NEW YORK, 22 November 2021 / PRNewswire / – Copper Prices Pink Tuesday following the positive development of talks between the US president Joe biden and Chinese leader Xi Jinping. Following the virtual talks, the dollar weakened, improving investor risk sentiment. With copper prices rising and the two governments appearing to be on an amicable start, investors see these developments as a sign that copper may rebound from last month’s decline. Copper mining companies such as Kutcho Copper (TSXV: KC) (OTCQX: KCCFF), Teak Resources Limited (NYSE: TECK.A) (TSX: TECK.B), Southern Copper Company (NYSE: SCCO), Capstone Mining Corp. (TSX: CS), and Turquoise Hill Resources Limited (NYSE: TRQ) should benefit from rising copper prices.
At November 8, Canadian Resource Development Corporation Kutcho Copper (TSXV: KC) (OTCQX: KCCFF) announcement the results of its feasibility study for its Kutcho copper and zinc project in Northern British Columbia, which showed strong profitability of the project thanks to high base metal prices and low cost production.
The Kutcho project, which has an 11-year open pit and underground life, includes a significant high-grade mineral resource of 22.8 million tonnes grading 2.3% copper equivalent and 1,096 Mlb of zinc. The resource also includes silver and gold credits. Kutcho will mine the main deposit using conventional open pit mining, followed by a long-hole longitudinal open-pit underground operation with cemented rip-rap for the deeper deposit and the Esso deposit.
The project, which has the financial backing of the streaming giant of precious metals Wheaton Precious Metals, plans to produce 533 million pounds of copper, 841 million pounds of zinc and 10.6 million ounces of silver and approximately 130,000 ounces of gold over the life of the mine. The company expects a production capacity of 4,500 tonnes per day in the first year of production.
Some of the highlights of the feasibility study include an after-tax NPV (discounted at 7%) of C $ 931 million and IRR of 41 percent based on spot metal prices of $ 4.50 per pound of copper and $ 1.57 per pound of zinc, and a payback period after the start of production of only 3.4 years. The initial investment cost was also estimated to be low, at only CA $ 483
“The feasibility study represents an important step for Kutcho Copper as we continue to move the Kutcho high grade copper-zinc project towards a development decision”, said the President and CEO of Kutcho Copper Vince Sorace.
“The results of the feasibility study highlight the attractive economy of the Kutcho project, which resists lower metal prices, which are very attractive at the prices of the reference scenario and presents a significant leverage effect on price increases,” as evidenced by spot metal prices with a C $ 931 million NPV after tax of 7% and IRR of 41%. We believe the results of the feasibility study mean that Kutcho Copper is now one of the most undervalued copper investment opportunities in North America, ” he added.
In addition to mining, Kutcho has an extensive reclamation program including open pit backfilling and water treatment initiatives. The company also aims to reduce carbon emissions from the project by using natural gas instead of diesel for power generation.
In October, Kutcho too describe Potential targets for the expansion of surface and underground resources for 2022 that exceed those included in the feasibility study. The company is currently evaluating plans to aggressively test these priority targets in 2022, which have the potential to improve the size and scale of the project.
For more information on Kutcho Copper (TSXV: KC) (OTCQX: KCCFF), Click here.
Significant revenue and growth for copper mining companies
For the twelfth year in a row, Teck Resources Limited (TSX: TECK) (TSX: TECK.B) has once again been class first in the metals and mining industry by the S&P Dow Jones Sustainability World Index. The company continues to emphasize its commitment to environmental sustainability and social responsibility. Following the announcement, the company made a $ 250,000 Don to the Canadian Red Cross and the British Columbia Society for the Prevention of Cruelty to Animals to support the evacuation and support of people and livestock in flood affected areas in British Columbia.
Southern Copper Corporation (NYSE: SCCO) saw a 25.9% increased income in Q3 2021 compared to Q3 2020 following the rise in metal prices. The company generated $ 2,680.9 million in net sales. While Southern Copper has experienced a slight decline in copper production, it still plans to produce 957,000 tonnes of copper in 2021.
Capstone Mining Corp. (TSX: CS) has received final approvals from the US Forest Service, extending the life of its Pinto Valley mine to 2039. With the mine expansion plan, the company expects to produce 2.5 billion pounds of copper and preserve about 700 jobs in Gila County, Arizona. The mine expansion plan was approved by Tonto National Forest after a detailed assessment of technical information and consultations with stakeholders.
Turquoise Hill Resources Limited (NYSE: TRQ) grew 16% year-on-year increased copper production in the third quarter of 2021 from its Oyu Tolgoi mine. The mine generated 41,935 tonnes of copper, which puts the company on track to meet its production targets for 2021. In addition to copper, the company produced 130,799 ounces of gold, generating revenue total of $ 622.8 million for the quarter. The company has a production guideline of 150,000 to 180,000 tonnes of copper.
Copper will play an important role as the world moves towards clean energy and prices have started to reflect the growing demand for copper. With these developments, copper plays like Kutcho Copper benefit investors.
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