AIC Mines Ltd (A1M)
Hi guys, Was wondering if you could provide an update on AIC Mines and what you think it will need/what the market is waiting to see - for it to push above the 42ish cent mark and go higher. Cheers
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Answer
Hi Josh,
We can feel your frustration, in the recent upswing by copper stocks AIC Mines (A1M) is up ~30%, whereas heavyweights Sandfire (SFR) and Capstone Copper (CSC) have soared closer to ~50%. A1M is all about the coming years – when the market embraces the outlook is tough to forecast but we do believe it will be sooner rather than later:
- FY26 looks like a transitional year with moderate production growth, rising capex, margin pressure weighing on earnings.
- FY27 looks likely to be the inflection point, where expansions and scale begin translating into stronger earnings growth.
A1M has a large sensitivity to the copper price, which is a good thing if your bullish like MM. A 10% rise in copper from today’s price translates to an increased ~$US10mn NPAT, a doubling of estimated FY26 numbers.
- We are bullish copper and A1M over the coming years but it it’s hard to know when the former will break clear of the 40-42c area. Our “best guess” is if/when copper starts making fresh 2025 highs, now only ~3% higher on the LME.
