LOGIN JOIN SHARECAFE SIGN UP FOR OUR NEWSLETTER ADVERTISE
share cafe logo  
 
SHARECAFE COMMENTARY

Nzuri Goes Hunting For A Copper-Cobalt Monster
BY BARRY FITZGERALD - 04/07/2017 | VIEW MORE ARTICLES BY BARRY FITZGERALD

Get More Commentary, Discussion & Market Information On -

NZC - NZURI COPPER LIMITED


Ivanhoe neighbour Nzuri goes hunting for a copper-cobalt monster of its own....plus, Nusantara Resources comes to market seeking up to $20m to get its 1.74moz Awak Mas gold deposit moving towards production and Spitfire set for first assays.

The Democratic Republic of the Congo (DRC) is not everyone’s cup of tea. But it is the place to be if big and high-grade copper and cobalt tickles your fancy.

In recent times it has been the ever-tinny Robert Friedland who has highlighted the DRC’s premier address for copper, with his Ivanhoe Mines making the Kamoa–Kakula copper discovery in a previously unknown extension of the Central African copper belt. The indicated resource at Kamoa-Kakula currently stands at about one billion tonnes of 3.02% copper, plus another inferred resource of 191 million tonnes of 2.37% copper.

It is spectacular stuff. Still, operating in the DRC comes with particular challenges when it comes to ensuring mining operations are run with the same sort of sustainability, transparency and ethics that are demanded elsewhere in the world. It is possible to do all that in the DRC. Ivan Glasenberg’s Glencore is there under the full scrutiny of the myriad non-government organisations that have a focus on the DRC, as in the Chinese-owned but Australian managed MMG.

The increased transparency and best practices that the likes of Friedland, Glencore and MMG have brought to the DRC is welcome stuff.

It also means that junior Australian companies with a DRC flavour and operating with the same best practice philosophy that Friedland, Glencore, MMG and others have brought to the DRC, no longer have to spend half their time dealing with sovereign and social risk questions from investors.

There is now an acceptance that with the right intent, it is possible to operate ethically in the DRC, a country that just happens to be a first-class address for high grade copper and 60 per cent of the world supply of the boom-time battery metal, cobalt.

It is against that background that ASX-listed and DRC-focussed Nzuri Copper (NZC) has popped onto the radar. It last traded at 16.5c for a market cap of $38m, which is arguably on the light side of things because it is both a near-term copper/cobalt producer and an explorer in the same neck of the woods as Ivanhoe’s Kamoa–Kakula monster.

The development opportunity is the near-surface Kalongwe copper/cobalt deposit (302,000 tonnes of copper and 42,000 tonnes of cobalt), now the subject of a feasibility study which will probably be released in August.

Plus, Nusantara's Indonesian sleeping beauty. Read more.



View More Articles By Barry Fitzgerald

One of Australia's leading business journalists, Barry FitzGerald, has joined the Resources Rising Stars' Ten Bagger team. FitzGerald, who is a specialist resources reporter with 40 years' experience, will publish his highly regarded weekly column in Ten Bagger.

FitzGerald - whose column highlights the issues, opportunities and challenges for small and mid-cap resources stocks - most recently penned his column for The Australian newspaper and before that, The Age. His column will give readers the chance to benefit from FitzGerald's extensive contact base, invaluable insights and vast experience of the junior and mid-tier resource sector.


 

RECENTLY ADDED TO SHARECAFE


 › Marcus Today End Of Day Report
 › Friday At The Close
 › Which Other Bank?
 › Telstra's Nightmare
 › Interest Builds Around AusQuest
 › Market At Midday On Friday
 › Pilbara Charging Up To Become A Battery-Powered Cash Machine
 › Economic Data Paints A Mixed Picture
 › Overnight: Rumour Mill
 › Why It Is No Time to Be Dumping REITs
 › Why Low Interest Rates Are Here to Stay
 › Australian Corporate Bond Price Tables
 › QBE - Morgans rates the stock as Add
 › TWE - UBS rates the stock as Neutral
More ShareCafe   

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +

SHARECAFE VIDEO


View More Videos