Austral's challenges related to bringing the Mt Kelly facility in Queensland out of mothballs, solving teething issues, navigating severe weather events, soaring diesel costs, and COVID-19, and delays with crushing, stacking, and leaching, which rippled across the heap leach operation's ability to cover costs.

 

Founder and managing director Dan Jauncey said in September that the turnaround was well underway, and he said December was an "outstanding" month's work with average production rate of 33.3 tonnes per day of plated copper for a total of 976t.

 

Total costs in the month were A$8.9 million, or US$2.82 per pound.

 

With production moving towards a target 33.5tpd, the rate that is expected to be maintained over 2023, he said costs should decline.

 

The copper producer, which is focused on Queensland's Mt Isa region, expects to end mining at the Anthill pit earlier than expected because its contractor, Thiess, is still 12% ahead of schedule.

 

Cathode production will continue for nine months after mining ends, delivering significant cost benefits.

 

It expects to generate around A$12 million in cash per month from sales.

 

In addition to claiming positive cashflow status, late last year Austral secured a $12.8 million debt finance facility through 2.9% shareholder the Harvey family office's Secover, and completed a $5 million equity issue with Thiess at 20c per share to help offset delays in income.

 

The finance injection was primarily designed to support a fast-track of the Lady Colleen sulphide scoping study, which is expected to replace Anthill as the next source of production.

 

Austral shares, which have been as high has 65c since listing, were up 18% this morning at 29.5c, 

valuing it at $169 million.

 

It has traded as low as 13.5c in recent weeks.