Coda Minerals Ltd
Transformational Price Environment Drives Value Creation
The updated economics reflect significant market movements, with copper prices rising from the previous assumption of US$9,260/t to US$10,500/t and silver surging from US$30/oz to US$60/oz. At current spot prices (copper at US$13,108/t and silver at US$82/oz), the project's estimated Pre-tax NPV jumps to approximately $3.32 billion with an IRR of 74%.
This represents a dramatic improvement from the August 2025 Scoping Study, which showed a Pre-tax NPV of approximately $1.29 billion and IRR of 39% under previous pricing assumptions.
Updated Base Case Economics:
- Post-tax NPV(7): $1.52 billion
- Pre-tax NPV(7): $2.25 billion
- Post-tax IRR: 43%
- Pre-tax IRR: 56%
- Payback Period: 2.5 years from first production
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Streamlined Copper-Silver Focus Reduces Risk Profile
Coda has strategically simplified its approach by adopting a copper-silver base case that removes commodity risk whilst maintaining significant upside potential. The project is designed to produce approximately:
- 454,000 tonnes of copper over life-of-mine
- 20.3 million ounces of silver over life-of-mine
- Steady-state annual production: 31,000 tonnes copper, 1.4 million ounces silver
This streamlined focus on two highly attractive commodities provides exceptional leverage to price movements whilst reducing operational complexity. Under the updated price assumptions, copper contributes approximately 78% of lifetime revenue, with silver accounting for 20%.
Understanding Price Sensitivity: Market Leverage Analysis
The project demonstrates extraordinary sensitivity to both copper and silver price movements, creating substantial leverage for investors seeking exposure to these critical commodities.
Price Leverage Analysis:
- Each US$1,000/t change in copper price impacts base case NPV by approximately $377 million
- Each US$10/oz change in silver price impacts base case NPV by approximately $165 million
This exceptional sensitivity demonstrates why Elizabeth Creek has attracted significant shareholder interest during recent commodity price volatility. The project's economics remain robust even under conservative assumptions that sit materially below current spot pricing.
Strategic Timing with Pre-Feasibility Study Advancement
CEO Chris Stevens Commentary
"We've received a large number of enquiries from shareholders asking how recent movements in copper and silver prices affect the value of Elizabeth Creek. This update demonstrates the exceptional leverage the Project has to both copper and silver prices, whilst still showing very strong economics using conservative long-term assumptions."
Critically, Coda is advancing its Pre-Feasibility Study (PFS) with:
- Drilling materially complete with assays pending
- All major PFS workstreams underway
- Revised copper-silver base case incorporated in ongoing studies
- $11.25 million cash providing strong funding runway
The company's technical work remains unchanged from August 2025, with no revisions to mining, processing, capital or operating cost assumptions. This update purely reflects commodity price evolution.
Capital Requirements and Development Economics
The project maintains an estimated total capital requirement of $615 million, comprising:
| Capital Component | Amount ($M) |
|---|---|
| Pre-Production Capital | $472 |
| Post-Production Capital | $143 |
| Total Project Capital | $615 |
Operating Cost Structure (per tonne ore):
| Deposit | Mining ($) | Processing ($) | G&A ($) | Total OPEX ($) |
|---|---|---|---|---|
| Cattle Grid South | $17 | $33 | $4 | $55 |
| MG14 | $40 | $33 | $4 | $78 |
| Emmie Bluff | $49 | $33 | $4 | $87 |
| Windabout | $71 | $33 | $4 | $110 |
The project demonstrates an attractive All-In Sustaining Cost (AISC) of US$1.59/lb copper under base case assumptions, falling to US$1.33/lb at spot prices.
Infrastructure and Technical Foundation
The Coda Minerals Ltd Elizabeth Creek Copper-Silver Project benefits from exceptional infrastructure positioning:
- Stuart Highway and Adelaide-Darwin rail line pass through the project
- Carrapateena Western Access road between MG14 and Windabout deposits
- Two electrical substations identified for grid power connection
- Planned 43km, 132kV power line from Mt Gunson substation
- 450-person accommodation camp planned for FIFO/DIDO workforce
Processing Strategy:
- Whole-ore chloride leach flowsheet offering streamlined operations
- On-site SX/EW copper recovery circuit producing cathode
- Merrill-Crowe silver circuit for doré production
- Proven metallurgical processes appropriate for deposit type
Resource Foundation and Mine Life
The project leverages 65.5 million tonnes of combined Mineral Resources across four deposits:
Underground Operations (Emmie Bluff):
- 40.2Mt @ 1.3% Cu, 570ppm Co, 16.8g/t Ag (predominantly Indicated)
- Mechanical cutting mining method for enhanced grade control
- 15.5-year mine life with 3Mtpa processing rate
Open Pit Operations:
- MG14: 1.8Mt @ 1.2% Cu, 14g/t Ag (Indicated)
- Windabout: 17.7Mt @ 0.8% Cu, 8g/t Ag (Indicated)
- Cattle Grid South: 5.8Mt @ 0.6% Cu, 3.5g/t Ag (Inferred)
Importantly, 87% of the production target derives from Indicated Resources, providing strong geological confidence for development planning.
Understanding Copper and Silver Markets: Critical Commodities for the Energy Transition
Both copper and silver serve critical roles in global decarbonisation efforts, underpinning the long-term demand outlook that supports Elizabeth Creek's economics.
Copper Market Dynamics:
Copper functions as the backbone of electrical infrastructure, with demand driven by renewable energy systems, electric vehicle manufacturing, and grid modernisation. Industry analysts anticipate structural supply deficits as new discoveries fail to replace depleting resources whilst demand accelerates through the energy transition.
Silver Market Fundamentals:
Silver demand stems from industrial applications including photovoltaic systems, electronics, and medical devices. Solar panel installation growth creates sustained industrial demand beyond traditional investment demand, with supply constraints limiting new production capacity.
The convergence of these market fundamentals with Elizabeth Creek's development timeline positions the project to capitalise on anticipated commodity price strength during its operational phase.
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Investment Thesis: Leveraged Exposure to Critical Commodities
Key Investment Drivers:
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Exceptional Price Leverage: Project economics demonstrate material sensitivity to both copper and silver prices, with spot price scenarios showing potential for $3.32 billion Pre-tax NPV
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Strategic Commodity Exposure: Copper and silver are critical to global decarbonisation efforts, with structural supply deficits anticipated
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Advanced Development Stage: PFS underway with drilling substantially complete, positioning for near-term development decisions
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Infrastructure Advantages: Excellent access to power, transport and logistics infrastructure reduces development risk
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Simplified Technical Approach: Copper-silver focus using proven metallurgical processes reduces execution complexity
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Strong Financial Position: $11.25 million cash provides funding security for PFS completion
Why Does the Elizabeth Creek Project Matter?
The updated economics arrive as Coda advances critical PFS work, with drilling materially complete and all major workstreams underway. This timing allows the company to incorporate current market conditions into advanced study parameters whilst maintaining conservative base case assumptions.
Current spot prices of US$13,108/t copper and US$82/oz silver remain well above the study's conservative assumptions of US$10,500/t copper and US$60/oz silver, providing substantial upside potential for continued value recognition.
What Makes This Development Compelling?
The project's 2.5-year payback period and 56% IRR under these conservative pricing assumptions, rising to 74% IRR at spot prices, demonstrate the exceptional value creation potential as global copper and silver markets face structural supply constraints.
Furthermore, the combination of advanced project development, exceptional price sensitivity, and strategic commodity exposure positions the Coda Minerals Ltd Elizabeth Creek Copper-Silver Project as a premier development opportunity for investors seeking direct exposure to critical commodities.
Investment Perspective
Elizabeth Creek represents one of the most compelling copper-silver development opportunities in Australia, offering exceptional leverage to commodity price movements whilst maintaining technical and infrastructure advantages that support development feasibility. With PFS advancement and a strong cash position, Coda is well-positioned to capitalise on favourable market conditions whilst maintaining technical and financial credibility through conservative study assumptions.
The strategic timing of these enhanced economics with global commodity market dynamics creates a compelling investment proposition. In addition, the project's robust technical foundation and infrastructure advantages position it as a premier development opportunity for investors seeking direct exposure to the critical commodities driving the global energy transition.
Could Elizabeth Creek Be Your Next Mining Investment?
With spot copper prices at US$13,108/t and silver at US$82/oz driving exceptional project economics, now may be the ideal time to investigate Coda Minerals' Elizabeth Creek opportunity more closely. The combination of advanced development status, conservative base case assumptions, and extraordinary price sensitivity creates a compelling investment proposition for those seeking exposure to critical commodities. To explore how this copper-silver project could fit within your portfolio and access detailed technical reports, financial projections, and company updates, visit www.codaminerals.com and discover why institutional investors are taking notice of this premier Australian development opportunity.
