Coda Minerals (ASX:COD) - Copper-Cobalt Project Demonstrates Robust Economics

Coda Minerals (ASX: COD) Advances Robust Copper-Cobalt Project Amid Growing Critical Minerals Demand

In an insightful interview published on Crux Investor’s YouTube channel on April 15, 2025, Chris Stevens, CEO of Coda Minerals Ltd., provided an update on the company’s promising Elizabeth Creek project in South Australia. The discussion highlights how Coda Minerals is positioning itself within the increasingly vital landscape of critical minerals, particularly copper, cobalt, and silver, which are essential components of the global transition to cleaner energy and electrification.

**Strategic Location and Resource Highlights**

Elizabeth Creek is situated approximately six hours north of Adelaide, adjacent to BHP’s renowned Carrapateena Copper Project. Its strategic location offers not only proximity to infrastructure but also a favorable regulatory environment. The project’s mineral resources are substantial, comprising roughly 800,000 tonnes of copper, 30,000 tonnes of cobalt, and 28 million ounces of silver, all hosted within three primary deposits: two open pits—MG14 and Windabout—and a larger underground deposit at Emmie Bluff.

Stevens emphasizes the high-quality nature of the resource, with an average grade of about 1.9% copper equivalent. He notes that this grade compares favorably with larger, more developed projects globally, stating, “some of the really large projects that you see kicking around in terms of contained tonnage have a lower head grade going into the mill than our waste dump.” This suggests that Elizabeth Creek could potentially deliver competitive economics once developed.

**Economic Viability Supported by a Strong Scoping Study**

Coda Minerals has completed a comprehensive scoping study demonstrating the project’s strong economic fundamentals. The study estimates a pre-tax net present value (NPV) of approximately US$1.2 billion and a post-tax NPV of around US$802 million, based on a copper price of $4.20 per pound. The projected capital expenditure (capex) is about A$680 million, which, relative to the resource scale, indicates a potentially attractive return on investment.

Annual production is forecasted at roughly 26,000 to 27,000 tonnes of copper and 1,300 tonnes of cobalt, positioning Elizabeth Creek as a notable contributor to the supply chain of these critical metals. Notably, the project’s relatively high grades and resource scale could allow for a robust and profitable operation, especially as global demand for copper and cobalt intensifies.

**Focus on Metallurgical Optimization and Cost Reductions**

A key aspect of Coda’s current strategy involves refining the metallurgical processes to improve project economics further. Stevens highlighted ongoing efforts to explore alternatives to conventional flotation and Albion leaching circuits, which could significantly cut capital costs and reduce environmental footprints. He described these efforts as “game-changing,” underscoring their potential to enhance project viability and sustainability.

**Infrastructure and ESG Advantages**

The Elizabeth Creek project benefits from excellent infrastructure. It is near the Stuart Highway, has access to a 133 KVA electrical substation on-site, and is connected to the BHP haul road, facilitating logistics and transportation. Moreover, South Australia’s streamlined mining regulations and supportive ESG policies enhance the project’s attractiveness. Stevens pointed out that cobalt produced in Australia offers an ESG-compliant alternative to cobalt sourced from the Democratic Republic of Congo (DRC), aligning with increasing global demand for ethically and sustainably produced critical minerals.

**Financial Position and Strategic Focus**

With approximately A$4.5 million in cash reserves, Coda Minerals maintains a disciplined approach to capital deployment amid challenging market conditions. The company is prioritizing critical path items such as environmental and mining approvals, optimization studies, and stakeholder engagement. Additionally, the project qualifies for the Australian government’s ‘Future Made in Australia’ policy, which could provide up to $25 million in support, further bolstering its development prospects.

**Market Outlook and Future Prospects**

Stevens expressed confidence in the outlook for copper, citing a decline in discovery rates, declining ore grades, and rising production costs as factors underpinning a supply deficit. As global demand for copper accelerates—driven by electrification, renewable energy infrastructure, and electric vehicle adoption—projects like Elizabeth Creek are poised to meet this increasing need.

In conclusion, Coda Minerals’ Elizabeth Creek project exemplifies a well-positioned, high-grade, and strategically located resource that could play a key role in the future supply of copper and cobalt. With ongoing metallurgical innovations and a supportive economic and regulatory environment, Coda is moving toward unlocking the full potential of this promising resource.

**Further Information**

For more details on Coda Minerals and its projects, readers can visit the company’s profile on Crux Investor [here](https://www.cruxinvestor.com/companies/coda-minerals-ltd).