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AIC Mines Ltd (A1M)

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Question asked 07/06/2025

AIC Mines Ltd (A1M)

Good morning James and team, AIC Mines stock price caught my attention lately. As you mentioned in today's morning report the copper price has been heading north in the last couple of weeks, however A1M stock didn't follow it. What is weighting on the price?Would you buy it if you didn't have a copper exposure, at what level? As always thank you so much for your professionalism and your insights. Regards, Dario

Answer

Hi Dario,

AIC Mines Ltd (A1M) has been disappointing through 2025, its basically unchanged while Sandfire (SFR) is up ~27%; we own A1M in our Emerging Companies Portfolio and SFR in our Active Growth Portfolio.

A1M has struggle to get out of the naughty corner this year after a FY24 earnings miss and the dilution from a capital raising in May, as we’ve see across the market in general investors have gone with the “Certainty Trade” across all sectors, including copper. Again at the end of April they’re March quarter production results came in at the bottom end of the target range for the period – i.e. they are struggling operationally.

With a market cap of sub $200mn and a net cash position of $80mn it looks very cheap, but we shouldn’t forget in the last 12-months it experienced negative cash flow of ~$13.6mn.

A1M remains our preferred junior copper (Cu) play with the company leveraged to the Cu price plus its 5 koz of Gold each year is a huge bonus with the precious metal trading around all-time highs. We need to see better operational performance at Eloise and the strategic development of the Jericho project for us to get more bullish on it – i.e. the price action tells the story.

We still like the risk/reward towards the stock below 35c, but it’s a very different proposition to say SFR and FCX US we also own which are big, established, diversified players, while A1M is a speccy.

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AIC Mines Ltd (A1M)

LAST UPDATED 06/06/2025 12:44

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