True North Copper (ASX:TNC)

True North’s Cloncurry Copper Project Offers Strong Returns, Upsides, Analyst Says

Description:

True North Copper (ASX:TNC) offers investors strong risk-adjusted returns from current prices and several upside from its Cloncurry copper project, according to a report published by Australian market research firm Morgans.

With its portfolio of complementary copper assets in a world-class mining district in Australia, Morgans’ analyst Tom Sartor believes the value of in-situ copper at TNC’s assets will increase in line with the copper market.

“We like TNC’s: 1) multi-year production/cash flow potential; 2) self-funding potential; 3) mine life/exploration upside; and 4) higher grade development prospect at Mt Oxide,” the report said.

TNC has announced it will commence mining ore at Wallace North in the fourth quarter of 2024, following the company’s mining restart study for the Cloncurry copper project (CCP). In January 2024, TNC secured an offtake agreement with Glencore and a US$28-million dollar loan facility from Nebari Natural Resources Fund.

Cloncurry Copper Project, associated reserves and infrastructure.Cloncurry copper project's associated reserves and infrastructure

“Execution of the CCP re-start to plan is company-defining in 2024 as TNC has an opportunity to achieve self-funding status and allay market fear of liquidity risk,” wrote Sartor in the report.

Highlights of the report:

  • Upsides include multi-year production and cash flow potential from CCP mine restart; self-funding potential; mine life expansion potential and exploration upside; and higher grade development prospect at TNC’s Mt Oxide project.
  • TNC’s aim to become a self-funding, NorthWest Queensland-focused copper producer-developer remains intact. In fact, several value-adds since the reverse takeover, including CCP de-risking, orebody confidence and exploration success are being overlooked as liquidity dominates market attention.
  • Price catalysts include successful CCP mining/tolling re-start and demonstration of CCP commerciality and positive cash generation by late 2024. The Morgans report notes it expects “quarterly cash outflows to continue through 2024 as the ramp-up of revenues will take time to catch-up to and overtake expenses linked to the mining contractor ramp-up, pre-stripping and logistics required to unlock it.”


For the full analyst report, click here.

This content is intended only for persons who reside or access the website in jurisdictions with securities and other applicable laws which permit the distribution and consumption of this content and whose local law recognizes the scope and effect of this Disclaimer, its limitation of liability, and the legal effect of its exclusive jurisdiction and governing law provisions [link to Governing Law section of the Disclaimer page].

Any investment information contained on this website, including third party research reports, are provided strictly for informational purposes, are general in nature and not tailored for the specific needs of any person, and are not a solicitation or recommendation to purchase or sell a security or intended to provide investment advice. Readers are cautioned to seek the advice of a registered investment advisor regarding the appropriateness of investing in any securities or investment strategies mentioned on this website.

TNC:AU
The Conversation (0)
True North Copper (ASX:TNC)

True North Copper

On the path to becoming Australia’s next responsible copper producer

On the path to becoming Australia’s next responsible copper producer Keep Reading...
Colorful mineral rocks with "5 Top Canadian Mining Stocks This Week" text.

Top 5 Canadian Mining Stocks This Week: Torr Metals Gains 53 Percent

Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian news impacting the resource sector.Statistics Canada released its July consumer price index (CPI) data on Monday (August 17). The... Keep Reading...
Close-up of raw copper nuggets with a shiny, metallic surface.

BHP, SiTration Launch Arizona Copper Recovery Pilot Program

BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and MIT spin-out SiTration announced the launch of a pilot program in Arizona to extract copper from legacy mining wastewater.SiTration’s process previously demonstrated the ability to yield London Metal Exchange (LME) Grade A copper in bench-scale testing without... Keep Reading...
Clem Chambers, gold bars.

Clem Chambers: Copper, Platinum to Surge, Plus When I'll Buy Gold Again

Clem Chambers, CEO of aNewFN.com, shares his latest thoughts on gold and silver, including the price levels where he would be a buyer again. For now, he's more interested in platinum, where he's identified a stock he likes, and copper. "I am in copper and I am long, and it's done really well.... Keep Reading...
Close-up of a map highlighting the Philippines with text reading: Philippines, Mindoro Island, Panay Island, Samar Island, Cebu.

Philippines' US$200 Billion Tampakan Copper Mine Moves Closer to Reality After Decades of Delay

Dominion Holdings (PSE:DHI), backed by the billionaire Sy and Consunji families, is executing a three-way merger to absorb control of the Tampakan copper-gold project, positioning itself to become the largest listed mining company in the Philippines.To facilitate the transaction and future... Keep Reading...
Five bronze cylinders of varying heights stand on a reflective surface against an orange background.

Lundin Cuts Copper Target After Another Storm Hits Chile

Lundin Mining (TSX:LUN,OTCPL:LUNMF) lowered its full-year copper production guidance after a second winter storm in Chile's Atacama region damaged infrastructure and disrupted operations at the Caserones mine.Severe weather re-damaged a transmission tower serving Caserones that repair crews had... Keep Reading...
Advanced quantum computer hardware with complex copper wiring and futuristic design.

Wired in Metal: AI and the Changing Copper Cycle

The world is witnessing the start of a new copper supercycle.Copper supply and demand have long been dependent on electricity and industrial sectors, with the previous mining cycle cemented by infrastructure projects, manufacturing expansion and rapid city growth. The growing focus on generative... Keep Reading...

Interactive Chart

Latest Press Releases

Related News