The Conversation (0)
- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Top Stocks
Top Resource Stocks
Top Tech Stocks
Top Life Science Stocks
Trending
Trending Articles
Trending Press Releases
Trending Companies
Chariot Corporation
CC9:AU
BHP Group Ltd
BHP:AU
Red Metal Resources
RMES:CC
Black Swan Graphene
SWAN:CC
Trending Reports
Resource
Popular Lists
Investing Ideas
Outlook Reports
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
Investing Guides
Tech
Popular Lists
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
Investing Ideas
Outlook Reports
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
Investing Guides
Life Science
Popular Lists
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
Outlook Reports
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Investing Guides
Rights Issue
June 23, 2024
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that it is undertaking a pro-rata non-renounceable rights issue of shares on the basis of one (1) new share (Share) for every one (1) fully paid ordinary shares (Shares) held by Eligible Shareholders (defined below) at an issue price of $0.008 per Share to raise up to $1,625,589 (before costs) with a free attaching option exercisable at $0.018 each expiring three (3) years from the issue date (Options) (Entitlement Offer). The Company has engaged Cadmon Advisory Pty Ltd (Cadmon) to act as lead manager to the Entitlement Offer.
- Non-renounceable rights issue at $0.008 per Share with one (1) free-attaching Option exercisable at $0.018 expiring three (3) years from date of issue
- Eligible shareholders can download personalised Entitlement Offer application form from the share registry, Automic
- Entitlement Offer will close at 5pm (AWST) on Friday, 12 July 2024
- Quotation of the Shares and Options to occur on Monday, 22 July 2024
Funds raised from the Entitlement Offer will primarily be used for upcoming exploration programmes at the Company’s 100%-owned Bangemall Ni-Cu-Co-PGE projects in the Gascoyne regions of WA, the 80%- owned Gidji JV Project, and to fund corporate activities.
The Entitlement Offer is available to all shareholders of the Company (Shareholders) named on its register of members at 5:00pm (AWST) on Thursday, 27 June 2024, whose registered address is in Australia, or New Zealand (Eligible Shareholders). The Entitlement Offer is not being extended to any Shareholders with registered addresses outside these jurisdictions.
The Shares and free-attaching Options offered will be issued on the terms and conditions set out in the Entitlement Issue Prospectus. The Company will apply to have the Shares and Options quoted and tradeable on the ASX.
The Entitlement Offer details are set out in the Prospectus available to be downloaded from www.miramarresources.com.au.
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.
asx stocksresource stocksnickel stockscopper stocksgold stocksnickel explorationcopper explorationgold explorationasx:m2rcopper investingCopper Investing
M2R:AU
1h
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.
Keep reading...Show less
4h
Company Update and Appointment of Voluntary Administrators
On 21 October 2024, the Directors of True North Copper Ltd (ASX:TNC) (and its subsidiaries) appointed Richard Tucker and Tony Miskiewicz of KordaMentha as Voluntary Administrators of the below entities:
- True North Copper Limited (ACN 119 421 868)
- TNC Mining Pty Ltd (ACN 652 408 378)
- CopperCorp Pty Ltd (ACN 649 946 305)
- North West Copper Pty Ltd (ACN 661 786 956)
- TNC Asset Holding Pty Ltd (ACN 652 599 687)
(all Administrators Appointed) (together ‘the Group’)
The decision has come after a period of extensive negotiations with the Company's debt provider, largest shareholder and other potential equity providers.
The decision is regrettable especially as mining activities at Wallace North, part of the Cloncurry Copper Project, ramp up on schedule with the first oxide ore placed onto the heap leach pads at Cloncurry earlier this month. In addition, recent exploration at Mt Oxide partly funded by a CEI grant from the Queensland Government has identified a number of highly prospective targets for drilling with a high probability of making more discoveries like the Vero deposit.
The Directors wish to thank all of the Company's employees and consultants as they have worked tirelessly to accomplish the above. The local community is also highly supportive of the Company and its operations in the region.
With cash resources running down and no prospects of being able to draw on existing facilities or raise additional equity or debt before the scheduled AGM the Directors appointed the Administrators.
The Administrators are undertaking an urgent assessment of the Group’s operations and will shortly be commencing a dual- track recapitalisation and sale process for the Group. In this regard, the Administrators are seeking urgent expressions of interest to acquire the Group as a whole or individual projects/assets.
Key contacts
- Parties interested in participating in the recapitlaisaiton and sale process should contact Chelsea Rowe of KordaMentha at crowe@kordamentha.com.
- Suppliers and trade creditors should contact KordaMentha at tnc@kordamentha.com.
- Shareholders should contact KordaMentha at tnc@kordamentha.com.
- Media should contact Rebecca Harrison from The Civic Partnership on +61 408 529 751.
About KordaMentha Restructuring
KordaMentha Restructuring is the distressed business division of KordaMentha, an advisory and investment firm that helps clients to grow, protect and recover value.
KordaMentha Restructuring works with companies in financial distress – to restructure and to stabilise the business or to recover value on behalf of stakeholders. They have over 170 professional staff with diverse backgrounds and deep experience from accounting and agriculture to mining and real estate.
Click here for the full ASX Release
This article includes content from True North Copper, 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.
Keep reading...Show less
10h
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.
Keep reading...Show less
10h
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.
Keep reading...Show less
20 October
True North Copper Limited (ASX: TNC) – Trading Halt
Description
The securities of True North Copper Limited (‘TNC’) will be placed in trading halt at the request of TNC, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Wednesday, 23 October 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from True North Copper, 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.
Keep reading...Show less
17 October
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.
Keep reading...Show less
Latest News
Latest Press Releases
Related News
TOP STOCKS
American Battery4.030.24
Aion Therapeutic0.10-0.01
Cybin Corp2.140.00
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.