Copper 360 Loss for the year increased by 244% to R223.1 million

Copper 360 produced overview of the financial year ended 28 February 2025:

• Concentrate business was launched with the MFP2 plant at Nama Copper in March 2024, producing copper concentrate with the first dispatch made end of April 2024.
• Additional crushing equipment acquired in April and July 2024, providing greater capacity, redundancy, and flexibility.
• Mining activities commenced at Rietberg in August 2024, contributing sulphide ore from broken rock to the MFP2 plant. Ore development commenced with the first on-ore rock blast at the end of January 2025.
• Cathode business’ SX-EW plant was put into a care and maintenance program during the second half of the financial year, requiring further expansion capital expenditure to operate at sustainable profit levels.

CATHODE BUSINESS

The SX-EW plant received the first phase of its upgrade during the second half of the 2024 financial year. Production improvements were experienced subsequently in the first half of the 2025 financial year. However, lower recoveries through the plant resulted in a temporary suspension of cathode production during September 2024, and the plant being put into a care and maintenance program. A second phase upgrade is planned for the SX-EW plant, which is expected to increase production output significantly.

The second phase upgrade requires further expansion capital before it can achieve sustainable profitability. The expansion capital expenditure will be incurred only once the concentrate operations are operating at a sustainable level.

CONCENTRATE BUSINESS

Production of copper concentrate commenced at the Nama Copper Resources Plant – Modular Floatation Plant 2 (‘MFP2’) in March 2024. Production gradually increased during the year until the second half of the financial year, when MFP2 was operating at an average of 88% of its operating capacity, after the secondary mill was commissioned.

Plant feed during the financial year consisted of mostly of transitional ore from Jubilee and broken rock from Rietberg mine, once mining commenced in August 2024. Fresh sulphide ore was introduced after the first on-ore development blast that was executed at the end of January 2025.

In-situ sulphide grade was lower than expected due to the higher proportion of oxidised transitional ore and broken rock included in the mill-feed. Grades achieved from transitional ore and broken rock were erratic and inconsistent. The oxide ore also impacted negatively on recoveries. The plant operations team has succeeded, through innovation, in extracting copper oxides contained in the mill-feed even though the plant is a sulphide processing facility.

Generally, ore development provided sulphide ore with higher, and more consistent, in-situ grades, compared to transitional ore and broken rock. Fresh sulphide ore from development also resulted in improved recoveries.

RIETBERG MINE

Rietberg mine was opened and tramming of broken rock ore commenced in August 2024, after support was installed. A start-up fleet of underground TMM equipment was acquired. The first fresh ore development blast was executed at the end of January 2025.

Further capital expenditure in the form of site infrastructure and expansion underground TMM fleet is required for a sustainable mining operation.

FINANCIAL COMMENTARY

Revenue from copper produced and sold increased by 349% to R143.7 million (2024: R32 million). This increase is due to the concentrate business, that commenced in March 2024, contributing R97.6 million to revenue. Revenue was lower than expected and forecast, mainly due to:

     •    SX-EW not operating for the full financial year

     •    Delay in the commencement of mining operations at Rietberg

     •    Delay in capitalisation of Rietberg mine (fleet and infrastructure).

     •    Prolonged tramming of broken rock and transitional ore at lower and inconsistent grades that also causes lower recoveries at the processing plant.

Operating costs increased by 177% to R399.4 million (2024: R144.1 million). This is due to the additional costs associated with the concentrate business and mining unit introduced this year.

Loss for the year increased by 244% to R223.1 million (2024: R64.8 million). The loss is attributable to expected revenue not achieved and increased cost base, as mentioned above.

Capital expenditure of R187.4 million was incurred during the financial year. A further R256 million is planned for 2026 that will include the completion of the MFP1-plant at Nababeep and the completion of capitalisation at Rietberg for additional infrastructure and underground TMM fleet.

CHIEF EXECUTIVE OFFICER’S COMMENT

Copper 360 is an undercapitalised exploration company transitioning to production, primarily through the Rietberg mine. Unlike traditional South African mega-mines, Copper 360 follows a Multi-Mine Strategy, developing several smaller, flexible mines feeding into central processing plants.

The past financial year was a difficult one for the company as is evident from the financial results.

We need to invest capital to scale production and bring additional projects online. Our near-term goals include reaching 40,000 tons of ore per month (1% grade), translating to 5,000 tonnes of copper annually, within 6–12 months. The company sees strong long-term potential but must focus on growth and on securing funding to execute its strategy.