Here’s why the Aeris Resources (ASX:AIS) share price is rocketing 22%

The Aeris Resources share price is rocketing 22% in early afternoon trading. We take a look at the ASX gold and copper producer’s results.
The post Here’s why the Aeris Resources (ASX:AIS) share price is rocketing 22% appeared first on The Motley Fool Australia. –

surging asx share price represented by piggy bank with rocket attached to it

The Aeris Resources Ltd (ASX: AIS) share price is rocketing, up 22% in early afternoon trading. At the time of writing, the Aeris share price has retreated slightly to 12 cents, up 20%. 

We take a look at the Aeris half year financial results (H1 FY21), released after market close yesterday, below.

How much did Aeris’ profit increase for the half year?

The Aeris share price is surging after the ASX copper-gold producer and explorer reported a 99% lift in revenue. This equates to revenue of $214.5 million, up from $108 million in H1 FY20.

Aeris notes that the half year results include those of the Cracow Gold Operations. This was acquired from Evolution Mining Ltd (ASX: EVN) on 1 July.

The company’s gross profit soared 1,205%, to $60.6 million. Additionally, Aeris’ net profit after tax (NPAT) of $45.9 million was up 260% year-on-year.

Cashflow from operating activities also surged, up 1,053% to $72.4 million. Aeris net debt decreased 70%, down to $10.9 million.

Diluted earning per share (EPS) were at 2.3 cents. This is down compared to a loss of 6.3 cents per share (cps) in the prior corresponding half.

Aeris has not historically paid a dividend and did not pay one for the half year.

Comments from Management

Regarding the half-year results, executive chairman, Andre Labuschagne said:

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 6 months, gold is a good complimentary commodity to also be producing…

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…

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.

Aeris Resources share price snapshot

Patient Aeris Resources shareholders have been well-rewarded over the past 12 months, with shares up 200% since 24 February 2020. By comparison, the All Ordinaries Index (ASX: XAO) is up a slender 0.1%.

With today’s intraday gains factored in, the Aeris share price is up 11% so far in 2021.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Aeris Resources (ASX:AIS) share price is rocketing 22% appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!