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Reviewed Condensed Consolidated and Separate Financial Statements for the Financial Year ended 28 February 2025
Copper 360 Limited
(Incorporated in the Republic of South Africa)
Registration number 2021/609755/06
JSE Share Code: CPR ISIN: ZAE000318531
("Copper 360" or "the Company")
REVIEWED CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY
2025
OVERVIEW OF THE FINANCIAL YEAR ENDED 28 FEBRUARY 2025
• Concentrate business was launched with the MFP2 plant at Nama Copper in March 2024, producing copper concentrate with
the first dispatch made end of April 2024.
• Additional crushing equipment acquired in April and July 2024, providing greater capacity, redundancy, and flexibility.
• Mining activities commenced at Rietberg in August 2024, contributing sulphide ore from broken rock to the MFP2 plant. Ore
development commenced with the first on-ore rock blast at the end of January 2025.
• Cathode business' SX-EW plant was put into a care and maintenance program during the second half of the financial year,
requiring further expansion capital expenditure to operate at sustainable profit levels.
OPERATIONS COMMENTARY
SUMMARY TABLE
The following table summarises production for the 2025 and 2024 financial years.
Year ended Year ended
Production Metrics 28 February 29 February
2025 2024 Variance
Feed Tonnes (t)
Cathodes 59 751 68 234 (8 483)
Concentrates 163 407 163 407
Total Feed Tonnes 223 158 68 234 154 924
Grade (%)
Cathodes 1.20% 1.11% 0.09%
Concentrates 0.95% - 0.95%
Total Grade 1.02% 1.11% -0.09%
Recovery Rate (%)
Cathodes 43.4% 44.5% -1.1%
Concentrates 47.9% - 47.9%
Total Recovery Rate 46.5% 44.5% 2.0%
Copper Produced (t)
Cathodes 312 331 (19)
Concentrates 742 - 742
Copper Produced (t) 1 054 331 723
CATHODE BUSINESS
The SX-EW plant received the first phase of its upgrade during the second half of the 2024 financial year. Production improvements
were experienced subsequently in the first half of the 2025 financial year. However, lower recoveries through the plant resulted in
a temporary suspension of cathode production during September 2024, and the plant being put into a care and maintenance
program. A second phase upgrade is planned for the SX-EW plant, which is expected to increase production output significantly.
The second phase upgrade requires further expansion capital before it can achieve sustainable profitability. The expansion capital
expenditure will be incurred only once the concentrate operations are operating at a sustainable level.
CONCENTRATE BUSINESS
Production of copper concentrate commenced at the Nama Copper Resources Plant - Modular Floatation Plant 2 ('MFP2') in March
2024.
Production gradually increased during the year until the second half of the financial year, when MFP2 was operating at an average
of 88% of its operating capacity, after the secondary mill was commissioned.
Plant feed during the financial year consisted of mostly of transitional ore from Jubilee and broken rock from Rietberg mine, once
mining commenced in August 2024. Fresh sulphide ore was introduced after the first on-ore development blast that was executed
at the end of January 2025.
In-situ sulphide grade was lower than expected due to the higher proportion of oxidised transitional ore and broken rock included in the
mill-feed. Grades achieved from transitional ore and broken rock were erratic and inconsistent. The oxide ore also impacted
negatively on recoveries. The plant operations team has succeeded, through innovation, in extracting copper oxides contained in
the mill-feed even though the plant is a sulphide processing facility.
Generally, ore development provided sulphide ore with higher, and more consistent, in-situ grades, compared to transitional
ore and broken rock. Fresh sulphide ore from development also resulted in improved recoveries.
RIETBERG MINE
Rietberg mine was opened and tramming of broken rock ore commenced in August 2024, after support was installed. A start-up fleet
of underground TMM equipment was acquired. The first fresh ore development blast was executed at the end of January 2025.
Further capital expenditure in the form of site infrastructure and expansion underground TMM fleet is required for a sustainable
mining operation.
FINANCIAL COMMENTARY
Revenue from copper produced and sold increased by 349% to R143.7 million (2024: R32 million). This increase is due to the
concentrate business, that commenced in March 2024, contributing R97.6 million to revenue. Revenue was lower than expected and
forecast, mainly due to:
• SX-EW not operating for the full financial year
• Delay in the commencement of mining operations at Rietberg
• Delay in capitalisation of Rietberg mine (fleet and infrastructure).
• Prolonged tramming of broken rock and transitional ore at lower and inconsistent grades that also causes lower recoveries
at the processing plant.
Operating costs increased by 177% to R399.4 million (2024: R144.1 million). This is due to the additional costs associated with the
concentrate business and mining unit introduced this year.
Loss for the year increased by 244% to R223.1 million (2024: R64.8 million). The loss is attributable to expected revenue not achieved
and increased cost base, as mentioned above.
Capital expenditure of R187.4 million was incurred during the financial year. A further R256 million is planned for 2026 that will
include the completion of the MFP1-plant at Nababeep and the completion of capitalisation at Rietberg for additional infrastructure
and underground TMM fleet.
CHIEF EXECUTIVE OFFICER'S COMMENT
Copper 360 is an undercapitalised exploration company transitioning to production, primarily through the Rietberg mine. Unlike
traditional South African mega-mines, Copper 360 follows a Multi-Mine Strategy, developing several smaller, flexible mines feeding
into central processing plants.
The past financial year was a difficult one for the company as is evident from the financial results.
We need to invest capital to scale production and bring additional projects online. Our near-term goals include reaching 40,000 tons
of ore per month (1% grade), translating to 5,000 tonnes of copper annually, within 6–12 months. The company sees strong long-
term potential but must focus on growth and on securing funding to execute its strategy.
FINANCIAL RESULTS
Reviewed
Comparison of Consolidated Results Condensed Audited
28 February 2025 % Change 29 February 2024
R'000 R'000
Revenue 143 748 349% 31 984
Loss before interest and tax (249 644) 160% (95 980)
Loss for the period (223 091) 244% (64 817)
Total Assets 1 443 103 21% 1 194 475
Total Liabilities 1 024 150 65% 621 166
Total Equity 418 953 -27% 573 309
Earnings/(loss) per share (cents) (31.95) 200% (10.66)
Headline earnings/(loss) per
share(cents) (31.95) 200% (10.66)
The unmodified review report includes an emphasis of matter paragraph relating to the going concern of the group. The paragraph
refers to note 16 in the financial statements, drawing attention to a loss for the year of R223 million and an accumulated loss of R307
million.
As mentioned in note 16, assets exceed liabilities with R419 million, and therefore the group is solvent.
The directors believe that the group has adequate financial resources to continue in operation for the foreseeable future and
accordingly the condensed consolidated and separate financial statements have been prepared on a going concern basis. The
directors have satisfied themselves that the group is in a sound financial position and that it has access to sufficient borrowing
facilities to meet its foreseeable cash requirements.
SUBSEQUENT EVENTS
Royalty loan holders with a total of R264.5 million, included in current liabilities at 28 February 2025, elected to convert to a five-year
corporate bond after year end and will therefore be classified as non-current liabilities after 28 February 2025. This conversion brings
short term cash flow relief to the group.
The directors continue to procure funding for the ongoing operations for the company, which include the capital expenditure required
to expand its capacity, as described above.
The information in this announcement was extracted from the Reviewed Condensed Consolidated and Separate Financial Statements
for the year ended 28 February 2025, as reviewed by the group's auditors, Moore Pretoria Incorporated. Their unmodified review
report, with emphasis of matter paragraph mentioned above, is included as part of the full Reviewed Condensed Consolidated and
Separate Financial Statements on the Company website (https://copper360.co.za/annual-reports-financials/) and on the JSE's
CloudLink (https://senspdf.jse.co.za/documents/2025/jse/isse/CPRE/AFSFY2025.pdf). The Reviewed Condensed Consolidated and
Separate Financial Statements for the year ended 28 February 2025 were prepared by WA de Villiers CA(SA) and Registered Auditor.
Any investment decisions should be based on the full Reviewed Condensed Consolidated and Separate Financial Statements as the
information in this announcement does not provide full details.
The information on which this announcement is based is the responsibility of the directors of the Company and has not been reviewed
or reported on by the Group's independent external auditor.
FORECAST INFORMATION
The group issued a forecast profit and loss statement, on 30 November 2023, relating to the results released in this announcement.
The variation between the forecast and the actual results for the year have been explained in the commentary above.
FORWARD-LOOKING STATEMENTS
Any forward-looking statements contained in this announcement have not been reviewed or reported on by the Company's external
auditors.
Stellenbosch
30 June 2025
Designated Advisor: Bridge Capital Advisors Proprietary Limited
Date: 30-06-2025 04:56:00
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