Coda Minerals Boosts Elizabeth Creek Value to $1.18B, Raises $5.1M for Drilling

Economic Upswing at Elizabeth Creek

Coda Minerals has delivered a major update to its Elizabeth Creek Copper-Cobalt Project in South Australia, unveiling a substantial uplift in the project's economic metrics. The pre-tax net present value (NPV7) has surged to approximately $1.18 billion, accompanied by an internal rate of return (IRR) of 35%. Post-tax NPV7 has climbed 57% to around $802 million, reflecting enhanced metallurgical recoveries and adjustments for evolving economic conditions.

This improved valuation underscores the project's growing potential as a significant copper, cobalt, and silver producer. The updated scoping study integrates new flotation recovery data from key deposits, MG14, Windabout, and Emmie Bluff, and incorporates the Cattle Grid South open-pit deposit, alongside federal government incentives aimed at critical minerals.

Capital Raise Strengthens Exploration Outlook

To capitalize on this momentum, Coda Minerals successfully completed a capital raising campaign during the quarter, securing approximately $5.1 million before costs. This comprised a fully underwritten non-renounceable entitlement offer raising $3.05 million and an additional placement of $2.05 million on identical terms. The fresh funds bolster the company’s cash position to $6 million as of December 31, 2024, providing a robust financial runway for upcoming exploration and feasibility initiatives.

Chairman Keith Jones highlighted the strong shareholder support despite challenging market conditions, emphasizing that the capital will primarily fund drilling and geophysical programs at Elizabeth Creek and the Kinloch Project. The company is poised to accelerate its exploration efforts, aiming to expand its resource base and optimize project economics further.

Drilling Campaigns Set to Unlock New Potential

Looking ahead, Coda plans to commence diamond drilling at the Emmie East prospect in early February 2025. This initial four-hole program will target compelling geophysical anomalies that mirror those of the existing Emmie Bluff Mineral Resource, which is notable for its high-grade copper and cobalt content. Depending on results, additional drilling may be authorized at Emmie East or alternatively at the Oakden prospect, pending final access approvals.

The Elizabeth Creek Project’s development strategy remains two-phased: an initial year of copper-cobalt concentrate production to generate early cash flow, followed by a longer-term phase involving a hydrometallurgical plant utilizing the Albion Process™. This second phase aims to produce higher-value products including copper cathode, battery-grade cobalt sulfate, zinc carbonate, and silver doré, with steady-state annual production expected to reach approximately 26,700 tonnes of copper and 1,300 tonnes of cobalt.

Corporate and Leadership Updates

On the corporate front, Coda announced the stepping down of Chief Financial Officer Kudzai Mtsambiwa in early 2025, transitioning him to a part-time consulting role. His departure marks the end of a significant chapter, with the board expressing gratitude for his contributions over three years.

Financially, the company reported a net cash outflow of $0.9 million for the quarter, primarily driven by exploration and corporate administration expenses. Importantly, no mining production or development activities occurred during the period, consistent with the company’s focus on advancing exploration and feasibility studies.

Strategic Positioning for Growth

With a strengthened balance sheet and an enhanced project valuation, Coda Minerals is well-positioned to advance Elizabeth Creek towards development. The combination of improved economic fundamentals, government incentives, and targeted exploration programs could unlock significant value for shareholders. However, the company’s future trajectory will depend heavily on the outcomes of upcoming drilling campaigns and the broader market environment for copper and cobalt.