How Orion Minerals Plans to Deliver First Copper Concentrate by Christmas 2026

Project Execution and Funding Momentum

Orion Minerals Limited is making significant strides in transitioning from exploration to production with its flagship Prieska Copper Zinc Mine (PCZM) and the Okiep Copper Project (OCP) in South Africa’s Northern Cape Province. Following the release of definitive feasibility studies (DFS) for both projects in March 2025, the June quarter focused on developing execution strategies and securing funding to bring these projects into operation.

The company’s immediate priority is the phased development of PCZM, starting with the Uppers ore body. Orion aims to produce its first bulk concentrate from the Uppers approximately 13 months after finalising funding, targeting Christmas 2026 for this milestone. The deeper ore body, known as the Deeps, is scheduled to follow 29 months later, marking a significant step in Orion’s evolution into a producing mining company.

Robust Financial Outlook and Optimisation Efforts

The DFS for PCZM presents a robust financial base case, with a post-tax net present value (NPV) of A$568 million and an internal rate of return (IRR) of 26.2% over a 13.2-year mine life, assuming an 8% discount rate. This underpins the project’s economic viability and supports Orion’s development plans.

Meanwhile, the Flat Mines Project within the OCP is undergoing optimisation studies aimed at accelerating production timelines and reducing capital expenditure. These efforts include reviewing mine layouts, enhancing grade selectivity, and exploring renewable energy solutions to lower operational costs. The optimisation work is expected to conclude in the third quarter of 2025, potentially enhancing the project’s financial metrics.

Capital Raising and Funding Progress

Post-quarter, Orion announced a capital raising of approximately A$5.8 million through a combination of a share placement and loan conversions at an issue price of 1.1 cents per share. This raise is complemented by a Share Purchase Plan (SPP) offering eligible shareholders the opportunity to invest up to A$30,000 at the same price, aiming to raise an additional A$4 million.

Funding discussions are ongoing with multiple offtake parties to secure agreements linked to financing for the Uppers phase. Additionally, negotiations with the Industrial Development Corporation of South Africa (IDC) are progressing, reflecting strong institutional interest in the projects.

Community Engagement and Government Support

Orion continues to prioritise community and stakeholder engagement, hosting several sessions to update local communities on project developments and implications. Notably, the South African Minister of Mineral and Petroleum Resources, Gwede Mantashe, visited the PCZM site in May 2025, underscoring government support. The Minister’s visit highlighted the mine’s historical significance and the company’s commitment to delivering sustainable benefits to the region.

Exploration Upside and Regional Portfolio

Beyond project development, Orion is systematically reviewing near- and medium-term exploration opportunities at PCZM and OCP, focusing on converting inferred mineral resources to indicated categories to enhance resource confidence. The company also maintains interests in other promising projects, including the Jacomynspan Nickel-Copper-PGE Project and the Areachap Project, which offer potential for future growth.

With operational readiness advancing, value engineering initiatives underway, and funding efforts gaining traction, Orion Minerals is positioning itself to become a significant base metals producer aligned with the global transition to decarbonisation.