Alma Metals

We believe Alma Metals represents a compelling copper exploration opportunity for investors with an appropriate risk tolerance and a longer-term investment horizon. The Briggs project has genuine scale, with a 2 million tonne contained copper resource that positions it among Australia’s most significant undeveloped copper deposits. The quality of the latest drilling results is encouraging. The confirmation that copper mineralisation is appearing where the geological model predicted adds credibility to management’s understanding of the deposit and reduces the technical risk around further resource growth. The fact that the deposit remains open in all directions is an additional positive, suggesting meaningful resource expansion potential as drilling continues. The decision to commit to a PFS is another key positive signal. It demonstrates that management and the joint venture partners are confident enough in the project fundamentals to invest in the rigorous technical and financial work required at this stage. The outcome of the PFS will be the single most important de-risking event for the project and is likely to be a major share price catalyst when published. That said, investors should be clear-eyed about where Alma Metals sits in the development cycle. The key challenge ahead is upgrading the majority of the existing resource from the Inferred category to Indicated and Measured categories, a process that requires continued drilling success and takes time. Risks include the possibility that future drilling results are less compelling than those released to date, broader copper price volatility, potential funding requirements as the PFS and subsequent studies progress, and the inherent uncertainties of moving a project from exploration through to development. For growth-oriented investors seeking leveraged exposure to copper and the energy transition through an advanced Australian exploration company with genuine scale, Alma Metals warrants close attention over the next 12 months as drilling results and the PFS progress.