Metals Acquisition Limited (NYSE: MTAL) has observed a notable surge in its stock valuation during the after-market session on Monday, with a significant increase of 5.82% to $13.99 on US stock charts. This event has drawn the attention of both investors and analysts, coinciding with the release of an updated resource and reserve statement.
Metals Acquisition (MTAL) disclosed its Resource and Reserve Statement (as of August 31, 2023) for the CSA Copper Mine in NSW. Notably, there has been a 67% extension in the mine's lifespan to 11 years (ending in 2034) based solely on Mineral Reserves, in contrast to the 6-year projection in the 2022 statement.
The statement further highlights a 64% increase in contained copper ("Cu") following the replenishment of depletion to 0.5Mt in Mineral Reserves, boasting an average grade of 3.3% Cu. The Measured and Indicated Mineral Resources of Metals Acquisition have surged to 229k tons of Cu from nil in the previous period, exhibiting an average grade of 4.9% Cu.
Additionally, there is an extra 184k tons of Cu in the Inferred Mineral Resources, marking a minor 5% decrease from the prior year due to the promotion of Inferred material to the Measured and Indicated categories. Metals Acquisition has recorded an impressive 83% rise in contained Cu following the replenishment of depletion in the Measured and Indicated Resources categories.
These enhancements have materialized within a mere ten months of ownership, based on data gathered over two and a half months post-acquisition closure, with the effective date for the Resource and Reserve Statement being August 31, 2023.
Efforts are underway to update the mine plans as new information becomes available, especially following the completion of MAC's dual listing on the ASX and the public offering that generated A$325 million of equity.
Metals Acquisition is steadfast in its commitment to advancing growth capital spending to further refine the mine plan. The CSA Copper Mine has been operational for nearly six decades with minimal exploration beyond known deposits, indicating untapped potential for optimizing the production strategy.