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Miramar to Present at Gold Coast Investment Showcase Conference
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that the Company’s Executive Chairman, Mr Allan Kelly, will be presenting at the Gold Coast Investment Showcase at 9:30am (EST) on Thursday, 20th June 2024.
Mr Kelly’s presentation will be live-streamed and can be accessed via the following link: https://www.goldcoastinvestmentshowcase.com.au/livestreamingregistration
In addition, the presentation will be recorded and made available via the Company’s website after the Conference.
Shareholders wanting to come along to the conference can register via this link: https://vert.eventsair.com/gold-coast-investment-showcase-2024/freeregistration/Site/Register
Miramar Executive chairman, Mr Allan Kelly, and Technical Director, Ms Marion Bush will be exhibiting at Stand 11.
Click here for the full ASX Release
This article includes content from Miramar Resources 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.
Impact Minerals Limited
Investor Insight
With a mining lease application underway and a scoping study that shows excellent economics, Impact Minerals’ game-changing, advanced Lake Hope high-purity alumina project makes for a compelling investment case.
Overview
Impact Minerals (ASX:IPT) is an exploration and development mining company focused on discovering and developing new resource projects within Australia. Lake Hope, a transformational acquisition by the company and its current flagship asset, is a high-purity alumina (HPA) project in Impact’s home territory of Western Australia, a tier-one jurisdiction.
This advanced-stage project allows the company to fast-track the asset toward development, firmly establishing the company on the road to production and increasing shareholder value.
HPA is a high-value product with various uses in several industries that are key to the transition to a low-carbon world. It is mainly used in LED lighting, micro-LED screens, and ceramic-coated separators in lithium-ion batteries. Both these markets are forecast to grow dramatically over the next decade, and a looming supply shortage is predicted for 2026.
HPA is also necessary for producing synthetic sapphire and scratch-resistant glass. With these ever-widening applications for HPA, demand for this resource is expected to grow from US$3.18 billion to US$12.21 billion by 2030 with a compounded annual growth rate of about 20 percent.
Lake Hope is the company’s current focus as it moves towards production, and where a very shallow, high-grade resource of HPA precursor material has been identified in the top two meters of a dry salt lake. The deposit has unique physical and chemical properties that will allow for inexpensive digging and mining, with transportation to a processing facility off-site in an established industrial area. This will accelerate the approvals processes required to get into production.
With a mining lease application pending, Impact aims to bring Lake Hope, which contains almost 1 million tons of potential HPA, into production when the forecast average price for 4N HPA (99.99 percent Al2O3) and related products is about US$20,000 per ton. The ‘4N’ designation indicates the purity grade, making it suitable for high-tech end uses.
Outstanding economics from the latest scoping study released by the company shows Lake Hope’s potential to be the lowest-cost producer of HPA globally by up to 50 percent.
Lake Hope has a maiden mineral resource estimate (MRE) of 3.5 million tons at 25.1 percent alumina (Al2O3) for a contained 880,000 tons of alumina. The company also received heritage clearances for the entire Lake Hope deposit further de-risking the project and providing another critical component in the company’s application for a mining lease.
Impact completed a bulk sampling and test pits program at the Lake Hope project in December 2023, and later reached a key milestone by producing HPA greater than 99.99 percent (4N) purity from the metallurgical processing of lake clays acquired from Lake Hope.
In February 2024, a new proprietary metallurgical process for producing HPA from the lake clays was identified. Impact produced 99.99 percent (4N) Al2O3 from a low-temperature leach (LTL) process. The LTL process may lower the capital and operating costs to produce HPA compared to the sulphate process which underpinned the recent scoping study. The LTL process will be included in the ongoing pre-feasibility study in parallel with the sulphate process at marginal extra cost to determine the best processing route to HPA. The PFS is due to be completed in late 2024.
A comparison of the LTL process and the sulphate process
The company is well funded to finance the pre-feasibility study at the Lake Hope High Purity Alumina project and exploration activities at the Arkun battery minerals project.
Impact Minerals has been awarded a $2.87 million grant for the commercialisation of its innovative process to produce High Purity Alumina (HPA) from the Lake Hope deposit. The grant is under the Federal Government’s Cooperative Research Centres Projects (CRC-P) program which fosters short-term, industry-led research collaborations. The grant is part of an estimated $6.4 million research and development project to be completed within three years and designed to provide Impact with the relevant information required to complete a definitive feasibility. A key component of the grant funding will be to construct a pilot plant, which is a key goal for 2025, and this will provide consistent material for off-take and qualification trials.
Impact Minerals was also one of the inaugural cohort of seven companies selected to be part of the prestigious BHP Xplor program. BHP Xplor, an accelerator program introduced by BHP in August 2022, is designed to help provide participants with the opportunity to accelerate their growth and the potential to establish a long-term partnership with BHP and its global network of partners.
The BHP Xplor funding was used to identify new target areas for copper and other energy metals around the Broken Hill area in New South Wales, eastern Australia, where Impact has been quietly adding to its ground position for several years.
Additionally, the company is exploring its large Arkun battery metals project, also in Western Australia which covers nearly 2,900 square kilometres. Three new exploration licence applications were submitted recently immediately north of the Arkun project along trend from the recently discovered REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe, and the Caligula copper anomaly. These anomalies require drill testing which will occur in 2024 and is an exciting development in the emerging mineral province of southwest WA.
A strong management team with over 50 years of combined industry experience leads the company. With a mining and exploration geology degree, Dr. Mike Jones, managing director, launched a long career consulting and leading mining organizations. Peter Unsworth, the non-executive chairman, has more than 35 years of experience in multiple financial sectors, such as securities industries and wealth management. Paul Ingram, a non-executive director, has led several mining companies since 2003. Impact Minerals has the experience and expertise to lead the company to success.
Company Highlights
- Impact Minerals is an exploration and development mining company focused on rapidly moving its flagship Lake Hope high-purity alumina (HPA) project toward production.
- The Lake Hope project has a high-grade maiden mineral resource estimate (MRE) of 3.5 million tonnes at 25.1 percent alumina (Al2O3), for a contained 880,000 tonnes of alumina that can be converted to HPA.
- HPA is used throughout multiple industries, and the overall HPA market is projected to grow by a CAGR of 18.4 percent by 2030.
- A pre-feasibility study is currently in progress and scheduled to be completed by Q4 2024. A mining lease application for the Lake Hope High Purity Alumina (HPA) was recently lodged with the aim of being granted by 2026.
- The company’s project portfolio also includes assets with high-grade mineral deposits of a range of base, critical and precious metals.
- Impact Mineral’s 2,000-square-mile Arkun nickel-copper-PGE project in Western Australia has produced encouraging assays that motivate further exploration. Maiden drill programmes are planned for early 2025.
- The company is also exploring its Broken Hill copper project in New South Wales following a major grant under the auspices of the BHP Xplor program in 2023..
- A strong management team leads the company with experience in geology, mining and corporate finance.
Key Projects
Lake Hope HPA Project
Impact Minerals’ Lake Hope HPA project is in Western Australia, a tier-one mining jurisdiction. HPA is a crucial component in many new and emerging technologies, creating ongoing demand for high-grade sources. The Lake Hope project is the company’s flagship as it moves toward production.
Project Highlights:
- Maiden Mineral Resource Estimate: A maiden mineral resource of 3.5 million tonnes at 25.1 percent alumina (Al2O3) for a contained 880,000 tonnes of alumina has been defined at the Lake Hope HPA Project. About 88 percent of the resource, or 775,000 tonnes of alumina, is in the higher confidence indicated resource category.
- Amenable to Open-pit Mining: The Lake Hope project is a unique HPA asset amenable to shallow, open-pit mining. The deposit is soft and shallow, allowing for cheap digging and minimal infrastructure requirements. This type of deposit also lowers the environmental footprint of the operation.
- Fast-tracked to Production: A mining lease application is currently underway. Once granted, the company will begin working towards a pre-feasibility study and mini pilot plant. Impact Minerals plans to reach a complete pilot plant by 2026.
- Impressive Results of the 2023 Scoping Study: Outstanding economics show Lake Hope to potentially be the lowest-cost producer of High Purity Alumina (HPA) globally by up to 50 percent. Key outcomes from the scoping study include:
- Annual production of 10,000 tpa of 4N HPA with an initial 25-year mine life
- Annual EBITDA of A$174 million.
- 2 years construction period with 5,000 tonnes of production during the first year, 8,000 tonnes in the second year and 10,000 tonnes of production thereafter.
- US$934 million post-tax NPV8 at an IRR of 55 percent.
- Mining Lease Application: Amining lease application was lodged in mid-2024 over the West Lake resource while a miscellaneous licence application (L63/99) was lodged to cover mine infrastructure and haulage road.
The scoping study was underpinned by a sulphuric acid process allowing the company to achieve a new milestone by producing HPA with purity of more than than 99.99 percent (4N) from the metallurgical processing of lake clays acquired from Lake Hope. The company further identified a new proprietary metallurgical process for producing HPA from the lake clays. Known as the low-temperature leach (LTL) process, this also produced 99.99 percent (4N) Al2O3 and has the potential to lower even further the capital and operating costs to produce HPA compared to the sulphate process. The LTL process will be included in the ongoing pre-feasibility study along with the sulphate process to determine the best processing route to HPA. The PFS is due to be completed in late 2024.
Broken Hill Copper Project
The Broken Hill project has a significant land position of 815 square kilometers and hosts multiple targets with the potential for high-grade copper. Broken Hill is located in New South Wales, Australia, an area known for its prolific silver-lead-zinc mining operations and the giant Broken Hill deposit.
Project Highlights:
- Participant in the BHP Xplor Program: Impact was selected for the BHP Xplor program in 2023 based on its Broken Hill project. The program is designed to allow participants to accelerate growth and establish a long-term partnership with BHP.
- Potential for Additional Minerals and Deposits: As well as copper, the project has significant exploration potential for magmatic nickel-copper-PGE sulphides, and at the time the host rocks were formed, Broken Hill was located close to the world-class nickel-copper-PGE deposit of Jinchuan and the significant Lengquisheng deposit. The project area also has the potential to contain zinc-lead-silver deposits, providing even more value.
Arkun Nickel-Copper-Gold-Lithium-REE Project
The Arkun project is a 2,900-square-kilometer nickel, copper and gold project located in the emerging Ni-Cu-PGE province near the world-class Julimar Ni-Cu-PGE deposit and surrounded by Anglo American Corporation, which secured its ground holding shortly after Impact secured its asset. Anglo-American is one of the world’s top ten mining companies, and their presence in the region brings confidence in the project’s potential.
Project Highlights:
- Additional Exploration Underway: Impact plans follow-up work programs, including drilling, at its priority targets.
- Significant Targets Identified: Recent soil sampling identified two new prospects:
- Hyperion prospect - Located in the northwestern part of the project area returned with rare earth element anomalism of up to 5,880 ppm (0.59 percent) total rare earth oxide (TREO+Y) and neodymium and praseodymium (Nd+Pr) of up to 21 percent.
- Caligula prospect - Initially identified on the roadside, the Caligula prospect is a large and significant target for porphyry copper mineralisation.
- Three New Exploration Licences: Impact applied for three new exploration licences expanding Arkun project along trend from the recently discovered REE soil geochemistry anomalies at Hyperion, Swordfish and Horseshoe as well as the Caligula copper anomaly.
Management Team
Peter Unsworth - Non-executive Chairman
Peter Unsworth, formerly a chartered accountant, has over 35 years of experience in the corporate finance, investment and securities industries and a wealth of management experience with public and private companies. A former executive director with a leading Western Australian stockbroking company, Unsworth has been a director of several public exploration and mining companies. He recently completed a long time serving as chairman of the Western Australian Government-owned Gold Corporation (operator of The Perth Mint). Unsworth is the founding chairman of Impact Minerals.
Dr. Mike Jones - Managing Director
Dr. Mike Jones is the founding managing director of Impact Minerals Limited, which was listed on the Australian Stock Exchange in November 2006. Reporting to the board of directors, he is responsible for the company's performance as it moves towards production at its Lake Hope High Purity Alumina Project and also for implementing strategies to explore and maximize the value of the company's other extensive tenement holdings.
Since listing, he has helped raise more than $60 million to help fund the exploration of Impact’s projects and managed the company through significant adverse events, including the global financial crisis and the Fukushima nuclear disaster, which affected Impact’s considerable investment in the uranium sector, a five-year global downturn in the mining sector and more recently, the COVID-19 pandemic.
Paul Ingram - Non-executive Director
Paul Ingram is a geologist with extensive experience managing major mineral exploration programs for several publicly listed companies and has been involved in the mining sector for over thirty years. He has designed and implemented innovative techniques for exploration in remote areas and has managed projects in countries throughout Australia and East Asia. Ingram has been a director of the following listed companies in the past three years: Polo Resources from January 2008 to January 2011; A-Cap Resources since June 2009; Consolidated Global Investments since September 2006; Caledon Resources from February 2003 to March 2008; and Australian Pacific Coal since March 2011.
Dr Frank Bierlein - Non-executive Director
Dr. Frank Bierlein is a geologist with 30 years of experience as a consultant, researcher, lecturer and industry professional. Bierlein has held exploration and generative geology management positions with QMSD Mining, Qatar Mining, Afmeco Australia and Areva NC, and consulted for, among others, Newmont Gold, Resolute Mining, Goldfields International, Freeport McMoRan, and the International Atomic Energy Agency. He is currently a non-executive director of PNX Metals. He was previously a non-executive director of Gold Australia NL and chaired the advisory board of a Luxembourg-based private equity fund between 2014 and 2021.
Impact Awarded $2.87 Million in Federal Funding for Pilot Plant Work on the Lake Hope High Purity Alumina Project, WA
Impact Minerals Limited (ASX:IPT) is pleased to announce that in collaboration with CPC Engineering and the Mineral Recovery Research Centre (MRRC) at Edith Cowan University, they have been awarded a grant of $2.87 million grant towards the commercialisation of the company’s innovative process to produce High Purity Alumina (HPA) from the Lake Hope deposit located 500 km east of Perth in Western Australia. HPA is on the list of critical minerals for Australia, Europe, and North America.
The grant is provided under the Federal Government’s Cooperative Research Centres Projects (CRC-P) program which fosters short-term, industry-led research collaborations. The grant is part of an estimated $6.4 million research and development project to be completed within three years and designed to provide Impact with the relevant information required to complete a Definitive Feasibility Study in that time frame. A key component of the grant funding will be to construct a pilot plant, which is a key goal for 2025, and this will provide consistent material for off-take and qualification trials.
Impact Minerals’ Managing Director Dr Mike Jones with Eugenia Phegan of CPC Engineering andAssociate Professor Amir Razmjou of the Mineral Recovery Research Centre at ECU holding a pilot scale Membrane.
Impact Minerals’ Managing Director Dr Mike Jones, said, “We are immensely proud to drive this transformative project, which aligns with and advances Australia’s strategic interests in critical minerals. We thank Minister Husic for his personal interest in the project as this federal funding not only underscores the national importance of our work but also enhances our capability to implement world- leading technologies that set new standards in sustainability and efficiency in the mineral sector. Being able to commence work on our pilot plant and the subsequent feasibility studies with the world-leading research of Edith Cowan University and the unique skills and experience of CPC Engineering will position Impact Minerals at the forefront of the global HPA market, ready to meet increasing demands with a sustainably produced, high-quality product. The project is scheduled to advance from initial trials to a definitive study phase swiftly, ensuring timely delivery of HPA and fertilizer samples to potential customers and partners. This grant and likely contributions from the R and D rebate will ensure our next stage of work after the PFS will be well funded.”
The research project brings together three groups with the unique assets and skills to bring the Lake Hope project to fruition.
Impact has developed innovative metallurgical processes to produce HPA and fertiliser by-products from the salts in the Lake Hope deposit, which will be mined and trucked to Kwinana for processing. The mining and processing will have a minimal environmental footprint, with no on-site beneficiation required at the mine, nominal long-term rehabilitation requirements and one of the lowest Scope 1 and Scope 2 CO2 emissions of any HPA production process globally (ASX Release June 19th 2024).
The Mineral Recovery Research Centre at ECU, led by Associate Professor Amir Razmjou, is a world leader in Membrane Selective Technology (MST) in which plastic or ceramic membranes are used to remove a wide variety of contaminants from reagents and water. The technology is well-established in water treatment, and the MRRC is adapting the technology to the mining industry.
Impact believes MST to be a further game changer for producing HPA, and in particular, for cost-effective reagent regeneration and removal of contaminants in waste water. This, in turn, will lead to lower energy costs, emissions and, in particular, operating costs for the project. It adds to the overall small environmental footprint of the Lake Hope project and the research aims to design a “zero-liquid discharge” project to minimise or even eliminate waste from the process.
CPC Engineering is completing the engineering design studies and estimates of the operating and capital costs for the proposed 10,000 tonnes per annum HPA plant as part of Impact’s Pre-Feasibility Study on Lake Hope (ASX Release October 9th 2024). Eugenia Phegan of CPC, who has previous experience in building HPA pilot plants, recognised the potential of MST for Lake Hope and Impact thanks her for her insight and energy in helping design and complete the grant application as well as her on-going contribution to the Lake Hope journey.
CPC will design, build and manage the pilot plant under the research project. In addition, Impact will also work with ECU and CPC to generate new uses for HPA.
About the Grant and Future Directions
The CRC-P grant of $2.87 million aims to foster the development of competitive, sustainable, and productive Australian industries through strategic research collaborations. Impact Minerals, along with its partners, will fund the remainder of the $6.4 million project, being $3.53 million, with cash and in-kind contributions. Impacts contribution will be about $1.7 million, much of which will be potentially eligibility for the Research and Development rebate of 43%.
Click here for the full ASX Release
This article includes content from Impact Minerals, 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.
BHP Releases Latest Quarterly Results, Olympic Dam Faces Temporary Halt
Mining giant BHP (ASX:BHP,LSE:BHP,NYSE:BHP) reported a solid start to its 2025 fiscal year.
For the quarter ended in September, BHP’s copper production rose by 4 percent year-on-year, driven by higher feed grades and recoveries at its Escondida mine in Chile, one of the world's largest copper mines.
Iron ore production at BHP’s Western Australia Iron Ore operations also increased, rising 3 percent year-on-year. BHP is maintaining its iron ore production guidance at 255 million to 265.5 million tonnes for its 2025 fiscal year.
BHP’s steelmaking coal operations posted a significant 20 percent increase in production. The company attributes this rise to improved operational stability following challenges in previous quarters.
However, it's worth noting that these numbers exclude BHP's recently divested Blackwater and Daunia mines. When they are included, coal production was down 19 percent year-on-year.
Steelmaking coal output for the year is expected to be within the 16.5 million to 19 million tonne range.
The potash sector is another area of focus for BHP, with the Jansen Stage 1 project in Canada now 58 percent complete. The company is targeting first production in approximately two years. The asset is seen as a long-term growth driver for BHP as global demand for potash, a key ingredient in fertilisers, is expected to rise over the next decade.
Nickel production faced a 3 percent decline, with BHP announcing a temporary suspension of operations at its Nickel West site. The decision was prompted by lower nickel prices and the company’s intent to reduce production costs. BHP plans to invest about US$300 million annually to maintain operational readiness should market conditions improve.
Olympic Dam faces temporary halt
A day after the release of BHP's quarterly results, news hit that operations at the company's Olympic Dam mine have been temporarily halted after transmission infrastructure was damaged by electrical storms.
According to the Australian Financial Review, surface infrastructure at the South Australian site has been switched to care-and-maintenance mode, and is running off of backup generators.
Tom Koutsantonis, the state's energy minister, said Olympic Dam would be offline for five to seven days.
"We have paused the majority of our underground mining and surface processing operations. Backup generation is providing power to Roxby Downs township, along with critical on-site infrastructure,” a BHP spokesperson said, adding that transmission lines that supply Olympic Dam were structurally damaged by the electrical storms.
Olympic Dam is a major producer of copper, gold and uranium, and the company is currently evaluating a potential expansion that could double its smelting and production capacity by 2027.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Cygnus Metals, Doré Copper to Merge, Bringing Together Québec Assets
Cygnus Metals (ASX:CY5) announced plans to merge with Doré Copper Mining (TSXV:DCMC,OTCQB:DRCMF), saying it will acquire 100 percent of Doré's issued and outstanding common shares via a definitive arrangement.
In an October 15 press release, Cygnus said the deal will create a Québec-focused copper and lithium company, with Doré’s Chibougamau copper-gold project and Cygnus’ James Bay lithium projects as its main assets.
The new entity sees the potential for resource growth, as well as brownfield and greenfield discoveries at the properties. Chibougamau has a resource of 10.8 million tonnes at 3.5 percent copper equivalent, while the James Bay-based Pontax project has a resource of 10.1 million tonnes at 1.04 percent lithium oxide.
The Chibougamau project has the only processing facility within a 250 kilometre radius. The plan is to implement a “hub-and-spoke” strategy where this facility will be used to process material from various nearby deposits.
“The Doré team is delighted at the thought of working with the Cygnus team to create a critical metals company and to maximise the value of what we know is an outstanding asset at Chibougamau,” said Doré President and CEO Ernest Mast.
“This merger will provide the funding, additional expertise and the strategy to hopefully generate superior shareholder returns through brownfields exploration at Chibougamau," he added.
Cygnus said it intends to raise AU$11 million through a placement with two tranches. It will use the funds for resource and production advancement at Chibougamau, and development of the lithium exploration pipeline at James Bay.
“We intend to devise and implement an aggressive exploration programme, utilising highly experienced geologists and the latest technology, with the aim of driving strong resource growth at a time when the world desperately wants more copper from tier-one locations,” explained Cygnus Executive Chair David Southam.
The transaction is expected to close at the end of December. It is subject to various conditions, including the receipt of conditional approval from the TSXV for the listing of Cygnus' shares. Once complete, Cygnus shareholders will own 55 percent of the merged group, while Doré shareholders will hold 45 percent.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
5 Best-performing Copper Stocks on the TSX in 2024
Many Canadian copper stocks are performing strongly in 2024, thanks in part to several tailwinds for the sector this year.
Copper prices saw gains during the first half of the year, and supply concerns and rising demand caused the metal to surge to a record COMEX high on May 20, reaching US$5.20 per pound, or US$11,464 per metric ton (MT).
The price has since eased to US$4.37 per pound or US$10,296 per MT as of October 16, but remains elevated compared to 2023 prices.
Demand has remained strong due to energy transition sectors, but lower treatment charges from Chinese refiners during the first half of 2024 caused refiners to cut output. This bottlenecked the overall copper supply, introducing further pressure to the market.
Against that backdrop, how have TSX-listed copper companies performed? Learn about the top five best-performing copper stocks in 2024 by year-to-date gains below. Data for this article was retrieved on October 16, 2024, using TradingView's stock screener, and only companies with market capitalizations greater than C$50 million are included.
1. Taseko Mines (TSX:TKO)
Year-to-date gain: 80.16 percent
Market cap: C$970.99 million
Share price: C$3.32
Taseko Mines is a copper producer and developer that holds a portfolio of assets in British Columbia, Canada, and Arizona, US. Its primary asset is the Gibraltar copper mine, which is located in Central BC.
Gibraltar is Canada’s second largest open-pit copper mine after Teck Resources' (TSX:TECK.A,TECK.B,NYSE:TECK) Highland Valley mine. It boasts an 85,000 metric ton per day processing capacity, and in 2023 the mine produced 123 million pounds of copper.
On March 25, Taseko fully acquired Gibraltar after entering into an agreement with Dowa Metals and Mining (TSE:5714) and Furukawa (TSE:5715) to purchase the remaining 12.5 percent interest in the property. The company said the agreement was mutually beneficial as both Dowa and Furukawa are divesting away from copper-mining investments.
On June 1, Taseko suspended operations at Gibraltar for 18 days due to strike action from union workers. After approximately two weeks, the company and union came to terms on a new agreement, which the union ratified on June 19.
In the company’s second quarter 2024 financial and operational performance update released on July 31, Taseko reported that Gibraltar had produced 20.2 million pounds of copper during the quarter, an 8 percent decrease from Q2 2023. The total for the first two quarters came to 49.9 million pounds, 3.2 percent less than the 53.1 million pounds through the first six months of 2023.
A crusher relocation project and general maintenance at one of the mine’s concentrators, alongside the strike, were the cause for the decreased production in H1. According to the company, it expects production in the second half of the year to be stronger now that operations are back online.
The announcement also provided an update on development progress of Taseko’s Florence project; all key permits are now in place for commercial production and construction has commenced. The company expects the first production from the site in Q4 2025, with an annual copper production of 85 million pounds.
Shares of Taseko reached a year-to-date high of C$4.12 on May 21.
2. Hudbay Minerals (TSX:HBM)
Year-to-date gain: 74.66 percent
Market cap: C$4.86 billion
Share price: C$12.68
Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada. It also has projects in Peru and in the US.
According to Hudbay’s Q2 results, the Constancia copper mine and neighboring Pampacancha satellite pit in Peru produced a combined 19,217 metric tons of copper in the three months ending on June 30.
In Canada, Hudbay’s 75 percent owned Copper Mountain mine in BC produced 6,719 MT of copper, and its wholly owned Snow Lake operations in Manitoba produced 2,429 MT of copper despite forest fires causing interruptions at the Lalor mine. Both mines also produce gold and silver, and Snow Lake produces zinc as well.
In addition to its mining assets, the company is advancing its Copper World project in Arizona, US. In its report for the first quarter, the company indicates that it is continuing to work on getting final state permits for the site and expects to receive them sometime in 2024. When complete, Copper World is expected to have a 20 year life.
According to a March 28 annual reserve and resource update, Copper World holds proven and probable average grades of 0.54 percent copper from 385 million metric tons.
In an August 29 release, Hudbay announced it had received an aquifer protection permit from the Arizona Department of Environmental Quality. The company said the permit marks a key milestone and brings the project one step closer to being fully permitted.
The company is also working on its Mason project in Nevada, US. Hudbay is developing Mason as a long-term future asset, and expects it to have a 27 year mine life. A resource estimate shows measured and indicated resources of 2.22 billion MT at an average grade of 0.29 percent copper, and inferred resources of 237 million MT grading 0.24 percent copper.
On May 24, the company announced the completion of an upsized bought-deal offering, generating aggregate gross proceeds of US$402.5 million. The company said it intends to use the funds for near-term growth initiatives and to accelerate development at Copper Mountain.
Shares of Hudbay reached a year-to-date high of C$14.15 on May 21.
3. Alta Copper (TSX:ATCU)
Year-to-date gain: 72.22 percent
Market cap: C$53.89 million
Share price: C$0.62
Alta Copper is a copper exploration company that is working to advance its flagship Cañariaco project in Northern Peru. The project includes the Cañariaco Norte and Cañariaco Sur deposits and the Quebrada Verde prospect.
On May 15, the company released figures from an optimized preliminary economic assessment. In the report, the company indicates a base case pre-tax net present value of US$4.1 billion with an internal rate of return of 32.4 percent based on copper prices of US$4 per pound, along with all-in sustaining costs of US$1.96 per pound.
On the production side, Alta reported that the projected mine life is 27 years, with average annual metal production in the first 10 years of 347 million pounds of copper, 70,000 ounces of gold and 1.5 million ounces of silver.
The most recent announcement from the project came on October 10 when Alta announced its drill permit application was approved by the Ministry of Energy and Mines of Peru. The permit will allow the company to drill 42,400 meters in phases of 10,000 meters to be commenced prior to Q2 2025.
The company said the drill programs will be used to cross and fill recently identified zones of mineralization extending to depth in the Canariaco Norte deposit, which were not included in the current mineral resource estimate.
It also said it had received Certificates of Non-Existence of Archaeological Remains on Surface from the Ministry of Culture of Peru.
Shares of Alta reached their year-to-date high of C$0.79 on May 21.
4. Capstone Copper (TSX:CS)
Year-to-date gain: 66.9 percent
Market cap: C$7.9 billion
Share price: C$10.62
Capstone Copper is a mining company with a portfolio of assets in the US, Mexico and Chile.
Capstone's wholly owned Pinto Valley copper mine in Arizona, US, is fully permitted until 2039 and is expected to produce 58,000 to 64,000 MT of copper in 2024. Capstone acquired Pinto Valley from BHP (ASX:BHP,NYSE:BHP,LSE:BHP) in 2013, and the mine has produced more than 4 billion pounds of copper since it began operating in 1972.
Capstone is the sole owner of the Cozamin copper-silver mine in Zecatacas, Mexico, which has a 1,000 MT per day throughput and is projected to generate 22,000 to 24,000 MT of copper in 2024. It also holds the Mantos Blancos copper mine in Antofagasta, Chile, which underwent an expansion in 2021 to extend its mine life significantly.
In addition, the company owns a 70 percent stake in the Mantoverde mine in the Atacama region of Chile, with the remaining 30 percent owned by Mitsubishi Materials (OTC Pink:MIMTF,TSE:5711).
Having first produced saleable copper concentrate from Mantoverde on June 25, the company achieved commercial production on September 21, with 30 consecutive days of 32,000 metric tons per day throughput.
In addition to activities at the Mantoverde mine, Capstone released an updated feasibility study for its Santo Domingo project, which is located 35 kilometers northeast of Mantoverde. The study indicated an after-tax net present value of US$1.7 billion, with an internal rate of return of 24.1 percent and a payback period of 3 years.
The figures were based on an annual copper production of 106,000 metric tons for the first seven years.
Shares of Capstone reached a year-to-date high of C$11.20 on May 17.
5. First Quantum Minerals (TSX:FM)
Year-to-date gain: 65.06 percent
Market cap: C$14.57 billion
Share price: C$17.86
First Quantum Minerals is a copper mining and development company with a global portfolio of assets.
Its primary asset is the Cobre Panama mine, located west of Panama City, Panama. The mine boasts 3 billion metric tons of proven and probable reserves and represents 1 percent of the world’s copper supply. The mine was ordered to close down in November 2023 after the Panamanian Supreme Court invalidated an extension to the mine's license.
In a December 2023 release, the company said it was working on developing a closure plan for the mine; however, it also noted that it was pursuing all appropriate legal avenues to protect its investment and rights.
In its Q1 results, released on April 24, First Quantum said it was continuing to work on a preservation and safe management plan for Cobre Panama, and was also working to deliver the 121,000 metric tons of concentrate that remains on site.
Due to the ongoing situation in Panama, the company noted that it had undergone a refinancing program to improve its balance sheet and liquidity. This program included working out a prepayment agreement with Jiangxi Copper (SHA:600362,HKEX:0358) for US$500 million, the completion of a US$1.6 billion senior secured second lien at 9.38 percent due in 2029 and the issuance of 139.93 million common shares to raise US$1.15 billion.
In the company’s second quarter results, First Quantum reported the production of 102,709 metric tons of copper, down from 84,466 MT produced in Q2 2023. The production drop was largely attributed to the closure of Cobre Panama, which contributed 90,086 metric tons during the quarter last year.
The company is also operating several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine and Enterprise nickel mine. First Quantum noted that production may be impacted in 2024 due to severe drought conditions in Zambia caused by El Nino, which has reduced water levels in the Kafue and Zambezi rivers. The government declared a national emergency in March, and power generation in the country has been impacted.
First Quantum has been working to mitigate these challenges and has entered into offtake agreements with third-party traders for power sourced from the Southern African Power Pool. Due to increased power curtailments since the Q1 release, the company has had to increase the amount of power sourced from regional sources to 193 megawatts from the original 80 megawatts.
The increase has pushed the expected copper cash costs up to US$0.06 per pound from US$0.03 per pound. First Quantum says it will be able to sufficiently substitute curtailed power with imports for the duration of the emergency. The energy deficit is expected to ease with Zambia’s next rainy season, with hydro generation recovering by early 2025.
Shares of First Quantum reached a year-to-date high of C$20.00 on May 21.
FAQs for investing in copper
Is copper a good investment in 2024?
Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper's price has climbed to new all time highs in 2024, bringing many stocks with it.
Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.
What is copper used for?
Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
How to invest in copper?
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange.
How to invest in a copper ETF?
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.
There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).
How is copper priced?
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.
How is copper processed?
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Lastly, the copper is refined at a refining plant or smelter using one of two methods, pyrometallurgy and hydrometallurgy. Pyrometallurgy is employed for copper ore that is sulfide rich, while hydrometallurgy is used when the ore is oxide rich. The Investing News Network's guide on copper refining goes into further detail about how those processes work. Once these processes are complete, the copper is concentrated to up to 99.99 percent purity.
Where is copper mined?
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.
Article by Dean Belder; FAQs by Lauren Kelly.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
Kincora Copper Expands Fleet Space Partnership for Exploration at Wongarbon Project
Kincora Copper (ASX:KCC,TSXV:KCC) announced on Wednesday (October 16) that it has expanded its partnership with Fleet Space Technologies as it works to advance its Wongarbon project in New South Wales, Australia.
The expanded partnership will include a listed equity investment, as well as multiphysics surveys to identify and refine targets at Wongarbon. Fleet Space will also have the right to drill test targets to earn an asset-level interest.
Kincora said it will raise AU$1.27 million via a strategic investment by Fleet Space, along with participation from existing major shareholders, directors and new investors. Fleet Space will contribute AU$400,000.
Proceeds of the financing will primarily be used to undertake ambient noise tomography and gravity surveys at Wongarbon, which has never been drilled, along with drilling and exploration at the Condobolin project.
Under the deal, Fleet Space has the right to earn a 20 percent stake in Wongarbon by drilling at least 2,000 meters.
Located in the interpreted extension of the Macquarie Arc's Northern Molong Belt, Wongarbon is considered by Kincora to be a strong prospect for a new large-scale porphyry copper-gold complex.
“Kincora and Fleet Space strongly believe the Wongarbon project has the potential to be a new porphyry district and it is a prime candidate for major discovery,” said Sam Spring, president and CEO of Kincora.
He added, “The results of our recent multiphysics surveys at our Nyngan Project are pending and the structure of this expanded partnership with Fleet Space provides unique alignment.”
Fleet Space will be the operator of the multiphysics surveys at Wongarbon, deploying its proprietary ExoSphere technology stack. Deployment will be done end to end, from target generation to drill testing at Wongarbon. Fleet Space notes that it has invested significantly in the Macquarie Arc, giving it unique knowledge of the area.
“Wongarbon’s geological and geophysical setting is favourably located in a highly prospective area of the arc,” commented Federico Tata-Nardini, director, CFO and financial strategy and investment officer at Fleet Space.
“It has clear analogues of the nearby porphyry complexes and existing Tier 1 deposits. We believe the project is at the stage where we can add significant value and mutually share major discovery potential with Kincora.”
The operation will be the first new exploration done at the project in almost 30 years and will advance soon. Kincora said the Fleet Space partnership is its fifth recent deal and that it is proposing further partnerships for its other projects.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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