NEAL Froneman, the newly appointed chair of Copper 360, said the company was in need of “a good dose of realism” as well as “realistic plans”.
The former Sibanye-Stillwater CEO was unveiled as non-executive chair of the copper junior miner’s board on Thursday. He replaces Rupert Smith, a long-standing director and shareholder, who has opted to downscale his responsibilities.
Shares in the company gained another 1.5% today, taking five-day gains to just below eight percent. Its valuation remains 39% lower over 12 months despite major gains in the copper price. The red metal gained 1.8% to $14,369.50/t, near January’s record, after a report that the Congo had banned exports.
Said Froneman: “I believe my experience, and scars, in starting up new businesses are very relevant to Copper 360. It is the most difficult part of the mining business and is grossly underestimated by even experienced mining professionals.”
“In this case you have an amazing portfolio of copper assets which is a good set of cards to play with. There is strong shareholder support, an experienced and skillful board coupled with competent management.
“A good dose of realism is needed and realistic plans.”
As the Financial Mail reported earlier this year, Copper 360 had boardroom stress, described as a coup, which included the strange departure of its then CEO, the mining veteran Graham Briggs, who went on a leave of absence — now permanent. He was replaced by COO Gordon Thompson.
Commenting on the firm’s year-end numbers in June, Thompson highlighted signs of recovery at Copper 360. Firstly, losses narrowed 17% to R265m. Secondly, the balance sheet was recapitalised with total equity increasing to R1.25bn from R337m. Finally, liabilities halved from R985m to R505m. The problem was that shareholders paid for it via an expensive rights issue.
Froneman has shown no interest in slowing down after leaving Sibanye-Stillwater a year ago. In addition to Copper 360, he is also the chair of consulting engineering firm DRA and Neo Energy Metals, a UK-listed uranium development firm.
He has also thrown himself into his own uranium business, aimed at extracting the mineral from the world’s oceans. “We are busy commercialising it now,” he said of Terrestrial Energy, founded by former Uranium One colleague Bryan Canon. “We’ve acquired access to an oil rig in the Gulf of America (formerly the Gulf of Mexico), and the intention is to list this company and commercialise the process. And I’m chairing that company,” he told Miningmx.
Froneman has also founded a metals recycling business in Oklahoma with his son, Justin, as well as chairing Podium Minerals, a platinum group metals company hoping to develop the Parks Reef project in Australia.
An interview with Froneman, published in The Mining Yearbook, is available here.
