Celsius Resources Ltd (ASX:CLA) has been admitted to trading on AIM, a market operated by the London Stock Exchange plc and will begin trading at 8.00am today under the ticker CLA.
The admission follows a placing by SP Angel Corporate Finance LLP for a total of 299.375 million ordinary shares at 0.8p (~A$0.015) per ordinary share, raising gross proceeds of £2.4 million, before expenses.
Three million of these ordinary shares will be subscribed and issued to director Jonathan Colvile, subject to Australian shareholder approval.
Placing statistics
Statistics from the AIM placing are:
- Placing price per ordinary share 0.8 pence (~$A1.5 cents).
- Gross proceeds of placing £2.4 million.
- Free Float 94.78%.
- Net proceeds of the placing received by CLA £1.9 million.
- Number of ordinary shares in issue following admission 1,853,204,043.
- Market capitalisation at the Placing Price £14.8 million.
Philippines focus
The company, which is primarily focused on copper-gold in the Philippines, is also listed on the Australian Securities Exchange (ASX) under the same ticker.
Its flagship is the Maalina-Caigutan-Biyog (MCB) Project in northern Luzon and which is owned and operated by its Philippine subsidiary, Makilala Mining Company, Inc. (MMCI).
MMCI is in the advanced stages of securing major mining permits for MCB as well as further feasibility work.
Celsius Resources also owns two additional copper-gold projects in the Philippines - the Nabiga-a Prospect (the ‘Sagay Project’) and the Malangsa Prospect – as well as the Opuwo Cobalt-Copper Project in Namibia.
Well-placed to capitalise
With growing global demand for copper and new gold discoveries becoming increasingly rare, Celsius Resources is well placed to capitalise on surging market growth.
Since the mid-1960s, the global demand for refined copper has increased by more than 250% and as global efforts to decarbonise economies ramp up, the demand for copper is expected to surge.
“Model for transformative mining”
CLA managing director Peter Hume said: “We have attained great strides in progressing the MCB Project closer to operations. This can be attributed to the trust and support of the Balatoc Indigenous Cultural Community, the local and national government units and agencies, as well as our shareholders, in the potential of the project and the company.
"With the imminent approval of our major mining permits, we will develop and showcase the MCB project as a model for transformative mining for our shareholders and stakeholders.
“Our Opuwo Cobalt Project is also well positioned to benefit from the rising demand for battery metals and investor interest to cash in on the boom for long-term investments in green activities and projects which will underpin a global ESG push.”
Work program
The company's work program over the next 18 months following AIM admission is:
Corporate -
- Minimal administrative cost;
- Professional, legal and consultancy costs in relation to capital raising;
- Other costs for AIM management; and
- Management costs.
MCB Project -
- Drilling activities;
- Professional fees in relation to the ongoing work program activities;
- Stakeholder engagements as committed in the approved work programs;
- Securing licences and permits; and
- Conducting trade-off studies in preparation for progressing into a bankable feasibility study.
Sagay Project -
- Minimum spending to comply with regulatory requirements.
Opuwo Project -
- Updating of scoping study with metallurgical and related activity results to support tenement renewal.
Strong copper forecast
Celsius Resources is working towards taking advantage of strong copper market fundamentals.
Following a dip in 2016, copper prices reached an all-time annual average high of $9,322 per tonne in 2021 and is trading at around the $9,000 mark in January 2023.
The surge in copper price can be attributed to the end of COVID-19 lockdowns and the roll-out of COVID-19 vaccines which paved the way for major economies to recover giving rise to manufacturing.
On the demand side, a seismic shift to renewable energy has boosted consumption as more governments pivot to green energy policies which rely on copper-heavy technology. Supply constraints have also bolstered prices in the past year as copper production in Chile and Peru, the top producers, has been impacted by the pandemic.
Financial research firms have forecast that the global demand for copper will increase over the next few years pushing prices up. Increasing consumption from the energy sector, a robust electric vehicle market, as well as global economic growth prospects will continue to underpin a strong market outlook.
Supply deficit
Existing data on supply and demand outlook show that the global demand for refined copper will exceed production leading to a shortage of supply over the next few years.
Industry analysts project that copper demand will rise 16% by the end of the decade, reaching 25.5 million tonnes per annum by 2030, while supply is expected to decrease by 12% decrease from 2021 levels, or 19.1 million tonnes per annum.
The deficit will have ramifications on the energy transition and will require a significant investment in copper mining to address the shortfall.
Rising demand and falling supply is expected to support strong copper prices into the future. Investor interest in copper has grown in recent months as investors recognise the opportunity presented by the supply shortfall amid a sustained global energy transition.