Pembridge Resources says Minto Explorations locks in sale price for copper

“We limit the cash flow risks of the business and also benefit from receiving the funds arising from the copper price increase now instead of in Q3 2021,” said Pembridge CEO Gati Al-Jebouri
Pembridge Resources PLC (LON: PERE) said Minto Explorations Ltd has secured a sale price for its copper in a move that will minimise cash flow risks and allow it to benefit from higher metal prices sooner.

Minto had 7,927 dry metric tonnes (MT) of concentrate, with a copper content of 2,780 MT, as of March 1.

It has locked in a sale price of $4.07 per pound on 2,501 metric tonnes of copper, representing 90% of the current copper quantities in stock, while the remaining 10% will be priced after delivery to Sumitomo.

Pembridge has an investment in Minto Explorations, which operates the Minto underground copper-gold-silver mine in Yukon, Canada.

“The copper price has performed well recently and, although it may continue to rise further, Minto has taken the decision to fix 90% of the revenue from the produced to 1 March copper,” said Gati Al-Jebouri, chief executive and chairman of Pembridge. “This will ensure that we limit the cash flow risks of the business and also benefit from receiving the funds arising from the copper price increase now instead of in Q3 2021 at the 3MAMA fixing date.”