KGL Resources Fully Funds Jervois Project and Targets 2028 Copper Production

Full Funding Package Secures Jervois Project Through to Production

KGL Resources Limited (ASX:KGL) has locked in a comprehensive funding package totaling approximately A$689 million, combining a US$300 million precious metals streaming agreement with Wheaton Precious Metals and a A$300 million equity raise. This milestone fully finances the Jervois Copper-Silver-Gold Project through to production without incurring project debt, while preserving unencumbered copper offtake rights.

The funding includes a A$351 million contingent cost-overrun facility and maintains a liquidity buffer of around A$70 million after costs, providing financial flexibility during construction and ramp-up phases. The initial US$16 million tranche from the Wheaton streaming deal has already been received, enabling early works and procurement to advance.

Robust Economic Model Underpins Project Viability

An updated Baseline Economic Model (BEM) released in April 2026 confirms compelling project economics with a post-tax net present value (NPV8) of A$839 million and an internal rate of return (IRR) of 30%. The model assumes a copper price of US$6.06 per pound and incorporates significant by-product credits from gold and silver.

The project forecasts a life-of-mine operating cash flow of approximately A$3.2 billion pre-tax and A$1.8 billion free cash flow after tax. Operating costs are competitive, with all-in sustaining costs (AISC) estimated at US$2.51 per pound of copper, inclusive of underground capital, and a simple payback period of just over three years.

Construction Readiness Accelerates Towards Final Investment Decision

KGL is progressing engineering, contracting, and procurement activities ahead of a targeted Final Investment Decision (FID) in Q3 2026. Sedgman Pty Ltd remains the preferred contractor for the 2 Mtpa process plant, with contract finalisation expected shortly. Concurrently, the open-pit mining contract tender is advancing, aiming for mining commencement by mid-2027.

Early works, including water supply infrastructure, accommodation facilities, and power generation, are underway, supported by the initial streaming funds. The company has assembled an integrated owner’s team to manage project controls and contractor coordination, preparing for a 22-month construction period followed by six months of commissioning and ramp-up. First copper concentrate production is targeted for 2028.

Exploration Program Aims to Extend Mine Life and Expand Resources

As part of the equity raise, KGL has allocated A$20 million to a staged exploration program across the Jervois and Unca Creek tenements. This initiative will deploy geophysics, drilling, and core analysis to target near-mine resource growth, mine-life extension, and regional expansion. The program builds on previous drilling and 3D inversion modelling, with results expected to refine targets and guide further exploration.

The exploration effort aligns with tightening copper market fundamentals, where supply constraints and rising demand from electrification, data centres, and renewable energy infrastructure are forecast to widen the supply-demand gap. S&P Global projects global copper demand to jump 50% by 2040, underscoring the strategic importance of advancing high-grade, Tier One jurisdiction projects like Jervois.

Corporate and Financial Position

KGL ended the quarter with A$25.43 million in cash and cash equivalents. Shareholders approved the conditional placement component of the equity raise at an extraordinary general meeting on 30 July 2026, finalising the capital raising process. The company reported operating cash outflows consistent with development-stage activities and continued investment in exploration.

With funding secured, KGL’s immediate priorities include finalising key construction contracts, approving the FID, commencing site mobilisation, and progressing early works and critical-path engineering. The company’s disciplined approach aims to deliver on schedule while leveraging exploration upside to enhance project value.