Aeris Resources Ltd (ASX:AIS) is trading higher after recording a 260% year-on-year rise in net profit for the half-year ended December 31, 2020, which incorporated the results of the Cracow Gold Operations, acquired on July 1, 2020.
In the six month period, revenue rose by 99% from the previous corresponding period to $214.5 million while gross profit surged by 1,204% to $60.6 million.
Cash flow from operating activities spiked by 1,053% to $72.4 million, while net debt fell by 70% to $10.9 million from the six months ended December 31, 2019.
Investors have responded strongly with shares as much as 25% higher to 12.5 cents, approaching the new high of almost two years of 13 cents set earlier this year.
‘Excited’ about Aeris’ prospects
Aeris executive chairman Andre Labuschagne said: “It gives me the greatest pleasure to announce this result for the December 31 half-year.
“Since the start of July 2020, we have completed the acquisition of Cracow, discovered the Constellation deposit and significantly improved our balance sheet.
“The fundamentals for copper are looking extremely attractive and as we have seen over the last six months, gold is a good complementary commodity to also be producing.
“I am very excited about the prospects for Aeris in the coming years."
2020 a ‘sliding door’ year
He added: “Reflecting on 2020, it really was a ‘sliding door’ year for Aeris.
“We started the year, along with everyone in the Macquarie River Basin, with the real prospect of running out of water as the Burrendong Dam was at around 1% capacity.
“Substantial rains came in February and March, which provided immediate relief but then COVID-19 fell upon the world and created another period of uncertainty.
“We were fortunate that the Tritton Copper Operations was not directly impacted during the various COVID shutdowns and we continued to operate during the year.”
Cracow Gold Mine acquisition
“The COVID lockdown in the first half of the year also meant that the sale process for Evolution’s Cracow Gold Mine was suspended.
“However, we were able to re-engage with the Evolution team and by working together, completed the Cracow transaction on July 1, 2020.
“It is important that I acknowledge the support of our financier and shareholder, PAG, and other major shareholders, who contributed to the financing package that enabled the Cracow acquisition to be completed.”
Focus on Tritton and Cracow life extension
Labuschagne said: “Fast forward to 2021 and Tritton and Cracow are both producing positive operating cashflows, providing a platform on which we can now focus on life extension projects at both operations.”