Revolver Resources (ASX:RRR) has two appetising copper projects in Queensland – the Dianne and Osprey projects.

Dianne was once Australia’s highest-grade mine, while Osprey lies near several major mines

The Dianne project was once a producing mine which produced copper grades of over 20% in its heyday. Dianne has an existing JORC mineral resource of 1.31Mt @ 1.38% copper for 18,000/t. This makes it one of Australia’s highest-grade, low-cost copper assets as is and a Scoping Study assuming just 4 years showed a pre-tax NPV of A$69m after $20m in capex and using a US$10,500 price. But the company believes this is the tip of the iceberg. Production is anticipated in Q4 of 2026.
As for Osprey, although it is only at an exploration stage, it lies in the vicinity of several major mines including the Capricorn and Lady Loretta mines. Early-stage exploration, aided by the company’s AI-assisted prospectivity model, has identified 35 high-potential drilling targets, 16 of which are Mt Isa-style and 19 are IOCG targets.

Copper is crucial

Copper is set to be the most important metal for the rest of this decade. It is already an important industrial mineral, but its importance is set to grow given its importance in newer technologies. For instance, it is already an important component in cars, but a typical electric vehicle uses 4x more copper. However, there have been few major discoveries over the last 30 years whilst many of the world’s major mines are slowing down. Any new mines would help to fill the gap but having a mine that was once Australia’s highest-grade come back online would be a bonanza for the market.

Valuation range of $0.38-0.58 per share

We are only able to value Revolver on the basis of Dianne’s Recommencement Study. It is too early to value Osprey in absence of a JORC Resource or Scoping Study, or to value resources not formally part of Dianne’s study. Using a 10% discount rate, we’ve valued Dianne at $111.7m in our base case and $171.2m in our optimistic (or bull) case, amounting to $0.38 and $0.58 per share respectively. Further upside is possible contingent on a larger resource and continued momentum in copper prices. Please see p.23 of our note for the key risks.