Anax Metals: Near-term Copper Producer Targeting Resource Growth, Regional Consolidation Strategy

Anax (ASX:ANX) is a project developer on track to begin producing copper and zinc concentrates from its Whim Creek project located in the Pilbara region of Western Australia. The Whim Creek project is a joint venture of Anax Metals owning 80 percent and JV partner Develop Global (Develop) owning the remaining 20 percent. Anax and Develop have commenced a scoping study to evaluate the potential for treating high-grade oxide/transitional ores from Develop’s wholly owned Sulphur Springs project on the Whim Creek heap.

The Whim Creek DFS (and leaching study) have demonstrated the opportunity for an eight-year mining operation producing copper concentrates, cathodes and valuable byproducts. The operation will generate $410 million in cash flow and deliver an NPV of $270 million with a development capex of $71 million.

Whim Creek, located 120 km from both Port Headland and Karratha on the NW Coastal Highway in the Pilbara region of Western Australia, has a long history of copper production. The project has four main deposits, namely Whim Creek, Mons Cupri, Salt Creek and Evelyn, with structurally controlled, volcanic-hosted massive sulphide style copper-zinc-lead mineralization.

Company Highlights

• Focus remains on delivering near-term copper production, within the next 18 to 24 months, at the Whim Creek copper-zinc project, which will generate in excess of $400 million in free cash flow over an eight-year mine life.
• The company’s growth strategy includes delivering both resource growth and consolidation of copper assets in the Pilbara region through the development of a central processing hub.
• Since completing the DFS last year, Anax has been considering the potential to expand the production capacity of Whim Creek infrastructure beyond 20 kt of copper equivalent per year.
• Capital requirements are anticipated to be low as Anax plans to utilise substantial existing infrastructure and implement preconcentration technology to reduce process capacity requirements.
• The company is currently working with key partners, including Develop Global (ASX:DVP), Greentech Metals (ASX:GRE), and several metal trading groups.

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