Full Year 2026 Aurelia Metals Ltd Earnings Call Transcript
Key Points
- Gold production exceeded revised higher guidance, with base metals in line, showcasing strong operational performance.
- Revenue increased 40% to $480 million, with EBITDA up 55% to $189 million and margins near 40%.
- Net profit after tax rose 69% to $82.7 million, with earnings per share up 69% to $0.0488.
- Mineral resources grew to 30.6 million tonnes and reserves up 49% to 8.2 million tonnes, despite depletion.
- Declared first dividend since 2020 ($0.01 per share), reflecting strong cash generation and balance sheet strength.
- Completed refinancing with Citi, Credeq, and HSBC, boosting liquidity to ~$184 million and lowering financing costs.
- Cobar operations generated $140.5 million operating cash flow after sustaining capital, fully funding growth projects.
- FY27 production guidance higher across all metals, with unit costs expected to drop 11-19% to $300-$330 per tonne.
- Great Cobar development on track for FY28 production, with surface works and raisebore chamber progressing well.
- New Occidental tails project adds 2.6 million tonnes at 0.65 g/t gold, with feasibility study underway.
- Cost performance came in at the top end of guidance due to investments in production drilling and higher diesel prices.
- Sustaining capital expected to rise to $65-$75 million, partly due to infrastructure investments at Peak South Mine.
- Growth capital and exploration spend of $64-$88 million remains significant, though funded by operating cash flow.
- Dividend of $0.01 per share is modest, with no formal payout ratio defined yet, limiting shareholder return clarity.
- Gold grade in measured resources at Federation hasn't increased as much as lead and zinc, requiring further modeling work.
- Dargues rehabilitation costs of $10-$12.5 million are planned, with no asset sale proceeds factored in.
- Production profile is weighted to the second half of FY27, dependent on successful commissioning of plant expansions.
- New Occidental project remains subject to Board approval, adding uncertainty to growth pipeline.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. I would like to welcome everyone to the Aurelia Metals Limited Financial Year 2026 full year results conference call. (Operator Instructions)
I would now like to turn the conference over to Martin Cummings, Interim Chief Executive Officer. Martin, please go ahead.
Thank you, Krista, and good morning, everyone. Thank you for joining us for the Aurelia Metals FY '26 Results Call. I'm joined today by Leigh Collins, our Interim CFO; Andrew Graham, our Chief Development and Technical Officer; and Angus Wyllie, our General Manager for the Cobar region. We'll be talking to the slide pack that we released this morning on the ASX platform.
But before I start, I'd like to refer you to another announcement that we released on Tuesday regarding the appointment of our new Managing Director and CEO, Steve Badenhorst. Steve will commence with Aurelia
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