Coda Minerals Ltd
(ASX: COD) Share Price and News
Key Statistics
Introduction to Coda Minerals (ASX:COD)
Coda Minerals (ASX:COD) is an ASX-listed copper junior that is developing the Elizabeth Creek copper-cobalt project, in South Australia's Olympic Copper province.
Elizabeth Creek is an open-pit and underground project based on a large Zambian Copper Belt-style copper-cobalt deposit. The most recent Scoping Study update showed an NPV of A$735m and an IRR of 27%, for 307k lifetime tonnes of copper (25.4k per annum) and 16.9k cobalt tonnes (1.3k per annum).
Coda Minerals' History
Coda Minerals, was only established in 2019 but traces its origins to the mid 2000s when Elizabeth Creek was just one minor asset belonging to Gindalbie Minerals.
Gindalbie was focused on the Karara iron ore deposit in WA that had to be written down in 2013. A farm-in deal was stuck with private explorer Torrens Mining with the project and exploration has occurred ever since. Gindalbie became Coda Minerals, and it and Torrens listed on the ASX within 6 months of each other during the pandemic. Coda would later buy Torrens in early 2022.
At the time of the IPO there was a JORC Resource of 159k tonnes of copper and 9.4k tonnes of copper on an indicated basis, but the company built it up to 1.1Mt of copper equivalent across three separate prospects (Emmie Bluff, Windabout and MG14) and in multiple mineralisation styles (IOCG and so-called Zambian-style).
Drilling across 2021-22 was very encouraging, leading to a substantial re-rate of shares and a scoping study was completed in March 2023, only to be updated less than a year later. Investors have reacted more nuanced to the studies given the pre-production capital cost ($306m), notwithstanding the NPV, IRR and payback, not to mention the fact that the project is in a Tier-1 jurisdiction and has further exploration upside. The volatility of copper prices has not helped the company's cause either.
Future Outlook of Coda Minerals
The company is on the right track to production. The problem is that there is not a clear time line, and it will be more of an exploration play for the foreseeable future. The company will also be at the mercy of copper prices, which can be volatile under all ecoonmic conditions.
Is Coda Minerals (ASX: COD) a Good Stock to Buy?
It is important to keep in mind that it is an explorer and not an established miner. For investors who understand this, and the consequential risks involved, it could be a good stock to buy.
Our Stock Analysis
Coda Minerals – One of the world’s most inexpensive copper plays
Thursday 23 March 2023 was not a great day to be a shareholder of Coda Minerals (ASX:COD), developer of a…
Frequently Asked Questions
Coda Minerals is developing the Elizabeth Creek Copper-Cobalt Project in South Australia.