How Coda Minerals’ New Flowsheet Unlocks $1.8B Value at Elizabeth Creek
Coda Minerals reports a metallurgical breakthrough at its Elizabeth Creek project, significantly increasing copper and silver recoveries while reducing costs, leading to a substantial uplift in project economics. The simplified flowsheet excludes cobalt from the base case, lowering risk and positioning cobalt as future upside.
- New whole-ore chloride leach flowsheet increases copper recovery to 95% and silver to 98%
- Life-of-mine production estimates rise to 454kt copper and 20Moz silver
- Capital expenditure cut by A$74 million, reducing payback period to 3.25 years
- Pre-tax NPV7 improves to approximately A$1.29 billion with IRR of 39%, rising to A$1.81 billion at spot prices
- Cobalt excluded from base case, reducing technical and marketing risk but retained as upside
A Breakthrough in Processing
Coda Minerals Limited (ASX – COD) has unveiled a significant metallurgical advancement at its flagship Elizabeth Creek Copper-Silver Project in South Australia. The company has adopted a simplified whole-ore chloride leach flowsheet that markedly improves copper and silver recoveries to 95% and 98%, respectively. This breakthrough replaces the previous flotation-based process with a more streamlined, cost-effective method.
The new flowsheet involves coarser grinding and a single-stage oxidative chloride leach, eliminating complex steps such as flotation concentration and ultra-fine grinding. This simplification not only enhances metal recovery but also reduces capital and operating expenditures, delivering a more robust economic profile for the project.
Enhanced Production and Economics
With the improved recoveries, Coda now plans for a life-of-mine production of 454,000 tonnes of copper and 20 million ounces of silver, a material increase from previous estimates of 384,000 tonnes and 16 million ounces, respectively. Annual steady-state production is projected at approximately 31,000 tonnes of copper and 1.4 million ounces of silver.
Financially, the project’s pre-tax net present value (NPV) at a 7% discount rate rises to about A$1.29 billion, with an internal rate of return (IRR) of 39%. At current spot commodity prices, these figures improve further to an NPV of approximately A$1.81 billion and an IRR of 48%. Capital expenditure has been trimmed by A$74 million, shortening the payback period to 3.25 years, while operating costs have decreased by 19% per tonne of ore processed.
Strategic Shift – Cobalt as Upside
Importantly, the revised base case excludes cobalt from the processing flowsheet, focusing solely on copper and silver. This strategic decision reduces technical complexity and marketing risks associated with cobalt, a metal with a more volatile market. However, cobalt remains a valuable upside opportunity, with ongoing testwork aimed at integrating its recovery into the flowsheet in the future.
Coda’s CEO, Chris Stevens, highlighted the significance of this development – "This is possibly the most significant advance in the history of Elizabeth Creek. The fact that copper and silver alone now deliver stronger economics compared with our previous base case including cobalt is very encouraging. It simplifies and streamlines the project and unlocks substantial value."
Pathway to Development and Funding
The company is progressing the project through a Pre-Feasibility Study (PFS), incorporating the new flowsheet and continuing cobalt recovery optimisation. Funding discussions are underway with potential strategic partners across Asia and Europe, alongside exploring government support via Australia’s Critical Minerals Facility and related incentives.
Elizabeth Creek benefits from strong infrastructure links, including proximity to rail, road, and power networks, and the project design aligns with global environmental, social, and governance (ESG) standards. While environmental approvals and detailed mine planning remain ongoing, the simplified flowsheet offers greater flexibility in staging development and optimizing economics.
Looking Ahead
While the metallurgical results and economic estimates are preliminary and subject to further validation, the breakthrough positions Elizabeth Creek as a compelling copper-silver project in a Tier 1 jurisdiction. The company’s focus on advancing cobalt recovery and refining cost estimates will be critical next steps, alongside securing funding and regulatory approvals.
Bottom Line?
Coda’s flowsheet breakthrough reshapes Elizabeth Creek’s economic landscape, setting the stage for a streamlined, high-value copper-silver project with cobalt upside.
Questions in the middle?
- Will cobalt recovery testwork confirm a viable pathway to reintegrate cobalt economically?
- How will ongoing commodity price fluctuations impact the project’s valuation and funding prospects?
- What are the timelines and risks associated with securing environmental approvals and finalizing the Pre-Feasibility Study?
