AIC Mines Reports Third Straight Year Meeting Eloise Production Targets as Jericho Project Advances

Eloise Mine Maintains Consistent Production and Strong Cash Flow

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

Financially, Eloise’s operations were robust, achieving 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 necessary capital investments, the mine generated A$63.3 million in net mine cash flow during FY26. This cash flow is significant for a company with a market capitalization of A$550.3 million, providing flexibility for development projects and working capital across its portfolio.

FY27 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 transition from a single-asset producer to a multi-deposit operator. The company forecasts producing between 17,500 and 18,500 tonnes of copper and 7,250 to 7,500 ounces of gold in concentrate in FY27. This represents significant growth from FY26, driven by Jericho’s phased contribution.

Cost guidance for FY27 anticipates an AISC ranging from A$4.80 to A$5.20 per pound of copper (US$3.36–US$3.64/lb) and an AIC between A$5.20 and A$5.60 per pound (US$3.64–US$3.92/lb). These slightly tighter cost ranges compared to FY26 reflect operational synergies and scale benefits as production expands. All material assumptions supporting these targets remain unchanged as of the company update.

Medium-Term Production Targets Signal Strong Growth Through FY29

AIC Mines has set ambitious production targets for FY28 and FY29, reflecting a steady ramp-up of the combined Eloise-Jericho operation. For FY28, copper production is expected between 20,000 and 22,000 tonnes, with further increases to 25,000–27,000 tonnes projected for FY29. This growth positions the combined asset as a significant mid-tier copper producer in Australia and the broader region.

These targets demonstrate the strategic role 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 output base, improving unit economics and cash margins. The multi-year guidance indicates ongoing development and ramp-up activities over several fiscal years.

Jericho Underground Access Advances Ahead of Schedule

A major de-risking milestone at Jericho was achieved when underground access crossed the J1 lens in late January 2026, ahead of schedule. This milestone provides direct geological validation of the deposit model, confirming mineralisation style and ground conditions consistent with pre-development interpretations, thereby reducing key technical and execution risks.

This ahead-of-plan progress reflects positive tunnelling outcomes, favorable ground conditions, and effective engineering during underground development. For investors, early achievement of such milestones enhances confidence in technical feasibility and lowers risks of delays or cost overruns. Since acquiring Jericho in January 2023, approximately three years of development have culminated in this significant advancement.

Jericho Acquisition Reshapes Company Portfolio and Growth Path

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. Jericho is described as "our next copper mine," reflecting its advanced development stage and de-risked status through underground access and geological confirmation.

The update emphasizes Jericho’s transformative impact on Eloise by integrating both deposits under shared infrastructure. This integration leverages existing mining and processing facilities, enabling development at potentially lower incremental costs than a standalone greenfield project. Such satellite deposit development is common in copper mining, extending mine life and optimizing asset utilization.

Strong Financial Position Supports Growth and Development

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 A$20 million undrawn. This liquidity supports ongoing development and working capital needs. The debt structure, including the US$30 million Trafigura facility, indicates secured off-take or prepayment arrangements, a typical financing approach for copper producers.

With a market capitalization of A$550.3 million and an enterprise value of A$551.4 million as of 22 July 2026, the company maintains sufficient equity value to support future capital raises if needed for accelerated development or strategic initiatives.

Investor Confidence Reflected in Shareholder and Board Composition

FMR Investments is the largest substantial shareholder with a 14.0% stake, represented on the board by Non-Executive Director Jon Young, providing institutional oversight. Executive and director holdings total 6.9%, with Chairman Josef El-Raghy holding 5.1% and Managing Director Aaron Colleran 1.8%, aligning management interests with shareholders. The board comprises four non-executive directors plus the managing director, ensuring governance and external perspectives in decision-making.

Diversified Copper and Gold Production Enhances Revenue Stability

AIC Mines’ Australian operations produce both copper and gold concentrates, offering exposure to two commodities and potential hedging benefits amid price fluctuations. FY26 output included 13,064 tonnes of copper and 6,621 ounces of gold, with gold representing a meaningful secondary revenue stream.

FY27 guidance anticipates increased production of both metals: 17,500–18,500 tonnes of copper and 7,250–7,500 ounces of gold. The relatively smaller gold growth suggests Jericho is primarily copper-focused with incidental gold. This dual commodity exposure provides revenue diversification and stability in volatile markets.

Competitive Cost Metrics Support Market Position

In FY26, Eloise achieved an AISC of A$4.99 per pound of copper (approx. US$3.39/lb), positioning AIC Mines in the mid-tier of the global copper cost curve. While lower-cost producers typically have AISC below US$2.50–3.00/lb, AIC Mines’ cost structure 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 of A$5.20–5.60 per pound (US$3.64–3.92/lb), reflecting modest cost efficiencies and higher production volumes spreading fixed costs.

Market Outlook Favors Consistent Mid-Tier Copper Producers

Long-term copper demand drivers such as electrification, renewable energy, and electric vehicles continue to support the market. AIC Mines’ consistent production record and ahead-of-schedule Jericho progress position it as a lower-risk operator compared to earlier-stage developers without established cash flow.

As of 22 July 2026, AIC Mines traded at A$0.69 per share with 797.6 million shares outstanding. While the immediate share price impact of the update is unclear, the company’s track record and de-risked growth projects provide investors with visibility into production ramp-up and cost profiles through FY29, aiding informed investment decisions.