Copper is key to the future of the world economy. With rising demand for electric cars and data centers, the copper market is projected to face a significant supply gap.
Here’s a few major reasons why now could be the best time to look into World Copper Ltd. (TSXV: WCU | OTC: WCUFF)
- Strong copper market demand: The copper market is expected to face a significant supply shortage, with a projected shortfall of around 22 billion pounds of the brown metal per year by 2035. This growing demand is driven by sectors such as renewable energy, data centers and electric vehicles, which positions copper as a key metal for the future. World Copper Ltd. is expected to benefit from this growing demand, which could push copper prices up, and thus increase the company’s profits.
- Projects strategically located, offering infrastructure advantages: World Copper Ltd.’s Zonia project in Arizona has a number of key infrastructure advantages, including on-site power and water, road and rail access, as well as proximity to major cities and existing mining operations. This location advantage helps reduce logistics costs and speed up project development timelines. Additionally, Arizona is a mining-friendly jurisdiction, which simplifies the permitting process. The Escalones project is one of the largest copper oxide developments in Chile, Located 35 kilometres east of El Teniente (Codelco), the world’s largest underground copper mine.
- Environmentally-friendly and cost-effective mining process: The company focuses on environmentally friendly oxide deposits, which are cheaper and faster to develop than sulphide depsits. Utilizing a cleaner SX-EW (solvent extraction-electrowilling) process also eliminates the need for smelting, resulting in reduced emissions and smaller environmental footprint. This approach is in line with global trends toward sustainable mining practices, which is likely to attract ESG-focused investors.
- Promising economic indicators: The preliminary economic assessment (PEA) of the Zonia Project exhibits strong financial prospects with an after-tax NPV (net present value) of $447 million with a copper price of $4.00 per pound and a 29% internal rate of return (IRR). The project’s low strip ratio and high copper recovery rate contribute to a favorable cost structure, making it an economically viable venture even at moderate copper prices.
- Experienced management and technical team: World Copper Ltd. is led by a team of experienced experts in the mining industry. Key players include Derek White, with more than 35 years of senior management and mine construction experience, and Myron Smith, who has successfully delivered several mining projects in Arizona. This experienced team enhances the company’s ability to effectively manage project developments, regulatory challenges and market dynamics, thereby increasing the chances of project success and major value upgrades for investors.
Strategic development of copper asset
World Copper Limited is strategically positioned as an attractive investment opportunity, driven by its strong portfolio of advanced copper oxide projects. The company’s key assets, Zonia in Arizona and Escalones in Chile, show significant potential with impressive resource estimates.
Zonia, an advanced brownfield project, has 450 million pounds of measured and indicated (M&I) copper resources and 575 million pounds of inferred resources.Located on patented private land, it offers permitting and infrastructure advantages, which expeditesproduction. The project’s proximity to Phoenix, access to power and water, and existing infrastructure further enhance the project’sappeal. With a favorable net present value (NPV) of $192 million at $3/lb copper and significant resource expansion potential, Zonia isa low-risk, high-return investment.
Escalones, the largest new copper oxide deposit under development in Chile, further strengthens World Copper’s value proposition. With an inferred resource of 3.4 billion pounds of copper, Escalones has significant upside potential. The project’s PEA describes a strong economic case with an after-tax NPV of $1.5 billion and an IRR of 46.2% at $3.60/lb copper. Located close to major infrastructure and the world’s largest underground copper mine, El Teniente, Escalones benefits from a logistical advantage and well-equipped exploration camp facilities. The extensive land package, combined with numerous new porphyry targets, enhances the project’s exploration potential, making it a key asset for future development.
Sustainable and efficient operations
World Copper is committed to developing sustainable and environmentally efficient mining operations.
The Zonia project demonstrates this commitment by adopting the SX-EW (solvent extraction-electrowinning) copper processing method, which consumes 38% less energy than traditional smelting and concentrate refining methods.
This process eliminates the need for smelting, significantly reducing greenhouse gas emissions and producing 99.
99% pure copper cathode on site. The project’s low strip ratio and minimal acid consumption further enhance the project’s economic andenvironmental performance. In addition, Zonia’s location in the Arizona desert offers high solar energy potential, contributing to a low-emission energy mix and aligning with global decarbonization trends.
Escalones, one of the largest new copper oxide deposits in development in Chile, also adheres to sustainable mining practices, leveraging its location and infrastructure to minimize environmental impact on the land. The project’s potential to produce 50,000 tonnes of copper cathodes annually over 20 years encapsulates this project’s long-term viability.
By focusing on copper oxide resources, which are less environmentally polluting than sulphide mines, World Copper is positioning itselfas an environmentally responsible player in the mining industry. These sustainable practices not only minimize environmental risks, but also align with increasing regulatory demands for greener mining solutions.
Capitalizing on market position and operational efficiencies
World Copper’s strategic focus on copper, a key metal for the global energy transition, positions the company well in a market with strong long-term demand. Copper’s vital role in electrification, renewable energy infrastructure and electric vehicles highlights its strategic importance.
With copper prices expected to continue to rise due to limited supply and growing demand, World Copper’s assets are wellpositioned to capitalise on these favourable market dynamics. The company’s parallel-track approach, balancing project development and exploration, ensures continued progress and value creation.
The management team, led by chairman and CEO Gordon Neal, has extensive experience in the metals and mining industry, capital markets and corporate governance.
Their expertise in navigating complex regulatory environments and executing strategic initiatives provides a strong foundation for business growth. The combination of cutting-edge project development, sustainable practices and a strong market position makes World Copper an attractive investment.
The company’s ability to de-risk projects, develop resources and generate economic returns positions it as a leader in the copper mining industry, offering investors significant growth potential and long-term value.
Introducing the Management Team
Gordon Neal – President, CEO & Director
Mr. Neal has extensive experience in the metals and mining sector, as well as in capital market, corporate governance, corporate finance and investor relations. Most recently he served as CEO & Director of Tincorp Metals, President of New Pacific Metals Corp, VP Corporate Development at Silvercorp Metals Inc., and VP Corporate Development at Mag Silver Corp. Since 2004, Mr. Neal has raised over $500M for various resource companies.
Marcelo Awad – Executive Director, Chile
Mr. Awad has a long and distinguished career in the mining industry 18 years with Codelco, most recently as Executive Vice President 16 years with Antofagasta Minerals S.A., the Mining Division of Antofagasta Plc, including 8 years as CEO from 2004 to 2012, a period of significant growth for Antofagasta. In the 2011 Harvard Business Review, Mr. Awad was ranked as the number one CEO in Chile, 18th in Latin America and 87th in the world.
Krzysztof Napierala – VP Business Development
Mr. Napierala is a professional with 12 years of experience in mining and manufacturing industries. He is a driven executive with a strong background in business development, exploration, project management, and the management and restructuring of mining operations. His career is highlighted by over ten years with the KGHM Group, where he started as an associate supporting the company’s business development activities and new acquisitions.
John Drobe – Chief Geologist
Mr. Drobe is a geologist with over 30 years experience specializing in porphyry copper-gold, epithermal and skarn deposits throughout the Americas. Mr. Drobe has a deep experience with organizing and managing exploration campaigns, particularly in South America, which he has participated in the exploration and development of projects in Peru, Argentina, Ecuador, Venezuela and Chile.
Daniel Macneil – Technical Advisor
Mr. MacNeil is an Economic Geologist specializing in the Precious and Base Metals sectors, with over 20 years of experience from continental-scale project generation to in-mine resource expansion in a wide variety of geological settings in the Americas, Europe, Eastern Europe and the Near East. His expertise includes project evaluation, target and opportunity identification, exploration strategy, district entry strategy, business development, strategic evaluation of geologic terranes and execution of target testing. Mr. MacNeil is the Founder of Vector Geological Solutions.
Marla Ritchie – Corporate Secretary
Ms. Ritchie brings over 25 years experience in public markets working as an Administrator and Corporate Secretary specializing in resource based exploration companies. Currently, she is also the corporate secretary for several companies, including International Tower Hill Mines Ltd. and Trevali Mining Corporation.
