3rd Party Validation

3rd Party Validation

  • Strategic Investor: Fortescue Metals Group has acquired 19.9% of Candente
  • Goldman Sachs: Cañariaco identified as one of the top 84 copper projects worldwide
  • Deutsche Bank: Cañariaco identified as one of 3 projects they believe will be required to meet the upcoming copper supply-demand gap

Fortescue, one of the largest global iron ore producers recognized for its innovation and industry-leading development of world class infrastructure and mining assets, has acquired 19.9% of the Company.  Fortescue was granted the right to:

  • Appoint a director of Candente Copper, appointed Agustin Pichot
  • Right to Participate, on a pro rata basis, in any future equity financing of equity securities
  • Right of First Refusal to provide a Non-Equity Financing (debt financing or a royalty or stream for any of Candente Copper’s assets), prior to May 2022
  • Technical Committee formed to Optimize the Development of the Project

Fortescue's recent Australian exploration activity has focused on early-stage target generation for copper-gold in addition to its extensive iron ore deposits in Western Australia.  It is simultaneously building on its world-class exploration expertise, operational reputation and capability through exploration in highly prospective areas such as Peru.

Goldman Sachs

  • GS identifies Cañariaco within top 84 copper projects worldwide (42 are located in South America) set to form >75% of new copper supply near future: >80% of unapproved projects are uneconomic at current prices
  • Rise in incentive prices (copper price required to bring projects online) – due to rising costs/capex, increasing consumable costs
  • US$7,067 is avg incentive price required to generate a 17% IRR – increase of 33%
  • US$6,799 is avg incentive price for the projects under GS coverage
  • US$7,307 is avg incentive price to bring 51 unapproved projects online
  • Cañariaco at lower end of price curve

Deutsche Bank Research - Attractive projects likely to get increased attention

“Large-cap miners have limited growth options whereas a number of attractive copper projects we have analyzed are owned by companies with limited financial means and/or technical know-how. With copper having one of the strongest fundamentals, we believe that strategic buyers (large-cap miners, China Inc) will lead the approaching consolidation phase. “

“There are a number of other attractive projects we have identified which we believe will be required to meet the upcoming supply-demand gap (e.g. SolGold's Alpala, Candente Copper's Cañariaco Norte and Capstone's Santo Domingo).

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