Aeris Resources Ltd.

Aeris Resources Ltd. is a junior copper producer headquartered in Brisbane, Australia, operating primarily in Australia. The company's portfolio consists of 4 projects, comprising 3 operating mines and 1 suspended project, in addition to several early-stage exploration prospects. Key assets include Cracow and Tritton. The company's business model is centered on a diversified portfolio of base and precious metals assets at various stages of the operational lifecycle, including production, care and maintenance, and advanced development. This structure provides a blend of current cash flow generation with a pipeline for future growth. Operational capabilities are enhanced by targeted technological upgrades, such as the installation of a Jameson Cell to improve concentrate grades and ongoing investigations into the Albion oxidative leach process to achieve a step-change in metal recoveries. The operational approach involves ramping up production from higher-grade sources and extending the life of existing operations through improved mining practices and design. A key characteristic is the management of a portfolio that includes both wholly-owned processing plants and assets reliant on third-party toll processing, requiring strategic management of logistics and processing slots. The business is positioned as a mid-tier producer with a significant exploration portfolio aimed at organic growth and resource replacement.

Strategic priorities focus on delivering on production and cost guidance while advancing a pipeline of growth projects. The approach involves extending the life of current operations through targeted near-mine exploration and updating mineral resource estimates to improve resource confidence. Capital allocation is directed towards key infrastructure projects, such as tailings storage facility upgrades to secure multi-year production capacity, and advancing feasibility studies for development-stage assets. A core objective is to de-risk future production by completing detailed mine design and metallurgical test work on advanced projects. The company also pursues financial flexibility through measures like equity raises and debt facilities to support working capital needs and fund growth initiatives. A key part of the strategy includes transitioning non-performing assets to care and maintenance to preserve value while undertaking studies on potential restart scenarios that focus on increasing throughput and improving recoveries.

The Board of Directors consists of an Executive Chairman and 4 Non-Executive Directors, with oversight structured through Audit and Risk, Sustainability, and Remuneration and Nomination Committees. Board meeting attendance in FY2024 was high across all members. The executive leadership team includes a Chief Financial Officer, a Chief Technical Officer, a Chief Operating Officer, and a General Manager of Human Resources. A key governance action in FY2024, recommended by the Remuneration Committee, was the Board's decision to not award salary reviews or short-term incentive payments to the executive team. This decision was a direct response to the organization's overall performance not meeting expectations, demonstrating a strong link between executive remuneration and company results. The remuneration framework is explicitly designed to attract and retain personnel by aligning rewards with company goals, while allowing flexibility to adjust for economic conditions and the cyclical nature of the industry.

The sustainability approach is guided by the principle of “Good for business, good for others” and has been refined to align with the GRI 14 Mining Sector Standard. A key focus is preparing for mandatory climate-related financial reporting by assessing risks and opportunities under the proposed Australian Sustainability Reporting Standards. The company has committed that new projects not connected to the grid will source 30% of their power from solar energy. Workplace safety performance saw a significant improvement, with the Lost Time Injury Frequency Rate (LTIFR) decreasing to 1.2 from 1.7 in the prior year, supported by initiatives like the implementation of an Ear Fit Validation Unit. The organization reported a 16% female participation rate and an 11% Aboriginal and Torres Strait Islander participation rate. Community and stakeholder engagement is being enhanced through the implementation of Consultation Manager software for improved record-keeping and transparency. Environmental initiatives include the trial of a biological control program using cochineal bugs to manage an invasive cactus species, mitigating a significant safety and environmental hazard.

The corporate structure includes a significant major shareholder, Washington H. Soul Pattinson (WHSP), which held 31.4% of the company as of September 2024. This relationship extends beyond equity, as WHSP also provided a $50 million, 2-year debt facility in August 2023, positioning it as both a key investor and a primary lender. The group operates through several wholly-owned subsidiaries, including Tritton Resources Pty Ltd, Lion Mining Pty Ltd, and Round Oak Minerals Pty Ltd, which holds the interests in various operational and development assets. In a prior period, the company divested its 70% interest in the Torrens joint venture, receiving a 2.5% net smelter royalty in return. The company also holds a 70% interest in the Canbelego joint venture. An independent Non-executive Director is a partner at HopgoodGanim Lawyers, which provided legal services to the company on normal commercial terms during the fiscal year.