Koryx Copper’s Haib tops southern Africa by value, metal

[Ben Graham]

Koryx Copper’s (TSXV: KRY) new preliminary economic assessment (PEA) positions its open-pit Haib project in Namibia among the largest red metal projects in the region by value and contained copper.

At a post-tax net present value (NPV) of $1.35 billion and an internal rate of return (IRR) of 20%, the Haib study issued on Thursday shows the highest value for development-stage and producing copper mines in Namibia and Botswana. It’s well ahead of Chinese state-owned miner MMG’s Khoemacau mine in Botswana, which has an NPV of $864 million.

“The objective of this PEA was to right-size and optimize the Haib project and reposition it as a credible, low-risk, large-scale, low-cost, high-return, open pit milling and flotation operation,” Koryx President and CEO Heye Daun said in a release. “This project could be rendered shovel-ready, with an advanced feasibility study, secure water and power supply and most major permits in place within just a few years.”

Koryx shares gained 12% to C$1.18 apiece by mid-Friday in Toronto for a market capitalization approaching C$113 million. The stock has traded in a 12-month range of C$0.85 to C$1.29.

Scramble for copper

Copper is becoming an increasingly important metal for its use in electrification as more Western countries seek to secure supply chains outside of Chinese control.

While Botswana is the highest-ranking African country for mining investment attractiveness, Namibia was third behind Zambia, according to the Fraser Institute’s 2024 survey.

Most contained copper

By contained copper, Haib leads resource-stage and mines in the region, with 2.59 million tonnes contained in 414 million indicated tonnes grading 0.35% copper, and 345 million inferred tonnes at 0.33% copper, according to a resource from August 2024.

That’s about one-third higher than Khoemacau’s 1.94 million contained tonnes of copper, and more than three times larger than Sandfire Resources’ (ASX: SFR) producing Motheo mine in Botswana.

However, Haib is less competitive with its capital costs, which at $1.55 billion make it the highest capex project in the region. Khoemacau’s capex comes to about $893 million and private miner Omico’s feasibility-stage Omitiomire project has capital costs of about $220 million.

Haib, in Namibia’s southern Karas region just north of the border with South Africa, could produce 92,000 tonnes per year of payable copper in the first 10 years of a 23-year life.