Anax Metals Limited

Anax Metals Corporate Update

Anax Metals Limited (ASX: ANX, Anax, or the Company) is pleased to provide an update to the market on its corporate strategy focused on the recommencement of production at the Whim Creek Copper Project (Project), located 115km southwest of Port Hedland in the West Pilbara region of Western Australia (Figure 1). The Project is 80% owned by Anax with the remaining 20% owned by Develop Global Limited (ASX: DVP, Develop).

  • Strengthened copper prices have enhanced the Whim Creek economics by 32% providing a Pre-Tax NPV7 of $357M and IRR of 74%.*
  • The planned 8-year mine life will generate ~$520M in free cash.*
  • Potential to increase open pit mine-life and cashflow through re- optimisation at higher commodity prices.
  • Evelyn and Salt Creek copper resource extension exploration to be prioritized in the coming field season.
  • Studies for the regional processing hub strategy have commenced.
  • The Sulphur Springs Oxide/Transitional leaching test work at the CSIRO completed.
  • Project financing and strategic partnering discussions progressing.

Anax’s Managing Director, Geoff Laing commented: “The Whim Creek asset continues to shape up as a strategic processing hub for the Pilbara. The robust standalone project delivers attractive economic outcomes which are highly leveraged to base metal prices.

The recent increase in copper and other key metal prices has significantly enhanced project financial metrics. Anax is ideally positioned to benefit from the positive momentum building in copper demand on the back of its critical role in electrification and green technologies

The team has worked diligently to ensure the Whim Creek asset is ready for near term production of key energy metals while establishing a platform for growth through the processing hub and resource extensions.”

Figure 1: Location of the Whim Creek Project

Strengthening copper, zinc, lead, silver and gold prices adds significant momentum to Whim Creek’s near-term development and recommencement of operations. Key outcomes from the Whim Creek Definitive Feasibility Study (DFS)1 and Heap Leach Study2 based on current metal price and exchange rate inputs provides a ~32% improvement in the Whim Creek financial outcome and would generate circa $520 million free cash, a Pre-Tax NPV7 of $357M and an IRR of 74%* (noting that the DFS1 and Heap Leach Study2 outputs from March and September 2023 provided an NPV7 of $270M and IRR of 55%, respectively).

Furthermore, price assumptions used in open pit optimisations in the DFS were markedly lower than current commodity prices as shown in Table 1.

Click here for the full ASX Release

This article includes content from Anax Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

The Conversation (1)
Lachy Nicholas
Lachy Nicholas
13 May, 2024

Following this story incredibly closely atm, loving the leaching aspect

Miramar Resources

Approval Received for Trouble Bore Drilling

Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that it has received Programme of Work (POW) approval for drilling at the 100%-owned Trouble Bore nickel (Ni) copper (Cu), cobalt (Co) and platinum group element (PGE) Project in the Gascoyne region of WA.

Keep reading...Show less
True North Copper

Completion of Institutional Component of Entitlement Offer and Placement

True North Copper Limited (ASX: TNC) (TNC or the Company) is pleased to provide an update in relation to its fully underwritten $24.3 million equity raising announced on 23 May 2024 (Equity Raising).

Keep reading...Show less
Culpeo Minerals

High-Grade Copper Assay Results in Rock Chip Samples from Vista Montana

Culpeo Minerals Limited (“Culpeo” or the “Company”) (ASX:CPO, OTCQB:CPORF) is pleased to announce strong copper assay results from its Vista Montana Prospect where sampling programs have confirmed the presence of a large, at surface, copper bearing system (Figure 1). The Vista Montana Prospect forms part of the Lana Corina Project1 in Chile.

Keep reading...Show less

Hudbay Completes Upsized Bought Deal Equity Offering

Hudbay Minerals Inc. ("Hudbay" or the "Company") ( TSX, NYSE: HBM) is pleased to announce that the Company has closed its previously announced public offering of common shares of the Company (the "Common Shares"). The underwriters exercised the full over-allotment option to purchase an additional 15% of the Common Shares in connection with the Offering. The Company issued, on a bought deal basis, 42,366,000 Common Shares, including 5,526,000 Common Shares pursuant to the exercise of the over-allotment option, at a price of US$9.50 per Common Share for aggregate gross proceeds of US$402,477,000 (the "Offering").

The Offering was completed pursuant to an underwriting agreement dated May 22, 2024 entered into between the Company and a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets, as Joint Bookrunners, and CIBC Capital Markets, National Bank Financial, Scotiabank and TD Securities as co-lead managers, and including Barclays Capital, Canaccord Genuity, Bank of America Merrill Lynch, Cormark Securities, ING Bank, Haywood Securities, Raymond James, Stifel Nicolaus, Eight Capital, and Paradigm Capital as co-managers.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
True North Copper

Replacement Entitlement Offer Prospectus

True North Copper Limited (ASX: TNC) has released its Prospectus announcement.

Keep reading...Show less
Copper nuggets.

IEF: World Needs 35 to 194 New Copper Mines by 2050 to Support Massive Demand

A new report from the International Energy Forum (IEF) outlines a key challenge for the global energy transition.

To meet business-as-usual requirements, the world will have to mine 115 percent more copper in the next 30 years than was historically mined up until 2018. And in order to electrify the world's fleet of vehicles, the organization states that 55 percent more new mines will need to come into production than would otherwise be needed.

Illustrating that point, the IEF explains that electric vehicles (EVs) currently need about 60 kilograms of copper, over twice as much as the 24 kilograms required for traditional internal combustion engine vehicles.

Keep reading...Show less

Latest Press Releases

Related News