Arizona Sonoran Copper Company (ASCU) Metals & Mining Virtual Investor Conference summary

Project overview and economic highlights

• Advancing a large-scale copper project in Arizona with two open pits, including a greenfield site and a brownfield expansion of a former mine.

• Preliminary economic assessment (PEA) showed an after-tax NPV8 of $2 billion and IRR of 24% at $3.90/lb copper; current copper prices are significantly higher.

• Project benefits from state-only permitting, defined timelines, and no federal nexus, reducing regulatory risk.

• Upfront capital is low at $668 million (including 15% contingency), with a projected NPV to CapEx ratio of 3:1.

• Projected unlevered free cash flow exceeds $7 billion, with a five-year payback period.

Strategic partnerships and financing

• Hudbay invested CAD 20 million at a 15% premium, now holding a 9.9% stake and realizing significant gains.

• Royal Gold acquired a 2.5% NSR for $55 million, signaling strong confidence in project cash flows.

• Rio Tinto remains a supportive shareholder, with potential application of NEWTON technology for primary sulfides.

• Engaged Hahn & Partners as project financial advisors; discussions underway with ECAs, banks, and lenders for project financing.

• Fully funded through 2026, with $62 million cash and no debt.

Permitting, infrastructure, and community relations

• All permitting is state-led; amendments to aquifer and air permits completed in under five months each.

• Strong local support, with community favorability rising to 87% after recent surveys.

• Project has secure water rights to 2070 and existing infrastructure, including power from a nuclear station and rail access.

• Permitting process ensures responses within six months of application acceptance.

• No plans to seek federal funding to avoid triggering federal review, but options remain open for larger project financing.