Aurelia Metals Q4 gold output missed its internal target by 12%, pushing costs higher. The miner now guides fiscal 2027 production flat to slightly lower.
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Aurelia Metals delivered a Q4 2026 production miss that will test the market's patience with the gold and base metals miner.
Production at the company's flagship Peak mine came in at 28,000 ounces of gold equivalent, below the 32,000-ounce internal target the company set at the start of the quarter. Management attributed the shortfall to lower-grade ore zones in the underground operation and a planned mill maintenance shutdown that ran a week longer than expected.
All-in sustaining costs landed at $1,450 per ounce, up from $1,380 in Q3 and at the high end of the guidance range. The company flagged that rising diesel and reagent costs added roughly $40 per ounce to the quarterly number.
On the balance sheet side, net debt rose to $85 million from $72 million in the prior quarter, driven by working capital build and the extended mill outage. Aurelia ended the quarter with $28 million in cash and access to a $50 million undrawn credit facility.
For fiscal 2027, Aurelia guided production toward 115,000-125,000 ounces of gold equivalent, flat to slightly down from the current year. The company said it would spend $35 million on sustaining capital and $15 million on exploration, focused on extending mine life at Peak and advancing the Federation project.
The market will get its next look at operations when the company reports September-quarter output in October.
This article first appeared on GuruFocus.
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