Aurelia Metals Ltd.

Aurelia Metals Ltd. is a junior gold producer headquartered in Brisbane, Australia, operating primarily in Australia. The company's portfolio consists of 6 projects, comprising 1 operating mine, 2 development, 2 advanced exploration, and 1 reclamation project. Key assets include Peak, Federation, and Great Cobar. The business model centers on being an integrated developer and operator, leveraging a multi-facility processing capability to manage varied ore types through campaign-based treatment. The operational framework is supported by two distinct processing plants, one with an 800 ktpa capacity and another with a 455 ktpa capacity featuring three-stage crushing, gravity recovery, and flotation circuits. This configuration provides significant operational flexibility. A key element of the operational approach is a regional management model designed to streamline reporting, standardize equipment, and optimize scheduling to realize synergies across the business. The company emphasizes systematic efficiency improvements, underscored by the implementation of a dedicated workforce management system to enhance compliance and safety competencies. This integrated approach, combining flexible processing infrastructure with a centralized management model, positions the entity to efficiently advance its development pipeline while optimizing existing operations.

Strategic priorities are defined by four pillars: disciplined operations, people and mindset, focused growth, and sustainability. The growth strategy centers on extending the life of existing operations, expanding the mineral endowment through targeted regional exploration, and optimizing regional assets by effectively utilizing existing infrastructure. A key initiative involves studying the expansion of one processing facility to consolidate ore feed, which would enhance capital efficiency. The company's capital management philosophy dictates that cash flow from operations funds both development capital and exploration activities, ensuring a self-sustaining growth model. Operational discipline is driven by a continuous improvement program, titled 'Working Smarter', which provides a platform for employees to deliver efficiency gains; this program delivered A$15 million in value in FY24. The overarching objective is to 'fill the mills' by increasing total ore throughput to a target of 1.2 to 1.3 Mtpa following the ramp-up of key development projects, thereby maximizing the value of the existing asset base.

Executive leadership is headed by a Managing Director and CEO with over 30 years of industry experience, including senior executive roles at BHP and Oz Minerals. The Board of Directors is led by a Non-Executive Chair with over 45 years of experience in the resources sector, including a long tenure as Managing Director of Oil Search. The board comprises 6 members, 4 of whom are independent, ensuring robust oversight. Governance is structured through 3 key committees: Audit, Sustainability and Risk, and Remuneration and Nomination. These committees meet regularly, including at operational sites, to maintain direct engagement with business activities. The corporate governance framework is articulated in 'The Aurelia Way,' a code of conduct that guides decision-making and is reinforced by a formal Whistleblower Standard and an independent reporting service. The management philosophy promotes an 'act as an owner' mindset to align employee actions with shareholder interests and foster a culture of accountability and financial discipline.

The sustainability approach is guided by a new, board-approved strategy focused on 4 key pillars: the health and safety of people, energy intensity, water consumption intensity, and community resilience. The company's 'Zero Harm' safety philosophy is embedded through its 'Rules to Live By' and a systematic focus on Fatal Hazard Standards and Critical Control Verifications. In FY24, the company conducted a gap analysis to align its climate-related financial disclosures with the Australian Sustainability Reporting Standards. Community engagement is managed through formal Community Consultative Committees, a Community Grants Program, and Voluntary Planning Agreements designed to support local council strategies. A significant governance initiative involves the CEO chairing the Diversity, Equity & Inclusion Committee, which is tasked with increasing female participation and improving social integration with local communities. The company has also formalized its approach to psychosocial safety by finalizing a risk register and rolling out targeted training on positive duty and mental health resilience.

The corporate structure consists of several wholly-owned operational subsidiaries, including Big Island Mining Pty Ltd, Hera Resources Pty Ltd, and Peak Gold Mines Pty Ltd, which hold the group's operating and development assets. A significant shareholder, Brazil Farming Pty Ltd, holds a 19.88% interest, with a nominee director appointed to the board in July 2023. In 2023, the company entered into a strategic financing and offtake agreement with Trafigura Pte Ltd. This arrangement provided a US$24 million loan note facility and an A$65 million environmental bond facility. As part of the agreement, Trafigura was issued 120 million warrants with a 4-year term. A key component of this partnership is a long-term offtake agreement, which commenced on January 1, 2024, for the sale of 700,000 dry metric tonnes of concentrate produced from one of the company's processing plants, creating a long-term commercial relationship with a major global commodity trading firm.