Kincora Copper Ltd (BZDLF) July 2026 Capital Markets Day Transcript

Our next speaker is listed on the ASX and the TSX under the ticket code KCC. Full disclosure, I am on the advisory board of this company. It is called Kinkora Copper. Sam Spring is the managing director, president. And Sam joined the company back in 2012. It's kind of like a fun fact. He went to join the company in 2012. The whole premise was to divest them of their Mongolian assets. Should take about six months, they said. Well, 14 years later, he's just divested last week the Mongolian assets. Here to tell you what that means for investors. Please welcome Sam.

Thank you, Kerry.

You're welcome.

Always hard to follow Brian, so bear with us. Maybe just to touch with, we're a porphyry explorer, focused copper gold systems in central west New South Wales, Australia. The key thing with any exploration company is being active, being systematic and having a very strong technical team you're effectively putting risk capital to work and we're doing so with a hybrid prospector generator model ie ideally spending the majority of our expiration budgets with third-party capital that have done the work and gives our shareholders material exposure this portfolio that we've assembled is being put together and activities and targets run by an extremely strong technical team and I'll run through that in our presentation today. So hybrid prospect generator models, it's a great thing this conference, Rick's a big advocate of them, so most people in the room probably understand them, I'll run through a few unique aspects of what we're applying in a sec. But again that technical team, John Holliday, Peter Leeman, have found Tier 1 assets before and we're looking to try and replicate that again within our strategy. With exploration, what we're looking to do is a portfolio approach. There's eight projects in the portfolio. As Kerry has just mentioned, we're successfully divesting of our Mongolian asset to refine that to seven assets now in New South Wales. There's a clear strategy for every one of those seven assets remaining to create value. We're operating in a Tier 1 mining jurisdiction. Central Western New South Wales is home to a number of large-scale gold copper mines. Acadia is Australia's largest gold mine until recently with negative operating costs because of the copper credits. That was originated and discovered by our technical director John Holliday. So a great operating environment, year-round, no seasonality. In terms of the balance sheet, and I'll go through this in a little bit more detail, very well capitalised and with the majority of funding being from partners, that gives shareholders an extremely attractive, leveraged scenario to these multiple catalysts. So a prospect generator, as Rick puts it, mathematically the best way to speculate in the exploration game. We're looking to tailor this, particularly with the traditional mining companies as Anglo Golda Shanty, for example, we're operating two earn-ins with them, but also with new tech companies. There's a number of groups, Atomionics, FleetSpace, where they've got new technology and they're bringing that to our platform and we're utilising that, giving our shareholders exposure to those emerging trends. As you can see there on the slide, so far we've done deals that have unlocked potentially over $100 million of partner funding at the asset level, non-dilutive at the equity level. So far we've seen $10 million of that go into the ground. That's supported over 20,000 metres of drilling across seven different licences. And that's again, how do you put the odds of success in your favour? It's a numbers game exploration. The more good, high quality targets you can drill, ideally with third party capital, the better. One thing I should probably mention is from operating two of the earnings with Anglo Gold Ashanti, we've received over $600,000 to date in management fees, 10% of expenditure we receive as a discretionary income fee. That's one part of the business. We also do, and I guess the reason for phrasing it as a hybrid prospect generator, is we are doing some sole funded exploration. As we've mentioned, we've just devised it of our Mongolian asset. We're drilling at the moment at our Kondoblin project, and we'll touch on that briefly as well. But we're also working up a pipeline, looking to make this business model more scalable at a number of other projects, and I'll again touch on that. So this is central western New South Wales. Kadia is Australia's world class porphyry mine, 50 million ounces of gold, 10 million tonnes of copper. There's been a number of big discoveries within this belt. Bode Kaiser is about 15 million ounce gold equivalent resource inventory. Down at Cal, which is now 14 million ounces, that's had 10 million of resource inventory growth recently. Waratah recently at the Spur project near Kadia has made a good new discovery. That's re-rated from a sub 10 million market cap to now over 200 million. So you're seeing good exploration results. It's not a mature jurisdiction. if you were to compare this to the Golden Triangle, Canada's leading porphyry belt, it's the same land mass but you'd probably have a market cap of five times that value within the Golden Triangle relative to here, but at the same time here you've seen about $20 billion worth of corporate activity over the recent years. So going back to share capital and structure, less than 48 million shares outstanding, Market cap just shy of $40 million at today's share price. Last reported cash balance we had at the end of March was $7 million Aussie. As you can see there, that's increased since we received the first option payment for the Mongolian divestment. Only this week we received another $5 million. So as a junior, when you're drilling, it's quite unusual to see cash balance increasing. Hopefully we're going to have three quarters in a row where the cash balance increases. And that obviously gives shareholders a lot of optionality to our exploration activities without worrying about dilution. We're dual listed on the ASX TSXV. The ticker there on both is KCC. We've got about half the shares trading on the venture, half on the ASX. I should sort of highlight that there's strong alignment here. You've got 25% of the company represented on the board reporting insiders. At this conference last year, we announced a financing with Rick Rule, Jeff Phillips, with a 12-month hold alongside that to get on and execute on our business model. So when you look at our free float, there's about 45% of the company that's tied up and very much with sophisticated long-term shareholders. As touched on as an explorer, the key is your technical team. John Holiday highlighted there. Peter Leemann, both have found those large copper gold systems before and looking to replicate that. We've got a small board there, but major shareholders, Luke Murray, he represents the Bloomfield Group that are operating two mines in central west New South Wales. You've got James Drant, Managing Director of another ASX Explorer, and Cameron McRae, 28 years at Rio Tinto, has built four different projects in three different continents. So, a really strong team there from exploration all the way through to mining operations. Backed up by a very good advisory board, a number of which are in this room and also the conference, Jeff Phillips, Kerry Stephenson, thank you Kerry for the intro and dancing up at the back of the room, Brent Cook and Michelle are all here and happy to answer any questions that you may have. But it's a true portfolio approach, and as you probably wouldn't invest your own capital in one or two projects, that's the approach that we're having here. Each of these projects, we're looking to have material upside for shareholders to exploration success. Currently drilling with Anglo-Gold Ashanti up in the northern part of the belt. Currently drilling at Condoblin ourselves. ourselves, recently drilled a hole with Fleet Space in partnership with government money at our Von Garben project, and then a pipeline of these projects, and again I'll touch on that. So this is current activities, we're on hole number 9 at our Condoblin project, a good feel of what the terrain looks like, very good access and easy exploration. This district, the Cobar district, has seen significant corporate activity, Harmony brought out the CSA mine by Mack Copper last year for $1.6 billion. Whenever you have a major enter a district like that you quite often see regional consolidation. That's been followed up earlier this year with Arius doing a deal with Peel Mining looking to truck all over 100 kilometres to an existing mill. This district is categorised by good copper grades generally, silver, base metals and gold. You've got existing infrastructure, so as a district you're a long processing, short ore, and that provides a really interesting scenario for us and our Condoblin project, which we've consolidated. It's a historical mining field that we've bolted on to other licences to make this a really district-scale position, and how do you add value to that is really interesting given that previously water impacted historical exploration and mining. Now, under modern terms, that's not an issue. How you commercialise that, there's a mill up the road there at Mineral Hill that's looking for third-party ore on a sealed road, 45 kilometres to that mill, if we can find what we're looking for. As mentioned, we're drilling there at the moment. There's easy exploration under pretty limited cover, big geochemical footprints, open geophysics that complement that. And the last commodity cycle at that Meritilga area, you can see there 4 metres at 20 grams with base metals alongside that. That's been an open discovery just sitting there looking to be drilled. Across this area, the last stage of drilling had good results, not only at Meritilga but a number of prospects. What we're seeing here is good grade within different settings, but also we think there's an underlying intrusion there that may give us a lot bigger scale potential. potential. One nature of these COBAR-style systems is they're generally vertically extensive. You can see here the CSA mine that was bought by Harmony last year from MAC. You can see multiple lenses, they're mining there over 3% copper at significant depths. There was a good discovery recently by Australian gold and copper following a very similar strategy to what we're looking to do here of drilling down dip in a long strike. strike, and you can put that all in terms of scale potential of where we're drilling at our Condoblin project to get a feel for what we're looking to do. Drilling down dip along strike, nine holes so far, about 2,500 metre programme, and visually results are looking really good. The key obviously is waiting to see what the grade comes back as. The porphyry projects, this is us at Nevertire South where we're drilling with Anglo Gold Ashanti. Again, you can see a pretty favourable place to be doing exploration there in a field. Within this area, you've got a number of majors. You've had, within earn-in deals, potentially $400 million of earn-in expenditure being done from major mining companies with junior explorers. You've had good discovery success at a number of projects, Waratah obviously, Link Minerals more recently, within the majors as well. This is Australia's leading porphyry district, and one of the key questions I've been asked by a lot of investors this week is, is this predominantly copper or is this predominantly gold? The nice thing about this suite is that they're gold-rich copper systems. Think of Cadia as potentially the biggest gold mine in Australia with negative operating costs from the copper, or think of it as the biggest copper mine with attractive gold. That is important for us when our partners are the diversified majors, the copper majors, and the gold majors, all of those are active and looking at other opportunities within this belt. So as mentioned, we're drilling with Anglo-Gold Ashanti up in the Northern Extension. This potentially is a new district. As you go further north in the belt, you have increasing post-mineral cover, so it's very early stage exploration as a whole. what we're looking for is potentially a new province and when you have that sort of scale of ground the key is having the right partner to unlock that it's going to take time it's going to have capital take capital and and that's where initial results today we've just completed hole number 39 in our program with Anglo Gold Ashanti within this district they've probably from historical exploration that they've took undertook in the early 2000s with another junior explorer and with us they've probably spent over 30 million billion in this belt to date exploring this concept. The last few results that we've been getting from drilling at the moment are probably the best return on that 30 million so far. Upgrading immediate province scale, immediate targets across two new complexes, but also then looking at this wider province scale. If you were to compare the SA results that we're getting from our initial activities to date to Kadia. What you're suggesting is you're pretty close to where you want to be. We haven't drilled through the core of an ore body yet, but we're seeing all the right signals that you're pretty close to where you want to be. Our Cowle East project sits down on the Cowle block. Cowle's the flagship asset of Evolution Mining, Australia's second biggest gold miner. It's 14 million ounces now. We recently consolidated and increased that land position. We've undertaken a ground gravity survey. We've got a new ground gravity technology provider called Atomionics coming in shortly to follow that up and do some further exploration at their cost, applying new technology. Again that sort of land holding has attracted major mining companies in the past, and again we're speaking to those sort of groups going forward. One Garbon is a project that we drilled a hole recently with government funding, half Half of that was paid by the Australian taxpayer. That we think is the extension of the Bodekaiser 15 million ounce gold equivalent discovery. FleetSpace did a survey across Bodekaiser. It supported our thesis that that's a continuation of the system. That had never been drilled until this first hole. Our technical director, John Holliday, was looking to drill that in 1996 and then got on to Katia Ridgeway and that project's been sitting there ever since. So technical success, we're speaking to FleetSpace at the moment of what do we do next to follow that up, again with partner funding going into the ground. In terms of some of our 100% owned projects that are large brownfield settings, Fairhome is a great example. Immediately on strike to Cal, you've got Newmont exploring on the other license immediately to the north. The last group to do exploration here was Kaizen Discovery, which is now part of Ivanhoe Big mineral system, a sort of project that really lends itself to being within a major mining company's portfolio. We've done a couple of drilling programs, we've just done an independent reassessment of targets and looking to run a formal process, looking to bring in further asset level partners and make this business model further scalable. Trundle, exactly the same sort of style. An advanced project with 85,000 metres of prior drilling, we think it's a rifted off part of the North Parks complex which hosts 24 million ounce gold equivalent resource inventory, a project that has major mining companies investing in it before. And we've done extensive exploration there ourselves and refining these targets to advance a competitive process with asset world partners going forward. Kandumbal is a project sitting south of Boda, north of Kadia, north of the cargo spur discovery We had Earth AI doing exploration there. We called that asset back because we can see some new targets that haven't been sufficiently tested. There's scope there for regional consolidation and some pretty unique targets that with the capital that we're recycling out of Mongolia, we may end up drilling ourselves. So in summary, why Kinkora? We are an explorer, it's risk capital. What we're trying to do is give shareholders maximum leverage across a portfolio of projects, providing shareholders access to the latest emerging trends in technology with the traditional mining companies with the earning models where you get a management fee. and we'd hope and expect that by doing deals for Trundle and Fairhome, we get to a scenario where management fees cover corporate costs and then you're in a self-funded scenario. With an increasing cash position of already having $7 million Aussie on the balance sheet and then $10 million coming in from the Mongolian asset portfolio, we're in an extremely attractive cash position and also the ability to do some sole-funded exploration and ramp that up is significantly increased as well. In terms of not having all your eggs in one basket, there's a clear systematic process for adding value across that portfolio of the seven remaining projects, all of which give you significant exposure to large copper-gold systems that would be globally significant. So thank you, everyone, for listening to the opportunity. We're at Booth 16 if you want to come by, ask any further questions, but thank you very much and I hope you have a great conference.

Thank you, Sam. Thank you, babe.