AIC is a small Australian copper producer that we have on our radar for the Emerging Companies Portfolio, particularly on the back of the recent Sandfire (SFR) purchase in the Flagship Growth Portfolio. AIC owns and operates the Eloise mine in Queensland, along with several exploration projects across NSW and WA. Early production out of Eloise has been disappointing, however, operations are ramping up and the mine is supplying important cash flow to fund the other various growth projects. On the back of 12 days of lost production in the March Quarter, the company downgraded guidance by ~20% which was particularly disappointing given the company raised $30m through a placement in January. Their main exploration asset is Jericho which continues to produce strong drilling results, however, the risk around current production is a concern.
- A1M is a leveraged way to play copper, however, Sandfire (SFR) remains our preferred pick.
MM is neutral to bullish A1M
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