- 01Mt Kelly 21% below guidance; recovery targeted Nov.
- 02789t stacked; Dec-quarter forecast 1,300–1,600t.
- 03Anthill restores full copper interest; Rocklands restart 2H27.
Austral Resources Australia (ASX: AR1) is targeting a recovery in copper production from November after its Mt Kelly operation produced 1,457 tonnes in the September quarter, 21% below the lower end of guidance.
The shortfall reflected sulphuric acid deliveries at about 70% of requirements and an accelerated refurbishment of the crushing and agglomeration circuit.
However, 789t of contained copper was stacked on the heap leach pads against a 400–500t forecast, rebuilding inventory for subsequent recovery.
The Queensland producer expects December-quarter output of 1,300–1,600t as newly exposed ore feeds its Western Operations, although the recovery remains subject to operating conditions.
Anthill Project Settlement
An early settlement of the Anthill agreement for approximately $52.0 million restored Austral’s full economic interest in remaining copper production from the project.
The consideration comprised $37.6m in cash and approximately 159.8 million shares valued at $14.4m, enabling more flexible ore supply from Mt Clarke, Flying Horse, Lady Annie, and Lady Brenda.
Accelerated waste stripping exposed ore across four pits, while mining crews expanded activity at Lady Annie and Lady Brenda and prepared Flying Horse for ore extraction in the December quarter.
“The September quarter was a period of investment for AR, but we are not satisfied with the production result,” chair David Newling said.
“The investment, however, has positioned us to grow production—[…] we stacked more contained copper than forecast, ore is now exposed across multiple pits, and the production run rate should increase before the end of 2026.”
New Agglomerator Drum
The crusher refurbishment included installation of a new agglomerator drum, with crushing and stacking restarting after an August shutdown.
Austral stacked 136,079t of ore during the quarter, exceeding its 110,000–130,000t forecast, but the interruption reduced fresh material available for leaching.
Limited acid availability depressed copper recovery and reduced solution grades, prompting a scoping study into greater on-site acid storage to buffer future disruptions.
Despite weaker output, Mt Kelly generated about $5.4m in operating cash before capitalised waste stripping, compared with about $2.0m in the June quarter.
Rocklands 2H27 Restart
The Rocklands copper processing plant remains scheduled to restart in the second half of 2027, with demolition of its redundant crushing circuit completed.
Most components of the new 4.8-megawatt semi-autogenous grinding mill arrived on site, while electrical inspections progressed ahead of planned plant energisation in early 2027.
Across its exploration portfolio, Austral completed 10,524 metres of reverse circulation drilling and 463m of diamond drilling during the quarter.
At McLeod Hill, drilling extended the mineralised footprint beyond one kilometre of strike and advanced the prospective McLeod Hill–Canyon copper corridor to approximately 3km.
Hammer Metals Acquisition
Austral is pursuing the acquisition of Hammer Metals (ASX: HMX), whose shareholders are scheduled to vote on the proposed scheme on 9 November.
Subject to shareholder approval and a subsequent court hearing, the transaction would add a mineral resource of 39.19 million tonnes at 0.53% copper and more than 3,000km² of tenure.
The group ended September with $24.2m cash and $2.64m in sales receivables, after the Anthill settlement and $15.3m of capitalised waste stripping contributed to a $47.5m quarterly cash decline.
Cash stood at $21.04m on 30 October, following further funding for Hammer, while the company continues to assess a possible release of rehabilitation security.
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