Weekend Digest December 16-17

December 18, 2023

BY Lars Jensen

Alligator Makes Strategic Investment in EnviroCopper Ltd for ISR Copper Projects in South Australia

Key Investment Highlights

Alligator has expanded its energy minerals portfolio with a strategic investment in EnviroCopper Ltd (ECL), gaining exposure to ECL’s In-Situ Recovery (ISR) copper projects in South Australia. This investment includes the option to increase its stake up to 50.1% in the company.
EnviroCopper Ltd is progressing ISR trials for sustainable copper extraction at its flagship Kapunda copper project, with similar initiatives planned for the Alford West copper project.
BHP Ltd, previously known as OZ Minerals, is partially funding ECL’s field investigations, including a Site Environmental Lixiviant Trial (SELT) of copper ISR at Kapunda.

Advantages of ISR Technology

ISR technology, successfully and economically used in various projects in Australia and the US, offers environmental benefits and efficiencies over traditional open pit and heap leach methods for shallow oxide copper projects.
ECL’s team, with significant experience in exploration, R&D, and approvals for ISR of oxide copper deposits, aims to further develop this knowledge across its portfolio and future prospects.

Collaboration and Advisory Committee

The investment in ECL complements Alligator’s substantial in-house ISR expertise, broadening its ISR footprint to include copper, a future in-demand commodity.
A technical advisory committee will be established, allowing Alligator to provide assistance to ECL with its ISR plans.

Bindura Nickel Corporation Reports 43% Revenue Drop Amid Global Nickel Price Decline

Revenue Decline in 2023

Bindura Nickel Corporation (BNC), listed on the Victoria Falls Stock Exchange, experienced a significant 43% drop in revenue for the half-year ending 30 September 2023, from US$32.5 million to US$18.5 million. This decrease is attributed to lower nickel sales volume and a global decline in nickel prices.

Nickel Price Trends and Production Challenges

The average London Metal Exchange nickel price fell to US$20,614 per tonne, down 19% from the previous year. Production was impacted by equipment issues, leading to a 23% decrease in ore mined and lower head grades and recovery rates.

BNC's Response and Future Outlook

BNC has implemented strategic measures to return to profitability and cash generation, anticipating improvements in the 2025 financial year. The company is addressing equipment challenges and expects lower nickel prices in the near term, with potential positive market changes in the medium to long term.