A1M -17.79% was hit after June-quarter costs came in materially higher, overshadowing another year in which Eloise met production and cost guidance.
FY26 copper production reached 13,064 tonnes, within guidance of 12,800–13,100 tonnes, alongside 6,621 ounces of gold. Full-year AISC was A$4.99/lb and AIC was A$5.32/lb, both around the midpoint of guidance.
June-quarter highlights:
- Copper production of 3,106 tonnes.
- Gold production of 1,706 ounces.
- Copper recoveries of 94.1%.
- AISC of A$6.15/lb and AIC of A$6.49/lb.
- Quarter-end cash of A$41.7 million.
Quarterly costs were elevated by lower grades, higher diesel prices and weather-related disruption to concentrate drying and transport. Diesel added around A$0.60/lb to costs, while reduced sales volumes also inflated the reported unit-cost outcome.
A1M ended June with 663 tonnes of copper in concentrate stockpiles, worth around A$13.7 million, which should support stronger September-quarter sales and cash flow. September production guidance is for 3,150–3,350 tonnes of copper and around 1,500 ounces of gold.
The Eloise plant expansion to 1.1Mtpa remains on schedule for commissioning in the December quarter, while Jericho development and initial processing trials continue to progress well.
The market focused squarely on the higher June-quarter costs, although some of the pressure appears temporary and sales-related. The size of the decline also needs to be viewed against A1M’s strong run into the update, with the stock materially outperforming other copper names beforehand.
- The company still met annual guidance for a third consecutive year and continues to advance Jericho and the Eloise expansion broadly on schedule. FY27 cost guidance and execution through the upcoming ramp-up will now be critical.
MM remains long & bullish A1M ~67c
Add To Hit List
