Established Australian copper-gold producer and explorer,
Aeris' Executive Chairman,
'Jaguar has a significant metal inventory across four deposits, and an underutilised processing plant. Leaving the metal in the ground until we have an optimised restart plan, at higher production rates, was clearly the better alternative than continuing a loss-making operation. We will now commence feasibility work on restart options.' 'FY24 production guidance is forecast to be 40kt - 50kt copper equivalent1 with minimal contribution from Jaguar and down from 51.5kt2 in FY23. Of particular note, Tritton copper production is forecast to increase significantly on the back of the higher grade Avoca Tank and Budgerygar mines developed in FY23.' 'In order to wind-down Jaguar in an orderly manner whilst progressing our multiple growth projects we have bolstered the Company's working capital position with a 2-year,
Jaguar Update
Over the course of FY23, Jaguar was impacted by multiple factors. Operationally, production was constrained by availability of stoping fronts and low development rates in the Bentley mine. Lower production results have been compounded by cost inflation along with a 20% decline in zinc price over the last two quarters. The mine also experienced three mining induced seismic events in the last quarter, which further disrupted production and prevented access to high-grade stopes. To ensure safe operations can be maintained, Aeris has halted all operations in the Bentayga mining area until further geotechnical assessments can be made. The low development rates, due largely to equipment congestion and ventilation constraints, mean that decline access to the Turbo deposit has also been delayed. Without access to Turbo, ore production was forecast to drop considerably at the end of Q1 FY24. Under these operational and financial parameters, Jaguar was forecast to make a significant operating loss in FY24. The decision to pause production at Jaguar and place it on care and maintenance from
There remains an 8 million tonne Mineral Resource1 with a significant metal inventory of copper, zinc, gold and silver across the four main deposits at Jaguar Operations: Bentley (including Turbo), Jaguar, Triumph and Teutonic Bore. As well as these deposits, Aeris has identified numerous exploration targets on the tenement, prospective for VMS deposits and primary gold mineralisation. Aeris continues to believe in the value and potential of the Jaguar Operation and considers that in the right operating environment and with the right business plan it will make a substantial positive financial contribution to the Aeris group. Studies will now commence on a re-start strategy to exploit the multiple mineral resources at higher production rates, targeting 600-700ktpa, to fill an upgraded mill and improve operating cost efficiencies.
Funding
Cash flow for the final quarter of FY23 has been impacted by the reduced production out of Jaguar and deferral of the Mt Colin processing run in June, along with lower zinc prices and general cost inflation across the business. The first half of FY24 will not only include closure costs (payment of creditors and workforce separation costs) related to Jaguar but also
Contact:
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Tel: +61 7 3034 6200
About Aeris
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