Austral Resources Targets November Copper Recovery After Mt Kelly Output Falls 21% Below Guidance

Austral Resources Australia reported Mt Kelly copper output of 1,457 tonnes in the September quarter, 21% below the lower end of guidance, and is targeting a recovery in production from November. The Queensland copper producer disclosed the figures in a quarterly update, TradingView reported. Austral operates the Mt Kelly heap leach operation and the Rocklands processing plant in north-west Queensland.

Mt Kelly Shortfall and the Anthill Settlement

The shortfall reflected sulphuric acid deliveries at about 70% of requirements and an accelerated refurbishment of the crushing and agglomeration circuit. Austral stacked 789 tonnes of contained copper on the heap leach pads against a 400-500 tonne forecast, rebuilding inventory for later recovery, and expects December-quarter output of 1,300-1,600 tonnes, subject to operating conditions.

An early settlement of the Anthill agreement for approximately $52.0 million restored Austral's full economic interest in remaining copper production from the project. The consideration comprised $37.6 million in cash and approximately 159.8 million shares valued at $14.4 million, enabling more flexible ore supply from Mt Clarke, Flying Horse, Lady Annie and Lady Brenda.

"The September quarter was a period of investment for AR, but we are not satisfied with the production result," chair David Newling said. "The investment, however, has positioned us to grow production."

The crusher refurbishment included a new agglomerator drum, with crushing and stacking restarting after an August shutdown. Austral stacked 136,079 tonnes of ore during the quarter, above its 110,000-130,000 tonne forecast, but the interruption reduced fresh material available for leaching. Mt Kelly generated about $5.4 million in operating cash before capitalised waste stripping, compared with about $2.0 million in the June quarter.

Hammer Metals Scheme Heads to a Vote

Austral is pursuing the acquisition of Hammer Metals, whose shareholders are scheduled to vote on the proposed scheme on 9 November. Subject to shareholder approval and a subsequent court hearing, the transaction would add a mineral resource of 39.19 million tonnes at 0.53% copper and more than 3,000 square kilometres of tenure. Austral entered a binding scheme implementation deed to acquire 100% of Hammer Metals for approximately $80.7 million, Mining Weekly reported, after a competing offer from Larvotto Resources lapsed.

Earlier Steps Toward the Enlarged Producer

In July 2026, Hammer Metals received a non-binding unsolicited indicative offer from Austral Resources at $0.087 per share, valuing the equity at approximately $80.7 million, AInvest reported. In August 2026, Austral secured a $15 million investment from the QIC Queensland Critical Minerals Fund to support a Stage 2 expansion of its Rocklands processing facility, Mining Weekly reported. In October 2026, Austral reported high-grade copper-gold intersections at its Cameron River project in north-west Queensland, with the strongest result from the Waterhole prospect, TradingView reported.

Peer Quarterly Results

Philex Mining reported third-quarter 2026 core net income of ₱537 million, up 56% year-over-year, with the Silangan mine producing its first copper cathodes and gold-silver doré after process plant commissioning, The future of trading reported on 30 October. Cobre Limited reported 78% copper recovery and 818 tonnes of cathode production for September 2026, with positive EBITDA of US$0.5 million, Business & Financial reported on 29 October.

Rocklands Restart and Drilling

The Rocklands copper processing plant remains scheduled to restart in the second half of 2027, with demolition of its redundant crushing circuit completed and electrical inspections progressing ahead of planned plant energisation in early 2027. Austral completed 10,524 metres of reverse circulation drilling and 463 metres of diamond drilling during the quarter, and drilling at McLeod Hill extended the mineralised footprint beyond one kilometre of strike. The group ended September with $24.2 million cash and $2.64 million in sales receivables, and cash stood at $21.04 million on 30 October following further funding for Hammer.