Copper 360 has restarted copper mining in the O’Kiep Copper District of the Northern Cape after a four decade hiatus. The Rietberg mine is expected to produce 12,000 tonnes in the first month, increasing to 45,000 tonnes when the second plant is commissioned. Perhaps on any other day the market would have been more welcoming of the news, but the stock didn’t escape the bloodbath, plunging as much as 8 per cent today. Jan Nelson, CEO, Copper 360 joins CNBC Africa for more.
Mon, 05 Aug 2024 15:17:37 GMT
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AI Generated Summary
- The resurgence of copper production at the Rietberg mine in the Northern Cape marks a significant milestone for Copper 360 after a 40-year hiatus.
- Despite a negative market response leading to an 8 percent decline in stock value, CEO Jan Nelson remains confident in the long-term viability of the business.
- The company’s focus on low-cost operations and high margins positions them favorably to navigate through challenging market conditions and capitalize on the revival of the mining sector.
Copper 360 has made a significant move in the mining industry by restarting copper production at the Rietberg mine in the O’Kiep Copper District of the Northern Cape, after a dormant period of four decades. The company is set to produce 12,000 tonnes of copper in the first month, with a target of ramping up to 45,000 tonnes once the second plant is operational. Jan Nelson, the CEO of Copper 360, acknowledges that the market response to their revival was less than favorable, with their stock plunging by as much as 8 percent amidst fears of a global recession impacting demand for copper. However, Nelson remains optimistic about the long-term prospects of the business and emphasizes the importance of focusing on long-term strategy rather than short-term market fluctuations. Despite the challenging market conditions, the company’s low-cost operations and healthy profit margins position them well to weather the storm.
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