How AIC Mines Ltd is Expanding Through Strategic Australian Gold Discoveries

Stellar Production Performance Drives Record Cash Generation

AIC Mines has capped off FY25 with an impressive fourth quarter, achieving production targets for the eighth consecutive quarter while advancing significant expansion projects that position the company for substantial growth.

The June quarter saw Eloise mine produce 3,202 tonnes of copper and 1,612 ounces of gold in concentrate, with costs improving dramatically to an All-In Sustaining Cost (AISC) of $4.58/lb copper sold—down from $5.49/lb in the previous quarter. This strong operational efficiency generated $28 million in operating cash flow and $16 million in net mine cash flow after capital expenditure.

For the full financial year, AIC Mines delivered:

• 12,863 tonnes of copper and 5,955 ounces of gold in concentrate
• AISC of $4.98/lb and All-In Cost (AIC) of $5.37/lb
• $79.2 million in operating cash flow and $27.4 million in net mine cash flow

This performance exceeded the company's FY25 guidance targets, with copper production 3% above target and costs 5% below guidance.

"We've now achieved or exceeded our production guidance for eight consecutive quarters, demonstrating the quality of our team and the effectiveness of our mine planning and infrastructure investments," said Aaron Colleran, Managing Director and CEO.

Transformational Growth Projects Advancing on Schedule

AIC Mines is making significant progress on two major growth initiatives that will substantially increase copper production in coming years:

1. Eloise Processing Plant Expansion

The company has awarded GR Engineering an EPC contract to expand the Eloise processing plant capacity from 725,000tpa to 1.1Mtpa. Engineering work has commenced with construction of new plant items scheduled to begin in October 2025, targeting commissioning in Q4 2026.

2. Jericho Mine Development

The Jericho Access Drive (JAD) has advanced 1,549m of its planned 3,000m total distance and remains on track to reach first development ore in June 2026. All major environmental approvals for both the Jericho mine and Eloise processing plant expansion have now been secured.

These twin projects are forecast to lift AIC Mines' annual production to over 20,000 tonnes of copper in concentrate from FY28—representing a 55% increase from current levels.

Exploration Success Enhances Growth Outlook

Drilling at the Jericho deposit has delivered exceptional results that exceeded expectations:

1. Matilda North Zone: Continuous high-grade mineralisation confirmed with intercepts including 12m at 1.9% copper

2. Jolly Shoot: High-grade mineralization near the planned Jericho Access Drive, including:

   • 7.2m at 2.8% copper (including 2.2m at 7.6% copper)
   • 10.0m at 2.1% copper

3. Billabong Shoot: A step-out hole successfully extended high-grade copper mineralization 380m down-plunge with 5.5m at 2.4% copper

The northern end of the Jericho deposit is showing higher-grade and more continuous mineralization than previously thought, which has positive implications for the mine's development and production ramp-up. Furthermore, recent geophysical surveys in the region have highlighted the potential for additional sulphide deposits.

Strategic Financing Package Secured

To fund its growth initiatives, AIC Mines has secured a comprehensive financing package including:

• US$40 million Prepayment Facility with Trafigura Asia Trading
• $55 million Placement to institutional and sophisticated investors
• $25 million Surety Bond Facility replacing cash-backed environmental bonds
• $10 million Share Purchase Plan for eligible shareholders (closing July 28, 2025)

This financing structure provides flexibility while minimizing dilution for existing shareholders and avoiding commodity price hedging requirements.

Understanding AISC (All-In Sustaining Cost)

The All-In Sustaining Cost is a comprehensive metric that captures the full cost of producing copper, including mining, processing, site administration, transport, treatment charges, royalties, and sustaining capital expenditures. It's expressed in dollars per pound of copper sold.

For investors, AISC is a crucial indicator of a mining operation's efficiency and profitability. AIC Mines' AISC of $4.58/lb for the quarter represents strong cost management, particularly when compared to the realized copper price of $6.62/lb. This margin of approximately $2.04/lb demonstrates the robust economics of the Eloise operation.

FY26 Outlook Remains Strong

Looking ahead to FY26, AIC Mines has provided guidance of:

• 12,800–13,100 tonnes of copper and 6,000–6,500 ounces of gold in concentrate
• AISC of $4.85–$5.25/lb and AIC of $5.10–$5.50/lb

The company plans to invest approximately $135 million in capital projects during FY26, primarily focused on the Jericho mine development ($40 million) and Eloise plant expansion ($67.5 million). In addition, AIC Mines is taking a similar approach to how other copper-gold producers have successfully expanded operations through strategic drilling programs.

Why Investors Should Follow AIC Mines

AIC Mines represents a compelling investment opportunity in the copper sector for several key reasons:

1. Proven Operational Excellence: Eight consecutive quarters of meeting or exceeding production guidance demonstrates management capability and asset reliability.

2. Strong Cash Generation: The Eloise operation continues to deliver significant cash flow that helps fund growth initiatives.

3. Clear Growth Pathway: The company has a well-defined plan to increase copper production by 55% through the Jericho development and Eloise plant expansion.

4. Exploration Upside: Recent drilling results suggest potential for resource expansion and higher grades at Jericho, similar to impressive gold drill results from other Australian miners.

5. Strategic Financing: The company has secured a comprehensive financing package without onerous hedging requirements.

6. Copper Market Outlook: As the world transitions to renewable energy and electrification, copper demand is forecast to grow significantly, supporting strong pricing for the metal.

With a cash position of $60.9 million as of June 30, 2025, and a clear growth strategy, AIC Mines is well-positioned to become a significant mid-tier copper producer in Australia. The company's approach to developing extensive mineral systems shows how AIC Mines Ltd is expanding its footprint in the resource sector.

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