Austral scores record copper revenue for March despite Mt Isa weather event

Despite an extreme rain event in Mt Isa in March, copper producer Austral Resources recorded sales revenue of A$11.6 million for the month – bringing sales revenue for Q1 2023 to a total of A$35.55 million.

The company successfully continued plating copper cathode and resumed mining in three days following a suspension due to an access road issue caused by more than ~500mm of rain.

It was the highest aggregate weekly rainfall ever recorded in Mt Isa region, yet the site team managed to mitigate the extreme rainfall events and zero safety, and environmental incidents were reported.

Steady production rates in Q1

The company has maintained steady state production rates in January, February, and March, with each month resulting in positive operational cashflows despite the Mt Isa Shire being declared a natural disaster zone. Thiess also remains over 11% ahead of the mining schedule.

“Austral Resources (ASX:AR1) had another exceptional month in March 2023 despite facing unprecedented wet weather challenges,” MD and CEO Dan Jauncey said.

“We continued plating copper while experiencing record rainfall whereas surrounding mine operations are still not fully operational.

“This achievement is a testament to the Austral team, contractors and all our suppliers. I can’t thank them enough.”

Debt paid down and operating costs lower

Austral has also reduced senior debt to A$21.1 million during March, repaid Thiess A$5.66 million and saw total payables down at 60 days to A$8.9 million.

The company’s EBITDA for January and February 2023 (excluding March) was A$6.6 million.

Total costs for January and February 2023 (including selling costs, royalties, and exploration expenditures) were ~US$2.76 per lb, with total operating costs for March expected to be substantially lower.

This article was developed in collaboration with Austral Resources Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.