This article is a sponsored feature from Mining.com.au partner Kodiak Copper. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Kodiak Copper (TSX-V:KDK) has expanded its 2026 drill program at the MPD Copper-Gold Porphyry Project in British Columbia, Canada, to 16,500m as it seeks to grow the project’s maiden resource and narrow its valuation gap with peers worth as much as C$1.6 billion ($1.61 billion).
With a maiden resource comprising 719 million pounds of copper equivalent (CuEq) in the indicated category and 2.52 billion pounds of CuEq in the inferred category, Kodiak’s shares have recently traded in the C$0.80 range, giving the company a market capitalisation below C$100 million.
Kodiak CEO Claudia Tornquist says the company’s current position should be viewed against developers that are only a few years further along the same path.
“We’re currently just below a C$100 million market cap, and comparable companies that are just one to three years ahead of us are trading at significantly higher values — that’s really the opportunity for us,” Tornquist says.
A wide valuation gap
As of September, the company was valued at C$86.1 million, compared with C$456 million for GT Gold when it was sold to Newmont (NYSE:NEM), C$394 million for Copper Fox Metals (CVE:CUU), C$1.42 billion for Northisle Copper and Gold (CVE:NCX), C$1.3 billion for Osisko Metals (TSE:OM), and C$1.65 billion for Faraday Copper (TSE:FDY).
Based on those figures, the selected peers were valued at approximately five to 19 times Kodiak’s market capitalisation.
Copper Fox holds a 25% interest in the Schaft Creek Joint Venture, while Faraday and Northisle have advanced to the preliminary economic assessment (PEA) stage.
GT Gold’s C$456 million figure represents the fully diluted equity value of Newmont’s 2021 acquisition of the company.
However, the comparison illustrates how valuations can increase as porphyry projects establish larger resources and progress through economic studies.
Kodiak places its resource at approximately 700 million pounds indicated and 2.5 billion pounds inferred CuEq.
By comparison, the peer resources range from about 3.4 billion to 15.2 billion pounds CuEq, while several have reached the PEA or Prefeasibility Study stage.
“Those companies are all doing porphyry exploration too, but they already have bigger resources than us or are at the PEA stage,” Tornquist says.
“That’s what we’re aiming for in the coming years as we continue to grow our resource and progress down the development path. We should be able to close that valuation gap.”
MPD resource provides foundation for growth
Located in British Columbia’s Quesnel Terrane, the 100%-owned MPD Project comprises several porphyry centres across an established mining region with existing infrastructure.
Kodiak finished 2025 with a major milestone, publishing the project’s initial mineral resource estimate across seven deposits.
The estimate outlined 82.9 million tonnes (Mt) of indicated resources grading 0.39% CuEq and containing 719 million pounds of CuEq. A further 356.3Mt was classified as inferred, grading 0.32% CuEq and containing 2.52 billion pounds of CuEq.
“The resource is already sizeable and it has a lot of potential to grow, with grades comparable to others in the region,” Tornquist says.
All seven deposits remain open for expansion, in most cases in multiple directions and at depth.
Kodiak has also identified dozens of exploration targets outside the current resource, creating opportunities to add new mineralised zones rather than relying solely on extensions to existing deposits.
Drilling program more than doubles
Kodiak began its 2026 exploration program with a planned 6,500m of drilling and expanded the program following the completion of an upsized and oversubscribed C$15 million financing in June.
The new capital was added to approximately C$7 million already held by the company, according to Tornquist, providing funding for a significantly larger program without an immediate need to return to the market.
“With this financing, we’ll be well-placed for this year’s growth program,” she says.
“We’ve upsized our drill program to 16,500m from 6,500m and added a second drill, so it will be a very busy season with lots of results to come.”
Recently, the company has intersected 283.5m @ 0.70% copper equivalent (CuEq) from 37.5m during its maiden drilling at Ketchan.
Hole AG-26-019 returned 0.56% copper (Cu), 0.15 grams per tonne gold (Au), and 2.02g/t silver (Ag) across the interval. It includes 108m @ 0.83% Cu, 0.20g/t Au, and 3.20g/t Ag for 1.02% CuEq from 85.5m.
Ketchan is considered a significant resource-expansion opportunity because mineralisation has been identified beyond the current resource boundaries and the deposit had not previously been drilled by Kodiak.
West, meanwhile, hosts shallow, higher-grade mineralisation from surface that Kodiak says could position the zone as a potential starter pit early in the project’s future development.
“At the beginning of 2027, we’ll do a resource update, and that should show significantly more pounds, ounces, and tonnes than we currently have,” Tornquist says.
Kodiak’s broader strategy is to grow MPD to the scale required for economic assessment, advance the project through successive technical studies, and ultimately position it for mine development.
Kay Copper adds a second value opportunity
Kodiak is also seeking to create value from its non-core Mohave Copper-Molybdenum-Silver Porphyry Project in Arizona, US.
Under a proposed transaction with Teck Resources (TSE:TECK.B) and Kay Copper, Kodiak would contribute its Mohave Project and Teck would contribute its Copper Hill Project to create a US-focused copper explorer.
The transaction remains subject to definitive agreements. If completed, Kodiak and Teck would each hold more than 25% of Kay Copper.
Kay Copper is targeting a TSX-V listing and plans to use proceeds from a concurrent financing to advance both Arizona projects.
“This is another value opportunity for shareholders,” Tornquist says.
Copper price rally strengthens the backdrop
Kodiak’s resource-growth program also comes as copper prices are rising, as the threat of US import tariffs redirected metal into American warehouses and tightened supplies elsewhere.
COMEX inventories climbed to record levels in August as traders moved copper into the US ahead of potential duties taking effect, while London Metal Exchange (LME) stocks remained about 40% below their mid-May levels.
The shift also prompted CRU, a global commodities research and consulting firm, to revise its forecast for a 639,000-tonne global surplus to a market that is at best balanced, with prices rising on both COMEX and the LME.
Kodiak’s largest drill program to date is taking place against a backdrop of tighter global supply and renewed attention on future copper availability.
Write to Bruno Venditti at Mining.com.au
Images: Mining.com.au, Kodiak Copper
