Aeris Resources Ltd

Okay, I think let's start. Good morning everyone and welcome to the ERAS Resources quarterly presentation. I will take you through the presentation and at the end of the presentation there will be time for Q&A and if you put up your hand I will unmute you and you can ask your question. We also have the Q&A where you can type in questions and we will try to answer those at the end of the presentation. I guess to kick off, again, a strong quarter. The balance sheets are getting stronger every quarter, and really this is sort of setting errors up for a very good FY27. But quarter on quarter for the last three quarters, the business has improved quarter on quarter, and we're very pleased when you see the numbers that the balance sheet keeps on looking a lot better. Just sort of stepping through the presentation, We're still forecasting to achieve that 40,000 to 49,000 ton copper equivalent as per the guidance. The development projects, they're all progressing well. You'll see when we talk through it. At Jaguar, we started the exploration drilling for the base metals in the last few weeks, and stock and feasibility studies getting closer to being able to release. On the exploration side, as we said before, we're putting a lot of effort and money into exploration this financial year. We're targeting around that $30 million spent this financial year on exploration, and clearly the focus is on extensions of those resources. The growth, as everyone probably on this call knows, the Peel transaction is ongoing, and we'll touch on Peel a little bit in the presentation in the back end. We put this strategy up in the beginning of the financial year and really we're getting to a point where we can tick most, if not all, of those boxes. At Triton, as we said, it's all about the Mara Pit. The Mara Pit is now in full production and will deliver 1.5 million tonnes in the next six to seven months, which means that Triton Mill will run nearly at full capacity or at full capacity for FY27 and specifically for quarter four. We really focus on conservation on time, and you'll see when we talk through it, we have brought some initial capital forward. Just all of that to make sure we do rest of the project for an early start in quarter one FY27. And exploration, as I said, the clear focus. At Krakow, golden platter drilling is going extremely well, and you'll see some of the results, and that was all about how do we extend the Krakow mine life through exploration. The Northweiser assets sold at JAG, as I said earlier, we've started the base metal drilling, we've got the care and maintenance now to the bare minimum, and really we'll start to see some of those results coming through in the next quarter. We've said we'll put the stock and feasibility study out early in FY27 and that is progressing to plan. So as we start to work through the different areas and strategies, a lot of it has been done and a lot of it will be done in the fourth quarter. So progressing really well to deliver a stronger FY27. The key points for FY26. The key takeaway for us is cash receivables sitting at $150 million. That's a significant step up quarter on quarter and even from $106 million to $150 million. and that is really pleasing to see the balance sheet stream. Cash flow for operations, really strong quarter-on-quarter, 72% up, $76 million for the quarter, and you can see the production sitting at 10,400 copper-equivalent tons at a group level at $4.86 a pound, really a great outcome. Cost, as always, well managed across the business. We'll talk a little about diesel, and I'm sure there's questions around what is the diesel impact, and I'll deal with it perhaps right now. Currently, we have no issues with supply of diesel, and we don't see any issues with supply. It's more than pricing. The quarter was not impacted much around pricing. We expect in quarter four to see a higher diesel price. Now, for us at a group level, that's about 12 cents a pound additional cost, which is a 2.5% increase at a group level, but it's not a material impact. But that's sort of where we see the diesel pricing sitting for the next six months or so. We talked about Peel. Triton, although, as we discussed in the last quarter, with the delays due to the due decreases in the mill, in the Marwambi pit, we have revised the plan for Triton as an internal plan. They fell a little bit short on that, not much, and it was mainly due to the first oil grades we got out of the pit in the transition area was lower than we expected and a little bit of dilution from underground, but overall pretty close to the revised plan. Moriwambi pit is now absolutely on all. There was a stockpile at the end of the quarter. As I said earlier, it will be one and a half million tonnes mined by November. significant stockpile build-up from open pit mining. Constellation project, early works, we have committed $10 to $15 million, which is not in guidance, but we really thought that instead of leaving it for FY27, bring that forward and start to do some business. That early works is around infrastructure and roads to get that all set up and ready to go. And we'll talk about Krakow and Golden Plateau as we go through the presentation. Strong cash flows from operations. You can see there sitting at between the two operations, $95 million in operating cash flows. We still invested a growth capital of around $20 million in the Marwambi pit. And the closing balance, as you can see from a cash point of view, sitting at $119 million. When you look at the year to date, $232 million operating cash, significant investment, that was most of that capital was for the Moriwambi pre-strip. Now that's done, there will be no more growth capital for Thurton in the next quarter, or very little, but now it would go into operating costs. And you can see the proceeds of the equity raise and closing balance, so very strong operating cash flows. while we're still investing significantly in the business. Looking at the different operations, at Britain-specific, significant increase in ore tons, and that is on the back of them. We're already starting to deliver ore, but it's also good ore tons from underground. With this focus on keeping the mill running at maximum capacity, so the mill capacity is 1.8 million tons, At some days, we're running it above that level, but we're targeting that 1.8 million tonnes, and you can see the March quarter is starting to deliver an increase in that production, both from a mine and processing point of view. We have said in the last quarter already that due to the delay of the Muller Pit, we are targeting towards the bottom end of the guidance, but we're still targeting within guidance for Triton and delivery on production. This is just a few images. That's the open pit, but you can see the significant work in the bottom image of what was done on the old heap leach pads. Now, those are closure costs, which is part of the environmental bonds, and we use the waste from the pit to close those old heap leach pads, and that will be a material change from a cost-saving point of view to close those old pads, but also will have an impact on the bonding requirements for those pits over time. The Moriwambi pit, as I said earlier, will do about 1.5 million tonnes in the next, till November, and the growth capital is now done in the pit, so it's all on ore and delivery to the plant. This is, as we all know, this is the future of the business constellation. We've done a lot of work. We've now settled on a smaller open pit mine, so it's a two-stage pit, which will then go underground. You can see there's some really good high grades early up in the underground. We've committed to spend that additional capital early, and that was to set it up so that when we get on ground, we can start to move fast, and all the capital currently is planned. to be funded from operating cash flows that put them into the future. And remember, this ore body starts literally eight meters below surface, so it's not a massive pre-strip to get on ore. It's about six months, and you should see some ore coming out of constellations. On the permitting side, that's all on track. We're expecting a mining lease to be granted in quarter four, and as we said before, that in quarter one, we will kick off constellation development and processes. A lot of money into exploration. We're focusing on all these resource extensions across the Triton portfolio, currently focusing on a VOCA tank. And we've seen some really great results coming with Vocatank. We now believe that the amount of holes we draw to a separate structure outside of the current known structure, that is building up really nicely. And we will come out with a market update in the next month to really give everyone a feel for what we've seen. So Vocatank, it continues at depth. We perhaps found another ore body. We're drilling a lot of effort on Bajigar and what we're seeing at Bajigar is thicker and better extensions than what we expected originally and we're also drilling South Wing and Triton at depth. So a lot of effort is about extending those resources to two to three years ahead of our salt and really good results. So current drill rigs all running and we'll keep running into FY27 to keep extensions. At conservation, We are planning to start a draw program there, which will be a great little draw program, but also looking at further extensions at Constellation and the ability to bring a reserve update out in the next two to three months for Constellation as well. The Krakow results, as we've said before, Krakow is and has been delivering for the business for a long time now on target, on plan. And once again, they've done exactly the same. 10,000 ounces, $3,400 an ounce cost on budget and well managed. And we remain that they would end up around the midpoint of guidance. Golden Plateau is, of course, what we've been saying for a while now, is where we think the future, additional time and future can be, other than the western rain field, which will continue. Now, we started off with a small drill campaign to start to test our theory around an open pit mine in Golden Plateau. We then expanded that to a 14,000 metre drill program and you can see some of those results we're getting. The key for us was to confirm what we expected and what we've seen so far with the 32 holes drilled, they all intersected what we expected. So if that keeps going the way we think it is, we're getting more and more confidence that there will be a future open pit opportunity for Krakow around Coles and Platter. Now, the size of that we will all define, but that can be a material increase in mine life for Krakow, on top of what you'll get out of the western brain field at Krakow. On the project side, I'll just start at a high level. We've said we want to test the eight base metal targets at JAG, and you can see each one of those yellow blocks, that's the targets. We've already drilled the Panther target, and There's been some good results or encouraging results. We've already started the second hole and we will drill all of those targets within the next two months and then see where we go from there. But some encouraging results going through JAG. For those who haven't sort of been on this before, we have made the clear decision that we would start JAG with a 10 plus year mine life. And part of developing that 10-year mine life is these eight base metal targets. So we will drill them out and then see how do we progress with that further. As I said earlier, the Stockman updated feasibility study will be released early in FY27. And as part of the simplification and And looking at non-core assets, North Queensland's been divested. We've got $5 million cash for it and we'll release off cash back bonds. Those cash back bonds are still restricted within the Washington Salt Basin facility for the bonding which we've got in place. At a corporate level, you can look at the closing cash, quarter-on-quarter improvements, although September to December was on the back of an equity raise, but December to March was purely driven by operating cash flows and good results from the operation. At the receivables, it's $30 million in receivables. Now, if you try to split that out, $20 million of that is just final payments for concentrates, which has already been sold, and $10 million is for stock hand and invoiced at the port. So that is money which will come in within the next month, the 20 million dollars at least, as payments for receivables. The operating The cash flow for operations at $75 million, that's a 72% increase. So from where we sit, strong support, obviously higher commodity prices, but it's also delivered through ongoing production achievements at the two operations. We'll just touch a little on the Peel transaction for those who haven't been in these presentations. So clearly for us, we looked at Peel as a strategic transaction on how do we get Clinton to a 10-year, 30,000-ton mine with two strong resource or reserve-backed projects. Now, we've already talked about Constellation. Constellation is the next 10 years. It will do about 750,000 ounces annually at around 2% copper plus gold. And one of the key other assets which we always thought made sense was Malibu, which is in the Peel portfolio. Malibu is already a 67 million ton asset. resource, also around 2%. Now, as soon as we can put a home for it for processing, we can turn that into reserve. Now, between Malibu and Constellation, for once they're both up and running, you're looking at one and a half million tons at that 2% copper target, plus then all the other assets that fit them. So, prices were strategic. The logic makes sense, that's a 63% increase in resource for Triton, with Malibu obviously the bigger resource, and most of that 122,000 tonnes of copper metal will convert into a reserve within a few months after the deal's closed. So clearly for us, how do we prove Triton to that 30,000 tons? The key deliverables will be Malibu and Consolation, which you can see on that slide. And then we've got Worlong and other Triton acids, which we showed you earlier in the drilling results, all of those extending. So for us, within the next three years, we are targeting that. you know, as a group level around that 55,000 to 60,000 copper equivalent tons, and that taking Clinton to 30 plus Krakow, and then obviously post that with the projects we have available. This is sort of an indicative timeline. Everything so far is on target. We have the court hearing next week. and that will then progress further into a closing of the transaction by late June, early July. That's the current thought process. So look, that's all of the summary. Obviously, we're on target for what we want to do. It's very pleasing to see the balance sheet improving, cash at hand improving, and we can invest where we need to invest to set the business up for FY27 going forward. into the next three to five years by setting it up and starting up these long life projects and focusing on delivering longer life operations at both Cracker and Twitter. That is sort of the presentation. I'm happy to take questions if there's any questions from people on the call. Paul Caner has got a question. Paul, can you hear me?

Yeah, got you, Andre. Can you hear me, mate?

Yep, perfect.

Good, mate. Good. Just quickly on Model 1B, I just want to get a sense of how that grade is tracking. Obviously, you've sort of gone through this transitional material this quarter. Yeah, you've sort of moved into the sulfide, so just... I just want to get a sense of how that sulphide grade is tracking and what we should assume for the coming quarters.

So we've seen, Paul, that in the last, this month, that the grade is now reconciling a lot better now there's been the sulphide, so the grade's gone back up. The average grade over that 1.5 million tonnes I talked about earlier is around 1% copper. That's sort of what we'll see coming out of the pit over the next five months.

Okay, great. And apologies if I missed this, but just moving on to Cracow, just how that exploration drilling is going there at Calden Plateau, when should we expect a study on that and when could this material feasibly come into the mine plant?

So, look, the training is going extremely well. We've got Gorix running all the time. You can see some of the results there. The key for us was always to ensure that what we think is there is there, and what we've seen so far is confirming what we expected. So we will cut off exploration at Coldham Plateau. The results, you know, starting to put new design around it by June and then use those numbers to do a new design. That is the aim. The drilling will continue, but that would be the aim to start to get approvals and approvals will take about 12 months. So the aim for us is from today around 18 months to two years to have golden platter in production.

Now that's clear. Now that's it from me Andrzej. Thanks for your answers mate.

Thanks Paul. There was a few online questions. I don't think anyone else has put up their hand currently. I might just go to the Q&A. We've got a question here. What is the plan used for growing cash balance? Noted bill transaction is a script, not cash. The planned use for the growing cash balance is investing in these capital projects. We will develop conservation in the next 12 to 2 years. We will then develop the malleable mine and also look at gold and platinum. So there's a lot of use that it's all about setting investing in the next few years for the long term because once you've got these big projects up and running, the investment will drop off because they will run for 10 plus years, specifically Malleable and Constellation. I hope that answers the question. I've got a few questions from Jason. Jason, I might answer some of those. The others will come back to you. We talked about the grade. I think we talked that through. We talked about the grade we expected. The question was sort of what is the grade and FY2 is in brownfields, growth levers. So brownfield growth levers for Triton, Jason, is really saying These extensions which we're drilling at all these deposits on the property is where the brownfield sits. Drilling constellation out further and extending that life and improve that resource to a reserve, that's where we see the value for the future, specifically for Tritons. We talked, you asked about higher gold prices and are we focusing on getting as much tons to the mill. That has been the case. We have done new mine plans around cut-off grades based on the higher prices which we've seen. And Cracker is just, the nature of the Cracker ore body is just these narrow vein high grade ore bodies and you keep on extending them as you mine. And that's always been the case. But we have done the work and some of those resources is now in the mine plan. We talked about the drill rigs. I think that makes sense. The drill rigs will keep going into FY27 to drill out budgetary dire, south wing, evoker tank. The evoker tank specific with the new load we found, that will take quite a bit of drilling and we're focusing a lot of effort into drilling that out because we see some really exciting results coming out of those I think we've dealt with some of the other stuff. So Jason, we might contact you and send you separate emails, but we talked about JAG and we talked about the alterations. We'll get back to you on some of those. Just checking if there's any other questions from anyone. There's a question from Steve. Are there any workforce or technical constraints on expansion of operations? The answer, Steve, is no. We've got the technical in-house workforce, but we'll also use consultants if needed to close out some of these projects. But we have set the business up successfully for all these projects coming up. I don't see any other questions or any other hands. If that is, I'll give another minute or so for questions and then we'll sign off. Okay everyone, thank you. I don't see any questions, any more questions. Let me just make sure that we don't have any more questions. then if that's not nothing else, it's just a quick look. In that case, thank you, everyone. Appreciate you, Tom, and we'll talk again in three months. Thank you.