Sunny outlook for copper producers as demand outstrips supply

Wed 21 October 2026
5 MIN READ

Alexandra Cain

Freelance Finance Journalist

Record prices mean renewed activity among junior copper companies. These three set out an impressive future at ASX's recent Small and Mid-Cap Conference.

Conference moderator Ian Irvine introducing the mining and resources sector.

ASX-listed copper companies are making the most of excellent conditions in the sector, including record prices and strong cash flow. Demand for the metal is only set to rise, thanks to the AI boom and electrification, good news for local miners.

“You can't mention AI right now without talking copper, resources, water and power. All of this is needed to run the AI bandwagon and AI infrastructure. The amount of copper we need is set to increase 50% by 2040 and that’s just the base case,” says Grady Wulff, Senior Market Analyst for financial services and wealth management firm Bell Financial Group, sponsor of ASX's recent SMID Cap Conference.

At the September 2026 ASX SMIDcaps Conference, run by ASX in partnership with Bell Financial Group, 27 small and mid-cap companies shared their stories with a packed house of investors and advisers at the State Library of NSW. The popular twice-yearly event features CEOs and presenters from small and mid-cap ASX listed companies.

Solid fundamentals double production

With the underlying market as a tailwind, copper mining company AIC Mines’ (ASX:A1M) sound cash position is a springboard to develop a new mine and fund expansion of a processing plant. The company owns and operates the Eloise and Jericho mines, 60 kilometres south-east of Cloncurry in north-west Queensland, with the Eloise mine producing 13,064 tonnes of copper and 6,621 ounces of gold in concentrate in FY26

AIC Mines Managing Director and Chief Executive Officer Aaron Colleran during his Q&A

“We produce copper and gold in concentrate and we truck that concentrate to Mt Isa for smelting,” says Aaron Colleran, Managing Director and Chief Executive Officer, AIC Mines.

At A$63.3 million in net mine cash flow, the Eloise mine generated more cash in FY26 than in the two prior years combined. This is providing strong funding support for the Jericho mine development and processing plant expansion at Eloise.

“Our cash flow clearly displays leverage to an improving copper price. As we ramp up the new mine, we’ll double production over the next two years,” says Colleran.

Copper helps drive green rollup strategy

Sustainable infrastructure company Infragreen (ASX:IFN) is using growing cash flows to back profitable, founder-led businesses in recycling and clean energy. The ASX-listed company holds stakes in four businesses across 22 sites in Australia and New Zealand. One of them is scrap metal recycler Minemet Recycling Group, which processes ferrous and non-ferrous metals such as copper at four sites across Western Australia, Victoria and New Zealand.

Infragreen's EBITDA rose 29% in FY26 and dividends from its businesses more than doubled. Its share of underlying net free cash flow reached A$11.7 million, with 95% of EBITDA converted to cash. With debt at just 0.6 times EBITDA, the company has plenty of capacity to increase stakes in its businesses, fund bolt-on acquisitions and acquire a new business every 12 to 24 months.

“We target businesses typically at $5 million to $10 million EBITDA and support them on their journey,” says McIver.

"Demand for copper is growing and so is the importance of reusing and recycling existing metals. We've seen really strong non-ferrous prices over recent years."

Cash a bedrock for growth

Polymetallic miner Aurelia Metals’ (ASX:AMI) strong cash position means it can expand its processing plant and develop its signature Great Cobar copper project. The company operates three underground mines in the Cobar region of New South Wales. Two, the Peak gold mine and the New Cobar mine seven kilometres to the north, make up its Peak operation and supplied around two-thirds of mill feed last year. The Federation mine, 100 kilometres south of Peak, supplied the remaining third after reaching commercial production last financial year.

Infragreen Group Limited Chief Financial Officer Martin McIver during this presentation

“Gold is 55% of our revenue, but zinc is 25%. Copper’s gone up 18% this year. Zinc’s gone up 25%, so zinc is a very important part of the base metal story of Aurelia,” says Martin Cummings, Interim Chief Executive Officer and Chief Financial Officer, Aurelia Metals.

Aurelia finished the year with A$144 million in the bank, no drawn debt and a new A$150 million debt facility. The board declared a fully franked one cent dividend, Aurelia’s first in six years.

“Great Cobar is the future for Peak. It’s a good project now, but really an exciting upside story and that’s where we see material growth in our copper production,” says Cummings.

Aurelia announced Great Cobar in 2025 as a A$90 million project, with a mining inventory of roughly 3.5 million tonnes and an eight-year mine life. It is due to begin producing in FY28, lifting Aurelia's copper output. Aurelia plans to invest around A$120 million in sustaining and growth capital this year, while keeping a strong exploration budget.

Explorer drills deeper for scale

At the other end of the pipeline, copper explorer Solstice Minerals (ASX:SLS) is working out just how big its Nanadie copper-gold project is. The project sits around 95 kilometres south-east of Meekatharra in Western Australia's Murchison region. Solstice bought the deposit about 18 months ago, when it carried a historical resource of 40 million tonnes at 0.4% copper and 0.1 grams per tonne gold.

"We didn't pay too much because at the time there were fewer eyes on copper. We knew we could make it bigger. We didn't know we could make it better," says Nick Castleden, Managing Director, Solstice Minerals.

"We didn't pay too much because at the time there were fewer eyes on copper. We knew we could make it bigger. We didn't know we could make it better".

The company's fourth drill hole returned 62 metres at 1.55% copper and 0.66 grams per tonne gold, comfortably the best result in the deposit's history. A diamond hole extending the shallower drilling went 630 metres down without leaving mineralised rock. A second deep hole reached 840 metres, where the drill rods ran out. Every hole drilled since has hit copper.

Solstice Minerals Limited Managing Director and Chief Executive Officer Nick Castleden at ASX SMIDcaps

Solstice has A$45 million in cash and three drill rigs running, and expects to put a new resource estimate around Nanadie in the first half of 2027. The deposit is on a granted mining lease close to major road infrastructure. Five broking houses have started covering the company in less than a year.

"It's not in the Andes. It hasn't got a river running across the top of it. It hasn't got a village downstream. If we can't start a mine in a flat bit of goldfields bush on a granted licence with shallow cover, then the mining industry is in trouble," says Castleden.