Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

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The All Ordinaries Index (ASX: XAO) is unlikely to surge 38% over the next 12 months, but ASX All Ords copper stock Aeris Resources Ltd (ASX: AIS) looks well-placed to do just that.

That's according to Macquarie Group Ltd (ASX: MQG)'s analysts, who ran their slide rule over the small-cap miner following its quarterly update on Monday. And they liked what they saw.

After closing the day up 2.63% yesterday, trading for 19.5 cents per share, the Aeris share price is up 11% in 2025.

Now, here's why Macquarie expects the ASX All Ords copper stock could keep charging higher in the year ahead.

Should I buy the ASX All Ords copper stock today?

Macquarie has an outperform rating on Aeris Resources.

The broker sounded a positive note on the miner's fourth-quarter cost performance.

The ASX All Ords copper stock's 4Q FY25 all-in sustaining cost (AISC) of $108.6 million was 5% below Macquarie's estimates, which the broker attributed to lower-than-expected processing costs.

Capital expenditure of $30.5 million also came in below Macquarie's total capex estimate by 7%, as its analysts had anticipated higher sustaining costs at Aeris' Tritton project.

On the financing front, Macquarie noted:

During the quarter AIS refinanced its A$50m (A$40m drawn) Washington H Soul Pattinson & Company Ltd (ASX: SOL) facility with an extended date to 31 August 2026, taking its net debt (ex-restricted cash and lease liabilities) to A$11.8m.

In addition, AIS completed the refinancing of its A$50m ANZ Group Holdings Ltd (ASX: ANZ) guarantee facility with a new A$60m guarantee facility with WHSP.

Connecting the dots, Macquarie maintained its outperform rating on the ASX All Ords copper stock with a slightly reduced 12-month price target of 27 cents a share. That represents a potential upside of 38% from current levels.

What's the latest from Aeris Resources?

After Macquarie's report was published yesterday, Aeris released its 31 December 2024 Group Mineral Resource and Ore Reserve Statement for its 100%-owned Tritton, Cracow Operations, and the North Queensland, Jaguar, and Stockman Projects.

The ASX All Ords copper stock said its Mineral Resource is now estimated at 48.9 million tonnes. That's comprised of 784,000 tonnes of copper, 1.36 million ounces of gold, 1.05 million tonnes of zinc, and 36.6 million ounces of silver.

The Group Ore Reserve was estimated at 14.1Mt, containing 249kt of copper, 398koz of gold, 413kt of zinc, and 11.8Moz of silver.

"Our copper and gold focused Mineral Resource and Ore Reserve estimates highlight the quality, scale, and diversity of our asset base," Aeris' executive chairman Andre Labuschagne said.

He added:

A focused forward work plan targets high-value opportunities to drive growth and extend asset life. At Tritton, enhanced resource reporting methodology will improve future Resource-to-Reserve conversion, strengthening our growth pipeline and supporting long-term development confidence.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Macquarie Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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