This time last year Miningmx commented that 2025 would be a ‘make or break’ year for Northern Cape junior miner Copper 360 and, unfortunately, it has turned out to be ‘break’.
Results for the year to end-February – released at the end of June – revealed that its loss had trebled to R223m from a loss of R64.8m the previous year and, remember, that prior loss was supposed to be a profit of R245m.
The accumulated losses incurred so far have resulted in the auditors declaring an “emphasis of matter” querying Copper 360’s ability to carry on as a going concern. That was rejected by the directors who maintain the group is “in a sound financial position and has access to sufficient borrowing facilities to meeting its foreseeable cash requirements”.
All of this resulted from Copper 360’s most damning failure, which was its inability to produce the copper it said it would. The company produced just 1,054 tons of copper for the year against prior forecasts it would produce “at least” 6,000t.
Copper 360 also reported that it had placed its SX-EW copper cathode plant into care and maintenance because of operating losses, while its MFP2 recovery plant had reached operating capacity only in the second half of the financial year.
The company is now being run by its third CEO in seven months. Founding CEO Jan Nelson was abruptly replaced in December by Copper 360 chair and controlling shareholder Shirley Hayes.
Briggs has wasted no time in cutting through the corporate verbiage published so far and confronting the reality that Copper 360 is up against, which will require further funding to deal with.
Getting the SX-EW plant back to profitability will require a “second phase upgrade” to significantly increase output but the capital required to pay for this is only going to be allocated once the concentrate operations at Rietberg “are operating at a sustainable level”.
Briggs now says he expects operations to reach an “annualised” production rate of 5,000t of copper “within six to 12 months”, which would come from reaching a throughput of 40,000t of copper ore a month at a grade of 1%.
He rejects suggestions that Copper 360 is a failing company, saying that it is resource-rich, lightly capitalised and only starting its transition to production with the Rietberg mine.
“I believe I can get this company back on its feet, but it’s going to be hard work,” he comments.
He declined to specify at this stage how much money Copper 360 would need to raise but indicated it would likely have to come through the issue of new equity. “When you are in a situation like this you have to look at what you can afford and we are looking at equity as opposed to knocking on doors at banks to get loans.
“It will be a significant amount of money and it is likely to come from new shareholders. Our current dominant shareholders would probably not want to follow any rights offer.”
For the full article and many others like it go to this year’s Mining Yearbook by clicking on the link below
