Alma Metals (ASX:ALM) is an advanced exploration-stage company, focused on developing the Briggs Copper JV project in Queensland, in which it has a 51% stake. It can increase this to 70%. Alma Metals has recorded stellar exploration results up to this point and, following a recently completed Scoping Study, has committed to a Preliminary Feasibility Study (PFS).

A 2Mt Copper Resource of global significance

Briggs is one of Australia’s largest undeveloped copper projects with a Mineral Resource Estimate (MRE) of 2Mt Cu (932Mt @ 0.21% copper in inferred and indicated resources at 0.15% Cu cut-off). The deposit geometry, metallurgy and location is ideal for a very low-cost operation. The current MRE could be the tip of the iceberg given the deposit is open in all directions with more drilling to come. We also believe (as we discuss in this note) that an ultimate operation could be comparable to many of the world’s top tier porphyry-style mines.

Briggs set to benefit from the emerging Copper Crunch

Briggs is advancing at a time when large, development-ready projects are urgently needed worldwide. Demand is accelerating due to rapid electrification, renewable energy and decarbonisation trends, while new supply, particularly large, development-ready projects in Tier 1 jurisdictions are scarce. Against this backdrop, Briggs stands out as a large-scale, strategically located project in Queensland, supported by quality infrastructure & favourable metallurgy. Briggs’ development timeline aligns with forecasts for widening copper deficits and rising prices, creating a rare leveraged play on the energy transition.

Too early to value, but there’s upside for shareholders

In the absence of a formal feasibility study, we cannot ascribe a formal valuation. However, the company’s next step is advancing a PFS, and we may ascribe a formal valuation when this is complete. Peer comparisons indicate that deposits of this scale and grade can deliver significant value. We see short-term upside from results of the ongoing drilling campaign and feasibility studies, but the key challenge will be shifting the Inferred Resource (the majority of the existing resource) to Indicated & Measured categories. Please see page 23 for the key risks.