- Kincora Copper (KCC) is the latest copper play to join the ranks of ASX-listed miners
- The company has offices in Vancouver and Melbourne and went public on the ASX in late-March following a $10 million initial public offering
- Kincora is also listed on the TSX Venture Exchange, also under the ticker code KCC
- Kincora has a string of New South Wales copper projects, though its core focus is currently the Trundle Project in the prolific Macquarie Arc area
- The company says the majority of the IPO processed are planned to go toward drilling and exploration at Trundle, though some funds maybe be used for other projects
- It's a good time to join the ranks of ASX-listed copper miners, with the price of the metal soaring over the past year to a near all-time-high in February
- At US$4.36 (around A$5.71) per pound on February 25, copper is worth almost double what it was this time last year
- Shares in Kincora Copper trade for slightly higher than their IPO price, today closing at 22 cents each
With copper prices spiking to near all-time-highs, Kincora Copper (KCC) is the latest copper play to join the ranks of ASX-listed miners.
The company has offices in Vancouver and Melbourne and went public on the ASX on March 30 following a heavily oversubscribed $10 million initial public offering (IPO).
As part of its IPO, the company issued 50 million shares in the form of CHESS Depositary Interests (CDI) at 20 cents each. Simply put, CDIs are a way for non-Australian companies to list their shares on the ASX.
The ASX's newest copper miner
Kincora has a string of Australian copper projects — the Trundle Project and the Fairholme Project, both in Central West New South Wales, and the nearby Northern Junee-Narromine Belt projects.
At this stage, however, the Trundle Project is Kincora's core focus, with the majority of the IPO proceeds planned to go toward drilling and exploration work at some key targets in the project area.
With two drill rigs currently active at the Trundle, Kincora touts itself as the only junior to hold a brownfield project in New South Wales' prolific Macquarie Arc.
Kincora Chairman Cameron McRae outlined a clear vision for the company following its IPO: "To become the leading pure-play explorer in what is Australia's foremost copper porphyry belt."
"With the right corporate foundations and a strong balance sheet, the team is very focused and excited about the extensive amount of drilling and other potential value add catalysts ahead of us," Cameron said.
Though the company's main focus is Trundle, Kincorra said it may also use some of the funds to test for Cowal-style intrusion-related mineralisation at the Fairholme Project.
Further, the company is gearing up for some major exploration work across its project portfolio for the next year — on top of its Trundle work, Kincora is planning over 17,000 metres of drilling at Fairholme and the Nyngan project in the Northern Junee-Narromine belt over the next 12 months.
Copper prices in the spotlight
It's a good time to join the ranks of ASX-listed copper miners as the price of the metal surges.
While copper has been relatively volatile over the past month, futures are almost double what they were this time last year.
In early-April 2020, copper prices were sitting between US$2.20 and US$2.30 (around A$2.80 and A$3) per pound. On February 25, 2021, copper hit US$4.36 (around A$5.71) per pound — just shy of its all-time high of around US$4.42 per pound in January 2011.
Since then, price have spiked and fallen on global news about the COVID-19 pandemic.
For example, copper futures jumped about four per cent on April 5 when Chile announced it was closing its borders amid a nationwide COVID-19 positivity rate of 11 per cent. Chile is the world's largest copper exporter.
Then on April 8, copper prices fell again when declining premiums and rising inventories suggested Chinese demand for the metal was weaker than expected.
For Kincora, this means the company's share price could be influenced more by the price of copper than other Australian miners given its pure-play focus on the metal.
Nevertheless, with the recent vocality of the metal underpinned by a surge in its value over the past year, it could be just the right time for a new copper player to hit the ground running in Australia.
Shares in Kincora Copper trade for slightly higher than their IPO price, today closing at 22 cents each.