Aurelia Metals Ltd (ASX: AMI) shares are having a day to forget on Thursday.
At the time of writing, the ASX All Ords share is down 36% to 19.5 cents.
Why is this ASX All Ords share crashing?
Investors have been selling off this gold miner's shares this morning after it released an update on its FY 2026 guidance, as well as its aspirational outlook for FY 2027 and FY 2028.
As a reminder, Aurelia Metals is aiming for production of 40,000 to 50,000 ounces of gold in FY 2025 with group operating costs of $185 million to $220 million.
According to the release, the ASX All Ords share is forecasting a drop in gold production to 35,000 to 45,000 ounces in FY 2026. Also heading in the wrong direction will be its group operating costs, which are expected to rise to $275 million to $315 million.
Commenting on its higher costs, the company said:
Peak operating costs in FY26 reflect higher operating development and process plant throughput. Federation operating costs, which were treated as growth capital in FY25, are now included in operating costs with commercial production expected from 1 July 2025.
It gets worse
Unfortunately, the following two years will be equally bumpy. Management is guiding to a rebound in gold production to 43,000 ounces to 53,000 ounces in FY 2027, before expecting another sizeable drop in production to 30,000 ounces to 40,000 ounces in FY 2028.
More bad news is that its operating costs are expected to keep rising across both years. It is guiding to group operating costs of $290 million to $330 million in FY 2027 and then to $310 million to $350 million in FY 2028.
Unlike the market, the ASX All Ords share's managing director and CEO, Bryan Quinn, was pleased with its outlook. He said:
It gives me great pleasure to release our FY26 guidance and aspirational outlook for FY27 and FY28 today as part of our Investor Day, which showcases the compelling opportunity that we have at Aurelia to continue building a great business in the Cobar Region. With Federation assumed to achieve commercial production in July 2025, we are now focused on ramping up the mining rates to the nameplate production of 600ktpa.
We are also committed to ensuring the Great Cobar Project is executed efficiently, with first production from the mine expected in FY28 in line with the project approval announcement. The combined ore from these two mines is planned to be treated in an expanded process plant at Peak, which can maximise revenue through its ability to produce separated concentrates, generating strong cash flow for our shareholders.
