The Aurelia Metals Ltd (ASX: AMI) share price has spent today’s entire session in the red from the market open.
Today’s loss comes as the company released its quarterly results to the market this morning.
Here we comb over Aurelia’s results in a bit finer detail.
Quick recap on Aurelia Metals
Aurelia is in the minerals exploration business. It has expertise in the mining of gold, silver, lead, tin and zinc.
Its two flagship projects are the Hera Mine and Peak Mine interests, although it derives the majority of revenue from the Peak site.
Aurelia has a market capitalisation of $487 million at the time of writing.
Aurelia’s quarterly report
Aurelia outlined several inflection points throughout its report.
Gold production came in at 22.9 thousand ounces (koz) at an all-in-sustaining cost (AISC) of $1,848 an ounce.
This was 34% below the previous quarter’s production of 34.9 koz at an AISC of $1,429 an ounce. The company attributes this to “lower gold grade(s) at all sites”.
Aurelia also reported a 63% increase in mineral resources, including “substantial growth” at its Great Cobar and Federation deposits.
Ore production at the Peak site also increased 21% this quarter, up from 128kt back in March, whereas ore production fell ~13% to 74kt at its Dargues site.
Copper metal output also reduced at Peak, although was “partially offset” by higher copper ore volumes.
Aurelia also provided an update on FY22 production guidance, calling for 112-123 koz at an AISC of $1,500-$1,700 per ounce. This is a step up from the previous guidance of 104 koz at $1,337 an ounce.
Finally, Aurelia reported a ~4.5% quarter-on-quarter decrease in its cash position to $75 million.
Investors seem dissatisfied with the result and have punished Aurelia shares since the release, driving the Aurelia share price down ~17% on the day.
Aurelia Metals share price snapshot
It has been a less than favourable year for the Aurelia Metals share price, posting a loss of 8% since January 1. This extends the previous 12 months’ loss of 33%.
Both of these returns have lagged well behind the S&P/ASX 200 Index (ASX: XJO)’s return of ~23% over the past year.