Canterra Copper lifts copper output 7.8%, improves cash flow in September quarter
Key Facts
Australia's Canterra Copper increased copper production to 3,419 tonnes in the quarter ended September 2026, up 7.8% from the previous quarter, according to its quarterly report. The increase coincided with higher operating cash flow at the Kanmantoo mine and lower unit costs, combining output growth with improved cash performance from operations. Production in the June quarter was 3,170 tonnes, according to the previous quarterly report, which provides the basis for the quarterly comparison. This brought total copper production for the year through the end of September to 9,709 tonnes. The results form part of the annual production programme of the company, which relies on underground mining at Kanmantoo.
September-quarter revenue after treatment and refining charges totalled A$73.2 million, according to the report, supported by increased copper sales volumes and a higher realised price. At the mine level, operating cash flow reached A$32.1 million, compared with A$23.3 million in the June quarter, improving alongside higher production. At the group level, net cash flow for the quarter was A$14.2 million. The cash balance at the end of September rose to A$44.1 million, excluding restricted cash, according to figures released by the company. The results thus reflected increased revenue linked to sales and prices, cash generation from the mine and higher available liquidity for the group at quarter-end.
On costs, all-in sustaining costs fell to A$5.44 per pound of payable copper sold during the September quarter. That compares with A$5.76 per pound sold in the June quarter, according to the previous report, putting the improvement in unit costs alongside production growth. The company attributed the decline partly to "improved fixed-cost absorption", referring to those costs being spread more effectively across production. Under this explanation, spreading the fixed-cost burden across output helped reduce unit costs during the period. The company's reported measure is all-in sustaining costs on a payable copper sold basis, which is also the basis used for comparison with the previous quarter.
The results come from an Australian copper producer that has shifted from open-pit to underground mining, according to the company's description of its operations. Commercial production at Kanmantoo's underground operations was announced in July 2024, making the activity central to the operating performance presented in its quarterly reports. Canterra focuses its exploration activities on South Australia, alongside its existing copper production business. The company was previously known as Hillgrove Resources before adopting the Canterra Copper name through a legal name change. The change took effect on 17 August 2026, according to a company disclosure, with the September-quarter report carrying the Australian producer's new name.
For the current year, Canterra targets copper production of between 12,750 and 14,000 tonnes during 2026, according to the official Kanmantoo operations page. This guidance puts production achieved through the end of September in the context of the annual target the company has set for its operations. Annual all-in sustaining cost guidance ranges from A$5.75 to A$6.25 per pound of payable copper sold. September-quarter costs came in below the lower end of that range, having declined from their June-quarter level. The annual guidance thus combines a specified range for targeted copper volumes with a range for costs per pound sold, while the latest quarterly results showed improvements in both production and unit costs.
On next steps, the company plans to release an updated mineral resource and ore reserve estimate by the end of October 2026, according to the September-quarter report. The forthcoming update covers the resource and reserve base as part of the company's monitoring of its mining assets alongside reporting production and cost results. Its operating plans also include starting stope mining at the Emily Star project in the second half of 2027. That timing was set out in the June-quarter report as part of announced plans to develop future mining operations. Canterra's stated schedule thus includes a near-term resource and reserve update, followed by the planned start of mining at Emily Star during the stated period next year.