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Investments and investor services

Critical Metals hails 'landmark' as Molulu produces first copper

Critical Metals PLC (LSE:CRTM) said production has started at the Molulu copper/cobalt mine in the DRC with a target of 120,000 tonnes of copper oxide ore per year.

Mining will be on a single-shift basis initially with metal produced so far stockpiled for sale next month.

"All copper material extracted from the mine will be sent to local processing plants, of which there are four in the Likasi and Lubumbashi areas expressing interest in purchasing Molulu copper ore," said the statement.

Cobalt samples are also being sent to laboratories for quality testing, while there will be a site visit by the board and two City analysts next month.

Russell Fryer, chief executive, added: "This is a landmark moment for Critical Metals and all shareholders, I am delighted to be able to announce the start of production at the Molulu Project, which was achieved on budget with sales of copper oxide ore expected as early as next month.

"With copper ore production now underway, the company expects to be free cashflow positive by the end of the first half of 2023 showing the high cash flow generation potential under the current market conditions.

“We expect activity at Molulu to increase throughout the next few months, particularly as the rain season closes at the end of March, and we look forward to an expansion in monthly copper ore production.”

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