The Aeris Resources Ltd (ASX: AIS) share price is ending the week in a very disappointing fashion.
In morning trade, the ASX All Ords copper miner's shares are down 17% to 40.5 cents.
Why is this ASX All Ords mining share sinking?
Investors have been rushing to the exits today after the company provided an update on the performance of its operations and its guidance for FY 2023.
According to the release, the Tritton operation met its revised FY 2023 copper production guidance with 17,205 tonnes.
This was driven by good contributions from the newly commissioned high-grade Avoca Tank mine and from higher grade stopes at the Tritton mine in the June quarter. Copper production in June was 2,436 tonnes, which was Tritton's best production month since 2019.
Aeris Resources' Cracow operation delivered FY 2023 gold production of 48,220 ounces, which met guidance. Management also advised that construction of the tailings dam lift has commenced, providing tailings capacity for another three years.
Management also revealed that mining activities at Mt Colin for the fourth quarter were in line with plan. However, the 70,000 tonnes processing run scheduled for June at the Ernest Henry processing plant (EHM) was deferred by Evolution Mining Ltd (ASX: EVN) until the first half of July.
While that was disappointing, the biggest disappointment, and likely the reason this ASX All Ords mining share is falling today, was its Jaguar operation.
Jaguar fails to roar
The release reveals that production at Jaguar during the fourth quarter was below plan.
Over the last few months, Bentley has experienced three separate mining-induced seismic events in the lower levels of the mine. These events have interrupted production activities and delayed access to higher grade stopes.
In light of this, the mine plans at Jaguar for FY 2024 are being reviewed. Jaguar FY 2023 copper production of 3,057 tonnes met guidance, whilst zinc production of 22,479 tonnes was below the guidance range of 24,000 tonnes to 29,000 tonnes.
Earnings guidance
As a result of the operational factors at Mt Colin and Jaguar, Aeris has withdrawn its EBITDA guidance for FY 2023.
This is particularly disappointing given that it had already downgraded its EBITDA guidance with its half-year results. It was expecting to report earnings of $80 million to $110 million, which was down from its previous guidance of $140 million to $170 million.
