Rising Copper and Silver Prices Boost Elizabeth Creek Project but Funding Uncertainties Linger

Economic Update Amid Rising Commodity Prices

Coda Minerals Limited (ASX, COD) has released a significant update to the economic outlook of its 100%-owned Elizabeth Creek Copper-Silver Project in South Australia. This revision follows notable increases in copper and silver prices since the company's August 2025 Scoping Study. The updated base case now assumes a copper price of US$10,500 per tonne and silver at US$60 per ounce, both materially higher than previous assumptions.

The revised economics demonstrate a pre-tax net present value (NPV) at a 7% discount rate of approximately A$2.25 billion, with an internal rate of return (IRR) of 56%. These figures represent a substantial uplift compared to the August 2025 study, which estimated a pre-tax NPV of around A$1.29 billion and an IRR of 39%. Notably, the project also boasts a rapid payback period of 2.5 years from first production, underscoring its financial attractiveness.

Production and Project Scope

The Elizabeth Creek Project is planned as a long-life operation, targeting the production of approximately 454,000 tonnes of copper and 20.3 million ounces of silver over its life. Annual steady-state production is estimated at around 31,000 tonnes of copper and 1.4 million ounces of silver. The project retains its existing processing flowsheet, focusing on copper and silver as base commodities, with cobalt currently excluded from recovery but under ongoing testwork for potential reintegration.

Importantly, no changes have been made to technical, mining, capital, or operating cost assumptions in this update; the uplift in project value is driven solely by revised commodity price assumptions. The company has adopted conservative long-term price assumptions that remain below current spot prices, which as of February 2026 stand at approximately US$13,108 per tonne for copper and US$82 per ounce for silver.

Sensitivity and Market Context

Coda’s sensitivity analysis highlights the project's strong leverage to commodity prices. Each US$1,000 per tonne increase in copper price is estimated to add about A$377 million to the project's NPV, while every US$10 per ounce increase in silver price contributes approximately A$165 million. Despite silver’s recent price surge outpacing copper’s, copper remains the dominant revenue driver, accounting for roughly 78% of lifetime revenue under updated assumptions.

The company cautions that spot prices are volatile and that project advancement decisions will be based on long-term consensus pricing rather than short-term market fluctuations. The ongoing Pre-Feasibility Study (PFS) is incorporating the updated copper-silver base case, with drilling substantially complete and assay results pending.

Funding and Strategic Outlook

With a cash balance of A$11.25 million at the end of December 2025, Coda is well-positioned to advance its PFS work. The company is actively engaging with potential strategic partners across Asia and Europe, exploring funding options including equity, project debt, and offtake agreements. While no binding funding commitments have been made, interest from private equity, end users, and traders remains strong, reflecting the growing demand for copper and silver in the energy transition.

Environmental and social governance (ESG) considerations are being aligned with global standards, and preliminary environmental assessments have identified no significant hurdles. The project benefits from established infrastructure access, including rail, road, and power, though water availability remains a focus for further study.