Copperstone Resources: Permit process going according to plan - ABG

Mining could commence in mid-’23 Long-term Viscaria assumptions unchanged Fair value of SEK 1.1-2.4 per share reiterated Working on completions to the Viscaria permit application As drilling efforts ramp up, capitalised expenditures for exploration rose to SEK 46m (ABGSCe SEK 42m), up from SEK 21m in Q2’21. Opex also increased, resulting in EBIT of SEK -5m (ABGSCe SEK -3m). During the quarter, Copperstone received clarification on the necessary completions required for its environmental permit application for the Viscaria mine (the initial application was submitted in March). As a reminder, requests for additional information are a normal part of the environmental permit process, and Copperstone has previously stated that these were expected. Moreover, the company reiterated its intention to provide a new mineral update towards the end of the year.

If all goes to plan, mining could begin in mid-’23 So far, the environmental permit process is progressing according to plan. The next step is for Copperstone to submit the requested completions, which it intends to do in September. Following this, assuming the application is deemed to be complete, the next step is an announcement of the permit in the land and environmental courts. Management adds that if all goes as planned, mining could begin in mid-’23, although on our estimates the first revenues come in 2024. By 2025, the company expects to complete the construction of its processing plant, allowing it to process its own ore. Prior to this, Copperstone can choose to either stockpile ore or ship it to an external processing plant.

Fair value range of SEK 1.1-2.4 reiterated As mentioned, things are progressing as planned and the Q2 report did not come with any surprises. As such, we have not made any changes to our long-term Viscaria assumptions, which we expect to reach a full-capacity annual Sales and EBIT run-rate of ~SEK 2.5bn and ~SEK 1bn, respectively. We therefore reiterate our fair value range of SEK 1.1-2.4 per share, ... Läs mer på ABG Sundal Collier

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