Kincora Copper Ltd (BZDLF) November 5, 2026 Investor Update Transcript

All right. Thank you, everyone, for joining us. I know it's a busy time of the show and great to see so many people here. It's a privilege to give an update on Kinkora. I'm Sam Spring, President and CEO of KCC on the TSXV and ASX. As the slides sort of suggest, we're exploring for copper gold systems in Australia. And I'm sure as an investor, and it's great to see so many investors in the room, you don't put all your wealth in just one or two storeys. Particularly in exploration, it's prudent to do that over a diversified portfolio, and that's what we're looking to do here, giving our shareholders multiple shots on goal in a very well-funded vehicle. So we're a hybrid prospect generator, and we like to say they're a little bit different to a number of hybrid prospect generators, both because of the portfolio and providing exposure to gold and copper, But also because of providing exposure to new technology, and I'll provide a bit of an overview of what that exactly means as well through this presentation. Really importantly, particularly with this business model, is we've got an excellent technical team. That technical team's assembled the portfolio, they're operating the programs, identifying the targets, and when you're trying to attract big industry partners, that's really critical. Increasing scale. We did a financing last year with Rick Rule, Jeff Phillips. One of the first things that Rick advocated to us is, Sam, with this business model, make it bigger, make it more scalable. That's what we're looking to do. At the moment, we've got 10 projects in the portfolio. We only earlier this week added another option agreement to that, over 1,000 square kilometres with the project we're looking to drill in January. And what we're doing by increasing scale is also with the drill bit, looking at drilling 25,000 to 30,000 metres over the summer as well. So increasing scale with this business model is important. We're in a really good mining jurisdiction. There's been significant M&A, a lot of deals. That's because they're proven mining jurisdictions within Australia, and the balance sheet's obviously critical. As you'll know, with any exploration project, dilution's a killer. One thing that's really important here is having the right share structure and the balance sheet to provide investors exposure and real leverage to exploration success. And going into that capital structure and balance sheet a little bit more, There's about 48 million shares outstanding, trading at about 90 cents, which gives us about a 43 million market cap relative to the 12-month trading range that's gone from 70 to $1.48 at the lower end of that trading range, even though our cash position's increased. It's on track to increase every quarter this year. We've got 13 million Aussie in the bank at the moment, looking at another 5 million Aussie or 3.5 million from the divestment of our Mongolian assets coming through before the end of the year. ASX, TSXV, dual listed, ticker again KCC on both. Interestingly, about 60% now on the TSXV versus 40% on the ASX, but really tight leveraged register there. You can see Rick Rule, Jeff Phillips, that consortium's about 20%. Board and Insider's about 25%. So relatively limited free float, which given the cash position that we've got and the funding model that we've got provides significant leverage to exploration success and further deal making. So, board and management, skin in the game, led by people that have found big copper gold assets before. John Holliday, our technical director, probably the foremost expert in New South Wales porphyries. Cadia, he originated, led the discovery phases there. Peter Lehman, our VP of exploration, best known for the Ricoh Dick big discovery in Pakistan. A really strong board. Luke Murray, Chief Operating Officer of the Bloomfield Group that have two operating mines in New South Wales. James Durant, the CEO of another ASX listed company. Cameron McRae, extensive career with Rio Tinto, having built many development projects and having been in the exploration space for a period of time as well. The advisory board will be a lot of familiar faces at this conference. Geoff Phillips, Kerry Stevenson, who's up on the stage today, Brent Cook. This advisory board is really to argument the board to help us with North American exposure, with business model, with strategy, and provide strong alignment as shareholders as well. So where are we operating? Well, New South Wales is Australia's leading copper-gold district. You can see here up on the belt, up on this slide, three belts that are tier one copper belts. If you're looking for copper and gold, New South Wales and the Lachlan Foal Belt is the place to be. You've seen over 16 billion of M&A over the recent term. You've had a number of exploration successes, a couple of big new discoveries, over 10 million ounce gold equivalent discoveries. And that's really supported the majors coming back and doing deals with juniors and a number of juniors standalone having exploration success. Say, for example, Waratah, they've got 11 rigs drilling on a new discovery. That a couple of years ago was a $5 million shell. Now it's over $300 million. Putting this into perspective, that cumulative exploration pool of capital in terms of the listed juniors and explorers in the Macquarie Arc is about 500 million. If you put that same landmass on the same scale here relative to the Golden Triangle, you've got over 2 billion of cumulative market cap. The point that I'm trying to make here is this increasing recognition of the middle endowment and M&A in the Macquarie Arc, but it's relatively early to a comparable jurisdiction in terms of middle endowment, sovereign risk, and also noting that operating costs are not seasonal and they're lower drilling costs to that in BC. So, it's a favourable jurisdiction to operate, and that portfolio that we had, which was very large, as you could see on that previous slide, going into more details here, you can see there's a portfolio of projects, and any of them that says underneath them in white, option with lightning minerals, are assets that we picked up only earlier this week. We announced that deal on Monday, over 1,000 square kilometres of incremental assets. So within our portfolio, there's 10 assets, all with separate value drivers, nine of which are in New South Wales. And as mentioned, Mongolia, we're divesting of that with the final catalyst being $3.5 million before the end of the year. So a hybrid prospect generator model, what does that mean? It means the majority of our exploration is funded by our partners. This year, Anglo-Goldishanty is probably close to spending about $7 million. We're looking at putting $2 to $3 million into the ground ourselves over the upcoming Australian summer period. One of the key elements is this new generation exploration success, new partners bringing new technology, proprietary technology. Geomorphic AI, who are in the room at this conference, helping us with our reviews, both new projects and new growth opportunities, existing project opportunities. Atomionics is a new start-up out of Singapore, backed by BHP. They're looking at coming in at their cost, doing a geophysical survey next month at one of our projects. Fleet Space, similarly, new technology, and we're an earlier adopter of using that. So we try and give our shareholders significant exploration, exposure, not only through the portfolio and the team, but leveraging all this new tech that's coming into the industry. In terms of our sole funded exploration, as touched on, about $3 million we're looking to spend of our own balance sheet over the summer period. That's really come from that first point there, projects being generated and successfully divested. Our Mongolian asset, we're getting $10 million US total cash for that. What we're then looking to do is leverage this traditional and new exploration success and doing these reviews, looking to do geophysics, increasing the scale of the targets within the portfolio. The next step of that is doing air call, which is relatively quick and cheap to add scale and confirm our geological thesis, which we think adds value. And from there, if there's some easy wins in terms of exploration success where we can drill one or two holes and add value, we do that. We've done that at our Condoblin project and SA results are pending for that. We're looking to do that with the new opportunity that we picked up earlier this week, Borey Creek. We're looking to hopefully drill late January next year. And again, we think that would add significant value. So that's how we try and use our balance sheet. And with $13 million on the balance sheet at the moment, and with another $5 million Aussie due before the end of the year, we're in a strong position to continue that. And there's a very strong discipline to our exploration and approach, both technically, but also commercially, of how do we rank and how do we think about adding value to those projects. I know this is a busy slide, but the key point is... We try, with this business model, to come up with the targets, come up with the concepts, spend what we can to confirm, add value, and then bring in the partners to do that really heavy lifting. And at the moment, that's being really done with Anglo Gold Ashanti. This is a deliberately busy slide, so apologies for that. The key thing I want to highlight is all the assets in our portfolio, other than Ning and West, had asset-level partners last commodity cycle. What we've seen is a lot of the majors starting to return to growth. They're increasingly looking to outsource exploration to juniors under the prospect generator model. ESG considerations, the ability to operate, the lead times for discovery success are getting harder. So if you can put your foot on a project with a junior that does that more quickly and cost effective, that's what you're seeing as a structural change in the industry. Fast forward to our project portfolio now, and you can sort of see under the headline 2023-2024, there's a lot of asset level partner gaps, and we're using geomorphic AI to help us with our reviews. We're leading industry experts helping us with our review, our technical teams leading those reviews, coming up with really scalable targets, and again, these assets belonged with major mining companies' last commodity cycle, and we think that we'll find a home from many of these in the next 12 months. So looking at the porphyry projects in the portfolio, and just to give everyone a feel for what does central west New South Wales look like, this is a really good example. Predominantly farming, wheat country, and really good operating conditions through the continuation of a 12-month field season. So, up in the northern part of the belt, we've got a contiguous licence portfolio of over 100 kilometres north-south with Anglo-Gold Ashanti. How would you fund that as a junior? It would be prohibitive. With our relationship with Anglo-Gold Ashanti, potentially they spend the first $100 million and we would retain 20% under that. So, that gives our shareholders significant exposure to a new district. What we've been able to do in the last 12 months is confirm at our Nevitire South project that we've got this really interesting target at Kukara up in the northern part of the licence. We've also confirmed our thesis that down to the south you've got new porphyry scale potential, so potentially a new province here. This is the northern part of the Macquarie Arc proven to date, and I think you'll see relatively soon some new news in terms of Kukara and that target. And us benefiting from some of the proprietary exploration methodologies that Anglo Gold Ashanti have got in-house to really drill that and accelerate the exploration potential there. Borey Creek. That's a project that we're keen to drill hopefully in January next year. We just announced this week an agreement with Lightning Metals. That is over 1,000 square kilometres. We picked up the majority of that land in a really hot spot within the Macquarie Arc. You can see Cadia there, which is Australia's leading porphyry belt, until relatively recently Australia's biggest gold mine with negative operating costs because of the copper credits. Boree Creek, we think, potentially sits on the same structure as Waratah's spur project. Waratah's got 11 rigs drilling out a new, very exciting discovery. Boree Creek's got an outcropping porphyry. To find that sort of setting that hasn't been drilled in 20 years in this location is a really unique opportunity. It's a low-cost option agreement for us. We paid a $100,000 non-refundable deposit for exclusivity. We have nine months to exercise that. We're looking at drilling that target and confirming an interesting 50-metre interval that was made by Freeport many years ago. I should note that right near us, you've got Goldfields, one of the big gold companies, earning in. If we can confirm our thesis, validate that historical interval, renew that licence, I think we'll be well on the way of adding value to that project and bringing in a project-level partner. And again, with this business model, that's how you make it more scalable and add value. I should mention Ningen West. Ningen West will be looking to drill in the next month. Never been drilled before. It's adjacent to the west of our Ningen licence. We've been recently drilling with Anglo-Gold Ashanti there. We think Ningen West has the extension of the Porphyry Belt, the extension of the Macquarie Arc, the same sort of targets that we've been drilling with Anglo-Gold Ashanti at shallower depths. We also think there's potentially an ultramafic system there that has the potential for nickel ladderite, scandium, cobalt, that sort of mineral system further down to the south. You've seen the sunrise go from a 50 million market cap last year to over $3 billion and be one of the best performing stocks anywhere in the world. So we're hedging our bets looking to do the first drilling campaign with quick, low cost air core drilling before the end of the year. We should finish that program. Thank you. Now, in terms of some of these more advanced brownfield projects, Trundle, we've put $13 million of our own shareholder capital into. We think that's a rifted-off part of the North Parks igneous complex. North Parks has got over 24 million ounce gold-equivalent resource inventory. It's host to Australia's biggest copper porphyry mine. That has been attracted multiple majors in the past, and we've done recently multiple technical reviews to advance the scale of various targets, And we're looking at drilling Aircore there in the first quarter next year. We're also looking at Aircore drilling at Fairhome, which is on the other slide north of Cowell. Cowell was originally owned by Barrick. It was 3.4 million ounces. Evolution bought it. It's now their flagship mine. There's over 15 million ounce gold equivalent resource inventory. Fairhome's got a lot of smoke, as you can see there, with that geochemistry, which is directly comparable. You've got Newmont earning in with another Australian junior to the north. We think our air core drilling will upgrade those targets, and what we're saying to the majors with all of the three projects that you can see here is you can wait for us to complete this air core drilling that we're doing over the summer, but if we increase the scale, confirm our geological thesis, the value of those projects will go up, and if we can find the right marriage and relationship before then, then we'll take it. Cowleast is a really interesting project that last was held by Goldfields. We increased the scale of that project by 40% earlier in the year. We did a ground gravity survey. We've got Atomionics doing this new quantum technology survey next month. We'll look at drilling that in the first quarter of next year. It's the other side of Lake Cow. Marsden, which is a big copper porphyry discovery that was led by our technical director, John Holliday, before the bottom of it got chopped off, is estimated to have 8 to 10 million ounces of gold, 5 million tonnes of copper. So again, having pretty virgin targets there in that sort of location is a really interesting investment proposition, given the outlook for copper and gold at the moment and majors returning to exploration. I should mention our Condoblin project. This is drilling earlier in the year. SA results are due relatively soon. We'll do a full review of that. But the Condoblin project sits in the southern end of the Cobar Basin, and the reason we drilled this ourselves is because the Cobar Basin is long existing milling infrastructure, short ore. Mineral Hills, an existing mill, 40 kilometres up the road, that if we found what we're looking for, would be the natural home for that ore to go to. So how does a junior add value? Well, the threshold here isn't as significant as what a big copper porphyry project is. So I think you'll see more on Condoblin early in the new year. So why invest? What is Kinkora? Well, we're offering unique, large-scale exposure to copper and gold in a proven mining jurisdiction in an established tier one terrain and sovereign risk profile. You're coming inside with a proven discovery team that's got a track record of success in this immediate belt. You've got a unique hybrid prospect generator model using our well-funded cash position as well as major asset level partnership mitigating dilution. You've got a vehicle that's got an increase in cash position with management fee income from operating our joint venture with Anglo Gold Ashanti, and that's the business model that we're looking to apply to Trundle, Fairhome, Cowleast. If we can get to a scenario where we've got $15, $20 million worth of partner-funded drilling, which is our near-to-median-term objective, Then you're into a funded vehicle that's got its corporate costs covered and over $10 million of Treasury in the bank, assuming that those deals are done in the calendar year 2027. And multiple catalysts. As you can sort of see through this talk, there's multiple different elements. Every one of those 10 projects has got a value driver. We're drilling seven different projects through the course of this calendar year and first quarter next year, and that's not only going to continue but accelerate going into 2027. So please come by the booth. We're here for obviously tomorrow as well. My contact details are on every presentation, every press release. So please reach out if you ever have any questions. This will be up on the website. It'll be up on the New Orleans website as well with the usual forward-looking statements and disclaimers. But thank you for your attention and have a great conference.