This report is an updated version of the report published on 20 March 2025 at 1:50 PM AEDT.

Aeris Resources Limited (ASX: AIS)

Aeris Resources Limited (ASX: AIS) is a mid-tier mining company, mainly focusing on the production and sale of copper, gold and silver and the exploration of copper and gold.

Recommendation Rationale - SELL at AUD 0.180

• Surpassed Resistance: AIS’ share price has surpassed the ‘Resistance 1’ level recommended on 5 March 2025; thus, it can face resistance at the current levels.
• Lower EBITDA Margin: During H1 FY25, AIS’ EBITDA margin stood around 27.4%, while industry median is 35.5%.
• Technical Standpoint: A 14-day RSI (Relative Strength Index) of 67.37 suggests that the share price of AIS (Aeris Resources) is approaching the overbought zone. Typically, an RSI above 70 is considered overbought, indicating that the stock might be overvalued and due for a potential correction or pullback.
• CFO Appointment: On 13 March 2025, Aeris Resources Limited (ASX: AIS) announced the appointment of Ms. Dane Van Heerden as its new Chief Financial Officer (CFO), replacing Mr. Rob Brainsbury, who remains on extended personal leave and will be reassigned to a different role upon his return. While Ms. Van Heerden brings over a decade of experience within the company, the prolonged absence of Mr. Brainsbury, a long-serving CFO since 2013, may signal internal challenges.

Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY June'26E) (Illustrative)

AIS is expected to trade at a slight premium to its peers considering the 347% and 257% YoY increase in H1 FY25’s Gross Profit and Net Profit after tax, respectively. For conducting valuation, the following peers have been considered: Hillgrove Resources Ltd (ASX: HGO), Capral Ltd (ASX: CAA), and Burgundy Diamond Mines Ltd (ASX: BDM).

Considering that the stock has surpassed its R1 level, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 0.180, as of 20 March 2025, at 12:35 PM AEDT).

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 20 March 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.