AIC Mines Hits FY26 Production Targets at Eloise and Advances Jericho Copper Project, Reducing Development Risks

Eloise Mine Maintains Consistent Production and Generates Strong Cash Flow

AIC Mines’ Eloise Copper Mine in Australia has achieved its production guidance for the third consecutive year, highlighting the operational stability and maturity of the company’s core asset. In FY26, Eloise produced 13,064 tonnes of copper and 6,621 ounces of gold in concentrate, meeting the market guidance issued at the start of the financial year. This consistent performance underscores AIC Mines’ capability to execute mining plans effectively while managing operational challenges amid fluctuating commodity prices and market conditions.

Financially, the Eloise operations delivered an all-in sustaining cost (AISC) of A$4.99 per pound of copper (US$3.39/lb) and an all-in cost (AIC) of A$5.32 per pound (US$3.62/lb). After accounting for capital expenditures to sustain and develop the mine, Eloise generated a net mine cash flow of A$63.3 million in FY26. This strong cash flow is significant for a company with a market capitalisation of A$550.3 million, providing flexibility to fund development projects and working capital across its portfolio.

FY27 Production Outlook Incorporates Jericho Copper Deposit Integration

For the 2026–2027 financial year, AIC Mines has issued combined production guidance for the Eloise-Jericho operation, marking its evolution from a single-asset producer to a multi-deposit operator. The company forecasts production between 17,500 and 18,500 tonnes of copper and 7,250 to 7,500 ounces of gold in concentrate for FY27. This represents a substantial increase over FY26 figures, reflecting the phased contribution from the Jericho Copper Deposit.

The FY27 cost guidance anticipates an AISC range of A$4.80 to A$5.20 per pound of copper (US$3.36–US$3.64/lb) and an AIC range of A$5.20 to A$5.60 per pound (US$3.64–US$3.92/lb). This slightly narrower cost range compared to FY26 suggests operational efficiencies and economies of scale as production expands. The company confirmed that all material assumptions supporting these targets remain unchanged as of the update date.

Medium-Term Growth Targets Set for FY28 and FY29

AIC Mines has outlined production targets for FY28 and FY29 that reflect a steady ramp-up of the combined Eloise-Jericho operation. For FY28, copper production is targeted between 20,000 and 22,000 tonnes in concentrate, signaling full Jericho contribution as the project reaches steady-state. By FY29, the company aims to produce between 25,000 and 27,000 tonnes of copper concentrate, positioning the combined operation as a significant mid-tier copper producer within Australia and the broader region.

These targets underscore the strategic importance of the Jericho acquisition, completed in January 2023, as a catalyst for production growth and enhanced asset utilization. Transitioning from a single-mine to a multi-deposit operation allows fixed costs to be spread over a larger production base, improving unit economics and cash margins. The multi-year guidance indicates ongoing development and ramp-up activities through multiple financial years.

Jericho Underground Access Achieves Early Milestone

A key de-risking milestone at the Jericho Copper Deposit was reached when underground access crossed the J1 lens in late January 2026, ahead of schedule. This milestone provides direct geological validation of the Jericho deposit model, confirming that mineralisation style and ground conditions align with pre-development geological interpretations. This reduces technical and execution risks associated with bringing the deposit into production.

The early achievement reflects positive tunnelling progress, favorable ground conditions, and effective engineering execution during underground development. For investors, this milestone enhances confidence in the project’s technical feasibility and lowers the risk of delays or unexpected geological challenges. Since acquiring Jericho in January 2023, the company has invested approximately three years in development activities leading to this milestone.

Strategic Impact of Jericho Acquisition Since January 2023

The January 2023 acquisition of the Jericho Copper Deposit has transformed AIC Mines from a single-mine producer into a developer-explorer with a clear near-term growth trajectory. This strategic move addresses the limited mine life of Eloise and provides a pathway for medium-term copper production growth. Jericho is described as "our next copper mine," reflecting its advanced development stage and reduced risks through ongoing underground access and geological confirmation.

The update highlights that Jericho has "transformed Eloise," emphasizing the strategic benefit of integrating the two deposits under a shared operational and infrastructure framework. Leveraging existing mining infrastructure and processing facilities at Eloise allows for potentially lower incremental costs compared to developing a standalone greenfield project. This approach is common in copper mining, where satellite deposits extend mine life and optimize asset utilization.

Financial Position Supports Growth and Development Activities

As of 30 June 2026, AIC Mines held A$41.7 million in cash and had drawn A$30 million from a Trafigura Prepayment Facility, with an additional A$20 million undrawn. This liquidity position supports ongoing development and working capital needs. The company’s balance sheet is structured to fund capital-intensive activities related to Jericho’s development while maintaining cash flow from Eloise operations.

The Trafigura Prepayment Facility, totaling US$30 million drawn as of 30 June 2026, suggests secured off-take or prepayment arrangements—a common financing method for copper producers to support development and working capital via forward sales. With a market capitalisation of A$550.3 million and an enterprise value of A$551.4 million as of 22 July 2026, AIC Mines has sufficient equity value to pursue additional capital raising if needed for accelerated development or strategic initiatives.

Shareholder and Board Structure Reflect Strong Governance and Investor Confidence

FMR Investments is the largest disclosed substantial shareholder, holding 14.0% of AIC Mines, with board representation through Non-Executive Director Jon Young. This institutional investment signals external validation of the company’s strategic and technical direction. Executive and director shareholdings total 6.9%, with Chairman Josef El-Raghy holding 5.1% and Managing Director Aaron Colleran owning 1.8%, indicating strong alignment between management and shareholders.

The board comprises four non-executive directors alongside the managing director, establishing a governance framework that provides oversight and external perspectives in managing a capital-intensive, commodity-exposed business.

Dual Commodity Production Model Offers Geographic and Market Diversification

AIC Mines operates in Australia with a focus on copper and gold production. The Eloise mine produces both copper and gold in concentrate, providing exposure to two commodity markets and potential hedging benefits when copper and gold prices diverge. In FY26, the company produced 13,064 tonnes of copper and 6,621 ounces of gold, with gold representing a meaningful secondary revenue source alongside primary copper output.

FY27 guidance anticipates increased production of both commodities: 17,500–18,500 tonnes of copper and 7,250–7,500 ounces of gold. Gold growth is less pronounced, reflecting Jericho’s primarily copper-focused nature with incidental gold production. This dual commodity exposure supports revenue stability amid commodity price volatility.

Competitive Cost Metrics Support Market Position

AIC Mines reported an AISC of A$4.99 per pound of copper (approximately US$3.39/lb) at Eloise in FY26, a key measure of competitiveness on the global copper cost curve. While lower-cost producers typically have AISC below US$2.50–3.00 per pound, AIC Mines’ mid-tier cost position offers resilience in lower price environments and attractive returns when prices rise.

FY27 guidance projects a slightly improved AISC range of A$4.80–5.20 per pound (US$3.36–3.64/lb) and an AIC range of A$5.20–5.60 per pound (US$3.64–3.92/lb), reflecting modest cost efficiencies and higher production volumes. These cost metrics are critical for investors evaluating production sustainability and cash flow generation across commodity cycles.

Market Outlook and Investor Perspective on Mid-Tier Copper Producers

Long-term copper demand drivers such as electrification, renewable energy infrastructure, and electric vehicle production continue to support the market. AIC Mines operates in a sector favoring producers with consistent production, manageable costs, and clear growth plans. The company’s three-year track record of meeting guidance and early Jericho development milestones position it as a lower-risk operator compared to earlier-stage explorers.

As of 22 July 2026, AIC Mines’ share price was A$0.69 with 797.6 million shares outstanding, reflecting its current market valuation. Although immediate share price impact from the update is unclear, consistent production delivery and Jericho de-risking are positive factors for investors assessing medium-term value creation. The multi-year production guidance through FY29 provides visibility into the company’s growth trajectory and cost profile, aiding informed investment decisions.