Aurelia Metals Limited

Revenue increased 27% year over year; underlying EBITDA increased 41%; underlying NPAT increased 60%. Operating cash flow from the Cobar region was $51.2 million, up 37% year over year. Growth capital spend was $21.4 million in the half, including $4.3 million for plant expansion and $11.2 million at Great Cobar. The company said the final FY25 tax payment was $12.2 million, and restricted cash was $27.8 million at December, with that amount higher today due to an additional February bond payment. Management expects group depreciation of around $50 million to $55 million for the year, with roughly $20 million from Federation, and said FY26 EBITDA margin should improve as Federation volumes ramp. Peak plant capacity is being expanded from 800,000 tonnes to 1.1 million to 1.2 million tonnes, with the first part due in Q4 FY26 and the second part in Q1 FY27. No quarterly guidance was given beyond that, but management said cash flow should strengthen further as Federation and the plant expansion ramp.

Bryan Quinn framed the half as another strong operational and financial period, emphasizing that the strategy is already showing benefits through more reliable operations, higher plant utilization, and a growing organic resource pipeline. He highlighted Federation ramping ahead of plan, Great Cobar progressing on schedule, and the company moving toward its longer-term target of 40,000 copper equivalent tonnes in FY28. His tone was optimistic and confident, but he repeatedly tied that optimism to disciplined execution, self-funding, and building value through existing assets first.

Martin Cummings emphasized that the profit and cash flow improvement was driven by both stronger production and strong commodity prices. He cited revenue up 27%, underlying NPAT up 60%, and operating cash flow of $51.2 million, noting that this includes sustaining capital for Peak and Federation. He also outlined $21.4 million of growth capex in the half, including $4.3 million for plant expansion and $11.2 million for Great Cobar, and said the refinance is progressing well with a target to agree terms this quarter and close either this quarter or early next quarter. He also explained that the $9.1 million financing cost in the P&L versus $2.7 million expense mainly reflects rehab unwind and amortization of prior borrowing costs.

Analysts focused on financing costs, depreciation, tax, and whether the company would pursue inorganic growth such as the Aleris transaction. Management said the financing cost difference was mainly noncash rehab unwind and amortized borrowing costs, that depreciation should rise to about $50 million to $55 million for FY26, and that the tax shield is effectively exhausted so the company is now a taxpayer. On M&A, management would not commit to any deal but said it will always assess organic and inorganic opportunities on value, with priority still on filling its mills and advancing Great Cobar, Federation, and Nymagee.