Mining and exploration company, Aeris Resources Limited (ASX: AIS) made an announcement on 8 January 2019 stating that its wholly owned subsidiary Tritton Resources Pty Ltd has been granted a new exploration tenement (EL8810) by the NSW Department of Planning and Environment. Following this news, the share price of Aeris Resources Limited increased by 5.128 percent as on 8 January 2019.
This new exploration tenement is located adjacent to the north?west corner of the current Tritton tenement package, and it covers around 296 square kilometers of the area which brings the total Tritton tenement package to 2,160 square kilometers.
The company has discovered over 750,000 tonnes of copper on the Tritton tenement package, within a 50km long corridor adjacent to a stratigraphic unit referred to as the Budgery Sandstone. As per the company’s announcement, Budgery Sandstone has been extended further 65 km through the northern half of the existing Tritton tenement package by the Geological mapping completed in 2017, and it has been interpreted that it will extend further 40 kilometers north beyond Tritton’s tenement package into an area now covered by EL8810. The exploration activities within the new exploration tenement will start in the calendar year 2019, and initially, the exploration will be focused on the historical data complication and geological mapping over tenement.
Recently, the company provided an update on its Torrens Project in which the company informed about two key contracts which have been awarded, for drilling and helicopter services for preparing a diamond drilling program at the Torrens Project. The first stage of the diamond drilling program will consist of 8-10 drill holes which are expected to be in between 700m-1,500m depth.
In FY 2018, the Group recorded a profit after tax of $55.304 million, compared with a loss after tax for $33.299 million in FY 2017. The profit was impacted by the increased revenues which resulted from the increased production compared to the prior year. Further, Group’s profit was impacted by the increased copper prices and Gain on debt restructuring of $54.846 million which was offset by the increased costs mainly due to increased production and a foreign exchange loss of $1.354 million.
At the end of FY 2018, the company had a positive net asset position of $54.999mn, cash and cash equivalents at $23.33mn and inventories of $16.309mn. During the financial year, the company’s s net cash inflow from operating activities was $50.518mn, with net cash outflows from investing activities of $29.340mn and net cash outflows from financing activities of $7.544 million.
Meanwhile, in the last six months, the share price of AIS increased by 47.90 percent as on 7 January 2019 and is trading at PE multiple of 0.63x. AIS’s shares traded at $0.205 with a market capitalization of circa $88.86 million as on 8 January 2019 (AEST 3:40 PM).