REG - Critical Mineral - Copper Ore Trade

Critical Mineral ResourcesAnnouncement

12/12/2024 07:00

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RNS Number : 7728P  Critical Mineral Resources PLC  12 December 2024

Critical Mineral Resources PLC

('CMR' or the 'Company')

 

Copper Ore Trade

 

Critical Mineral Resources PLC, the company focused on mine development and
trading of critical minerals in Morocco is pleased to announce a further
operational update by way of a purchase and sale of high-grade copper ore by
its commodities trading business. The commodities trading complements CMR's
core strategy of acquiring and developing prospective mining projects in
Morocco.

 

Copper trade

The Company has now undertaken a transaction whereby high-quality copper ore
grading between 5% and 10% copper, has been sourced from a small scale mine in
the Anti-Atlas. The product has been purchased and the sale is agreed.

 

The commodities trading strategy is based on its joint venture partnership
with an established local Moroccan trading company which sources commodities.
CMR's team and the JV partner work together with negotiations, quality
control, upgrading, storage, transport and shipping logistics.

 

Copper demand

Valued for its conductivity, malleability and recyclability, copper is
essential in renewable energy, electric vehicles and general increased
electrification. Copper demand from cleantech is projected to escalate
substantially from 6.3 million tonnes in 2023 to 16.3 million tonnes by 2040
(International Energy Agency, 2024), in line with the global energy
transformation. This is expected to drive total copper demand from
approximately 26 million tonnes today to 36 million tonnes in 15 years time,
whilst maturing mines, declining ore-quality and a lack of new discoveries
impact supply.

 

Transaction

This copper transaction is consistent with the strategy of sourcing raw
material from smaller producers and, where necessary, upgrading lower-grade
products using our partner's operational concentrating facility.

 

This current trade, one of several to be completed in the coming weeks, was
undertaken through our partnership that is now beginning to scale its
activities and the scope of materials sourced and supplied to overseas
markets.

 

 

Charlie Long (CEO) commented: We are pleased to report a further transaction
by our commodities group. Moving into copper illustrates how nimble and well
connected our Moroccan partnership is, and the potential for the business to
grow into something important. CMR intends to fully exploit our early-mover
position as an integrated mine developer and commodities trader with a unique
business-focused approach to deliver value for our shareholders.

 

Commodities trading disclosures

The commodities marketplace in Morocco, as elsewhere, is competitive so
details of the trades adopted by CMR, for example the pricing structures, are
intellectual property. CMR will publish certain information periodically in
accordance with its statutory duties, however it will not release detailed
data where this may disadvantage the competitive position of the Company. Nor
will details of the locations of our sources and counterparties be released
unless it is required by law or beneficial to the Company's shareholders. The
Company will deliver a further trading update shortly and details of expansion
plans early in Q1, 2025.

 

Morocco background

Morocco is a politically stable, welcoming and forward-looking country with
multiple base metals mines, most of which are small-scale. Exports of copper
from Morocco were valued at $157 million in 2023 mostly as concentrate. This
is expected to increase as Managem's large Tizert copper-silver mine completes
construction and ramps up to full production.

 

Morocco intends to be a part of the evolving copper story and the billions of
US Dollars of investment needed annually to achieve the widely targeted
emissions net-zero target by 2050. In 2023, the global copper market was
valued at >US$200 billion but copper's story is evolving and growing with
the new frontier of Clean Energy technologies. These include low-carbon power
generation, solar photovoltaics, wind and other renewables, expanded and
upgraded electricity networks, electric vehicles and battery storage.

 

CONTACT:

 Critical Mineral Resources PLC           info@cmrplc.com

 Charles Long, Chief Executive Officer
 Novum Securities                         +44 (0) 20 7399 9425

 Jon Belliss

 

Notes To Editors

Critical Mineral Resources (CMR) PLC is an exploration and development company
focused on developing assets that produce key commodities for the global
economy including those essential for electrification and the clean energy
revolution. Many of these commodities are widely recognised as being at the
start of a supply and demand supercycle.

 

CMR is building a diversified portfolio of high-quality metals exploration and
development projects in Morocco, focusing on copper, manganese and potentially
other critical minerals and metals. CMR identified Morocco as an ideal
mining-friendly jurisdiction that meets its acquisition and operational
criteria. The country is perfectly located to supply raw materials to Europe
and possesses excellent prospective geology, good infrastructure and
attractive permitting, tax and royalty conditions. In 2023, the Company
acquired an 80% stake in leading Moroccan exploration and geological services
company Atlantic Research Minerals SARL.

Since taking over the CMR in 2022, the current management has completed a
comprehensive strategic review and restructuring of the business and
implemented its clear strategy to maximise exploration and resource
development opportunities for the benefit of all stakeholders. The Company is
listed on the London Stock Exchange (CMRS.L). More information regarding the
Company can be found at www.cmrplc.com (http://www.cmrplc.com/)

 

 

 

 

 

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