RES
YEAR 24
KEYMILESTONES
Kincora Copper at inflection point
KincoraCopper(ASX:KCC)hashadoneofitsbusiestyears in recent history, having brought on several partners and workedtounlockover$60millionworthofinitialmulti-year asset-level funding for its earlier-stage or non-core projects.
The past 18 months have been focused on transitioning to aprojectgeneratorandpartnerfundingmodelforits“tierone-scale”porphyryprojects,withthefocusnowturnedto its more advanced and flagship projects and ramping up drilling
As such, Kincora is now at an inflection point to hit the ground running in 2025 with exposure to over 7,500m of recent partner-funded drilling (assay results pending), more (potentially bigger) deals, and (possibly larger) drillingprogramsexpected
At this morning’s AGM, Kincora noted that at last year’s meeting the company secured approvals relating to this changeinfundingmodelandthatthistransitionhasbeen a key catalyst in its ability to pursue counter-cyclical growth
Since then, the explorer has secured four new projects, executed or extended five partnership agreements, and resumeddrillingwithfourrigsoperationalatthreeprojects inthecurrentquarter
However,PresidentandCEOSamSpringbelievesKincorais still in the early stages of executing its strategy, with “very significantupside”inplace
“To date we have partnerships for five of our 12 porphyry projects that have unlocked over $60 million of potential partnerfunding,”hetellsMining.com.au.
“From a number of projects perspective, we are less than halfway through delivering upon our strategy and we are nowseekingpartnersforourmoreadvancedandflagship projects, so we are at a significantly earlier stage from a potentialvalueandpartner-fundingperspective
“In terms of ramping up exploration on projects with existing partners, this is just now occurring After 12 months of no prior drilling, in Q4 2024 we saw four rigs active at threeofourpartnerprojects Drillingresultsarepending
Foundation for growth
“Further deals/partnerships, drilling results from current programs, and new 2025 drilling programs are all key milestonesforinvestorstokeepaneyeoutfor
“We believe the foundations now in place provide an inflection point in terms of news flow and value catalysts, and, as we seek to achieve a self-funding model with project management fees from operating further new partner-fundedprojectscoveringourcorporatecosts”
This morning, shareholder approvals were provided to complete the most recent deal, announced in midOctober 2024, expanding Kincora’s partnership with Fleet Space Technologies, which agreed to a “strategic investment”aspartofa$127millioncapitalraising
As part of this partnership, Fleet Space is to undertake multiphysicssurveysatKincora’sWongarbonProject,which is one of the four new projects secured during the year, to identifyandrefinetargets,andalsohastherighttoearna 20%stakeintheprojectbydrillingatleast2,000m
Kincora this year also secured ground to the west and south of its Nyngan and Nevertire projects with the granting of the licences now known as Nyngan West, NynganSouth,andNevertireSouth.
Theseotherthreelicensesareadjacenttoandonstriketo the mineral systems being explored for in partnership with AngloGoldAshanti(NYSE:AU),viaanupto$50millionearnindeal.
Kincora is currently drilling at the Nyngan Project, completing approximately 2,500m with hole six ongoing, andreceives10%ofexpenditureasamanagementfee
ThenewgroundwassecuredafterthedealwithAngloGold Ashanti Kincora highly rates the Nevertire South Project, describing it as the “most attractive geologically supported” target in the covered extensions of the MacquarieArc
Kincora also notes other comparable earlier stage and higher risk projects have recently attracted five partner deals and potentially over $300 million in exploration expenditure
“To date we have partnerships for five of our 12 porphyry projects that have unlocked over $60 million of potential partner funding. From a number of projects perspective, we are less than halfway through delivering upon our strategy and we are now seeking partners for our more advanced and flagship projects, so we are at a significantly earlier stage from a potential value and partner-funding perspective
Attracting the majors
At today’s AGM, Kincora further outlined its strategy for being very well-positioned for the current and emerging market dynamic of the major industry groups seeking to rebuild exposure to earlier stage and new discovery exploration
Springstatedthecompanyhadrecentlyhostedanumber of site visits with major groups as part of discussions for furtherasset-levelpartners
Kincora is now focused on finding asset-level partners, via traditionalearn-inandjointventureagreements,similarto that in place with AngloGold Ashanti for its advanced and proximal-to-mine porphyry projects Further management feesareexpected
These projects include three major asset groupings: the Northern Junee-Narromine Belt projects, including the Nevertire South, Nyngan South and Nyngan West licences; the Cowal Igneous Complex, including the Fairholme and Jemalong licences adjacent to the Cowal and Marsden mineral systems; and the Northparkes Igneous Complex (theTrundlelicence)
From the upbeat messaging communicated this morning to shareholders, the company appears set to accelerate its three-pronged strategy into 2025, involving bringing in further partners for its porphyry projects, ramping up drilling at existing partner-funded projects, and drilling its Condobolin Project in New South Wales’ Cobar district whenthetimeisright.
This sets Kincora up for an even busier 2025 which will be assisted by tranche two of the recent October financing shortlyclosing.
“Further deals/partnerships, drilling results from current programs, and new 2025 drilling programs are all key milestones for investors to keep an eye out for. We believe the foundations now in place provide an inflection point in terms of news flow and value catalysts, and, as we seek to achieve a self-funding model with project management fees from operating further new partner-funded projects covering our corporate costs
