Coda Minerals (ASX:COD) is in talks with potential undisclosed strategic partners as the company continues to advance feasibility optimisation at its Elizabeth Creek Copper Cobalt Project in South Australia.
Speaking to Mining.com.au on the sidelines of the International Mining and Resources Conference (IMARC) in Sydney last week, Chief Executive Officer (CEO) Chris Stevens says a potential partnership is a preferred growth pathway over outright acquisitions.
Stevens notes the company has retained Taylor Collison to act as an advisory firm to help facilitate any potential partnership agreement.
“We have taken some cost-cutting measures recently, but we are in talks with a number of strategics.
What we can say is that we are reasonably advanced and we are working on it. As soon as it can happen it will happen. We aren’t afraid of hard work here at Coda, we get stuff done. We would rather do a good deal than a bad deal.
We are not keen on an acquisition without a material premium, and even then I’m not sure. The reality is we will look at everything, we always act on what is best for our shareholders, but we are not going to do a panic deal or a bad deal.
We have the ability to keep going and we believe very strongly we are adding value despite the tough market. Copper falling out of favour was not on my 2023 bingo card to be completely honest.”
Stevens notes Coda considers an ideal partner to be those that are in it for the long haul, are ‘patient’, and will help take its project forward, whether via a financial or other contribution.
“It doesn’t matter whether you’re Coda or any other company, the job is to get the best, stickiest, most patient, least-cost capital, that is the attraction, so you find the right people to take things forward and the right people who can be long-term partners. You will not speak to a person here who is not looking for the same thing.”
The potential partnership comes at a time in which the company is pursuing Prefeasibility Study optimisation at its Emmie Bluff deposit.
The CEO adds: “The PFS optimisation is looking at 2 things, mining more selectively and more efficiently at Emmie Bluff. Every time you knock 10 bucks out of the mining cost you get a significant increase on the NPV.
The current mine plan works, its low risk, conventional, and peer-reviewed, it’s a good plan, but it isn’t cheap, and if we can knock a decent chunk of cost out of that mine plan by mining more selectively and mining more efficiently that is going to be a huge win for the project. Let’s face it, more NPV never hurts and that is what we are aiming for at the moment.”
“Let’s face it, more NPV never hurts and that is what we are aiming for at the moment“
Stevens notes the company is ‘funded comfortably’ through to the end of the financial year, with funds expected to be put towards finalising a Scoping Study update.
“The project has under $300 million pre-production capex, we are not talking multi-billion dollar capex here which a lot of companies in our position are. Obviously, we cannot fund that organically as a junior, but what we can do is fund the geophysical exploration and advance our understanding of the IOCG, and finalise the Scoping Study update. We are funded through to the end of the financial year very comfortably.”
Coda dove into a geophysical survey at its Emmie Bluff deposit in conjunction with Prefeasibility Study (PFS) optimisation, as announced in July this year.
Coda Minerals is an ASX-listed multi-commodity explorer and developer which has a sole 100% interest in the Elizabeth Creek Copper Cobalt Project in South Australia.
The project has a long history of copper production, an established JORC 2012 resource and ‘excellent’ exploration upside potential.
Write to Adam Drought at Mining.com.au
Images: Coda Minerals
