Anax Metals’ updated DFS for Whim Creek reveals a 113% surge in free cash flow to A$723 million, underpinned by a decade-long mine life and rapid payback. The company’s $10 million capital raise strengthens its balance sheet following full repayment of a $3.5 million loan.
- Updated DFS shows A$723M free cash flow and 98% IRR
- Ten-year mine life with 4.6Mt ore reserve
- Completed $5.2M tranche of $10M capital raise
- Repaid $3.5M Jetosea loan, removing NSR risk
- Cash position at $2.4M with further funding pending
Whim Creek DFS Update Delivers Stronger Economics
Anax Metals Limited (ASX:ANX) has unveiled a significant upgrade to its Whim Creek Project economics, with an updated Definitive Feasibility Study (DFS) showing a 113% increase in free cash flow to A$723 million over the life of mine. The project boasts a robust pre-tax net present value of A$501 million at a 7% discount rate and an internal rate of return of 98%, supported by a 10-year mine life based on a 4.6 million tonne ore reserve.
The DFS update highlights a modest development capital requirement of approximately A$91 million, with Anax responsible for A$76 million of this, including corporate costs. The payback period remains attractive at around 14 months, underpinning the project's financial appeal. Operationally, the project benefits from an all-in sustaining cost of US$1.61 per pound of copper, net of by-product credits, positioning Whim Creek competitively in the base metals sector.
These improved metrics build on the earlier 2023 DFS and reflect updated commodity price assumptions and refined capital and operating cost estimates. The project’s location in the Pilbara, with existing infrastructure, supports a rapid development timeline of roughly 18 months from the final investment decision. Anax’s strategy to develop Whim Creek as a regional processing hub is further reinforced by the inclusion of a fully permitted heap leach facility, capable of producing copper cathode and zinc sulphate, and leveraging proprietary bioleaching technology.
Capital Raising Strengthens Financial Position
In tandem with the DFS update, Anax completed the first tranche of a $10 million capital raising, securing approximately $5.2 million from institutional and sophisticated investors at $0.023 per share. The second tranche, expected to raise a further $4.8 million, is subject to shareholder approval at a general meeting scheduled for May 19, 2026. The capital raise received strong backing from existing shareholders, including Jetosea Pty Ltd, Gold Valley Pilbara Pty Ltd, and Deep Source Holdings Limited, alongside participation from company directors.
Proceeds from the placement have been applied to repay a $3.5 million loan from Jetosea, which was fully cleared during the quarter, removing the risk of conversion to a 2.5% net smelter return royalty. This repayment significantly strengthens Anax’s balance sheet and reduces potential dilution risks. The company continues to engage in funding and strategic partnership discussions to support the Whim Creek development and its broader Pilbara processing hub ambitions.
Exploration and Resource Growth Prospects
Anax is advancing exploration plans to extend resources at Salt Creek, which remains open at depth and along strike over more than 250 metres. The company is designing a mid-2026 exploration program aimed at testing these extensions, which could enhance the project's resource base and underpin longer-term production growth.
The updated Ore Reserve includes a small increase at the Evelyn underground deposit following revised mine designs, contributing to the total 4.6 million tonnes at grades of 1.36% copper, 2.31% zinc, 0.67% lead, 30 grams per tonne silver, and 0.27 grams per tonne gold. These reserves are compliant with JORC 2012 standards and provide a solid foundation for the project’s planned operations.
Corporate and Operational Highlights
During the quarter, Anax incurred $618,821 in exploration and feasibility expenditures, predominantly focused on Whim Creek activities. The company maintained a cash balance of $2.4 million at quarter end. Director remuneration totaled $123,912, with related party payments disclosed transparently. Notably, Managing Director Geoff Laing’s base salary will increase to $400,000 per annum from May 1, 2026, reflecting his role in advancing the Whim Creek Project.
As Anax progresses towards production, it continues to refine its business case for road base and aggregate products derived from Whim Creek waste rock, seeking partners to develop these complementary revenue streams. The company’s strategic approach to consolidate base metals production in the Pilbara hinges on the success of these initiatives and ongoing funding outcomes.
The recent capital raising builds on momentum from the company's first tranche placement completion and aligns with earlier announcements confirming the $10 million raise to propel Whim Creek forward, including debt repayment and project development support secured $10M capital raise. These steps collectively reduce financial risk and enhance Anax’s readiness for the next phase of project execution.
Bottom Line?
Anax Metals’ strengthened balance sheet and improved DFS economics position Whim Creek for development, but shareholder approval and strategic funding remain key hurdles.
Questions in the middle?
- Will shareholder approval for the second tranche placement be secured as planned?
- How will Anax advance its strategic partnerships to fully fund Whim Creek’s development?
- What impact will evolving commodity prices have on the project’s long-term economics?