S2Research analyst, Simon Hudson-Peacock reported on Monday that Orion Minerals is in a strong position to benefit from the expected copper shortfall later this decade, praising the company’s high-quality assets and exploration potential.
Orion differentiates itself with few similar quality global projects as advanced and funded, possessing over 750,000 tons of compliant copper equivalent reserves, as Hudson-Peacock emphasized in his October 6 analysis.
According to a report by Mining Weekly, he drew from a valuation update quoting Glencore CEO Gary Nagle, who expressed to Forbes on October 20 concerns about an acute, impending copper deficit not yet evident in current prices.
Orion is gearing up to start construction on its Prieska and Okiep copper projects, a significant step that will position South Africa as a key player in providing essential metals for the global energy transition.
The company is also progressing with its Jacomynspan project, claiming a 50% interest in the nickel, copper, and cobalt site 70 kilometers from Prieska.
CEO Errol Smart led Orion in securing a major investment in March, introducing Clover Alloys as a significant shareholder.
Led by mining authorities Philip Kotze and Adam Fleming, Clover Alloys is on track to potentially raise its stake in Orion from 9% to 25%, subject to approval at the AGM scheduled for November 28.
To guide shareholder decisions at the AGM regarding the second funding tranche, Orion has released a financial services guide and an independent report, despite the dilution concerns the offer may raise.
The independent report suggests that, while potentially dilutive, the offer remains reasonable given the essential contribution of Clover Alloys to Orion’s project progression.
Considering the latest financial activities and market conditions, S2Research values Orion’s shares at R73 or A$6.1 apiece, highlighting the untapped potential of the company’s portfolio.
S2Research boosts Orion’s exploration assets by 10%, drawing a comparison to Copper360, a mining peer recently listed on the JSE.
With firm backing from studies and financial support from the IDC, Prieska and Okiep are ready to commence construction, built on well-mapped geologies and straightforward mining techniques.
