Here's why the Aeris Resources (ASX:AIS) share price is rocketing 22%

The Aeris Resources share price is rocketing 22% in early afternoon trading. We take a look at the ASX gold and copper producer's results.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published February 24, 2021 1:06 pm AEDT

The Aeris Resources Ltd (ASX: AIS) share price is rocketing, up 22% in early afternoon trading. At the time of writing, the Aeris share price has retreated slightly to 12 cents, up 20%.

We take a look at the Aeris half year financial results (H1 FY21), released after market close yesterday, below.

surging asx share price represented by piggy bank with rocket attached to it — Image source: Getty Images

How much did Aeris' profit increase for the half year?

The Aeris share price is surging after the ASX copper-gold producer and explorer reported a 99% lift in revenue. This equates to revenue of $214.5 million, up from $108 million in H1 FY20.

Aeris notes that the half year results include those of the Cracow Gold Operations. This was acquired from Evolution Mining Ltd (ASX: EVN) on 1 July.

The company's gross profit soared 1,205%, to $60.6 million. Additionally, Aeris' net profit after tax (NPAT) of $45.9 million was up 260% year-on-year.

Cashflow from operating activities also surged, up 1,053% to $72.4 million. Aeris net debt decreased 70%, down to $10.9 million.

Diluted earning per share (EPS) were at 2.3 cents. This is down compared to a loss of 6.3 cents per share (cps) in the prior corresponding half.

Aeris has not historically paid a dividend and did not pay one for the half year.

Comments from Management

Regarding the half-year results, executive chairman, Andre Labuschagne said:

Since the start of July 2020 we have completed the acquisition of Cracow, discovered the Constellation deposit and significantly improved our balance sheet. The fundamentals for copper are looking extremely attractive and as we have seen over the last 6 months, gold is a good complimentary commodity to also be producing…

We were fortunate that the Tritton Copper Operations was not directly impacted during the various COVID shutdowns and we continued to operate during the year…

Fast forward to 2021 and Tritton and Cracow are both producing positive operating cashflows, providing a platform on which we can now focus on life extension projects at both operations.

Aeris Resources share price snapshot

Patient Aeris Resources shareholders have been well-rewarded over the past 12 months, with shares up 200% since 24 February 2020. By comparison, the All Ordinaries Index (ASX: XAO) is up a slender 0.1%.

With today's intraday gains factored in, the Aeris share price is up 11% so far in 2021.

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