Our opinion on the current state of CPR

Copper 360, a company engaged in processing historical copper rock dumps and mining surface and shallow copper resources, outlines its operation with a dual focus on environmental cleanup and resource extraction. The company has secured a comprehensive database from industry giants like Newmont and Gold Fields, who previously operated in the district, to bolster its operations.

For the fiscal year ending on 31st August 2023, Copper 360 reported a significant reduction in its loss to R4.9 million from R31.6 million in the prior period. This improvement is attributed to increased production and the completion of capital expenditure phases. The acquisition of Nama Copper Resources Proprietary Limited ("Nama Copper") is a strategic move anticipated to enhance production capabilities and reduce execution build and delivery risks. Copper 360 aims for an EBITDA exceeding R650 million by the fiscal year 2025, alongside major resource upgrades to bolster mining flexibility and growth.

On 21st December 2023, the company successfully raised R274 million to fund the acquisition of Nama Copper and support production growth at the Rietberg mine. Despite these developments, the company's share performance since its listing on 12th April 2023, closing at 500c and subsequently declining to 371c, suggests market skepticism. This downward trend raises concerns about the company's market valuation and investor confidence.

Given these dynamics, Copper 360 represents a potentially high-risk investment option within the volatile commodities sector. The company's focus on copper, a critical industrial metal with fluctuating prices, adds to the speculative nature of this investment. Potential investors are advised to exercise caution and monitor the company's share price stability and operational progress before committing to an investment. The company's ability to secure additional funding, as evidenced by the R100 million raised through share sales on 19th February 2023, indicates ongoing efforts to finance its strategic objectives and operational expansion.