Copper 360, a leading copper mining and marketing company, is set to generate significant cash flow by the end of the financial year, according to CEO Jan Nelson. In a recent interview with Mining Weekly, Nelson shared promising updates about the company’s financial and operational progress.
Nelson revealed that Copper 360 is currently cash-positive at both its plants. He expects monthly revenue to reach R70 million within the next three months, with a profit margin of 50%. This growth positions Copper 360 as a major player on the Johannesburg Stock Exchange (JSE), where it is the only pure copper producer listed.
The company operates in South Africa’s Northern Cape, which has been a major copper-producing region historically. One of its subsidiaries, Okiep Copper Company, was established by Newmont in 1937, and at its peak, it paid out about R30 million in annual dividends.
Copper 360’s current operations focus on processing copper rock dumps that were historically mined and mining surface and shallow copper resources. The company holds over 19,000 hectares with 12 orebodies, including Rietberg, Jubilee, Homeep, and others. Their primary focus is on Tweefontein, Homeep East, and nearby satellite deposits.
Drilling at Rietberg has yielded a resource estimate 220% greater than historical data, resulting in a maiden and indicated resource of 60,800 tons of copper. Copper 360 operates three processing plants, set to produce within the next three months, utilizing rock from both Rietberg and Jubilee.
The company projects positive revenue between R1.2 billion and R1.9 billion for the current financial year, ending in February. The Rietberg rock will feed the Nama and SX/EW plants, both gearing up for production. A third processing plant, MFP1, is expected to be operational within two months.
Copper 360’s ongoing projects include resource estimates and optimization studies for Jubilee, Homeep East, and Tweefontein. Nelson highlighted the potential for Tweefontein to become a major mine, with estimates of 1.2 to 1.5 billion tons of copper metal. These mines could produce 50,000 to 100,000 tons of copper metal annually, with grades between 1.5% and 2.5%.
The company has about 60 million tons of tailings material on the surface. It has partnered with DRDGOLD for a joint venture, currently analyzing samples and conducting test work. Nelson expects the studies, assays, and test work to be completed within the year, determining the viability of processing these dumps.
Copper 360 plans to use a cluster mining method, leveraging historical data from Newmont and Gold Fields, which includes over 3,000 geophysical maps and 6,000 meters of drilling. The company’s mining school in Concordia aims to meet the skills needs of both its operations and the Namaqualand area, following the model of the Camborne School of Mines in Cornwall, UK.
Formed in November 2022 through a reverse takeover of Big Tree Copper and SHiP Copper, Copper 360 focuses on the Northern Cape, amid a significant global copper shortfall. Nelson’s updates indicate a strong future for Copper 360, reinforcing its position as a key player in the copper mining industry.
With its historical roots and modern strategies, Copper 360 is poised to make significant contributions to the copper market, ensuring sustainable growth and financial success.
Source: Mining Weekly
