How Is KGL Resources Capitalising on Rising Metal Prices and New Investors?
KGL Resources updates on its Jervois Copper Project optimisations and financing progress, welcoming Resource Capital Fund as a new significant shareholder. The company is capitalising on higher metal prices and exploring critical mineral opportunities.
- Higher metal prices drive further project optimisation
- Resource Capital Fund acquires 8.32% stake via off-market purchase
- Feasibility Study shows strong economics with A$405M post-tax NPV
- Ongoing financing discussions with amicaa and Cutfield Freeman & Co
- Exploring monetisation of critical mineral bismuth by-product
Project Optimisation in a Rising Metals Market
KGL Resources Limited has provided a comprehensive update on its 100% owned Jervois Copper Project, highlighting ongoing optimisation efforts driven by a favourable metals price environment. Since the release of its Feasibility Study Update earlier this year, the company has intensified work on refining the open-cut mine plan, aiming to unlock incremental copper resources and better utilise existing plant capacity.
The company notes that precious metals prices, particularly gold and silver, have surged by over 35% and 29% respectively in 2025, bolstering the project’s economic outlook. The Feasibility Study Update projects a post-tax net present value of A$405 million and an internal rate of return of 24%, underscoring the project's robust fundamentals amid these market conditions.
Financing Progress and New Strategic Investor
On the financing front, KGL Resources is actively advancing discussions with its financial advisors, amicaa and Cutfield Freeman & Co, to secure project construction funding. The company has received multiple non-binding term sheets and is working to finalise an optimal funding package ahead of a Financial Investment Decision.
Adding momentum to the project’s development, Resource Capital Fund (RCF) has entered the share register with an 8.32% stake acquired through an off-market purchase. RCF’s involvement brings not only capital but also a wealth of experience in critical minerals and mining investments, potentially enhancing KGL’s strategic positioning.
Exploring Critical Mineral Opportunities
In a notable development, KGL Resources is investigating the monetisation of bismuth, a critical mineral included on the Australian Critical Minerals List. The metal’s price has surged in 2025 due to regulatory changes and export controls in China, and it holds strategic importance for defence applications, including stockpiling by the U.S. Defence Logistics Agency.
By potentially recovering bismuth as a by-product alongside copper, gold, and silver concentrates, KGL could diversify revenue streams and enhance the project’s value proposition in a market increasingly focused on critical minerals.
Pathway to Construction and Operational Readiness
The company remains on track to commence enabling works in late 2025 or early 2026, contingent on securing acceptable financing terms. Early designs for the process plant and tailings storage facility are ready to proceed, with procurement and approvals aligned to the project’s milestone schedule.
Risk assessments continue to affirm no critical issues, with safety, community engagement, and logistics remaining key focus areas. The tender process for open-cut mining contractors is advancing, aiming to award contracts that support the upcoming Financial Investment Decision.
Bottom Line?
KGL Resources is positioning itself to capitalise on rising metal prices and critical mineral demand, with financing and project execution milestones looming.
Questions in the middle?
- What final financing terms will KGL secure to support the Financial Investment Decision?
- How significant could bismuth monetisation be to the overall project economics?
- What impact will Resource Capital Fund’s involvement have on KGL’s strategic direction?