Marimaca Copper

The investment case rests on a permitted, low-capital-intensity copper project with first-class infrastructure close by. The DFS reports Proven and Probable reserves of 178.6 million tonnes at 0.42% total copper (CuT) containing 747,600 tonnes of copper, supporting a 13-year mine life with a life-of-mine strip ratio of 0.8 to 1. Initial capital of US$587 million equates to a capital intensity of US$11,700 per tonne of annual copper production, which the company benchmarks as among the lowest of North and South American development projects. Capital estimates fall within AACE Class 3 guidelines, with budget quotes obtained for 80% of mechanical equipment and a 10% contingency.

At a long-term copper price of US$4.30 per pound, the DFS returns a post-tax net present value at an 8% discount rate (NPV8) of US$709 million, a post-tax internal rate of return (IRR) of 31% and a 2.5-year payback. At the three-month average COMEX price of US$5.05 per pound used by the company, the post-tax NPV8 rises to US$1.1 billion and the IRR to 39%. Over the first five years of steady state, the DFS projects average annual EBITDA of US$326 million, C1 cash costs of US$1.45 per pound and all-in sustaining costs (AISC) of US$1.97 per pound, rising to US$1.84 and US$2.29 per pound respectively over the life of mine, which the company places in the second quartile of the cost curve.

Infrastructure risk has been reduced in 2026. On 22 September 2026, Chile's Panel of Experts upheld the National Electric Coordinator's approval of the MOD grid connection to the 110 kV El Lince line, approximately 13 km from the project, and the company has agreed a preliminary power purchase agreement framework for 100% renewable power at an all-in cost closely aligned with the DFS assumption of US$93 per MWh, with no take-or-pay provisions during ramp-up. Water will come from recycled seawater from the Bay of Mejillones through a pipeline of approximately 32 km at 208 liters per second, using an already permitted intake and no continental water, and heap leaching removes the need for a wet tailings storage facility.

Chief Executive Officer and Director Hayden Locke has more than 15 years of experience in mining and finance and was previously Head of Corporate for Papillon Resources and Chief Executive Officer of Emmerson Plc. President Nico Cookson has a background in corporate finance, mergers and acquisitions and private equity, including as an investment professional at Appian Capital Advisory and in investment banking at RBC Capital Markets. Peter Garner-Winship was promoted to Chief Financial Officer on 8 October 2026 after joining as Vice President Finance in March 2026; he spent 17 years at Anglo American, including as Financial Controller for the US$5.5 billion Quellaveco copper project in Peru through construction and into operations.

José Antonio Merino, Managing Director Chile, has 15 years of experience in finance and mergers and acquisitions in natural resources, including as General Manager of Business Development and M&A at SQM, and now leads in-country development, regional development and permitting strategy. Project Director Josh Watson has more than 20 years delivering multi-billion-dollar mining projects at Teck, Barrick, Vale and Rio Tinto. Sergio Rivera, Vice President Exploration, has more than 30 years of exploration experience and is credited with several large copper discoveries, including the Marimaca deposit.

The board is chaired by Giancarlo Bruno, former Chief Executive Officer of Mantos Copper and Vice President Chile for Capstone Copper. Directors include Zenon Wozniak, who has more than 40 years leading multi-billion-dollar mining projects including Cobre Panama; Nicole Porcile, with more than 25 years in mining, industrial and government roles including leadership positions at Codelco and Antofagasta Minerals; Kieran Daly, Managing Director of Assore International Holdings; Michael Haworth, co-founder of Greenstone Resources; Tim Petterson, founder and Executive Chair of Minera Cobre; and Hayden Locke.

The near-term priority is taking the MOD to a Final Investment Decision (FID). Detailed engineering is under way with a globally recognized engineering, procurement and construction management (EPCM) firm, a project financing process is under way, and further sectorial permits required for full construction were expected in early October 2026. Upgrades to the main access road from Ruta B-12 are expected to finish by the end of 2026, site early works are scheduled to begin in the fourth quarter of 2026, seawater pipeline route preparation will allow construction to start in 2027, and key packages for the crushing plant and the heap leach and SX-EW plant are expected to be awarded in the first half of 2027.

Following a 20 May 2026 announcement, the company has started a conceptual engineering study for the Dos Amigos Acid Plant under a non-binding memorandum of understanding with a local acid producer, assessing a self-produced sulfuric acid option to reduce exposure to acid price volatility. At the MOD itself, the company is testing oxide extensions at depth and along strike and sulfide potential below the oxides, and has defined conceptual exploration targets at nearby Cindy, Mercedes and Roble, which are not Mineral Resources.

The company describes Pampa Medina as a potential Tier-1 discovery. A 30,000 m extensional drilling program is defining the footprint of a 3 km by 1.5 km area of interest approximately 28 km east of the MOD. On 8 September 2026, the company reported hole SPRD-15 at 216 m of 0.96% copper and 7.2 g/t silver from 466 m, including 62 m of 2.20% copper and 21.5 g/t silver, with true widths estimated at approximately 80% of reported intervals. Drilling on 150 m centers continues, and the company states that data spacing is not yet sufficient to estimate a resource. Its 'hub and spoke' plan targets developing Pampa Medina and Madrugador oxides to increase cathode production and extend mine life.

Marimaca is pre-revenue. Cash of US$140.0 million at 30 June 2026 and no debt compare with initial capital of US$587 million, and a project financing process is under way. The 2025 DFS estimates total life-of-mine capital of US$1.2 billion, including US$529 million of sustaining capital.

The DFS projects average annual EBITDA of US$326 million and post-tax free cash flow of US$222 million over the first five years of steady state, and US$241 million and US$160 million respectively over the life of mine, at US$4.30 per pound copper. The company cites an EBITDA margin of 58% and an operating cost of US$11.90 per tonne processed over the life of mine. Sensitivity analysis shows the post-tax IRR ranging from 20% at a 20% lower copper price to 40% at a 20% higher price, at DFS operating costs.

The market capitalization of approximately CAD$1,125 million compares with a post-tax NPV8 of US$709 million at US$4.30 per pound and US$1.1 billion at US$5.05 per pound, before any value for Pampa Medina. The company had 135.5 million shares outstanding and 4.0 million options, warrants and restricted share units.

• Commodity Price Volatility: Project value is highly leveraged to copper. The post-tax NPV8 of US$709 million at the DFS base price of US$4.30 per pound rises to US$1.1 billion at US$5.05 per pound, and the post-tax IRR falls to 20% at a 20% lower copper price. The company is assessing a self-produced sulfuric acid option through the Dos Amigos Acid Plant study to reduce exposure to acid price volatility. The company places the project's AISC in the second quartile of the cost curve.
• Regulatory & Permitting Risks: The RCA environmental approval, the permitted seawater intake and grid connection authorization are in hand. Sectorial permits for construction and operation are still required, although the company reports they are progressing in line with its master schedule. The company notes that Chile is consistently rated highly among copper-producing countries, and the company reports no community land overlap at the MOD.
• Technical & Operational Risks: The DFS capital estimate carries an expected accuracy of minus 20% to plus 25%, and recoveries average 72% over the life of mine. Heap leach and SX-EW is a conventional process widely used in Chile, the Phase 7 metallurgical program underpins the recovery model, and 93% of resource tonnes are now in the Measured and Indicated categories, with 88% resource-to-reserve conversion.
• Environmental & Social Risks: The MOD sits in the coastal Atacama Desert, where the company expects limited flora and fauna impact. Recycled seawater avoids competition for local water, the power framework provides a pathway to 100% renewable supply, and SX-EW cathode production removes the Scope 3 emissions of smelting concentrates. The company received an overall A rating in its 2025 Digbee sustainability assessment, its third consecutive A.
• Financing Risk: Cash of US$140.0 million covers pre-FID engineering and early works, but not the US$587 million initial capital. The terms of project debt and any further equity are not yet known, and dilution is possible. A clean balance sheet with no debt, the DFS economics and strategic shareholders including Assore and Mitsubishi Corporation support the financing process.
• Execution Risk: The schedule depends on finalizing sectorial permits, project finance and procurement of long-lead items with delivery times of more than 50 weeks before construction can proceed, and the company has not published an FID date. The CFO transition took place in October 2026. A management team with Quellaveco, Teck, Barrick and Cobre Panama project experience, an EPCM firm already engaged, and proximity to port, highway, power and water reduce, but do not remove, the risk of delays and cost overruns.

Marimaca Copper offers exposure to a permitted, low-altitude oxide copper project in northern Chile with a completed DFS, industry-leading capital intensity and infrastructure within 25 km of a deep-water port. The past year added the RCA environmental approval, grid connection authorization, a renewable power framework and an experienced project finance CFO, while Pampa Medina has emerged as a potential district-scale source of future growth.

The main uncertainties are the timing of FID and the terms of project financing, the delivery of capital and acid costs in line with the DFS, and whether Pampa Medina can be converted into a resource. Remaining sectorial permits, the project finance package, an FID decision and a maiden Pampa Medina resource are the key milestones for investors to track.