Copper mining company Copper 360 Limited is the latest company to list on the Alternative Exchange (AltX Board), making it the second company to list on the JSE this year.
It comes to the market at a time copper prices have risen by around 10% since the start of this year. Demand for copper is high, the market for renewable energy expands amid the transition away from fossil fuels.
The mining company was formed in November 2022, after a reverse take-over of copper producer Big Tree Copper, and copper mining company SHiP Copper. The company has a focus on producing premium copper that will yield a high cash margin.
Copper 360 operations are based in the Northern Cape and its mining rights cover 19000 hectares to the north of the town of Springbok and hold 12 copper mines, some with developed infrastructure, and 60 copper prospects with advanced geological datasets.
Copper 360 is producing 1 200 tons of copper cathode a year, and aims to increase copper production to 7 700 tonnes per year.
It is estimated that the Life-of-Mine across the various operations is more than 100 years.
Copper 360 CEO Jan Nelson said: “Coming to the market means we give South Africans exposure to the only pure copper exposure available to them with further major growth. It opens up a capital market for us and allows us a network to further develop strategic partnerships. It also raises our profile and South Africa.”
Nelson said using a cluster mining model developed by Copper 360's chair, Shirley Hayes – where several mines feed into one process facility – Copper 360 would create a new “Copper Country”.
"With a centralised process facility, smaller orebodies become economically viable, and have the potential to add up to greater benefits for copper mining in the region," Nelson said.
The share closed up 5.26% at R5 on Friday.
The Premier Group was the first company to list on the JSE this year.
Copper 360's listing has pushed up the number of listed companies on the bourse to 303, with an overall market capitalisation of R22.76 trillion. Copper 360 is one of 44 companies in the basic materials sector listed on both the main board and AltX board of the JSE.
The JSE said the AltX market focused on good quality, small and medium-sized high-growth companies.
“AltX provides smaller companies a springboard onto the JSE Main Board with a clear growth path and access to capital,” it said.
JSE head of origination and deals Sam Mokorosi said the mining sector was a vital driver of economic growth in South Africa. With mining revenues reaching more than R1.18 trillion in 2022, it was imperative that the country continues to focus on investing in this sector.
“South Africa holds some of the world's largest reserves of precious metals, refractory metals, base metals, and energy minerals. As such, we are pleased to welcome an emerging giant in the copper mining industry to the Altx Board, which we launched in 2003 to catalyse the growth of small and medium-sized businesses such as Copper 360.
“It is heartening to see small and medium-sized companies leverage the JSE as a strong platform for capital access and future expansion,” Mokorosi said.
A listing on the JSE gives companies like Copper 360 access to deep and highly liquid capital markets while providing investors exposure to Africa’s great growth potential through a trusted entry point.
Nelson said: “We are proudly South African, bold, brave, and innovative. We have tenacity, endurance, and courage but always remain humble. We never give up! We are building South Africa’s next copper Giant. We are Copper 360 - Hello Copper, and hello JSE!”.
BUSINESS REPORT