KGL Resources Ltd.
Jervois Copper Project
A high-grade copper project with untapped potential in Australia’s Northern Territory.
The Jervois Copper Project is one of Australia’s highest-grade undeveloped copper assets, with resources of copper, silver, and gold. Fully permitted and poised for development, Jervois offers substantial investment upside in a G20 country.
Location: Northern Territory, Australia
Project Type: Copper, with silver and gold by-products
Investment Highlights
High-Grade Resource
23.37 million tonnes at 2.02% copper, with silver and gold credits.
Feasibility & Permits
Fully permitted with a completed feasibility study; construction to begin in 2025.
Expected ROI
40% with a payback period of approximately 2.5 years.
Production Start
Targeted for 2027, aiming to meet a global copper shortfall.
Offtake Agreement
Glencore ensures market access and potential pricing leverage.
Financial and Investment Details
Investment Opportunity
• Offer to acquire 10% equity (70 million shares) at AUD 0.10/share, totaling AUD 7 million.
• Potential for additional share acquisition at a premium.
Current Market Position
• Share price at AUD 0.10 with a market cap of AUD 65 million.
• Expected NPV: AUD 250 million (Base Case) to AUD 700 million (High Market Demand Case).
Construction Cost
• Construction Cost: Estimated at AUD 400 million, with a 60/40 debt-to-equity financing split.
Financial Projections
Expected Returns
• Gross profit margin projected at USD 3,000 per ton of copper.
• Free cash flow estimate: USD 100 million annually.
Exit Strategy
• Potential exit within 12 months through strategic sale or favorable market conditions.
Sensitivity to Copper Pricing
• Price forecast suggests upside, especially as copper market shifts to incentive pricing (US$5.90/lb and above).
Project Timeline
Feasibility Study Update:
Q4 2024.
Final Investment Decision:
1H 2025.
Construction Start:
2025.
First Production:
1H 2027.
Detailed Project Description
High-Grade Resource
23.37 million tonnes at 2.02% copper, with silver and gold credits.
Feasibility & Permits
Fully permitted with a completed feasibility study; construction to begin in 2025.
Expected ROI
40% with a payback period of approximately 2.5 years.
Production Start
Targeted for 2027, aiming to meet a global copper shortfall.
Offtake Agreement
Glencor ensures market access and potential pricing leverage.
Detailed Project Description
Resource Breakdown
• 472.2 kt of copper, 19.5 Moz of silver, and 192.8 koz of gold.
• Mining strategy includes open cut and underground operations.
Exploration Potential
• Highly prospective with recent high-grade drill results in areas like Rockface and Bellbird.
• Significant untested zones along the 12 km Jervois mineral field.
Processing Capacity
• Planned increase from 1.6 Mtpa to 2.0 Mtpa, allowing annual copper production to reach 35-40 kt by 2027.
Reward Potential
• Positioned to benefit from rising copper demand and expected long-term supply deficit.
Risk Mitigations
• Offtake agreement with Glencore for market access.
• Robust feasibility study and extensive permitting.
• Experienced board and leadership with a track record in copper mining.
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Contact Pegasus Swiss for more information on this exclusive investment opportunity.
“As one of Australia’s highest-grade undeveloped copper resources, the Jervois Copper Project stands ready to meet the anticipated global copper shortage, offering investors a high-return opportunity in a secure, G20 jurisdiction.”
“With copper production slated for 2027 and an expected annual free cash flow of USD 100 million, the Jervois project is poised to capitalize on growing copper demand, promising an impressive ROI and quick payback period.”