Coda Minerals Unveils Compelling $1.2B Elizabeth Creek Copper-Cobalt Project

Coda Minerals Ltd

• ASX Code: COD
• Market Cap: $21,155,078
• Shares on Issue (SOI): 248,883,271
• Cash: $5,991,000 (as of December 2024)

Summary of the Announcement

Coda Minerals Ltd has recently announced compelling scoping study results for its Elizabeth Creek Copper-Cobalt-Silver Project, located in South Australia’s renowned Gawler Craton. The study reveals robust economic indicators including a pre-tax net present value (NPV) of $1.2 billion and a 35% pre-tax internal rate of return (IRR). These impressive statistics, together with a resource base of 65.5Mt and a planned production target of 31.81Mt at an average grade of 1.81% CuEq, underscore the project’s potential to generate strong cash flows over a projected 13-year mine life. The announcement also details a well-structured development roadmap incorporating distinct project phases from feasibility studies to the first ore shipment by 2029.

Impressive Scoping Study Results – What Do They Mean for Coda Minerals?

Coda Minerals Ltd’s recent scoping study for the Elizabeth Creek project has captured the attention of market participants with its comprehensive outlook on the project’s economic viability. Key highlights include:

• A pre-tax NPV of $1.2 billion, creating significant investor appeal.
• An impressive pre-tax IRR of 35%, indicating strong profitability.
• A resource base of 65.5Mt that supports both open-pit and underground mining strategies.

These figures combine to present a highly attractive investment prospect within South Australia’s prolific mining sector. Using a balanced approach that integrates both open-pit and underground mining, the study confirms the viability of a project that is not only resource-rich but also operationally robust. The production target is set at 31.81Mt with an average grade of 1.81% copper equivalent, strategically designed to deliver healthy cash flows across the project’s 13-year lifespan.

Why Is Copper-Equivalent (CuEq) a Critical Metric?

Investors and industry stakeholders often turn to the copper-equivalent (CuEq) measure to simplify the comparison of polymetallic mining projects. This metric amalgamates the revenue potential of multiple metals, such as copper, cobalt, and silver, into one unified benchmark. Key advantages of this method include:

• A straightforward way to compare assets across different metals.
• A transparent reflection of recoveries and commodity prices.
• Clear guidance in evaluating the overall economic potential of diverse mineral deposits.

For the Elizabeth Creek project, CuEq is essential in presenting the combined value of copper, cobalt, and silver, thereby offering a holistic insight into the project’s revenue-generating capability. This measure is particularly significant given the increasing global demand for metals essential to the energy transition.

What Is the Roadmap to Development?

Coda Minerals has meticulously outlined a four-year development pathway that will transition the Elizabeth Creek Project from scoping to full-scale commercial mining. This strategic roadmap includes:

1. Completion of the Pre-Feasibility Study (PFS) and continued exploration of nearby prospects such as Emmie East – targeted for 2025.
2. Advancement to a Definitive Feasibility Study (BFS) and achieving a final investment decision (FID) in 2026.
3. Commencement of construction activities – including the building of a flotation plant and hydrometallurgical processing facilities – across 2027 and 2028, alongside pre-stripping operations at MG14 and Windabout open-pit deposits.
4. Initiating the first shipments of copper-cobalt-silver products by 2029, following the development of an underground mine at Emmie Bluff.

This phased development approach helps manage risk effectively while maintaining operational momentum, ensuring that each stage of project development builds upon the previous one.

Key Development Milestones

• Scoping Study: Completed
• PFS & Approvals: Scheduled for 2025–2026
• BFS & FID: Finalised in 2026
• Construction: Planned between 2027–2028
• First Ore Shipment: Projected for 2029

Each of these milestones is designed not only to transition the project through critical developmental phases but also to enhance investor confidence by providing clearly defined operational benchmarks.

What Sets Coda Minerals Apart?

Coda Minerals offers a unique investment thesis that is underpinned by several key factors:

1. Robust Project Economics:

   • With a post-tax NPV of $802M and an IRR of 28%, the financial outputs of the project indicate robust returns even amidst the uncertainties of fluctuating commodity prices.

2. Substantial Resource Base:

   • The project encapsulates over 1.0Mt of contained copper equivalent, pooled from various deposits such as Emmie Bluff, MG14, Windabout, and Cattle Grid South. This diversified resource base enhances the project's viability.

3. Strategic Jurisdiction:

• Located in South Australia, the project benefits from proximity to key logistical hubs and established mining infrastructure. Furthermore, it lies within a region that has access to modern technological and regulatory support, akin to that enjoyed by noted projects like Olympic Dam and Carrapateena.

4. Low Costs of Production:

   • The anticipated all-in sustaining costs (AISC) of USD $1.80 per pound of copper, bolstered by by-product credits from silver and cobalt, position the project among the most cost-efficient in the industry.

5. Exploration Upside:

   • The prospect of further exploration beyond the existing deposits, including the potential of targets such as Emmie East and regional IOCG systems, adds a significant upside and scalability potential for the project.

These factors, when considered together, underscore why Coda Minerals is emerging as a notable player within Australia’s mining sector.

How Does Coda Minerals Enhance Its Value Proposition?

Several elements contribute to the comprehensive value proposition of the company:

• Diversified Metals Portfolio:
  The project’s portfolio includes copper, cobalt, silver, and even touches of zinc. This diversification is crucial in balancing revenue sources and mitigating risk during periods of commodity price volatility.

• Experienced Management Team:
  The leadership at Coda Minerals is comprised of professionals with extensive experience in mineral exploration, feasibility analysis, and large-scale project delivery. Their expertise plays a pivotal role in driving the project’s success.

• Upcoming Catalysts:

With critical milestones such as the BFS and FID scheduled for the near term, investors can expect periodic revaluation points as the project progresses from planning to execution.

• Market Trends:
  The increasing global demand for copper and cobalt, particularly driven by electrification and the energy transition, positions the company favourably. These metals are essential in manufacturing batteries and renewable energy components, thereby ensuring sustained demand over the long term.

Detailed Project Metrics

An overview of the key project metrics is presented in the table below:

Particularly, the Emmie Bluff deposit stands out with its high-grade copper content relative to global operational standards, thereby reinforcing the project’s economic robustness.

Why Should Investors Keep a Close Watch on Coda Minerals?

Coda Minerals distinguishes itself in a competitive landscape through its diversified assets and strategic approach to development. Key reasons for investor interest include:

• A focus on realising strong cash flows and maintaining a competitive cost structure even under varying global economic conditions.
• A phased and well-documented development approach, which significantly de-risks the project while maintaining a clear pathway to profitability.
• The strategic location within South Australia, offering the benefit of existing mining infrastructure and supportive regulatory environments.

The company’s strategy is underpinned by its commitment to realising its resource potential, operating within a regulated and resource-rich jurisdiction, and exploring further upside opportunities in a market characterised by increasing demand for critical minerals.

“Coda Minerals Ltd represents a promising opportunity within South Australia’s resource-rich Gawler Craton. Supported by strong financial returns, an evolving resource base, and abundant exploration upside, the company’s development strategy aligns with long-term global demand for key industrial metals.”

With these insights, Coda Minerals positions itself not only as a low-cost producer but also as a dynamic facilitator of growth and innovation in the Australian mining sector. The confluence of robust technical studies, strategic development plans, and an experienced management team makes this announcement a compelling narrative for both current and prospective investors.

Ready to Dive Deeper into Coda Minerals' Promising Copper-Cobalt Project?

Investors seeking to uncover the full potential of Coda Minerals' Elizabeth Creek Project should head directly to www.codaminerals.com. Explore the comprehensive details of this exciting copper-cobalt-silver opportunity, review the latest scoping study results, and gain insights into the company's strategic development roadmap that promises significant value creation in the critical minerals space.