This article is a sponsored feature from Mining.com.au partner Kincora Copper Ltd. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Kincora Copper (ASX:KCC) has had one of its busiest years in recent history, having brought on several partners and worked to unlock over $60 million worth of initial multi-year asset-level funding for its earlier-stage or non-core projects.
The past 18 months have been focused on transitioning to a project generator and partner funding model for its “tier-one-scale” porphyry projects, with the focus now turned to its more advanced and flagship projects and ramping up drilling.
As such, Kincora is now at an inflection point to hit the ground running in 2025 with exposure to over 7,500m of recent partner-funded drilling (assay results pending), more (potentially bigger) deals, and (possibly larger) drilling programs expected.
At this morning’s AGM, Kincora noted that at last year’s meeting the company secured approvals relating to this change in funding model and that this transition has been a key catalyst in its ability to pursue counter-cyclical growth.
Since then, the explorer has secured four new projects, executed or extended five partnership agreements, and resumed drilling with four rigs operational at three projects in the current quarter.
However, President and CEO Sam Spring believes Kincora is still in the early stages of executing its strategy, with “very significant upside” in place.
“To date we have partnerships for five of our 12 porphyry projects that have unlocked over $60 million of potential partner funding,” he tells Mining.com.au.
“From a number of projects perspective, we are less than halfway through delivering upon our strategy and we are now seeking partners for our more advanced and flagship projects, so we are at a significantly earlier stage from a potential value and partner-funding perspective.
“In terms of ramping up exploration on projects with existing partners, this is just now occurring. After 12 months of no prior drilling, in Q4 2024 we saw four rigs active at three of our partner projects. Drilling results are pending.
“Further deals/partnerships, drilling results from current programs, and new 2025 drilling programs are all key milestones for investors to keep an eye out for.
“We believe the foundations now in place provide an inflection point in terms of news flow and value catalysts, and, as we seek to achieve a self-funding model with project management fees from operating further new partner-funded projects covering our corporate costs.”
This morning, shareholder approvals were provided to complete the most recent deal, announced in mid-October 2024, expanding Kincora’s partnership with Fleet Space Technologies, which agreed to a “strategic investment” as part of a $1.27 million capital raising.
As part of this partnership, Fleet Space is to undertake multiphysics surveys at Kincora’s Wongarbon Project, which is one of the four new projects secured during the year, to identify and refine targets, and also has the right to earn a 20% stake in the project by drilling at least 2,000m.
Kincora this year also secured ground to the west and south of its Nyngan and Nevertire projects with the granting of the licences now known as Nyngan West, Nyngan South, and Nevertire South.
These other three licenses are adjacent to and on strike to the mineral systems being explored for in partnership with AngloGold Ashanti (NYSE:AU), via an up to $50 million earn-in deal.
Kincora is currently drilling at the Nyngan Project, completing approximately 2,500m with hole six ongoing, and receives 10% of expenditure as a management fee.
The new ground was secured after the deal with AngloGold Ashanti. Kincora highly rates the Nevertire South Project, describing it as the “most attractive geologically supported” target in the covered extensions of the Macquarie Arc.
Kincora also notes other comparable earlier stage and higher risk projects have recently attracted five partner deals and potentially over $300 million in exploration expenditure.
At today’s AGM, Kincora further outlined its strategy for being very well-positioned for the current and emerging market dynamic of the major industry groups seeking to rebuild exposure to earlier stage and new discovery exploration.
Spring stated the company had recently hosted a number of site visits with major groups as part of discussions for further asset-level partners.
Kincora is now focused on finding asset-level partners, via traditional earn-in and joint venture agreements, similar to that in place with AngloGold Ashanti for its advanced and proximal-to-mine porphyry projects. Further management fees are expected.
These projects include three major asset groupings: the Northern Junee-Narromine Belt projects, including the Nevertire South, Nyngan South and Nyngan West licences; the Cowal Igneous Complex, including the Fairholme and Jemalong licences adjacent to the Cowal and Marsden mineral systems; and the Northparkes Igneous Complex (the Trundle licence).
From the upbeat messaging communicated this morning to shareholders, the company appears set to accelerate its three-pronged strategy into 2025, involving bringing in further partners for its porphyry projects, ramping up drilling at existing partner-funded projects, and drilling its Condobolin Project in New South Wales’ Cobar district when the time is right.
This sets Kincora up for an even busier 2025 which will be assisted by tranche two of the recent October financing shortly closing.
Write to Angela East at Mining.com.au
Images: Kincora Copper
