Load-shedding played a role in Copper 360 missing its production and financial targets in the year ended February, says CEO Jan Nelson.
The company, which mines old copper dumps in the Northern Cape, boasts a R2.8bn market capitalisation and was listed on the JSE in April 2023.
But it fell short of its own targets after posting R38.2m in revenue, selling 314 t of copper in the year under review.
In its prelisting statement, Copper 360 had set a target of R461m revenue in the same period, comprising R169m from copper cathodes and R292m from copper concentrates.
Nelson told Business Times after the release of the group’s financial results that if it was not for load-shedding the group would have made its copper plates targets of R169m and copper concentrate production should have generated R300m.
He said the group’s decision to postpone the completion of its copper concentrate plant due to a R200m acquisition of Nama Copper also had a knock-on effect on the results.
“If we carried on our plant, we would have come close to our target,” he said.
While the targets were missed, the acquisition would boost the company’s revenue stream in 2025.
“The effect of making that transaction is that we will make three times in 2025 the amount of revenue that we forecast for the plant. We are going to make close to R2bn in revenue in 2025 because we bought the plant. It was an opportunistic acquisition, but it is one we would not let go. Because of that we fell short of our revenue target, but the benefits for shareholders will come in 2025,” he said.
Copper 360 raised R380m growth capital and secured a R650m equity facility, used to acquire Nama Copper, and another R105m investment in the Rietberg Mine and processing plant. The company also invested R27m in the plant.
The group plans to increase production to 20,000t by 2026 and declare a dividend then.
With the copper price going through the roof at a record high of over $10,000, Nelson said copper fundamentals remain strong, underpinning their growth prospect.
“Copper demand is outstripping supply. There is not enough copper, that is why BHP made a bid for Anglo, because they want the copper business.”
Nelson said Copper 360 had taken legal action against people shorting their stock price. Copper 360 had seen signs of market manipulation even three weeks ago, and it is not the only junior mining company affected.
“We are taking legal action against the people who have perpetrated this.”
Copper demand is outstripping supply. There is not enough copper, that is why BHP made a bid for Anglo, because they want the copper business
In February Mantengu Mining flagged manipulation of its share price and took the “unpopular stance” of overriding the JSE and reporting the matter to the Financial Sector Conduct Authority.
Mantengu warned sellers to be wary because its share price was being manipulated and its value eroded without the consent of the JSE.
“Mantengu have had the same problem from the same people. We are talking to each other to sort these individuals out and we will do so,” said Nelson.
During the presentation of the results, he said the group wanted to protect the interests of its shareholders.
“We are not crying about our share price going down, share prices will go down and they will go up. We must drive what is right on the operational side and that will take care of the share price. However, we have a duty to our shareholders to protect the company when we see that there is market manipulation which is against the law, and that is why we have taken this action. We would like to assure our shareholders that management is focused on the operation, and that is where our focus should be,” he said.
Nelson said there had been no conflict between the mine and the Concordia community after a lobby group called for an end to mining in the area.
“Eighty percent of the community supports us but there is an anti-mining lobby group that wants to stop our work.”
Copper 360 closed 1.84% higher on the JSE at R4.42 a share on Friday.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.