Interview with Hayden Locke, President & CEO of Marimaca Copper Corp.
Our previous interview: https://www.cruxinvestor.com/posts/marimaca-copper-tsxmari-why-mitsubishi-corporation-is-betting-big-on-copper-with-marimaca-3954
Recording date: 1st November 2023
Marimaca Copper offers investors scarce exposure to a near-term construction-ready copper project, with permitting and a definitive feasibility study already underway. The company is rapidly advancing its Marimaca project, located in Antofagasta, Chile, aiming for first production in 2026-2027.
Chile's copper mining heartland provides the ideal jurisdiction for Marimaca to bring its maiden mine into production. Major miners like BHP and Anglo American have successfully operated there for years. While rigorous, Chile's permitting process is well-established and transparent.
To fast-track permitting and de-risk development, Marimaca has appointed Chilean engineering firm Ausenco. Their recent experience building the Mina Justa copper mine will be invaluable. Ausenco is also leading the definitive feasibility study, which will optimize the mine plan and processing flowsheet.
Importantly, preliminary studies reveal that Marimaca will be a financially robust project. By focusing only on the highest grade zones, capital intensity has been minimized. All-in-sustaining costs are forecast between $1.75-$2.15/lb, ensuring healthy margins at current and expected copper prices.
Marimaca's straightforward open-pit mining and conventional copper processing also lend themselves to low operating costs. The economics should attract debt financing while limiting equity dilution.
Keen to maintain momentum, Marimaca has front-loaded permitting activities, targeting submission in mid-2023. Approval is expected within 12 months, though further assessments could add up to one year. This timeline aligns first production with a forecast uptick in the copper market.
To oversee this rapid development schedule, Marimaca has recruited Chilean mining veteran Giancarlo Bruno Lagomarsino. As former CEO of Mantos Copper, Runo led the tremendous growth of that company before its merger into Capstone Copper.
Lagomarsino recently managed the development of Mantoverde for Capstone, making him ideally suited to steer Marimaca's transition to production. His connections will also assist in permitting discussions with Chilean regulators.
Marimaca anticipates kicking off detailed engineering and design work in 2024 after completing its definitive feasibility study. An approved EIA and strong economics would pave the way for a final investment decision on full-scale construction from 2025.
The company's strategic partner Mitsubishi Corporation has committed additional capital to fund activities through this period. Marimaca is also engaged in ongoing financing discussions to ensure sufficient resources.
The timing for first output from Marimaca around 2026-2027 is fortuitous, with the project coming online just as forecast copper shortages emerge. Wood Mackenzie predicts new mine supply will struggle to match rising copper consumption after 2025.
The demand picture also looks promising, with copper usage surging in electric vehicles, renewable power, electricity infrastructure and construction. This supports a bullish price outlook as demand growth potentially outpaces new supply.
As one of only a handful of new copper projects globally that can reach production by the late 2020s, Marimaca offers scarcity value. Investors gain unique exposure to a near-term copper producer poised to capitalize on supportive industry fundamentals.
With permitting progressing as planned, Marimaca remains on track to deliver its first copper from Chile's premier mining district within the next five years. The company's rapid execution provides investors with a timely opportunity to gain leveraged exposure to copper's compelling market dynamics.
View Marimaca Copper's company profile: https://www.cruxinvestor.com/companies/marimaca-copper
Sign up for Crux Investor: https://cruxinvestor.com
What is Company Interviews?
An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.