A1M reported March quarter production results yesterday, with Eloise production at the bottom end of the target range for the period. However, total production over the first nine months leaves just 2,839t Cu to be produced in the Junq for A1M to meet the FY25 production target of 12,500t Cu at an All In Sustaining Cost (AISC) of A$5.25/lb, which means the full-year target is likely to be exceeded.
A1M generated operating cashflow for the quarter of $12.6m, which was down -47% versus the Decq, though they had some obstacles to overcome, with high rainfall, road closures and wet ore, which were known issues. Given we’re now 75% through the year, it’s likely that FY25 production will be exceeded, and we’d expect analysts to upgrade forecasts on the back of yesterday’s results.
Eloise also produces around 5 koz of Gold each year and is benefiting from the recent strong run-up in the AUD gold price. Cash at the end of March was $30.9m, plus, the impact of rain saw around $10m worth of Copper waiting to be shipped, which will be cleared before the end of June. While costs were higher in the period, they maintained FY25 cost guidance, which was a positive.
- We remain copper bulls, and A1M is our preferred producing junior player.
MM remains long & bullish A1M
Add To Hit List
