Critical Metals Transforms Into a Copper Producer in DRC
Critical Metals, a copper project developer, marked its evolution from an explorer to a full-fledged copper producer in the Democratic Republic of Congo (DRC) with the initiation of mining and processing operations at the Molulu project. The company anticipates positive operating cash flow in the fourth quarter.
By the end of the financial year, Critical Metals employed 51 people in the DRC, 49 of whom were DRC citizens. During the mining build-up, the company streamlined its corporate structure and increased its indirect holding in the Molulu copper project from 40% to 70%, providing shareholders with a larger share of potential future cash flows.
Copper ore preproduction began in January, aiming to produce 10,000 tons per month of oxide ore. Detailed geophysics studies and ground surveys were conducted from January to May to understand the Molulu lease property better. In May, the focus shifted to higher-grade sulphide copper ore, potentially significantly increasing profitability.
Critical Metals utilized existing equipment to rehabilitate the connecting road, saving shareholders over $50,000 in external contractor costs.
The road rehabilitation, including a bridge construction, enables the use of larger tipper trucks for more efficient copper ore delivery to buyers.
Post year-end, a copper ore offtake agreement was executed, with deliveries already underway. Critical Metals also announced plans to rent a copper/cobalt processing facility, potentially enhancing margins from the Molulu ore.
In terms of funding, Critical Metals raised £600,000 in May and an additional £1.3 million at 25p a share through shareholders. Post-period, a $3-million non-dilutive debt facility was secured to support increased production at the Molulu project and fund due diligence for potential acquisitions.
Looking ahead, Critical Metals aims to optimize Molulu operations, increase overall production, and work on a mineral assessment compliant with the Joint Ore Reserves Committee standards.
The company remains confident in the economic viability of Molulu, driven by strong fundamentals and growing copper demand. As part of its strategy, Critical Metals will continue to evaluate acquisition opportunities while expanding Molulu operations.
