Foran Mining (FOM) Nordic Funds & Mines Conference 2024 summary

Project vision and sustainability

• Aiming to build the world's first carbon-neutral copper mine using fully electric, semi-autonomous equipment in partnership with Sandvik.

• Focused on maximizing value per share through every decision, including sustainability and operational efficiency.

• Utilizes cheap hydroelectric power to reduce costs and emissions, enhancing productivity and economics.

• Deposit starts just 30 meters below surface, lowering capital intensity and enabling efficient development.

• Emphasizes the business case for electrification beyond ESG ratings.

Risk management and execution

• Addressed key risks: permitting (fully approved), financing (secured with strategic partners), and execution (led by G Mining Services).

• Construction is underway with significant progress in underground development and surface infrastructure.

• G Mining Services, with a strong track record, leads construction to ensure timely and on-budget delivery.

• All long-lead items, including SAG and ball mills, have been procured and delivered to site.

• Transitioning from developer to producer within the next three to six months, expecting a valuation re-rate.

Financing and strategic partnerships

• Secured CAD 250 million from Fairfax (22% ownership) and $175 million from Agnico Eagle (9.9% ownership).

• Chose a balanced equity and debt approach, avoiding streaming away key metals to preserve long-term value.

• Strategic investors provide not only capital but also technical expertise and industry connections.

• Agnico Eagle partnership includes a joint technical committee and access to R&D and operational know-how.

• Long-term capital partners are essential due to the multi-decade lifespan of the asset.