Given the challenging year Aeris had at Tritton and Jaguar, we are not surprised by the negative financial performance for FY23. Looking ahead, the company has outlined several key potential catalysts for FY24: 1) Stockman DFS (Q1/24), 2) Constellation FS and EIS (H1/24), 3) Study for underground mining at Barbara, 4) Expansion drilling across all operations, and 5) FS and re-start strategy at Jaguar. Read here and here
Company Specific Disclosure Details
Aeris Resources Ltd. – ASX:AIS
- The analyst has visited the head/principal office of the issuer or has viewed its material operations.
- The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
- In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer.
- In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration.
- An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly.
- Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities.
- A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer.
- Red Cloud Securities Inc. is a market maker in the equity of the issuer.
- There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer.
Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.
