Copper Investment Flow Positions Coda Minerals' Copper Cobalt Project for Major Value Realization

• Coda Minerals achieved a breakthrough, increasing metallurgical recovery rates from 55% to 95%+ through ammonium chloride leaching, which CEO Chris Stevens calls "effectively free money."
• Elizabeth Creek project holds 1M+ tons of copper equivalent in JORC resources, with economics showing $802M NPV post-tax and 35% IRR, matching recently acquired peers.
• Coda is advancing to Pre-Feasibility Study within 12 months, backed by an experienced team that has developed 17 projects and expanded current resources fivefold.
• Strong financial position with $4M+ cash and low costs enables advancement of critical activities amid improving copper market conditions and rising investor interest.

Coda Minerals Limited (ASX: COD) has achieved a significant technical breakthrough that could fundamentally transform the economics of its Elizabeth Creek copper-cobalt-silver project in South Australia. The Perth-based exploration company has successfully developed an ammonium chloride whole ore leaching process that delivers recovery rates exceeding 95%, representing a quantum leap from the previous 55% recovery rates at the Windabout deposit.

CEO Chris Stevens characterizes this advancement as a game-changing development, stating:

"We finally cracked it. So we've got 95%+ recoveries from ammonium chloride leach which is commonly used in Australia around the world in copper, and nickel as well. And so this is really exciting news. It's a pathway to some really interesting next steps as well."

This metallurgical breakthrough addresses one of the project's historical challenges while opening up new operational possibilities. The improved recovery rates translate directly to enhanced revenue generation over the mine's life, with the company currently calculating the financial impact. More importantly, the simplified processing route could enable smaller-scale startup operations, reducing initial capital requirements and providing earlier cash flow generation.

Elizabeth Creek Copper Cobalt Project Target

The Elizabeth Creek project demonstrates robust economics that align closely with recently acquired Australian copper companies. Coda's current scoping study delivers an $802 million NPV post-tax with a 35% IRR, based on over one million tons of contained copper equivalent in JORC indicated resources. The project benefits from 93% of resources classified as indicated, providing a high degree of geological confidence rarely seen at this development stage.

Strong Project Economics Comparable to Similar Takeovers

These economics become particularly compelling when viewed against recent takeover activity in the Australian copper sector: Rex Minerals was acquired for A$393 million, New World Resources is currently subject to competing takeover bids valuing it at over $230 million, and Xanadu Mines accepted a $160 million offer. All three companies possessed comparable economics to Coda's project on NPV, IRR, and capital expenditure metrics.

Stevens emphasizes the significance of this peer group validation:

"There is now empirical evidence that companies that are able to do that with credible solid projects with comparable NPVs, comparable IRRs, comparable CapEx's are being valued over $200 million. That gives me a lot of pep in my step to be quite frank."

The timing of these acquisitions is particularly noteworthy, as they occurred during a period of strengthening copper prices and increased strategic focus on critical minerals. Coda's project includes cobalt as a byproduct, qualifying it as a critical minerals project and potentially enhancing its strategic value to acquirers.

Strategic Location & Infrastructure Advantages

The Elizabeth Creek project benefits from exceptional infrastructure access that distinguishes it from many remote Australian mining developments. Located approximately six hours drive north of Adelaide and next to the town of Woomera, the project sits adjacent to BHP's established haulage road, with contractual rights for usage providing immediate transport solutions.

The project's proximity to existing mining infrastructure cannot be overstated. Roxby Downs, BHP's major operational center, lies just one hour away, while the project maintains access to power infrastructure and established supply chains. This infrastructure density is unusual for Australian mining projects, typically requiring significant capital investment for basic access and services. Stevens explains:

"South Australia is an amazing place to work. They have a very unusual system there called scoping. Nothing to do with scoping study. Scoping means that you develop the scope of the approvals for your project because not every project is created equal."

He contrasts this with other jurisdictions:

"In a lot of places, you've got to do 115 different studies and you've got to do them all. In South Australia, it's actually a iterative process with the government."

Rather than requiring every project to complete an exhaustive list of studies regardless of relevance, the South Australian government works iteratively with project developers to define specific approval requirements based on individual project characteristics. Coda expects to submit its scoping document imminently, establishing the framework for all subsequent approval activities.

The project's location on generally single-use land in a remote area specifically suited to mining operations minimizes potential conflicts while maintaining accessibility. This combination of mining-friendly geology, established infrastructure, and streamlined regulatory processes creates an optimal development environment.

Interview with Chief Executive Officer, Chris Stevens

Market Timing & Copper Fundamentals

Coda's advancement toward production readiness coincides with strengthening copper market fundamentals. Copper prices have moved from $8,000 to over $10,000 per ton, with the rate of price appreciation accelerating beyond typical cost inflation. This price environment creates favorable conditions for project financing and potential strategic transactions.

The broader market context supports copper demand growth driven by electrification trends, renewable energy infrastructure, and grid modernization requirements. Supply constraints from major producing regions, combined with the extended timelines required for new copper project development, suggest sustained price support for well-positioned projects like Elizabeth Creek.

Stevens notes the strategic timing opportunity:

"It's been six months away from a tear for a little while now. This really seems to be starting to happen."

The improving copper market has also enhanced financing availability and reduced capital costs for development projects. Private equity groups and strategic acquirers are showing increased interest in advanced copper assets, particularly those with near-term production potential and established infrastructure access.

The Investment Thesis for Coda Minerals

• Technical De-risking: The breakthrough 95%+ recovery rates from ammonium chloride leaching eliminates a major technical risk while potentially enabling smaller-scale startup operations with reduced capital requirements
• Peer Validation: Three comparable Australian copper projects have been acquired at $185-380 million valuations, providing empirical evidence for potential value realization given similar economics and development stages
• Execution Capability: Management team with proven track record across 17 successful project developments, demonstrating ability to advance projects through critical feasibility and development phases
• Infrastructure Advantage: Exceptional location with existing road access, power infrastructure, and proximity to established mining operations, reducing development risks and capital requirements compared to greenfield projects
• Market Timing: Entry point during strengthening copper fundamentals with accelerating price appreciation and improved financing availability for development projects
• Catalyst Timeline: Clear 12-month path to PFS completion with interim catalysts including metallurgical optimization results and approval milestone achievements
• Financial Positioning: Strong balance sheet with $4+ million cash and low corporate costs providing runway to advance critical path items without immediate dilution pressure
• Strategic Optionality: Critical minerals classification through cobalt credits enhances strategic value while multiple development pathways provide flexibility in capital structure and partnership approaches

Coda Minerals presents a compelling investment opportunity at the intersection of technical innovation, proven management execution, and favorable market timing. The company's metallurgical breakthrough addresses historical project limitations while opening new development pathways that could significantly enhance project economics. With comparable projects commanding substantial takeover premiums and copper fundamentals strengthening, Coda appears well-positioned to deliver significant value appreciation as it advances through the critical Pre-Feasibility Study phase over the next 12 months.

Macro Thematic Analysis: The Critical Copper Supply Gap

The global copper market faces an unprecedented supply-demand imbalance driven by the electrification megatrend. Electric vehicles require four times more copper than conventional vehicles, while renewable energy infrastructure demands substantial copper-intensive transmission and distribution networks. The International Energy Agency projects copper demand could double by 2040 under net-zero scenarios, yet new mine development timelines average 15-20 years from discovery to production.

This supply constraint creates a strategic opportunity for advanced development projects like Coda's Elizabeth Creek. Unlike exploration-stage assets requiring years of resource definition and feasibility work, projects with established resources and proven economics can capitalize on current market conditions. The recent takeover activity in Australian copper demonstrates institutional recognition of this scarcity value.

Major mining companies and strategic investors increasingly view advanced copper projects as scarce assets worthy of premium valuations. The combination of immediate development potential, infrastructure access, and metallurgical certainty positions projects like Elizabeth Creek as attractive acquisition targets for groups seeking to expand copper production capacity within reasonable timeframes.