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Anglesey Mining #AYM – Information received from statutory and specialist consultees regarding the Parys Mountain Mine Environmental Impact Assessment Scoping Report
Further to the Company’s announcement on 16 August 2024, Anglesey Mining plc (AIM:AYM), is pleased to announce that it has recently received reports from statutory and specialist consultees in response to the Parys Mountain Mine Environmental Impact Assessment (EIA) Scoping Report. The Company is pleased to note that the responses received are broadly in line with the company’s expectations.
The responses from the statutory consultees will be taken into account by the North Wales Minerals and Waste Planning Service, who assess mineral planning applications on behalf of the Isle of Anglesey County Council, for the purposes of their formal Scoping Opinion which the Company expects to be released in due course.
As previously noted, the Anglesey Mining team are committed to close collaboration with stakeholders, communities, industry and supply chain, particularly around minimising potential environmental impacts and maximising economic development opportunities for local communities.
The Scoping Report and appendices can be accessed and downloaded from the Parys Mountain section of our web site by clicking this link:
https://www.angleseymining.co.uk/environmental-impact-assessment-eia-scoping-report/
or from the Anglesey County Council and North Wales Minerals and Waste Planning Service websites by clicking the following link:
If you wish to submit comments through the formal scoping processes, please send your comments directly to the North Wales Minerals and Waste Planning Service.
In the meantime, if you wish to provide comments regarding the proposal to the Anglesey Mining Team directly, please address them to mail@angleseymining.co.uk with the subject “Scoping Report Comments.”
Rob Marsden, CEO of Anglesey Mining, commented: “We encourage stakeholders to comment and ask questions, so that a highly considered EIA submission can be made. [We also welcome the opportunity to engage constructively with the North Wales Minerals and Waste Planning Service as it progresses with the Scoping Opinion.] The objective of Anglesey Mining is to make a planning application, that when enacted, will be seen to provide economic returns to investors, job opportunities, mitigation of the impacts to the environment and enhanced respect for, and appreciation of, the mining heritage of Parys Mountain, thus earning us a social licence to operate.”
About Anglesey Mining plc:
Anglesey Mining is traded on the AIM market of the London Stock Exchange and currently has 461,593,017 ordinary shares in issue.
Anglesey is developing the 100% owned Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in North Wales, UK with a reported resource of 5.3 million tonnes at over 4.0% combined base metals in the Measured and Indicated categories and 10.8 million tonnes at over 2.5% combined base metals in the Inferred category.
Anglesey also holds a 49.75% interest in the Grängesberg iron ore project in Sweden and 12% of Labrador Iron Mines Holdings Limited, which through its 52% owned subsidiaries, is engaged in the exploration and development of direct shipping iron ore deposits in Labrador and Quebec.
For further information, please contact:
Anglesey Mining plc
Rob Marsden, Chief Executive Officer – Tel: +44 (0)7531 475111
Andrew King, Interim-Chairman – Tel: +44 (0)7825 963700
Davy
Nominated Adviser & Joint Corporate Broker
Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363
Zeus Capital Limited
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0)161 831 1512
Anglesey Mining #AYM and Parys Mountain featured in a report by Rob Shelley on ITV Wales
https://x.com/Brand_UK/status/1828693057845268553
A #copper rush on Anglesey? It is 120 years since the last miners left… but history could be about to come full circle at #ParysMountain #Anglesey
CEO Rob Marsden and Site Manager Don McCallum talk through the history of the mine and the drill samples in the core shed
Everything from #copper #gold #zinc #lead and #silver could be mined from a new section of Parys Mountain
Anglesey Mining #AYM – Northern Copper Zone and Garth Daniel Zone, update
At Anglesey Mining plc’s Parys Mountain property, mineralization within the Northern Copper Zone (NCZ) has been traced by historical mining and diamond drilling over a strike length of 1.2 kilometres. The declared inferred resource for the NCZ is 9.38Mt containing 1.27%Cu, 0.38% Zn, 0.24%Pb, 5g/y Ag and 0.1g/t Au. The declared inferred resource of the Garth Daniel Zone (GDZ) is 0.34Mt containing 1.89%Cu, 5.78%Zn, 2.76%Pb, 66g/t Ag and 0.1g/t Au.
All three holes in the 2023-2024 drilling program (NCZ001, NCZ002 and NCZ003) intersected both broad zones of mineralisation and multiple higher-grade zones. The sections below show that the drilling demonstrated good continuity and further supports the integrity of the geological model and drill targeting, with indications of greater mineralised volumes overall.
Anglesey Mining has recently received litho-geochemical results for each of the three holes, from Activation Laboratories in Canada. Interpretation of the results has allowed the stratigraphic positions of the main ore horizons to be further defined, improving the geological unit correlations across the property. Work is on-going; however it is already apparent that the latest holes intersected the same package of rocks and styles of alteration and mineralization as interpreted from previous drilling campaigns, which were subject to the same litho-geochemical analysis.
Detailed understanding of the lithology in each of the recently completed holes will mean a new structural geological model can be constructed and data supporting the model will additionally leverage off all the previously completed exploration drilling that has taken place into both the NCZ and the GDZ. Such a model would be more detailed than the one that presently exists and could provide valuable insights into the controls and distribution of the various mineralized zones. It is expected that, once completed, the model will be able to be extrapolated on a wider scale and used in subsequent mine planning.
Rob Marsden, CEO of Anglesey Mining, commented: “Extracting all of the data possible from the 2023-2024 drilling campaign and interpreting it in context is a key part of the work being undertaken at Parys Mountain and it is great to see this latest dataset supporting and enhancing previous geological interpretation of the deposit.”
Hole NCZ001, at the 575.0m depth, intercepted a high-grade veined polymetallic interval in the Garth Daniel Zone (GDZ) which sits at a similar stratigraphic position to high-grade GDZ mineralization in AMC15 (from the 2005-2006 drilling campaign)
The semi-massive sulphides in NCZ002, NCZ003 are as seen in hole AMC16 (also from the 2005-2006 drilling campaign)
About Anglesey Mining plc:
Anglesey Mining is traded on the AIM market of the London Stock Exchange and currently has 461,593,017 ordinary shares in issue.
Anglesey is developing the 100% owned Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in North Wales, UK with a reported resource of 5.3 million tonnes at over 4.0% combined base metals in the Measured and Indicated categories and 10.8 million tonnes at over 2.5% combined base metals in the Inferred category.
Anglesey also holds a 49.75% interest in the Grängesberg iron ore project in Sweden and 12% of Labrador Iron Mines Holdings Limited, which through its 52% owned subsidiaries, is engaged in the exploration and development of direct shipping iron ore deposits in Labrador and Quebec.
Competent Person
The information in this announcement which relates to Drilling Results has been approved by Mrs. Liz de Klerk, M.Sc., Pr.Sci.Nat., FIMMM who is a professional registered with the South African Council for Natural Scientific Professionals (SACNASP: 400090/08) and independent consultant to the Company. Mrs. de Klerk is the Senior Geologist & Managing Director of Micon International Co Limited and has over 20 continuous years of exploration and mining experience in a variety of mineral deposit styles. Mrs. de Klerk has sufficient experience which is relevant to the style of exploration, mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mrs. de Klerk consents to inclusion in the announcement of the matters based on this information in the form and context in which it appears.
For further information, please contact:
Anglesey Mining plc
Rob Marsden, Chief Executive Officer – Tel: +44 (0)7531 475111
Andrew King, Interim-Chairman – Tel: +44 (0)7825 963700
Davy
Nominated Adviser & Joint Corporate Broker
Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363
Zeus Capital Limited
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0)161 831 1512
Daily Telegraph – Bid to reopen 3,500-year-old Welsh mine after gold found in hills – Anglesey Mining #AYM
Anglesey Mining #AYM feature in the The Daily Telegraph by Jonathan Leake – Bid to reopen 3,500-year-old Welsh mine after gold found in hills.
Bronze Age site on Anglesey could also hold copper, zinc & other precious metals
Anglesey Mining has unveiled plans to build new 630-metre shafts into Parys Mountain….
Rob Marsden chief executive of Anglesey Mining, said the mine also contained deposits of silver and lead.
He said: “Parys Mountain is demonstrably the largest and most advanced project for mining copper, gold, silver, lead and zinc in the UK.
“The project is favourably located on a previously permitted development site with significant existing infrastructure already in place…..”
Read full article here: https://www.telegraph.co.uk/business/2024/08/16/push-to-reopen-disused-welsh-mine-after-gold-found-in-hills/
#AYM Anglesey Mining PLC – Submission of Parys Mountain Mine Environmental Impact Assessment Scoping Report
Anglesey Mining plc (AIM:AYM), is pleased to announce that it has reached an important project milestone with the formal submission on 31st July 2024 of the Parys Mountain Mine Environmental Impact Assessment (EIA) Scoping Report to the North Wales Minerals and Waste Planning Service (the “Planning Service”) as part of a formal EIA Scoping Opinion request. The Planning Service assesses mineral planning applications on behalf of the Isle of Anglesey County Council and other County Councils within the North Wales Region.
The Scoping Report forms part of the first stage in the EIA process and comes after almost two years of extensive studies and work by the Anglesey team on site. Cumulative expenditure on the EIA process in that timeframe is almost £300,000. The scoping report sets out the project’s perceived impacts, specifically identifying any crucial and significant impacts which will be assessed as part of the final EIA report, the compilation of which will require further environmental and ecological work. At this EIA scoping stage, the project description remains indicative and will be refined following ongoing mining engineering studies, economic analysis and discussions with neighbours, the wider community and other stakeholders. The mining at Parys will be carried out by underground methods; there are no plans for an open pit or opencast mine extraction works.
The Scoping Opinion request will now be validated by the Planning Service and when that process is completed it will be placed on the Anglesey Council Planning Public Register. At that time, Anglesey Mining will publish a further RNS release providing information on how interested parties can view and comment on the report.
Anglesey’s C.E.O. Rob Marsden participated in a monitoring visit and meeting on site at Parys Mountain on 13th August 2024 with the Senior Minerals and Waste Planning Officer under the ‘The Town and Country Planning (Fees for Applications and Deemed Applications) (Wales) (Amendments) Regulations 2020, which mineral planning authorities utilise to monitor mineral sites and their extant planning permissions. A brief overview of Anglesey’s new proposal was also discussed at the above meeting.
The Anglesey team are committed to close collaboration with stakeholders, communities, industry and supply chain participants, particularly around minimising potential environmental impacts and maximising economic development opportunities for local communities.
Preservation of existing heritage areas, sites of special scientific interest (SSSI’s) and scheduled historic monuments and buildings have been a major factor in Anglesey determining the location of new proposed surface infrastructure, and similarly, other environmental and social considerations. The EIA Scoping Report considers how measures to avoid, mitigate or compensate would be identified to address the impacts of the project.
Copper, zinc, silver and lead are essential metals that will be required for, amongst other uses, the transition of the UK’s energy use and distribution towards electricity and away from fossil fuels. To produce these minerals from the Parys Mountain mine, new surface infrastructure will be required, including a tailings management facility, a decline portal and some small ventilation shaft collars. The proposed approximate locations of such surface features are shown in a drawing and are described in the EIA Scoping report. The details may change as the Environmental Impact Assessment process proceeds. Anglesey has decided to submit a fresh planning application, rather than alter the existing one, for several reasons that are outlined in the EIA Scoping Report. This is partly because additional mineral resources have been identified recently during a campaign of exploration drilling and because Anglesey intends to avoid any potential damage to heritage and biodiversity assets that have been designated since the last mineral permission. Finally, technological changes since the original planning permission offer more efficient methods of mining, ore processing, pollution control and tailings storage.
Rob Marsden, CEO of Anglesey Mining, commented: “The submission of the Environmental Impact Assessment Scoping Report for the Parys Mountain Project is a very significant milestone for Anglesey. The assessment of the environmental and social impacts of mining of copper, zinc, lead, silver and gold from Parys Mountain, in addition to the economic feasibility, will play a major part in the permitting processes required to progress the project through investment and financing to mineral production.”
“It is worth reminding investors that Parys Mountain is demonstrably the largest and most advanced copper/zinc/lead/silver/gold project in the UK with a substantial resource upside. In addition, the project is favourably located on a previously permitted, development site with significant existing infrastructure already in place.“
About Anglesey Mining plc:
Anglesey Mining is traded on the AIM market of the London Stock Exchange and currently has 461,593,017 ordinary shares in issue.
Anglesey is developing the 100% owned Parys Mountain Cu-Zn-Pb-Ag-Au VMS deposit in North Wales, UK with a reported resource of 5.3 million tonnes at over 4.0% combined base metals in the Measured and Indicated categories and 10.8 million tonnes at over 2.5% combined base metals in the Inferred category.
Anglesey also holds a 49.75% interest in the Grängesberg iron ore project in Sweden and 12% of Labrador Iron Mines Holdings Limited, which through its 52% owned subsidiaries, is engaged in the exploration and development of direct shipping iron ore deposits in Labrador and Quebec.
For further information, please contact:
Anglesey Mining plc
Rob Marsden, Chief Executive Officer – Tel: +44 (0)7531 475111
Andrew King, Interim-Chairman – Tel: +44 (0)7825 963700
Davy
Nominated Adviser & Joint Corporate Broker
Brian Garrahy / Daragh O’Reilly – Tel: +353 1 679 6363
Zeus Capital Limited
Joint Corporate Broker
Katy Mitchell / Harry Ansell – Tel: +44 (0)161 831 1512
Anglesey Mining #AYM – Result of Placing and Subscription
Anglesey Mining Plc (AIM:AYM) is pleased to announce that, further to its announcement of 7 a.m.. (London time) on 28 June 2024, it has successfully completed and closed the Placing and Subscription.
The Placing and Subscription raised, in aggregate, gross proceeds of £415,000. The Placing comprises the placing of 32,500,000 Ordinary Shares (the “Placing Shares”) with certain institutional and other investors at a price of 1 pence per share (the “Issue Price”), and the Subscription comprised a subscription of 9,000,000 Ordinary Shares (“Subscription Shares“) at a price of 1 pence per share.
The Placing and Subscription is conditional on, amongst other matters, Admission.
The net proceeds of the Placing and Subscription will be applied to developmental work at Parys Mountain, advancing development options at Grängesberg Iron Ore Mine, debt repayment; and general working capital purposes.
The Company has been notified of the following participants in the Subscription (conditional only on admission of the Subscription Shares to trading on AIM):
PDMR Participation in the Subscription
| Name | Role | Ordinary Shares subscribed for in the Subscription | Total Holding of the enlarged Share Capital after the Subscription | Percentage holding of the enlarged Share Capital after the Placing and Subscription |
| Rob Marsden | Chief Executive Officer | 1,000,000 | 1,251,103 | 0.27 |
| Andrew King | Interim-Chairman | 2,000,000 | 2,000,000 | 0.43 |
Substantial Shareholder Participation
Energold Minerals Inc. has subscribed for 6,000,000 Ordinary Shares in the Subscription increasing its total holding in the Company to 95,108,204 Ordinary Shares (being 20.6% of the enlarged share capital of the Company after completion of the Placing and the Subscription).
Admission and Total Voting Rights
Application has been made to the London Stock Exchange for admission of the Placing Shares and the Subscription Shares, (being a total of 41,500,000 Ordinary Shares) to trading on AIM. It is expected that admission will become effective and dealings in the Placing Shares commence on AIM at 8.00 a.m. on 04 July 2024 (or such later date as may be agreed between the Company and the Bookrunner, but no later than 28 July 2024).
The Placing Shares and the Subscription Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.
Following Admission, the total number of Ordinary Shares in the capital of the Company in issue will be 461,593,017 with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company’s share capital pursuant to (i) the Company’s Articles, (ii) the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules and/or (iii) the AIM Rules for Companies issued by the London Stock Exchange plc as amended from time to time.
Capitalised terms used but not otherwise defined in this announcement shall have the meanings ascribed to such terms in the Company’s announcement made at 7.00 a.m. on 28 June 2024, unless the context requires otherwise.
For further information on the Company, please visit www.angleseymining.co.uk or contact:
Enquiries:
Anglesey Mining Plc www.angleseymining.co.uk
Rob Marsden, Chief Executive Officer Tel: +44 (0)7531 475111
Andrew King, Interim-Chairman Tel: +44 (0)7825 963700
Davy (Nominated Adviser & Joint Broker)
Brian Garrahy Tel: +353 1 679 6363
Daragh O’Reilly
WH Ireland Limited (Joint Broker & Bookrunner)
Harry Ansell Tel: +44 (0) 207 220 1666
Katy Mitchell
Anglesey Mining #AYM – Proposed Placing and Subscription to raise approximately £415,000
Anglesey Mining Plc (AIM:AYM) is pleased to announce its intention to raise gross proceeds of approximately £325,000 by means of a proposed placing (the “Placing”) of approximately 32,500,000 new ordinary shares of nominal value £0.01 (“Ordinary Shares”) each in the capital of the Company (the “Placing Shares”), to certain institutional and other investors, and a direct subscription of 9,000,000 new ordinary shares, to raise approximately £90,000 (the “Subscription”) (together the “Fundraising”), in each case at a price of 1p pence per share (the “Issue Price”).
Rob Marsden and Andrew King are directors of the Company and have indicated their intention to subscribe for new Ordinary Shares as part of a subscription. Energold Minerals Inc. has also indicated its intention to subscribe for new Ordinary Shares as part of a subscription.
The Issue Price represents a discount of approximately 16.67 per cent. to the Closing Price of 1.2 pence per Ordinary Share on 27 June 2024 being the latest practicable business day prior to the publication of this Announcement.
The Placing is to be conducted by way of an accelerated bookbuild (the “Bookbuild”) process which will commence immediately following this Announcement and will be subject to the terms and conditions set out in the Appendix to this Announcement.
The Placing and Subscription is conditional on, amongst other matters, admission of the Placing Shares and the Subscription Shares to trading on AIM.
A further announcement confirming the closing of the Bookbuild and the number of Placing Shares and Subscription Shares to be issued pursuant to the Placing and Subscription is expected to be made in due course.
WH Ireland Limited (“WH Ireland”) is acting as bookrunner in relation to the Placing.
Capitalised terms used but not otherwise defined in this Announcement shall have the meanings ascribed to such terms at the end of the Appendix to this Announcement, unless the context requires otherwise.
Fundraising Highlights
- Placing and Subscription to raise approximately £415,000 (before expenses) from certain existing shareholders and other institutional investors.
- Placing to be conducted via an accelerated bookbuild process launching today.
- Issue Price of 1 pence per share represents a discount of 16.67 per cent. to the closing mid-market price of the Company’s existing Ordinary Shares on 27 June 2024, being the latest practicable business day prior to the publication of this Announcement.
- Certain directors of the Company have also indicated their intention to participate in the Subscription at the Issue Price.
Reasons for the Fundraise, Use of Proceeds and Transaction Summary
The Company is undertaking the Fundraise to progress its corporate and operational strategy and the net proceeds will therefore be applied towards:
- Developmental work at Parys Mountain
- Advancing development options at Grängesberg Iron Ore Mine
- Debt repayment; and
- General working capital purposes
The Company is advancing a number of initiatives with a view to supporting its cash position, however if these are not successful the Company will need to raise further funds towards the end of the calendar year to continue to progress its activities.
The Placing and Subscription
The Company intends to raise gross proceeds of up to £415,000 (before expenses) from participants in the Placing and Subscription.
WH Ireland is acting as Bookrunner (“Bookrunner”) in connection with the Placing. The Placing Shares are being offered by way of an accelerated bookbuild (the “Bookbuild”), which will be launched immediately following this Announcement, in accordance with the terms and conditions set out in the Appendix to this Announcement.
Admission of the Placing Shares is conditional, inter alia, upon the placing agreement dated 27 June 2024 between the Company and the Bookrunner (the “Placing Agreement”) not having been terminated and becoming unconditional prior to 04 July 2024 (or such later time and / or date as the Company and Bookrunner shall agree, not being later than 28 July 2024).
The Placing is also conditional upon, amongst other things:
- admission of the Placing Shares becoming effective by no later than 8.00 a.m. on 04 July 2024 (or such later time and / or date as the Company and Bookrunner shall agree, not being later than 28 July 2024);
• the delivery by the Company to the Bookrunner of certain documents required under the Placing Agreement;
• the Company having fully performed its obligations under the Placing Agreement to the extent that such obligations fall to be performed prior to admission of the Placing Shares;
• the Placing Agreement not having been terminated by the Bookrunner in accordance with its terms.
The timing of the closure of the Bookbuild and the allocation of the Placing Shares to be issued at the Issue Price are to be determined at the discretion of the Company and the Bookrunner.
Admission to trading
Application will be made to the London Stock Exchange for admission of the Placing Shares and the Subscription Shares to trading on AIM. It is expected that admission will become effective and dealings in the Placing Shares and Subscription Shares will commence at 8.00 a.m. on or around 04 July 2024.
The Placing Shares and Subscription Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.
A further announcement will be made following the closure of the Bookbuild, confirming final details of the Placing.
The Placing is not being underwritten and the Placing is not conditional on a minimum amount being raised.
The person responsible for arranging for the release of this announcement on behalf of Anglesey is Rob Marsden.
For further information on the Company, please visit www.angleseymining.co.uk or contact:
Enquiries:
Anglesey Mining Plc www.angleseymining.co.uk
Rob Marsden, Chief Executive Officer Tel: +44 (0)7531 475111
Andrew King, Interim-Chairman Tel: +44 (0)7825 963700
Davy (Nominated Adviser & Joint Broker)
Brian Garrahy / Daragh O’Reilly Tel: +353 1 679 6363
WH Ireland Limited (Joint Broker and Bookrunner)
Harry Ansell / Daniel Bristowe Tel: +44 (0) 207 220 1666
Katy Mitchell / Andrew de Andrade
Anglesey Mining #AYM – Alan Green talks to CEO Rob Marsden at Parys Mountain
Alan Green talks to recently appointed Anglesey Mining #AYM CEO Rob Marsden direct from the Company’s flagship Parys Mountain mine. Rob discusses his career, in particular the years he spent working at Rio Tinto and also the 3 years he spent heading up the Rio investment committee, charged with seeking new investment opportunities for the mining giant. Rob then covers his work as a consultant, working around the world and then the time he spent with former CEO Jo Battershill at Parys Mountain a few years ago, which led up to his joining the board. Rob provides his overview of the latest assay results from hole NCZ003, and explains how he believes the previous drilling in the 1960’s and 1970’s can give the team ‘incredible confidence’ going forward. We then look at how the team plan to approach the pre feasibility study, via both divergent and convergent phases leading to a robust PFS ahead of the move to feasibility study. Rob then maps out what investors can expect in the coming weeks and months, and how this week he has assembled a team of colleagues including a longstanding veteran Rio Tinto geologist who will bring ‘fresh eyes’ to the project.
Introduction from new Anglesey Mining #AYM CEO Rob Marsden
An introduction from new Anglesey Mining #AYM CEO Rob Marsden from Parys Mountain
- Rob provides an overview of his CV, along with a brief overview of Parys Mountain mine and the surrounding area
- A brief overview of today’s assay results that “demonstrate good continuity, supporting the integrity of the geological model”
- Litho geochemical results from all three holes due in the coming weeks
- Targeting a resource update on the Northern Copper Zone
A Perfect Storm and Copper Bottomed Squeeze – by Jill Baker
by Jill Baker
That so many analysts have been caught napping as the copper price ‘unexpectedly’ broke to new highs is something of a surprise, particularly given the compelling economic drivers that have been clearly signalling a supply squeeze for some years.
Copper is thought to be the first metal humans discovered, dating back well over 10,000 years. Previously the price was kept in check due to the fact that in general copper is more abundant than the majority of non-ferrous metals. It’s historical uses in cookware, tools and fittings, along with its durability, conductivity and even anti-bacterial properties have ensured copper’s iconic status in the world of metals.
However, the emergence of new industries in clean technology and EV production have created an added impetus and urgency to sourcing new copper supplies. This increase in demand has also coincided with a forecast fall in production for the next few years (see Fig 1 – courtesy Refinitiv) opposite.
The first few months of 2024 has seen copper analysts hastily rewrite their scripts and switch to forecasts for deeper deficits, while striking redlines through previous forecasts for expected surpluses.
Some copper bulls have stuck to their guns: Goldman Sachs sees copper trading at $10,000 / tonne by the end of 2024, Capital Economics forecasts a year end price of $9,250 and ANZ sees the metal trading above $10,000 / tonne over the next 12 months.
But with the price rocketing skywards, even these latest forecasts are looking out of date. Along with gold, copper has broken out of a recent trading range and at time of writing (April 19 2024) stands at $9,651 / tonne (see Fig 2 opposite – courtesy Markets Insider).
And Jeremy Weir, CEO of commodity giant Trafigura believes that there will be a potential supply gap of 8m tonnes by 2034, fully supporting $10,000 / tonne and possibly as high as $12,000 / tonne.
So copper is faced with a perfect backdrop: an increase in demand and a fall in production. Both are combining to drive the copper price much, much higher. The ramifications for Governments seeking to meet net zero commitments are huge. Equally, the fortunes of mining juniors holding copper assets looks set to change dramatically. Historically uneconomic and / or dormant projects are being hurriedly revisited as the record high copper prices validate and bring back to life historically uneconomical projects.
Two companies outlined here both have copper projects at different stages of development, and in each case the share prices of both companies have yet to catch up with the rocketing copper price and benefit from the perfect storm and copper bottomed squeeze.
Early Stage:
Aquis listed VVV Resources (AQX: VVV) is building a new portfolio in a user-friendly, low-risk, prolific and historic copper region of Austria. Last October, VVV acquired the Mitterberg Copper Project in Austria, considered the largest copper occurrence in the area defined as the Eastern Alps and also a “brownfield” site. It is reported that copper mining commenced during prehistoric times and recommenced around 1830 until 1977 when the mines were closed due to low copper prices at the time.
According to historic data, more than 120,000 tonnes of copper have been extracted and during the 1970’s it is reported that approximately 200,000 tonnes of copper-rich mineralisation with an average copper grade of 1.4% was mined annually. Mitterberg is located approximately 60 kilometres south of Salzburg, Austria and comprises 198 contiguous exploration licences over an area of some 90 square kilometres.
Although trading at 10.5p per share with a market cap of just £730,000, VVV has just appointed Ben Hill, former Head of Legal at RAB Capital and Senior Advisor for The Growth Stage to the board in order to structure a funding package to enable VVV to fast track Mitterberg development. Chairman and mining industry veteran Jim Williams said that the surge in copper prices, and expected supply squeeze, meant that the development of Mitterberg was “of the utmost importance”, and that Ben Hill and his network “possessed the necessary corporate skills to assist in generating traction and liquidity.”
Later Stage:
Aside from owning a 50% stake in the Grängesberg Iron Ore Project in Sweden and 11% of Labrador Iron Mines Holdings Ltd in Canada, AIM listed Anglesey Mining (AIM: AYM) is the owner of the famous Parys Mountain mine in Anglesey, Wales. Currently engaged in a drilling programme, Parys Mountain hosts a significant polymetallic zinc, copper, lead, silver and gold deposit. A head frame and a 300m deep production shaft already exists, along with planning permission for operations and freehold ownership of the minerals and land. Added to this the local infrastructure is good, political risk is low and the project enjoys the support of local people and government.
Early results from a recent drilling campaign have indicated potential for significant upside to an existing 5 million tonnes of copper within the 2021 Preliminary Economic Assessment. Current drilling has demonstrated good continuity with previous drilling results, further supporting the integrity of the geological model and identifying a large mineralised zone in excess of 100m thick. In the words of Chairman Andrew King, Parys Mountain is “demonstrably the largest and most advanced copper project in the UK with substantial resource upside still evident.”
Anglesey have made a prescient appointment in the form of mining engineer and former Rio Tinto investment committee head Rob Marsden as its new Chief Executive to fast track the drilling programme and bring the Parys Mountain onstream. Despite the pace of developments, the existing infrastructure and new appointment, bafflingly the share price remains rooted at 1.4p, giving Anglesey a current market capitalisation of just £6m.