Cobre Ltd. has reported an operational turnaround at its Sierra Atacama copper project in Chile, delivering the asset’s first-ever consecutive months of positive operating cash flow just eight weeks after taking control.
The project generated an operating cash flow of AU$900,000 in April and AU$860,000 in May.
The immediate financial pivot follows Cobre assuming direct operational control at the end of March. The company quickly implemented a structured turnaround program across the underground mine and solvent extraction-electrowinning (SX-EW) processing plant.
Key operational drivers of the turnaround include a rewritten mine plan that has lifted mined head grades, tighter grade control, and a reduction in crushing size from 11mm to 9mm.
The finer crush size, paired with optimised leach pad designs, has significantly boosted copper recoveries, while processing adjustments have lifted cathode quality, eliminating product penalties.
The company expects the operation to remain profitable through June and strengthen further as the year progresses.
Cobre CEO Adam Wooldridge said: “Restoring Sierra Atacama to positive operating cash flow within two months of assuming control is a credit to the operating team.
“Our sequence is deliberate: stabilise, then optimise, then expand. Each subsequent stage – the optimised underground, staged open-pit development and, ultimately, the sulphide opportunity – will be advanced from a foundation that is already paying its way at the operating level.”
Targeted capital investment is now being directed into the mining fleet, underground ventilation, and processing infrastructure to support a structured ramp-up.
Cobre aims to lift output to 700 tonnes of copper cathode per month by the first quarter of 2027.
Concurrently, the company is advancing studies into a potential open-pit expansion. This strategy aims to scale production toward the plant’s full nameplate capacity of 20,000 tonnes per annum by December 2027.
If achieved, the 1,500-tonne monthly run rate is forecast to generate between US$8 million and US$10 million in monthly operating cash flow.
