Cobre Records Positive Cash Flow at Chile Copper Project as Turnaround Plan Gains Momentum
Cobre’s Sierra Atacama Copper Project Generates Positive Cash Flow After Operational Turnaround in Chile
ASX-listed copper producer Cobre has achieved positive operating cash flow at its Sierra Atacama copper project in Chile, just two months after taking operational control of the mine.
The company reported operating cash flow of $644,000 (A$900,000) in April and $601,000 (A$860,000) in May, following the implementation of a turnaround programme focused on improving production performance and reducing costs.
Cobre took control of the operation at the end of March and has since introduced measures targeting key drivers of copper production, including mined grades, leach recovery, cathode quality, production consistency and operating efficiency.
The company said early improvements have been recorded across these areas, with management expecting profitability to continue as operations stabilise.
Cobre CEO Adam Wooldridge said the two consecutive months of positive cash flow represent an important milestone for Sierra Atacama as the company advances its broader growth strategy.
Production Expansion Plans
Cobre is implementing a staged production ramp-up aimed at reaching 700 tonnes per month of copper cathode output.
The programme includes investments in mining equipment, underground ventilation, ground support systems, and processing plant maintenance.
The company is also increasing underground development to improve access to higher-grade ore and support a more consistent production profile.
Copper cathode production increased from 764 tonnes in the January–March quarter to 879 tonnes in the April–June quarter, with Cobre targeting further growth to 1,200 tonnes and 1,500 tonnes in the following two quarters.
The company’s near-term objective is to achieve a stabilised production rate of 400 tonnes per month, before progressing toward 500–700 tonnes per month over the next 12 months.
Cobre said a potential transition to open-pit mining could allow Sierra Atacama to reach its processing capacity of 20,000 tonnes of copper cathode per year, equivalent to approximately 1,500 tonnes per month.
The company noted that external factors, including fluctuations in key input costs such as sulphuric acid and diesel, remain challenges. However, it is working with suppliers to manage costs and strengthen operational resilience.
