Cyprium Metals Secures $13.5M and Confirms $1.12B Nifty Copper Project Value
Cyprium Metals has secured $13.5 million in a two-tranche placement and released a robust prefeasibility study for its Nifty Copper Complex, confirming strong economic viability with a pre-tax NPV of $1.12 billion. The company is also reviewing its Murchison assets and selling surplus equipment to streamline operations.
- Completed Tranche 1 of $13.5 million placement, Tranche 2 pending shareholder approval
- Nifty Copper Complex PFS shows pre-tax NPV8 of A$1.12 billion and 28.9% IRR
- 20-year project life with average annual copper production of 37.3ktpa over first decade
- Sale of surplus generators for US$6.05 million to support working capital
- Strategic review initiated for Murchison projects to maximise shareholder value
Strong Capital Raise and Strategic Focus
Cyprium Metals Ltd (ASX: CYM) has made significant strides in the December 2024 quarter, successfully completing the first tranche of a two-part placement raising A$5.2 million, with the second tranche of A$8.3 million awaiting shareholder approval. This capital injection is earmarked to fund critical activities including the Nifty Copper Complex redevelopment, definitive feasibility study (DFS) preparation, geology work, and general working capital needs.
The placement, priced at A$0.028 per share, also included free-attaching options, reflecting investor confidence in Cyprium's near-term growth prospects. Alongside this, a A$3 million entitlement offer was launched to existing shareholders, further strengthening the company’s capital base.
Prefeasibility Study Validates Nifty’s Economic Potential
The highlight of the quarter was the release of a comprehensive prefeasibility study (PFS) for the Nifty Copper Complex, which confirmed the project's robust economics. The study projects a pre-tax net present value (NPV8) of A$1.12 billion and an internal rate of return (IRR) of 28.9%, underscoring the project's viability as a cornerstone copper asset in Australia.
Key metrics include a 20-year project life, with average annual copper production of 37.3 kilotonnes over the first decade, generating gross revenues estimated at A$9.2 billion. The PFS also highlights low capital intensity and strong cash flow generation, supported by brownfield redevelopment advantages and integration of both concentrate and cathode production.
Asset Optimisation and Portfolio Review
In parallel with advancing Nifty, Cyprium has initiated a strategic review of its Murchison copper projects, including Cue and Meekatharra. This review aims to maximise shareholder value by exploring options such as joint ventures, sales, or potential de-merger, allowing the company to sharpen its focus on the Nifty redevelopment.
Additionally, Cyprium executed a binding agreement to sell surplus TM2500 generators for US$6.05 million, with proceeds expected to bolster working capital. This move reflects a disciplined approach to asset management, shedding non-core equipment to streamline operations and fund growth initiatives.
Financial Position and Market Presence
Cyprium closed the quarter with A$14.2 million in cash, supported by equity receipts, generator sale deposits, and a fully drawn loan facility from Glencore. The company’s strengthened capital structure and strategic partnerships position it well to advance the Nifty project through the next phases of development.
Notably, Cyprium commenced trading on the OTCQB Venture Market in the United States under the ticker CYPMF, expanding its investor reach and market visibility. The board also reaffirmed its commitment to internal value creation by rejecting a non-binding indicative offer from Appian Capital Advisory.
Looking Ahead
With all major permits in hand and a clear pathway to project execution, Cyprium is poised for a transformative 2025. The company’s focus on delivering the Nifty Copper Complex redevelopment, combined with disciplined capital management and strategic asset optimisation, sets the stage for sustained growth in the copper sector.
Bottom Line?
Cyprium’s decisive capital raise and robust PFS position Nifty as a leading copper development, but shareholder approval and strategic asset decisions will be pivotal next steps.
Questions in the middle?
- Will shareholders approve the second tranche of the placement and associated options?
- What strategic direction will Cyprium take with its Murchison assets following the review?
- How will Cyprium manage funding and execution risks as it transitions from prefeasibility to project development?
