Candente Copper's Profile
Candente Copper is currently focused on its 100% owned Canariaco Norte project, a 100% owned feasibility-stage porphyry copper deposit. Included in Goldman Sachs 84 Top Copper Projects Worldwide. Fortescue Metals Group Ltd. owns 19.92% interest
Candente Copper's Bulletin
Candente Copper: Peruvian Election Outlook: The Three Options Being Evaluated To Change Mining Taxation
Pedro Francke: the three options being evaluated to change mining taxation Translated from https://www.dipromin.com/noticias/mineria/pedro-francke-las-tres-opciones-que-se-evaluan-para-cambiar-la-tributacion-minera/ The economist and member of the Peru Libre technical team, Pedro Francke, affirmed - in an interview with radio Santa Rosa - that he has the support of Teacher Pedro Castillo and that the Bicentennial Plan was worked in conjunction with members of Peru Libre. “I am the economic spokesperson appointed by Pedro Castillo and by the campaign team and we work together with the Teacher Castillo. He has endorsed what we have said, he has called for economic and financial stability. I think there is a conjunction of very clear ideas”, he said. When asked about the statements of Vladimir Cerrón, secretary general of Peru Libre - regarding that the guests should be aware of the space they occupy - he indicated that the Bicentennial Plan has been worked with representatives that Peru Libre appointed and that there is the one that has won the second round.“It is normal that in an electoral campaign all political forces seek to differentiate themselves from the others and in my opinion, we sometimes make judgments that are not exact. It was essential that after the first round some kind of political agreement be made. It is logical that the left are not identical, but for that the Bicentennial Plan was drawn up, that is defended and that is what it won in the second round”, he specified.He also added that he considers private investment important "especially from honest businessmen" although - he stressed - that what is wanted is greater mining taxation "because we need greater tax pressure to improve education and health." About Castillo's endorsement The economist reiterated that he does have the support of the presidential candidate and proof of this is that he has been exposed in up to two balconies given by the candidate, as well as in the press conference with international correspondents. “Some say we don't know if Francke has the backing of Pedro Castillo. It bothers me to talk about this, but excuse me, I accompanied Pedro Castillo to the presidential debate and helped him to present his ideas, then he was kind enough to put me on the balcony at a rally. After the electoral result, on Monday or Tuesday there was another presentation to the people, then there is a message that calls for monetary and financial stability. Yesterday, there was a press conference in which I was at his side. I honestly don't know what else to do, we are working on specifying the plans and putting together a larger team”, he explained. The creation of public companies When asked about the possibility of creating state-owned companies - as indicated in Vladimir Cerrón's ideas and which was initially presented as the Peru Libre government plan - the economist indicated that this is not contemplated in the Bicentennial Plan.“It is not in the Plan, but my point of view is rather pragmatic since, I do not believe that everything private is bad and everything of the State is better, but I also do not believe that everything private is always great and public is bad", He said.“(Do you consider that the means of production, as proposed by Cerrón, pass into the hands of the State?) It must be remembered that according to the Constitution, public companies are created by express law, that is, with a majority vote in Congress, therefore, the Executive Power cannot create public companies”, he added. Mining taxation: the options that are evaluatedThe economist explained that specific calculations are being made to change mining taxation and even three ways of implementing this change are being analyzed.“We are doing the specific calculations and it has to be graded based on price and profit. At the current copper price there is a fairly large profit. My estimate is that copper alone is $ 9 billion of additional revenue. We are doing the calculations and there are several options, "he said.One option - he said - is through royalties, which can be to vary the rate or the calculation.Another alternative is through an additional tax or through the modification of the Income Tax rate. “We are aware that mining companies must continue to win, no one pretends that they stop making profits. That is a basic floor and I think it is positive that mining companies are aware of this”, he added. Change of the Constitution The economist considered that there are issues in the economic chapter of the Constitution that should be changed.“I do believe that there are (some issues) economic chapter that should be changed, (such as, for example) that foreign investment has the same rights as national investment. There is no Constitution of the American or European continent that has it, it would be necessary to think about it”, he saidHe also said that it does not have an anti-foreign investment bias.“The United States reserves or establishes rules or preferences, which is not a prohibition. China, for example, was very successful in demanding technology transfer and others demanded the hiring of professionals from the country. There are various policies that can be implemented so that foreign investment gives you more advantages”, he noted.He also considered that the change to the Constitution occurs “because there are various elements that are insufficiently developed or inadequately raised in it, which have to do with issues of social rights, economic chapter and the political order that is extremely important for the balance powers. There are other issues such as -for example- decentralization since it was an advance, but there are things that need to be improved”.
Candente Copper Corp. (TSX:DNT, BVL:DNT) ("Candente Copper”, “Company”) is pleased to announce that the Desk Top Conceptual Study (“Study”) on the Cañariaco Norte Project has been completed by Ausenco Engineering Inc. (“Ausenco”). Ausenco’s work has identified several opportunities with the potential to lower initial capital expenditures (“CapEx”) and operating expenses (“OpEx”) while also enhancing our environmental, social and governance (“ESG”) practices. Summary of Significant Developments: Mitigation of the need for a roaster, both for a smaller and a larger project, which could significantly reduce both CapEx and OpEx costs and improve ESG practices; The potential viability of the project at various concentrator throughputs including 40,000; 50,000; and 60,000 tonnes per day (“tpd”); Evaluation of a staged expansion with a smaller throughput for a lower initial CapEx, then expanding after payback using mine cash flow indicates this could be an attractive development strategy; The application of the best available technology (“BAT”) for tailings that considers both wet and dry stack tailings storage methodologies which could improve ESG practices and appears viable. This should be assessed in more detail. “The potential mitigation of a roaster is a game changer, offering an opportunity to significantly reduce both CapEx and OpEx and enabling an operation less complicated both for permitting and day-to-day operations. This opportunity was identified as a result of new geometallurgical modelling of the deposit and updated smelting costs,” stated Joanne Freeze, President and CEO. “Now we can focus on parameters to be included in an updated Preliminary Economic Assessment (“PEA”) to evaluate the most attractive potential development strategy.” Signficant historical engineering work has been completed for the Cañariaco Norte Project, which has provided much of the basis for the conceptual desktop study; however, the new development concepts will require additional technical and economic assessment and development in an updated PEA. For more details about the Desk Top Study, please see News Release No. 129 (dated April 19th, 2021): https://www.candentecopper.com/news-releases/news-releases/2021/ausenco-update-for-conceptual-desk-top-study-on-canariaco-norte-1/ Ausenco has a 30-year track record and is recognised as specialists in end-to-end solutions which are proven to lower capital and operating costs, reduce construction time and improve plant efficiencies. They perform consulting studies, project delivery, and asset operations to the international mining sector including high performance copper processing and infrastructure projects. Project experience ranges from small conceptual studies for new developments through to the construction of large scale minerals processing facilities. About Candente CopperCandente Copper is a mineral exploration company engaged in the acquisition, exploration, and development of mineral properties. The Company is currently focused on its 100% owned Cañariaco project, which includes the Cañariaco Norte deposit as well as the Cañariaco Sur deposit and Quebrada Verde prospect, located within the western Cordillera of the Peruvian Andes in the Department of Lambayeque in Northern Peru. Please see https://www.candentecopper.com/investors/presentations, the Cañariaco Norte Copper Project Pre-Feasibility Study Progress Report and the NI 43-101 Technical Report both of which are available at https://www.candentecopper.com/site/assets/files/5389/canariaco-pfs.pdf and https://www.candentecopper.com/site/assets/files/5390/ni43-101_canariaco.pdf (* published January and March 2011) for details from previous resource and engineering studies which delineated 9B lbs copper, 2M oz gold and 54M oz silver in: Measured and Indicated Resources of 752.4 million tonnes grading 0.45% copper, 0.07 grams per tonne (“g/t”) gold and 1.9 g/t silver (0.52% Cu equivalent) containing 7.533 B lb Cu, 1.67 M oz Au and 45.24 M oz Ag and Inferred Resources of 157.7 million tonnes grading 0.44% copper, 0.06 g/t gold and 1.8 g/t silver containing 1.434 B lb Cu, 0.3M oz Au and 8.932 M oz Ag. The Technical Reports, referred to above, are based on a throughput rate of 95,000 tpd producing 260M lb Cu/year which resulted in post-tax NPVs and IRRs of $1.985B and 24.8% at $3.25/lb Cu; and $2.865B and 31.2% at $4.00/lb Cu. The Incentive Price ($2.50/lb Cu) for Cañariaco Norte is in the lowest quartile of top 84 copper projects worldwide named by Goldman Sachs. Cash costs are also in lowest quartile of the copper industry.
Industry Bulletin: Fewer and Fewer Large Copper Deposits are Being Discovered. That Could Be A Problem
The International Energy Agency (IEA) was founded in 1974 in response to oil embargos the previous year that caused the global price of oil to surge 300% from $3 per barrel to $12 per barrel. From the start, the IEA’s mission has been to help member nations deal with major oil supply disruptions. Over the years, the group’s purview has broadened to include more than just oil security, and in its most recent report, the IEA sounds the warning bell on the global supply of key minerals—particularly copper. “Today’s supply and investment plans for many critical minerals fall well short of what is needed to support an accelerated deployment of solar panels, wind turbines and electric vehicles,” IEA Executive Directive Faith Birol writes. Many of these minerals are produced by a very small number of companies in a small number of jurisdictions. Take rare earth metals, used in everything from semiconductors to smartphone batteries. China controls between 80% and 95% of the world market, depending on the mineral. Or look at copper. Chile and Peru are responsible for a combined 40% of global output. The largest copper mine in the world, Chile’s Escondida, is believed to have reached peak production. Meanwhile, the Chilean government has threatened to shut down the mine—57.5% of which is owned by BHP—for its water usage. Oh, and did I mention there’s a strike at Escondida? These are only near-term risks to global supply. Looking more long-term, the risks increase and could be more severe. Copper Supply Constraints as Demand Surges Like gold, fewer and fewer large copper deposits are being discovered, and the time between discovery and production has lengthened over the years as costs rise. S&P Global Kevin Murphy called last decade “dismal” in terms of new discoveries. Of the 224 copper deposits that were discovered between 1990 and 2019, only 16 were found in the past 10 years. Although the earth’s surface still has an abundance of the red metal, most new deposits are of low grade. This could be a problem going forward. As I’ve written about before, the adoption of electric vehicles (EVs) and battery storage technology—both of which rely heavily on copper—is set to accelerate rapidly over the coming decades. Last year, EV sales were around 3 million. By 2040, they could be as high as 70 million. According to the IEA, copper will remain the most widely used metal in renewable energy technologies. Compared to aluminum, nickel and zinc, its importance is rated high for most new energy-related projects. That’s mainly because its electrical conductivity is the second best after silver and 60% higher than aluminum. Goldman Sachs predicts that by 2030, copper demand will grow nearly 600% to 5.4 million tons. Commercial Production Begins at Ivanhoe’s Kamoa-Kakula Although large copper discoveries are becoming fewer and farther between, there are notable exceptions. The IEA mentions Peru’s Quellaveco, majority-owned by Anglo American, and Ivanhoe’s Kamoa-Kakula in the Democratic Republic of the Congo (DRC). I’ve written about the developing Kakula project several times before. Last week, Ivanhoe announced that copper concentrate production officially began at the world-class discovery, several months ahead of schedule. “Discovering and delivering a copper province of this scale, grade and outstanding ESG credentials, ahead of schedule and on budget, is a unicorn in the copper mining business,” commented Ivanhoe founder and co-chair Robert Friedland, who added that Kakula was discovered only five years ago. This represents “remarkable progress by the mining industry’s glacial standards from first drill hole to a new major mining operation.” Kakula, Robert says, is now on path to become the world’s second largest copper mining complex and perhaps even the largest. Further, the project is estimated to be the world’s highest grade major copper mine. Further still, Ivanhoe pledges that Kakula will be a net-zero greenhouse gas generator, making the company an attractive ESG play. Record Copper Price by Year-End? Last week, analysts at CIBC announced that they adjusted their end-of-year copper price forecast to $5.25 a pound, Kitco reports. The estimates are now 22% and 32% above 2021 and 2022 consensus estimates. The supporting factors include “positive economic data, USD weakness, continued Chinese demand and tight global inventory levels,” CIBC wrote. If true, this should be supportive of copper miners such as Ivanhoe going forward.
The 4 Reasons Candente's Canariaco Copper Deposit is A World Class Asset Candente Copper (TSX: DNT, BVL: DNT) owns 100% of a copper deposit in Peru it is in the process of developing for a production scenario. Candente owns a large, economic, copper ore body in Peru waiting to be mined. Cañariaco Norte is a 100% owned feasibility-stage porphyry copper deposit. Simply put, it is a mountainous rock body that holds 7.5 billion pounds of copper and has had multiple scientific studies propelling it along the way toward production. Strengthened by Goldman Sachs belief it is one of the top 80 copper deposits yet to be exploited and strategically guided by Australian Iron Ore giant Fortescue’s 19% inside ownership, Candente has the lowest quartile production costs that make it an intriguing project today and a must have for tomorrow. Reasons Why Candente Copper is A Top Small Cap Copper Company 1. Goldman Sachs has Canariacao Norte listed as one of the top 80 projects waiting to be developed worldwide and is top 42 in South America. Mining projects take a long time to be developed due to the strict standards required to prove metal content in the ground, which Candente has proven it has tremendous amounts of. A single, contiguous, open-pit mineable deposit of 7.5B pounds Measured and Indicated and can be mined for 22 years once in production speaks to the stability of the project 2. Supported Strategically by Fortesque’s 19.9% Ownership Fortesque is recognized as a global leader in the mining industry. Fortesque holds 19% Candente and became involved to advance Canariaco further into development. Fortesque committed 1$Million in January 2020 with an eye toward production and is considered a strategic investor, which means they have a long-term timeline for joint exploitation of the asset. Fortescue is one of the largest global iron ore producers, recognized for its culture, innovation and industry-leading development of world class infrastructure and mining assets in Western Australia. This is truly a partnership which seeks to equally progress Canariaco into development and Candente into production status. The accepted odds for a discovery to find its way into production is about 1 in 1000, and speaks to the sheer difficulty of the exercise. Candente is close to the finish line and Fortesque is there for the final push. 3. Canariaco is in the lowest quartile of production costs Once in production Canariaco is in the lowest quartile of production costs for projects waiting to be developed Operating costs of US$0.988 per pound of copper Canariaco has 7.5Billion pounds of copper measured and indicated capable of generating annual production of 262,000,000lbs of copper, 39,000 oz gold & 911,000 oz silver over initial mine life of 22 yrs(@ 95,000 tpd). A long stable mine life is what attracts quality investors like Fortesque. Canariaco is a stable, long term investment once it is producing because its output is consistent every year. The risk has been removed from the project. 4. Canariaco is the 1st of 3 projects all in the same area waiting to be discovered. Candente has the opportunity to make further discoveries through Canariaco South and Quebrada Verde, both within a 5km trend that shares infrastructure. Management believes Canariaco Sur is a mineable deposit and will add tremendous support to shareholders in the future. Quebrada Verde demonstrates the same minerology and potential as both Norte and Sur which and requires future exploitation Each of these projects will benefit greatly from Canariaco’s development as it will make development even cheaper than Canariaco Norte due to the infrastructure that will be in place, possible pushing Canariaco’s future overall costs even lower. Click Here To Discover Why Candente Copper is Tomorrow’s Copper Deposit to Be Owned Today