Castillo Copper (ASX:CCZ) has begun a wholesale strategic asset portfolio review to determine which projects it should dedicate time and money to and which projects to handball off.
The $9.09 million market capitalisation company says this review comes amid recent management changes, with Managing Director Dennis Jensen tendering his immediate resignation on October 10. Through the review, the company will look to determine which assets remain core and ‘highly prospective’ before allocating capital to maximise exploration potential.
Castillo reports that a key focus for assets deemed core will be to align with strategic partners aiming to develop new copper supply chains.
Non-core assets will be rationalised, sold to interested third parties, or relinquished.
While the company has not released any specific details of the planned review, in a recent interview with Mining.com.au, former Managing Director Dennis Jensen said the company’s Cangai Copper Mine was “not currently in play in terms of exploration for a variety of factors”.
Jensen added the company was searching for potential joint venture (JV) partners for its Broken Hill, NWQ, and Cangai assets in Australia, as well as potential sales partners for its Zambian assets.
“We’re looking for JV partners – Broken Hill, NWQ, and obviously Cangai,” Jensen said.
“I mean, we’d be looking hopefully for a partner for Zambia, possibly, more to sell than to partner.”
Castillo notes it intends to move swiftly with the review and will update the market in the coming weeks.
Castillo Copper Chairman Ged Hall says the company has a ‘considerable’ amount of work ahead.
“The board has considerable work to do progressing the strategic asset portfolio review but believes this is the right path to maximising shareholder value. The decisions flowing on from the outcome of this process will be announced in the coming weeks.”
“The board has considerable work to do progressing the strategic asset portfolio review but believes this is the right path to maximising shareholder value”
Castillo Copper is a copper-focused explorer based in Perth, Western Australia, with a portfolio of projects across Australia and Zambia.
The company’s Australian assets include the Broken Hill Project and Cangai Copper Mine in New South Wales and the NWQ Copper Project in northwest Queensland.
Castillo also holds 4 ‘highly prospective’ exploration targets in Zambia.
Castillo Copper had $2.9 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Castillo Copper
