AIS – Aeris Resources | Aussie Stock Forums


Beware broker recs
Bell Potter analysts’ second goldie pick for Cal 2021 (the other, RRL)

“Aeris Resources (AIS)
Aeris Resources had a transformational
year in 2020, primarily due to the
acquisition of the Cracow Gold Mine from
Evolution Mining. From a single-asset
copper company highly leveraged to the
copper price, AIS is now a multi-mine
copper-gold producer offering a balanced
exposure to two of our preferred metals.
Following completion of the acquisition on
1 July 2020, Cracow delivered an excellent
maiden quarter for AIS, with production
and costs beating our expectations.
Combined with a good performance from
Tritton, AIS cut its net debt position from
~$60m to $28.3m over the quarter. AIS
has since repaid a further A$7.5m of its
Bridging loan ahead of schedule and made
a voluntary US$2.0m repayment to its
Tranche B facility.
The Cracow acquisition, the strengthening
of the balance sheet, the re-structure
of the share register and some exciting
recent exploration success at Tritton is, in
our view, just beginning to gain recognition
in the market. We forecast strong earnings
and cash flow growth in FY21 on low
multiples and see the opportunity for a
material re-rating for AIS in 2021.
Buy, Target Price $0.112/sh”



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