Aeris Resources Limited

Good afternoon everyone and welcome to the ERIS resources quarterly results and also the FY26 results presentation. As per normal, we've got the normal disclaimers. For those who are on the call first, I want to know much about ERIS just to give a recap. So in FY26 we produced 42,000 tons of copper equivalent production. Out of our Triton copper mine, we did about 23,000 tons of copper metal and in Krakow, our gold mine, we produce around 41,000 ounces of gold. Those are the two operating assets. Then we've got two development projects. One is the old Jaguar copper zinc mine in Western Australia and the Stockman project in Victoria. Both of those are projects which can add future production to the portfolio. As you will see through the presentation, we've invested the last in FY26 significant money into exploration with also the success on the back of that exploration will be clear when we go through some of the slides as we present the results. That has created us with an acquisition. We bought Peel Mining, which closed in 1 July, Peel Mining with a combination of the exploration is really looking at Triton adding significance to life and reserves the resources to their Triton mine life. So just such advice, in the beginning of FY26 we said this is the plan for FY26. at Triton. It's about operational delivery. It was the Mara Womby pit coming into production and close out. Although we had some delays in the December quarter, Mara Womby pit is now in full production and will finish off in November. We wanted to make sure we start consolation on time and we have brought some of the capital works earlier to ensure the timely start of consolation. Over the group, we spent about $25 million in exploration. and it all was for resource extensions and we were successful at both Trippin and Cracow in extending those resources and for both of those added significant potential mine life as you'll see as we go through more slides. We sold the local assets, that was already done in quarter three. At Jaguar mine, we have now reduced the cairn maintenance to the bare minimum. We did test eight base metal targets and we're awaiting the results of those. and then we'll make a decision on what's the best way forward. The Stockman Feasibility Study, although we said we wanted to get it on FY26, it will come out in the first half, FY27. And we, although it should be around, we have repaid the debt, so we went from 40 million debt to zero debt. We sold the non-core assets and we did put some gold hedging in place, but that whole gold hedging has now rolled off end of June, so currently there's no hedging in the group. So, what did that mean for the results? As I said earlier, it is 42,000 tonnes copper equivalent. Triton had a 19% improvement on copper production year on year. Krakow was stable. The key takeaway to the financials, in my view, is an EBITDA of $285 million, which is a 78% increase year on year, and then cash receivables, a 300% increase year on year. So, although some of it is a capital rate, but still really good operating cash flows and financial performance in the business in FY26. For the June quarter you can see Triton and Cracow delivered about $120 million operating cash. We have put quite a bit of money into exploration both for capital development but also a significant amount of that is for the last mill of the Moriwombe pit capital. and then there's the other bits and pieces including finance and other which are interest and other expenses. Closing the year with $165 million available cash as of in June. If you look at the year to date, $350 million operating cash flow from the operations, significant improvement here on here. Capital, quite a big number, but it is capital development predominantly from both the underground mines and also the Murrawambee Strip, which is about $100 million of that $180. Once again, the improvement in the operations, both obviously held by commodity prices, but also them achieving significant improved production year-on-year out of their two months. Touching on Fliton in a bit more detail, we have put quite a bit of information out in Fliton in the last few weeks. One was the reserve resource update, and that was, in my view, a spectacular result. We went from December 24 at 2.4 million tonnes in reserves, which is Not even two years in reserves to 10 million tons in reserve, as you'll see in the slides, is going to be a significant opportunity to improve. So you go from not even two years in reserves to over five years in reserves is making a big difference. Although some of it is through the acquisition of the fuel assets, specifically Malibu, but the bulk of it is through the conservation of the underground reserves being declared and you'll see there's still significant upside for all these. If you look at this slide where the blue is indicating the resource currently on all those assets, the brown is the current declared reserves and what we've seen for example so far at Constellation, everything which has been in the resource in the mining area where mining has turned into a reserve, it's just a lack of drilling and further work which is the reason why it hasn't converted. Malibu, there's significant opportunity to improve and each Avoca tank, very small reserve, you'll see in the slides coming up, Avoca tank is actually bigger and as we go deeper so a lot of that resource will convert to reserve through the draw program we're putting in place for FY27. And the same for Bajiriga, there's been a significant resource update or upgrade in this latest results. the drilling program will improve that reserve position in any way in FY27. So overall I think from where we were and where we are now and the amount of money we spend on exploration and also the M&A transaction has really set Twitter up for this 10 year mine plan. Once we see we get a malleable and consolation into full production we clearly see a potential for Twitter to go to 30,000 tonnes and the significant life as we move forward. Now, looking at the quarter results, although it was improvement quarter on quarter, and the mill were running at 1.8 million tonnes in quarter four, so it's a mill nine mainframe capacity. We did have a few days where we had crusher challenges and mill challenges, so it even can do better, but it's the first time in a very, very long time where that mill was running at capacity. And that's because of the oil tons delivered from Marra Pit. We ran at 1.8 million tons and we still had over 200,000 tons of stockpiles from the Marra Pit production. I think a key thing we're missing in all of this is the underground mines actually outperformed all expectations. And that was all to do with we knew that we lost time at the Marra Pit. The team looked at Thank you for joining us today. some capital for conservation to ensure an early start and there was some additional tons or waste tons through the Murrah Pit with the head of all failure and also an accounting readjustment resulted in additional capital for Murrahwambie Pit. We talked about exploration success and I'll show you a few more slides but clearly Fort Clinton it was a big step up and the underground mines once again showed that they can deliver when it's expected. This is sort of the results from the drilling. As I said earlier, we spent a significant amount of money on exploration. Now, the slide on the left-hand side, that's the results from the December 2024 reserve resource update. So that's the size of Volca tank when we started mining it. Now, where we are, you can see we already mined more than what was in the original resource. but the drilling down below Volca tank is the exciting bit where you can see basically that resource is now doubled in strike length and it's still open and still continuing. A drilling program will be found that into reserve in FY27. We are keeping the development going so to ensure that we can access those tons in FY28. as we move forward with the broker tank. The other one is Budgerigar, you can see once again on the left hand side, that's when we started Budgerigar and besides the resource, since then we've mined most of that. We also added, and drilling has added significant additional resources. At Budgerigar and there is no reason why we don't believe that it continues, the depth is actually wider and thicker than previously expected, so it is a better result in our view than what is expected, was expected when we started learning. So it just shows you, you know, in the different assets, The more you drill, the more you find. Every single one of the mines, ever mine or discovered, is still open in depth. Nothing is closed off. Clifton is already, we've got ore down to 1,300 metres already, and it's still open. We're still getting high-grade intersections at Clifton and depth. This is just a few images of the constellation. As I said, we started early. We're already, most of that trench for infrastructure for water and comms is now done. The road works have started. The office is set up. The mining lease was granted last week. So within the next week, there's already, the trust is already on the go line. They're putting the diggers together and we will start as soon as we can to start with the pre-strip with the aim of having first four on cross-relation in quarter three to the month. When you look at Krakow, as it's been for the last probably two or three years, consistently producing on cost and capital and production. Production was in line with a plan delivering 10,000 ounces and then basically 41,000 ounces in line with plan for FY26. the guidance has been made and the key focus there is obviously golden platter. We talked about it a lot. That is where we see the potential significant extension of mine life through the development of golden platter. So the drilling we're doing is really confirming historical data to make sure we can use those old data in mine planning. You can see some of those results, 40 metres at 9 gram a tonne 6.7 at 5, so really good grade intersections. It was a mine which was mined in the 1930s at 10 gram a tonne, anything less or sort of left behind. In the 1980s, as you can see in that image, there was an open pit over the top, they mined 2.5 million tonnes out of that at around 4.5 gram a tonne, so significant grade, so we don't expect this year to see the same grades, but we are now modelling an open pit and underground option are on the back of the building we're seeing and we will communicate those results and mineral resource updates in this half with the aim of starting this mine in FY28 if anything comes together. On the project side, we have now put JAG into the lowest care and maintenance costs. We've drilled eight holes. They are in for tests. We're waiting for their assays to come back. We also did a download EM and all eight of them to ensure that we look around. Once we get those results back, we will decide on the best way forward for JAG in terms of Base metal drilling, but also one of the big opportunities we keep on talking about is the gold exploration on the tenement package. There's 62 kilometres of gold anomalies, never really been tested between two of the big gold miners in the region. Clearly, we see a significant potential and option value for gold in the JAG tenement package. On Stockman, we're busy finalising the feasibility study. We will bring it out within this half and communicate that to the market once it's in place. And then we'll decide on what's the best way forward for Stockman in terms of final feasibility study and financing options. That's the end of us, 4.37. We will bring out our guidance next week. The clear focus, of course, for our system, our one big pit will finish off in November or in quarter two. There will be over a million tonnes on stockpile once it's done. Constellation will be in production by quarter three, and we already did the reserve for results update, including the peeled assets, and we will later this year, within the next few months, release a five to ten year, with the aim of putting a ten year mine plan out for flits up. At Traco, Golden Plow is critical for us, not critical, but it's a key operational value for us. We will get ready to drill the southern main field, which is purely an exploration, greenfields exploration. We are busy with the tailings dam lift, and it is a probably one that three years ago, or four years ago, we debated, do we lift the tailings dam or not? We lift the tailings dam, and now it's the third lift already, because everything just keeps on extending as expected at Traco. We'll always review the portfolio so we'll continue to see how we get best value out of our assets. We talked about Jaguar, we talked about Stockman. On the exploration side, we will always keep drilling the western rain field and targeting that less than 50,000 ounces as we extend the western rain field. Drilling of Golden Paddle will finish off in the next few months and then we'll bring that study out. At Tristan, you know, Constellation was a Greenfields discovery we made four or five years, probably no more than that, probably six years ago. And the team there still believes that there's a lot of Greenfields exploration opportunities. So we've restructured the business to clearly focus on Greenfields exploration and then Barrenfields as a separate team. So the Greenfields team are really looking at the whole region, the structures, and identifying new targets for us to test on the Greenfields exploration side. On that, we are proposing to do some gold drilling as well in this financial year. Obviously, as we all know, there's big capital management programs coming on with what we're doing with conservation staff. So clearly for us, capital management is the key focus for us in the FY27 as part of the implementation of the FY27 plan. I guess that sort of summarises FY26. It was a very successful year. The company is in the best position. It's leading my time with the company which is over 12 years. Strong balance sheet. We're ready to fund the growth internally and as we bring these bigger assets online at Thurston with conservation and the current increases we see in the current mines, Clearly there's a great future for Triton and Cracow is never disappointed. It always continues to grow, find more but Golden Prado might just be the asset which can put you in that far to 10 year life of mine horizon which it really never had. It always had about two years of reserves and nothing more but always replaced it. So the company really looking forward to FY27, getting Constellation up and running. keep the balance sheet strong and deliver results from the operating minds and show the market the value of the projects in the business. Let's sort of summarise that so we'll take some questions. I've got hands up here from David Coates. David, I'll put you up. Can you give me that? There you go, thanks for that.

Can you hear me? Can you hear me now?

Yep, I can hear you. Thanks Andre. Thanks for the presentation this morning and rounding out the pretty transformational year, particularly through Tritton, so well done. A couple of questions from me. Just on Tritton, you know, I saw the C1 cash costs very handily dropped below the $4 a pound. Mark, which was great to see. Can you just run us through the key drivers there of that reduced cost? Is it just volume or are there some other factors involved there as well?