I’ve written about Copper 360 before. This little copper miner joined the JSE in 2023 with a focus on processing historical mined copper dumps, and then pivoting into shallow copper mining…
But since its listing the company’s made big progress, and it has just penned a new deal that will see it double copper production over night!
Copper 360’s latest deal explained
Copper 360 announced it is acquiring the Nama Copper plant. This concentrator plant produces a copper concentrate from rock.
The plant treats around 20,000 tonnes of rock per month – and recovers between 88% and 92% of the copper in it.
The deal has a couple more benefits to the company…
Firstly, it gives Copper 360 more surface mining rights, right next to its existing Nababeep facility.
Secondly – it comes with copper tailings (previously mined copper ore) that totals over 22 million tonnes with between 0.35% and 0.65% copper grades.
The plant also comes with a mammoth 2.5MW diesel generator for those ‘dark days’.
In total the copper resource that Copper 360 gets with this deal is worth anywhere between R12 billion and R24 billion at today’s prices…
Copper 360 just fast tracked this deal
Initially Copper 360 agreed to a four month due diligence on the deal. This has now been completed and the company paid R140.5 million to get started. It will pay a further R9.5 million in two weeks. Then there’s R50 million more due on the deal.
And that’s where it gets interesting.
Copper 360 signed another deal with Fujax, a UK based commodities trader, who will buy its copper concentrate for the next five years. As part of the deal Fujax is making prepayments on production to the value of US$2.5 million (+-R48 million) which will allow Copper 360 to pay the remainder for the Nama Copper plant…
What’s more – according to Copper 360’s CEO, Jan Nelson, the company has already started up the plant and produced its first copper concentrate.
Copper 360 is at the point of producing BIG cashflows
Copper 360’s Rietberg mine is now in commissioning phase. It will also feed these two plants.
And once the company’s two plants are operating at a steady state – they’ll produce around R80 million a month.
The company’s CEO is so certain it’ll succeed – he made a R34.5 million bet on it!
Copper 360’s CEO, Jan Nelson, is so sure the company will succeed he’s made a HUGE bet with his own wealth to support it…
How did he do that? Well, he really wanted to get the Ekapa Consortium as early funders in the company. So, in return for them investing 15% of the company’s capital, he promised them 10 million of his shares in the company (worth R34.5 million today) at 1c each if the company doesn’t hit production targets in 2025!
This latest acquisition certainly helps the company get a lot closer to those targets in 2025…
In fact, in a recent interview with MiningWeekly, Copper 360’s CEO mentioned he believes the company could pay a maiden dividend in 2025…
This stock is definitely one to watch – especially since the copper price increased by more than 14.5% since November 2023…
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