Mining

Copper 360 chairman’s big bet on the company

Copper 360 chairman Shirley Hayes has bought over R300,000 of the company’s shares over the past month.

Hayes was appointed as the company’s executive chairman on 16 May 2024. She was previously the non-executive chairman.

“The change comes as the commissioning of two plants at Copper 360’s mining operations will demand significant focus from the incumbent executive team,” the company said at the time of her appointment.

“Shirley has been mandated by the board to oversee the capital requirements for the Rietberg mine and the concomitant move into production at the works.”

Roughly a month after her appointment, Hayes started buying up shares in the company. Over five non-consecutive days in June, Hayes bought 65,000 Copper 360 shares for R300,529.

This can be seen as a strong vote of confidence in the company, whose share price has performed well in 2024 so far, up almost 14% in the year to date.

April, in particular, was a strong month for the company, as its share price increased by over 100% in one week.

The share price rally came after Copper 360 released two pieces of information: suspected market manipulation of its share price and strong operational projections.

Copper 360 said it had noticed unusual trades in its shares, which pushed the share price down. It asked the FSCA to investigate these suspicions.

More recently, News24 reported that the company is looking to lay criminal charges against an entity shorting its stock and that of a handful of other junior mining companies.

However, shortly after the initial announcement of suspected market manipulation, Copper360 released a statement indicating that it had made its first shipment of copper concentrate, which sent its share price soaring.

It reported record concentration rates of 30% produced from its newly acquired Nama plant (MFP 2), which produced 136 tonnes of concentrate over three weeks since commissioning.

Copper 360 purchased the MFP 2 plant in March for R200 million. Within three months, it is expected to produce 1,000 tonnes of copper concentrate per month.

Copper 360
Copper 360

Since its listing, Copper360 has sold copper at an average price of around R119,000 per ton.

This translates to potential monthly revenue from the MFP 2 plant of R37 million and annual revenue of around R441 million.

Copper360 also said that its MFP 1 plant would be operational by the end of July and generate 1,400 tons of copper concentrate each month.

This translates to a potential monthly revenue of R51.4 million at a concentration of 30% – around R612 million per annum.

The company also stated that its SX/EW (Solvent Extraction and Electrowinning) plant could produce around 100 tons of copper per month within the next quarter.

Collectively, based on Copper360’s projections, if it meets its projections, it would produce around R1.2 billion in annual revenue.

Since Copper360 announced its first copper concentrate shipment, the share price has soared – from R2.60 on 23 April 2024 to R5.25 on 28 April 2024.

The company has largely managed to maintain this high, with its shares now trading at just below R5 per share.

The company’s results for the 2023/24 financial year, released on 6 June 2024, also saw a positive share price reaction.

For the year through February 2024, Copper 360 reported a 14.7% rise in revenue to R38.2 million and a loss of R128.9 million.

However, these results did not deter investors, as the company’s share price rose by almost 13% between 5 and 7 June.

Director’s dealings

Below is an overview of Hayes’ transactions in June, as reported by the company on SENS.

DateNumber of sharesTotal value of transaction
18 June 202415,000R67,500
21 June 20245,000R22,500
24 June 202415,000R70,950
25 June 202415,000R69,654
26 June 202415,000R69,925
TOTAL65,000R300,529

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