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Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Provides Operations Update

YERINGTON, Nev., Sept. 21, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (“Nevada Copper” or the “Company”) today provided an update on management team additions and execution of its productivity improvement plan.

Highlights

  • Accelerated stope turnover rates: The pace of stope mining continues to accelerate at the Company’s underground mine at its Pumpkin Hollow Project (the “Underground Mine”), with mining from the second stope already complete, and blasting of the third stope commenced. Further improved visibility on stoping inventory and additional stopes is planned in the coming weeks.
  • Team strengthened in key positions: Following Mike Brown assuming the role of Interim President and Chief Executive Officer, a number of key positions have been swiftly filled, adding key mining skills and building out the execution team. Key positions include GM Underground Projects, Interim Chief Operating Officer, Underground Production Manager, Process Manager, Senior Electrical Engineer, and Director of Financial Reporting.
  • Productivity improvement plan generating positive results: Management, including new team additions, have initiated a productivity improvement plan aimed at addressing the operational challenges at the Underground Mine encountered during Q2 2021, including improved planning, monitoring and contractor management systems. In the weeks since initiated, substantial improvements in productivity have been demonstrated in development rates.
  • Processing: Ore from stope mining averaging approximately 1.5% Cu is being delivered to the mill with recoveries as planned and production of concentrate meeting offtake specifications while batch processing ore.

Mike Brown, Interim President and Chief Executive Officer, commented: “I am very pleased to welcome the new additions to our team. Along with strengthened leadership and the addition of key skills, we are already seeing improvements in operational execution and productivity, resulting in increased stope turnover rates. These results are encouraging as we embed operational improvements and continue with the ramp-up of copper production”.

Further Details

Team Strengthening
During August and September, a number of key additions to the Pumpkin Hollow operating team have been made. These additions address prior limitations in availability of mining and geotechnical technical skills within the management team. Key among these additions are:

  • GM Underground Projects: Robert Booth will oversee all underground mining activities, including contractor management and infrastructure. Mr. Booth has substantial underground mining and contractor management experience in the Americas, including as Project Director for Hudbay Minerals since 2018, as Project Director and Mine Manager across Vale’s Canadian operations between 1990 and 2017, and prior to that at Inco Limited.
  • Interim Chief Operating Officer
  • Underground Production Manager
  • Process Manager
  • Senior electrical engineer
  • Director, financial reporting

Productivity Improvement Plan
Over recent weeks, management has undertaken a detailed review of the constraints encountered during Q2 2021 at the Underground Mine and reviewed planning for the remaining ramp-up and steady-state operations. As a result, a number of measures have been implemented to address operational constraints encountered in Q2, including:

  • Stronger contractor management procedures combined with revised contractor key performance indicators and aligned incentive systems to drive improved mining productivity.
  • Planning focus on accelerated stope delivery and prioritization of certain underground infrastructure items key to delivering higher production volumes.
  • Implementation of enhanced inventory management systems and supply chain optimization to ensure critical consumables and spares are available to service mining activities.
  • Optimization of equipment utilization, including revisions to the mobile equipment maintenance program.

The above measures are delivering operational improvements and providing greater visibility on stoping inventory. An increased rate of stope mining is underway with the second stopes mined, the blasting of the third stope having commenced and further stopes planned in the coming weeks.

The surface ventilation fans for the Underground Mine remain on schedule for commissioning in Q4 2021. The Company will provide further updates on operating performance metrics in due course.

Credit Facility Amendments
Discussions are progressing positively with KfW-IPEX Bank (“KfW”), in-line with the expectations previously reported in the Company’s August 31, 2021 news release. The Company expects to finalize amendments to its senior facility with KfW in the coming weeks in order to, among other things, extend the project completion longstop date under the facility. However, there can be no assurance that such amendments and extensions will be obtained.

Completion of Share Consolidation
The Company has completed the previously announced consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation common share for every ten (10) pre-consolidation common shares (the “Share Consolidation”). The common shares will begin trading on a post-consolidation basis at the market open on September 21, 2021. See the Company’s September 3, 2021 press release for additional details on the Share Consolidation.

Qualified Persons
The technical information and data in this news release was reviewed by Greg French, C.P.G., and Norm Bisson, P.Eng., for Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.

NEVADA COPPER CORP.
www.nevadacopper.com
Mike Brown, Interim President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 757 7179

Cautionary Language

This news release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to mine development plans, production and ramp-up plans and the expected timing and results thereof, equipment installation, and amendments to the Company’s amended and restated senior credit facility with KfW.

Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Such risks and uncertainties include, without limitation, those relating to: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and ramp-up, including the ability of the Company to address underground development and process plant issues; failure to obtain extensions under and amendments to the Company’s amended and restated senior credit facility with KfW; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Mine; loss of material properties; interest rates increase; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information. The forward-looking information and statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Provides Operations and Financing Updates

YERINGTON, Nev., Aug. 31, 2021 (GLOBE NEWSWIRE) — Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (“Nevada Copper” or the “Company”) today provided an update regarding operations at the underground mine at its Pumpkin Hollow project (the “Underground Mine”), as well as an update on financing matters. All amounts below are stated in US dollars.

Operations Update

  • Stoping and Lateral Development: Development and penetration through the water bearing dike has now been completed on the first crossing. Lateral development beyond this crossing is now into solid ground at a pace consistent with mine plan rates focused on establishing production from the East-North deposit. In addition, with steel support beams recently installed, a second crossing is expected in the coming weeks, further enhancing development rates.
  • Stoping: The Company has mined the second stope in the Alphabet Zone at a CuEq grade of 1.45% with backfilling scheduled to start in the coming week.
  • Surface Ventilation Fans: Delivery of the surface fans remains on schedule with installation and commissioning expected to be completed in Q4 2021 with sustainable hoisting rates of 3,000 tpd expected to follow.

We are pleased to have completed our first crossing of the water dike enabling our development rates to increase in line with our mine plan expectations,” stated Mike Brown, Interim Chief Executive Officer of Nevada Copper. “We look forward to continued production rate increases in Q3 and Q4 of this year.”

Financing Update

  • KfW Credit Facility Amendment Discussions: On August 31, 2021, the Company received an extension of the waiver from KfW IPEX-Bank (“KfW”), the Company’s senior project lender, to September 30, 2021 to complete the project completion test (the “Project Longstop Date”) under the amended and restated credit agreement (“Amended KfW Facility”). The Company is in discussions with KfW regarding a longer-term extension of the Project Longstop Date into 2023; deferral of debt servicing by up to twenty-four months; and the deferral of certain financial covenants under the Amended KfW Facility to further support the ramp-up of the Underground Mine. The Company expects to have the proposed extension and amendments finalized in the next month. However, there can be no assurance that such extension and amendments will be finalized by such times or at all. Failure to finalize the extension would result in the Company being in default under the Amended KfW Facility.
  • Additional $13M of liquidity: The existing Promissory Note provided by Pala Investments Limited, the Company’s largest shareholder (“2021 Promissory Note”) has been amended (subject to regulatory approval) to allow total borrowings of up to $55 million, providing an additional $13 million of liquidity to the Company. Further draws by the Company are subject to agreed use of proceeds. The 2021 Promissory Note has a maturity date of June 30, 2022, and bears interest at 8% per annum on amounts drawn. Pursuant to the amendment, the 2021 Promissory Note now provides for an arrangement fee of 6% on the full commitment amount of $55 million, which will be capitalized. The proceeds will be used to fund the development and ramp-up of the Underground Mine and related working capital needs. The amendment was reviewed and approved by a committee of independent directors of the Company.

Qualified Persons
The technical information and data in this news release was reviewed by Greg French, C.P.G., and Norm Bisson, P.Eng., for Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

About Nevada Copper
Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility, which is now in the production stage, and a large-scale open pit project, which is advancing towards feasibility status.

NEVADA COPPER CORP.
www.nevadacopper.com
Mike Brown, Interim President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 757 7179

Cautionary Language

This news release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to mine development plans, production and ramp-up plans, equipment installation, requested amendments to the Amended KfW Credit Facility, and regulatory approval of the 2021 Promissory Note.

Forward-looking statements and information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information should not be read as guarantees of future performance and results. They are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Such risks and uncertainties include, without limitation, those relating to: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of the COVID-19 pandemic on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and ramp-up, including the ability of the Company to address underground development and process plant issues; failure to obtain extensions under and amendments to the Amended KfW Facility; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Mine; loss of material properties; interest rates increase; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information. The forward-looking statements and information contained herein are based upon assumptions management believes to be reasonable, including, without limitation: no adverse development in respect of the property at the Pumpkin Hollow project; no material changes to applicable laws; the ramp-up of operations at the Underground Mine in accordance with management’s plans and expectations; no worsening of the current COVID-19 related work restrictions; reduced impacts of the COVID-19 pandemic in the medium-term and long-term; no material adverse change to the price of copper from current levels; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information and statements are stated as of the date hereof. Nevada Copper disclaims any intent or obligation to update forward-looking statements or information except as required by law. Readers are referred to the additional information regarding Nevada Copper’s business contained in Nevada Copper’s reports filed with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that could cause actions, events or results not to be as anticipated, estimated or intended. For more information on Nevada Copper and the risks and challenges of its business, investors should review Nevada Copper’s filings that are available at www.sedar.com.

Nevada Copper provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Categories
Base Metals Energy Junior Mining Nevada Copper

Nevada Copper Announces Further Progress with Underground Operations and Strategic Project Development

July 12, 2021View PDF

Yerington, NV – July 12, 2021 – Nevada Copper Corp. (TSX: NCU) (OTC: NEVDF) (“Nevada Copper” or the “Company”) is pleased to provide an update regarding the ramp-up of the Underground Mine and development activities for the Open Pit project at its 100%-owned, fully-permitted Pumpkin Hollow Project in Nevada.

Production Ramp-Up Update

  • Safe and effective penetration of dike structure: The Company is in the process of safely completing the dike crossing. As reported on May 17, 2021, ground and hydrological conditions associated with the dike reduced development rates for a temporary period while traversing the dike to allow for grouting and ground control. With the completion of the dike crossing within the next two weeks, the Company expects to see lateral development rates increase back to planned rates this month.
  • Underground ventilation commissioned on-schedule: All underground ventilation fans were installed and commissioned during May, as planned. The final surface fans continue to be planned for delivery in Q3 2021 and commissioning in Q4 2021. Consequently, achievement of steady-state production continues to be expected in Q4 2021.
  • Successful completion of process plant C5 Testing: During June, Sedgman successfully completed C5 testing of the processing plant for grind size and moisture.

Mike Ciricillo, Nevada Copper’s Chief Executive Officer, stated:

“I am pleased with the continued progress with the ramp-up from Pumpkin Hollow. The safe penetration of the dike and commissioning of the underground ventilation system are significant de-risking steps and facilitate increasing development and production rates, as we progress to steady-state. The longer-term mine planning work being advanced indicates future potential upside for both Underground and Open Pit projects.”

Project Development

  • Underground Mine Planning supports potential for higher long-term production rates: As part of its project development objectives reported on March 1, 2021, the Company has progressed its life-of-mine planning aimed at operating its underground mine at an ultimate production rate in excess of the originally contemplated 5,000 tons per day rate. Mine planning work during Q2 2021 further supports the potential for the mine, once ramped-up to steady-state, to operate at higher long-term rates of 6,500 tons per day milled, increasing long-term annual copper production. This additional production capacity would also support accelerated mining of the significant additional underground copper resources that exist over and above the current underground reserve. Further engineering work will be undertaken during H2 2021 to support the potential for a higher long-term production rate from the underground operation.
  • Open Pit Solar Power Study indicates potential to further reduce Open Pit power costs: The Company has also progressed the planned feasibility studies for a potential solar project, with renewables consulting group Sprout Associates, with the following initial conclusions. Further updates will be provided upon completion of the next phase of study work:
    • Pumpkin Hollow benefits from ample sun and land to support a large solar project with the capacity to meet a significant portion of the Open Pit project’s power requirements;
    • The solar potential at the site is up to 200MW;
    • Already low grid power costs in Nevada could be materially further reduced through an on-site solar plant; and
    • A third-party solar project provides an option to remove upfront power infrastructure costs from the Open Pit project.

Balance Sheet Update

  • Further to the Company’s announcement on May 17, 2021, Pala Investments Limited has agreed to provide additional financing of US$25 million through a promissory note (in addition to the fully drawn existing US$30 million credit facility), providing additional liquidity for the ramp-up and addressing the reduced development rates associated with the dike grouting program. The Company has drawn US$15 million under the promissory note, with subsequent draws available at the Company’s option, subject to agreed use of proceeds. The promissory note has a maturity date of June 30, 2022 and bears interest at 8% per annum on amounts drawn. The promissory note was reviewed and approved by the independent members of the Company’s board of directors. In addition, US$9 million remains available to draw under the Company’s working capital facility with its offtake partner, Concord Resources Limited.
  • The Company has received proceeds of CAD$1.4 million for exercise of warrants so far in 2021. The Company has the potential to receive a further CAD$65 million of warrant proceeds should all the outstanding warrants expiring in January 2022 with an exercise price of CAD$0.20 (the “January 2022 Warrants”) be exercised prior to maturity. In addition to the January 2022 Warrants, a further CAD$34 million of warrant exercise proceeds may be received should the outstanding warrants expiring in July 2022 with an exercise price of CAD$0.22 be exercised in full prior to maturity.
  • The Company’s senior lender, KfW IPEX-Bank (“KfW”), has provided the Company with a 60-day extension to the project completion longstop date from June 30, 2021 to August 31, 2021, while the parties agree on a revised completion test and longstop date for the project. The Company will provide a further update once a revised project completion test and longstop date has been agreed with KfW. While the Company expects to agree on an appropriate revised date with KfW, there can be no assurance this will be achieved.
  • The Company continues to undertake near-term mine planning to incorporate the recent impact of the dike on development rates and other factors that have slowed the production ramp-up. It is possible that such mine plan updates may indicate higher operating costs and additional development capital and working capital requirements for the ramp-up than previously contemplated.

Qualified Persons

The information and data in this news release was reviewed by Greg French, C.P.G., and Norm Bisson, P.Eng., for Nevada Copper, who are non-independent Qualified Persons within the meaning of NI 43-101.

About Nevada Copper

Nevada Copper (TSX: NCU) is a copper producer and owner of the Pumpkin Hollow copper project. Located in Nevada, USA, Pumpkin Hollow has substantial reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade Underground Mine and processing facility, which is now in the production stage, and a large-scale Open Pit project, which is advancing towards feasibility status.

NEVADA COPPER CORP.

www.nevadacopper.com

Mike Ciricillo, President and CEO

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 757 7179

Cautionary Language

This news release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to mine development plans, production and ramp-up plans and the expected timing and results thereof, equipment installation, and further discussions with KfW.

Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “potential”, “is expected”, “anticipated”, “is targeted”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information are subject to known or unknown risks, uncertainties and other factors which may cause the actual results and events to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: the ability of the Company to complete the ramp-up of the Underground Mine within the expected cost estimates and timeframe; requirements for additional capital and no assurance can be given regarding the availability thereof; the impact of COVID-19 on the business and operations of the Company; the state of financial markets; history of losses; dilution; adverse events relating to milling operations, construction, development and ramp-up, including the ability of the Company to address underground development and process plant issues; ground conditions; cost overruns relating to development, construction and ramp-up of the Underground Mine; loss of material properties; interest rates increase; global economy; limited history of production; future metals price fluctuations; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment to perform as expected; labor disputes; supply problems; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; changes in project parameters as plans continue to be refined; possible variations in ore reserves, grade of mineralization or recovery rates from management’s expectations and the difference may be material; legal and regulatory proceedings and community actions; accidents; title matters; regulatory approvals and restrictions; increased costs and physical risks relating to climate change, including extreme weather events, and new or revised regulations relating to climate change; permitting and licensing; volatility of the market price of the Company’s securities; insurance; competition; hedging activities; currency fluctuations; loss of key employees; other risks of the mining industry as well as those risks discussed in the Company’s Management’s Discussion and Analysis in respect of the year ended December 31, 2020 and in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 18, 2021. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. The forward-looking information and statements are stated as of the date hereof. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law.

The Company provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information.

Categories
Base Metals Energy Junior Mining

Copper Corrects From An All-Time High- Nevada Copper Offers Value And A Bullish Trend

  • New all-time highs in copper in May- Bull markets rarely move in a straight line
  • Inventories are trending lower- Analysts are bullish
  • New production is a challenge- The case for a continuation of the bullish copper tend
  • Nevada Copper’s production is ramping up- Timing is everything for the US producer
  • An inexpensive stock with a compelling risk-reward profile

April and May 2020 were wild months in the markets. Bitcoin, the digital currency asset class leader, exploded to over $65,000 per token before halving in value. In 2010, a Bitcoin was worth only five cents. A $1 investment turned into over $1.3 million at the recent high.

Traders, investors, and speculators are looking for the next token or asset that will deliver Bitcoin-like returns. However, risk is always a function of potential rewards. Many of the over 10,000 cryptocurrencies floating around in cyberspace will wind up as dust collectors in computer wallets.

Meanwhile, hard asset prices continue to appreciate as central bank liquidity and government stimulus addressing the global pandemic’s fallout are stoking inflationary flames. In May, a host of commodity prices reached multi-year or all-time highs. Grains rose to the highest levels in eight years. Palladium and lumber reached all-time highs. Perhaps the most significant new record high came in the copper market.

The red metal with the nickname “Doctor Copper” diagnoses the overall health and well-being of the global economy. Rising copper prices point to expansion. A new record high in May tells us that the base metal expects an unprecedented boom. Producers can hardly keep pace with the rising demand for copper and other infrastructure building blocks. Addressing climate change will increase demand for the nonferrous metal, as will the shortage of semiconductors. The nearly perfect bullish storm pushed copper to almost $4.90 per pound on the nearby COMEX futures contract and over $10,700 per ton on the three-month LME forward market.

Digital currencies may be all the rage, but copper is likely to be a commodity set to deliver steady returns over the coming years without all the hype and wild price variance. Leveraging a copper investment requires identifying mining companies positioned to fill the widening supply-demand gap that continues to develop. Nevada Copper Corporation (NEVDF) shares trade on the over-the-counter market in the US and on the Toronto Stock Exchange or TSX, under the symbol NCU.TO.

While many market participants are busy looking for the next Bitcoin or Ethereum in the cryptocurrency asset class, Nevada Copper shares have the potential to deliver  solid returns over the coming years. At 25 cents Canadian or 20.7 US cents on June 4, the shares are inexpensive. The copper price is in a bullish trend, and the company is working to cash in and establish itself as a mid-tier copper producer in a top mining jurisdiction worldwide.  

Those who cashed in on the cryptocurrency craze and investors looking for a new value proposition, should consider following a company that could become a star in US copper production. Copper is a traditional industrial metal with growing applications as the technological age increases the demand dramatically.

New all-time highs in copper in May- Bull markets rarely move in a straight line On Friday, June 4, COMEX copper futures for July delivery settled at over the $4.52 per pound level. The price had moved to a new record peak in May before selling emerged. Despite the recent selloff from the highs, the trend remains higher.

Source: CQG

The quarterly chart highlights that COMEX copper futures never traded above $1.6065 before 2005. The price has been above that level since 2009. Meanwhile, the spike low at $1.2475 following the 2008 global financial crisis gave way to a record high of $4.6495 in 2011 as monetary and fiscal policies created inflationary pressures. After a correction that took copper to a higher low of $1.9355 in early 2016, the price recovered to over the $3.32 level in 2017. The worldwide pandemic caused selling in markets across all asset classes. Copper’s price fell, but it reached a higher low of $2.0595 in March 2020.  

The levels of monetary and fiscal stimulus in 2020 and 2021 dwarf the levels in 2008. While it took three years for copper to reach a new all-time high following the global financial crisis, it only took a little over a year for the red metal to rise to a new high of $4.8985 per pound in May 2021. Bull markets rarely move in a straight line; the higher prices move during rallies; the odds of corrections increase. July COMEX copper futures pulled back to the settle at $4.5290 per pound on June 4.

The quarterly chart remains bullish after the recent correction. Quarterly price momentum and relative strength indicators are trending higher, well above neutral readings. The total number of open long and short positions in the COMEX futures market has been moving higher with the price, typically a technical validation of a bullish trend in a futures market. Quarterly historical volatility at 26.35% is trending higher, reflecting the copper market’s higher quarterly trading ranges. Three-month copper forwards on the London Metals Exchange rose to $10,747 per ton in May, a record high.

Source: LME

The chart shows the move from the March 2020 low at below $4,630 to over $10,700 per ton. Three-month copper forwards were trading at just below the $10,000 per ton level on June 4 after the most recent selloff.

Inventories are trending lower- Analysts are bullish One of the metrics market participants closely watch is inventories of copper in London Metal Exchange and COMEX warehouses. Falling stockpiles are a sign of increasing demand for the metal.

Source: Kitco/LME The five-year chart of LME copper stocks highlights lower highs and lower lows. Stocks stood at the 124,675-ton level on June 4.

Source: Kitco/COMEX

Over the past two months, COMEX inventories have declined steadily from over 72,000 tons to 59.765 metric tons on June 4.

Dominant market participants have a long history of manipulating stockpiled data to support risk positions. Since a Chinese company owns the LME and China is the world’s leading consumer of the red metal, the potential for manipulative activity to influence prices on a short-term basis is always high. However, the trend over the past half-decade tells us that demand is rising, and production is struggling to keep pace with the growing requirements.

New production is a challenge- The case for a continuation of the bullish copper tend Bringing a new copper mine into production is a multi-year process that can take up to a decade. In 2020, Chile, Peru, Zambia, and the Democratic Republic of Congo (DRC) produced 10.14 million tons of copper, accounting for 49% of worldwide output. Chile, Peru, and DRC will produce 27% of the 15 million tons of copper mining projects coming to market by 2030.  

Source: Fastmarkets

The chart shows that the countries listed produce 45% of the world’s annual copper supplies. The worldwide pandemic has wreaked havoc with economies. Many governments are looking for new revenue sources to offset COVID-19’s enormous costs. Chile, the leading producing nation, is considering increasing royalties on copper mining.

Source: Chilean Lower House of Congress, Sonami

The chart highlights at over $4.50 per pound, the current price, the total effective tax rate could climb to nearly 27.5%, with the marginal rate above $4.50 at 75%. Other governments are considering increasing royalties and taxes. Meanwhile, production costs are skyrocketing as energy, equipment, labor, and other expenses rise. As tax rates soar and politicians look to increasingly wet their beaks, investment capital for new projects could dry up.

Sonami, the Chilean association of private mining companies, calculates that the royalty proposal would put about half of the country’s copper mines and a quarter of output at risk.

Peru is the second-leading copper-producing nation. The June 6 election between Keiko Fujimori and Pedro Castillo, who has emerged as the favorite, could cause royalty levels to soar. Castillo supports royalties and increased income taxes. The virus is raging in Peru, and workers have clashed with management at the Las Bambas copper mine, increasing the odds of an election victory for Mr. Castillo.

Meanwhile, the DRC and Zambia are likely to “adjust” taxes and royalties, and they will not be moving lower. China, a leading producer and the world’s top consumer of the red metal is experiencing economic growth. With global interest rates at historically low levels, consumers and speculators are likely to continue to buy copper, and other raw materials for immediate or future consumption as the price trend remains highly bullish.

The Biden administration is working with Congress on a massive infrastructure rebuilding package in the US, adding to the copper market’s demand. Addressing climate change will require even more of the base metal, which is a critical component in EV production. A worldwide semiconductor shortage only adds to requirements.

The bottom line is that the fundamental landscape for copper could be in the most bullish position of our lifetime. The technical trend and fundamental support are causing analysts to project much higher prices over the coming years. Goldman Sachs recently called copper “the new oil.” In its report, Goldman sees the price rising to the $13,000 per ton level by 2025. Other analysts believe that price could move to the $20,000 per ton level. Bull markets tend to take prices to illogical, irrational, and unreasonable levels on the upside. With the copper bull charging, the sky appears to be the limit for the red metal over the coming years with solid fundamental support.

Meanwhile, Goldman is also calling for $80 per barrel crude oil in 2021, and other analysts project a move back to the $100 level. Rising energy prices only increase the chances of higher copper prices as energy is a critical production component.

Greedy governments, increasing demand set to outstrip supplies, rising production costs, and falling stockpiles, create an almost perfect bullish storm for copper and other base metal prices.   

Nevada Copper’s production is ramping up- Timing is everything for the US producer

Nevada Copper Corporation controls one of the only production-ready new sources of copper supply in North America today. The company’s website outlines its unique source of US copper supply growth and straightforward route to a new copper district in Nevada.

The company’s latest highlights include:

  • Ramping-up production to the 3,000 ton per day level by the end of June 2021.
  • Fully permitted for 70,000 tons per day of output
  • Profitable production forecast at a long-term average copper price of $3.20 per pound.
  • Economics for Nevada Copper’s underground mine become more attractive as the company expands its reach.

The original open-pit economics was profitable at $2.48 per pound. At $3.20, EBITA increases by 40%, and copper is currently trading at over $4.50 per pound.

  • Source: Nevada Copper

The chart illustrates that Nevada Copper is highly levered to copper’s price

  • Mike Ciricillo, the former chief of Glencore’s global copper assets, is Nevada Copper’s CEO. Mr. Ciricillo joined to build the company into a mid-tier producer in a top mining jurisdiction in the world.

Timing is everything in life and business. The late Yogi Berra, the Hall-of-Fame Yankee catcher, and manager, and armchair philosopher, once said, “When you come to a fork in the road…take it!” Nevada Copper’s management came to that fork long before the copper bull market began. The production is well on its way at a time when the price is skyrocketing. Yogi would tell investors that Nevada Copper went in the right direction when it reached the fork in the mining road. The company’s management took a conservative view on the copper price and has been rewarded with new record highs and the prospects for far higher prices over the coming years as it extracts the red metal from the earth’s crust.

An inexpensive stock with a compelling risk-reward profile

There are lots of choices in the investment world. Inflationary pressures are causing all asset prices to rise as money’s purchasing declines. The tidal wave of central bank liquidity, government stimulus, infrastructure building, and rebuilding programs in the world’s two wealthiest nations, China and the US create an almost perfect bullish storm for copper.

Many investors are chasing their dreams in the cryptocurrency markets. I favor investments that rely on hard assets. Copper is a leading bellwether commodity, a construction requirement, a critical input for cleaner energy choices, among its many other applications. Besides, a pound of copper is a physical asset that does not require a computer wallet or custody in cyberspace. The recent trend in Nevada Copper shares on the US OTC and TSX markets has been bullish, as the stock has made higher lows and higher highs over the past months with the rising copper price.

Source: Barchart In early March 2021, NEVDF shares were trading at a low of 12 cents. The stock rose to a high of 27.1 cents on May 10; the day copper hit its most recent record high. At 20.7 cents on June 4, NEVDF was just above the middle of its trading range.

Source: Barchart

Over the same period, NCU.TO shares rose from C$0.155 to C$0.315 and were at C$0.25 on June 4.

Nevada Copper is well on its way to establishing a significant source of copper in Nevada, a mining-friendly state. I would rather own this stock than any cryptocurrency as the potential for success and profits have increased dramatically with copper’s price. Yogi also said, “You can observe a lot by watching.” With copper producers scouring the world for new supplies and watching new mining projects, Nevada Copper is in an enviable position with its’ new mine and future production profile.

If you’re interested in following Nevada Copper’s progress, visit https://investors.nevadacopper.com/alerts.

Written By: Andrew Hecht, on behalf of Maurice Jackson of Proven and Probable.

Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.

Categories
Base Metals Energy Junior Mining

Nevada Copper Provides Corporate and Operations Update


Press Release


Corporate Presentation

“We are pleased with the continued improvements of the milling operations and the peak hoisting numbers achieved this month,” stated Mike Ciricillo, CEO of Nevada Copper. “We look forward to completing upgrades to the Main Shaft in the coming weeks and the resulting increases in hoisting and production.”

NEVADA COPPER CORP.
www.nevadacopper.com

For further information contact:
Rich Matthews, Investor Relations
Integrous Communications
rmatthews@integcom.us
+1 604 757 7179