Austral Resources Ltd (ASX: AR1) this week delivered a major update on its copper mining and processing plans, as the company progresses its ambition to become a major producer over the next year or so.
The team at Shaw and Partners has examined the company's latest announcement and has reiterated a bullish share price for the company, which I'll get to later.
First, let's look at what the company announced this week.
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Major progress
Austral said in a statement to the ASX that the refurbishment plans at its Rocklands processing facility in Queensland were progressing on schedule and on budget.
The company said it had "focused on a disciplined and technically driven restart strategy for its Eastern operations'', which included bringing in consultants who were able to simplify the processing flowsheet.
As the company said:
That work quickly identified a simplified and conventional processing pathway centred around the replacement of the existing three-stage cone crushing circuit with a single SAG mill and pebble crusher configuration. The redesigned circuit reflects Austral's strategic focus on the efficient production of high grade copper concentrate and removes complexity associated with the previous flowsheet that contemplated secondary product streams, including magnetite, pyrite and native copper recovery.
Austral said it had now purchased an as-new SAG mill for Rocklands, which was expected to be delivered to site by late July.
The company said:
Securing a suitable SAG mill early in the refurbishment process removes one of the most significant schedule risks associated with concentrator restart projects and provides confidence in the Company's targeted commissioning timeline.
Austral is targeting the processing of three million tonnes of ore per year through the newly refurbished processing facilities, starting in mid 2027.
The company has already started mining at its Western operations, with the majority of that oxide ore to be processed through the company's Mt Kelly facility.
Austral Resources Chief Operating Officer Shane O'Connell said:
The Rocklands refurbishment continues to progress on schedule and on budget, with key milestones already achieved, including the completion of the front-end circuit redesign, acquisition of the SAG mill and commencement of detailed engineering activities. Our focus has been on developing a simpler, lower-risk and capital-efficient processing circuit that maximises copper concentrate production while leveraging the substantial infrastructure already in place at Rocklands. With engineering progressing, major equipment secured and site works planned to commence in Q3 2026, we remain confident in delivering the Rocklands restart on time and on budget.
Shares looking cheap
Shaw and Partners said in their note to clients that Austral was well-placed.
With Rocklands on track for a mid-2027 restart, Lady Loretta finalised, $83m in net cash and copper at all-time highs, Austral Resources is building one of Australia's most compelling copper growth stories.
Shaw and Partners has a price target of 42 cents on Austral shares compared to 8.8 cents currently. The company is valued at $214.6 million.
