Categories: Mining Stocks
Topics: Copper Stocks

Gunnison Copper (TSX: GCU)(OTC: GCUMF) SVP Robert Winton on Johnson Camp SX Plant Start-Up with First Copper Sales in September

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the SVP of Operations for Gunnison Copper (TSX: GCU)(OTC: GCUMF), Mr. Robert Winton. Robert, it's great to have you back on. How are you, Rob?

Robert Winton: It's great to speak again, Gerardo. Very exciting times at Johnson Camp, and excited to talk to you today.

Gerardo Del Real: Well, listen, let's get right into it. You just announced the plant startup with the first copper sales coming in September. I can't think of a better time. And listen, you probably can't think of a better time just with record high copper prices here, and seemingly demand that's going to be with us for many, many years. I would love to get your take on how things are coming along and how the team is feeling about the milestone. Congrats, by the way.

Robert Winton: Appreciate the congrats and, yes, it's very exciting times. Gunnison Copper has certainly timed this quite well from a structural deficit in the American copper market. And at Johnson Camp, the milestones are happening rapidly. As you did mention, the SX plant, our solvent extraction plant, was able to start up ahead of schedule. We got that started up July 31st. Again, a major milestone for the entire team. And of course, we've done this extremely safely. We are still over 11 years without a lost-time accident. So by getting that plant up, we start the electrowinning process. So the electrowinning is exciting, it's the electricity. It's the thing that drives the copper into an actual copper cathode, which makes that pure copper ready for the American market. It's very exciting times at site these days.

Gerardo Del Real: Well, listen, it's an eager market and obviously the update and the milestone is important, but I do want to talk about the flagship Gunnison Project, because I think it's easy to see that get overshadowed here, in the short term, with all of the news coming out with copper, the space, being able to provide supply into a structural deficit. But not to get lost there, the Gunnison Project is absolutely top of mind and something that I know the team is focused on. Can you speak to that a bit?

Robert Winton: Yes, I can. So the Gunnison Project is the flagship of our organization, and that PEA with its robust economics, the 1.3 billion NPV, what we're doing there is looking to increase the revenue, as well as decrease our capital expenditure on that project. We really want to beef up those economics. We think this is a great project compared to our peers, but we think there's more to peel out of this onion with respect to bringing this economics into a much more exciting sort of outcome. So this production of 170 million pounds per year of copper, and again, that's pushing 350 million of revenue pre cash flow every year, we think we can improve that by the high value add program that is currently underway.

This is looking to monetize some of the materials that we have in this pit, namely limestone and aggregate. We think there's quite a market for those, given the structural deficits in much of our major cities, with these two byproducts, as well as the inclusion of an ore sorting process. What we believe we can do here is reduce the size of all of our processing plant equipment, as well as decrease our costs. By removing high acid consuming materials through a ore sorting process, which is an optical process well proven in the industry, we think we can really drive the economics to a place that makes this project ... that's going to be enticing lots of our friends in the midterm mining market.

Gerardo Del Real: Well, listen to people like me that pay attention to the space all day and all night, and are paying attention to every bit of news, and the value curve, it's easy to look at the market cap for Gunnison Copper, look at the structural deficits that will be with us for years, and look at the fact that jurisdictions continue to become increasingly and, rightfully so, more and more important, I look at all of that and Gunnison Copper seems like a no-brainer to me. But for people that may be more casual about the copper space, and are looking for good exposure to the copper space in a safe jurisdiction, why Gunnison Copper, and why is now the best time or a good time to give Gunnison a look? Because again, the value proposition, to me, is a no-brainer at these levels.

Robert Winton: Yes, and we're unique within the junior mining space, from a value perspective, and transitioning into the new Gunnison story, putting the open pit onto the market in November. That's really the transitional point, and the market hasn't really been taking the uptake on that yet. So we are a bit depressed compared to our peers. On a project-to-project basis, compared to our peers, the Gunnison Project is second to none. But the thing that sets us apart is that Johnson Camp mine, and the fact that we will be producing, we'll be a junior producer of copper metal into the American market.

So those catalysts, in and itself, are significant, as well as, at the end of the year, we will be monetizing our 48C grant we got from the US government. This really gives us an opportunity to manage the debt. It's been a sort of a burden on our balance sheet for the last number of years, but this creates an opportunity to clean up the balance sheet by the end of the year. We've got exciting news on the Gunnison Project, going to be announced by the end of the year. And again, as Johnson Camp Mine continues to advance, well, those production numbers are going to increase. We're going to bring the new Nuton process into production. These are all things that our peers are unable to deliver to the market, so we believe now is the time that Gunnison is right for those that are looking for that value proposition.

Gerardo Del Real: Exciting times. I think it's going to be a phenomenal end to 2025. I think 2026 is going to be even more exciting. I think your timing is excellent. Rob, thank you so much for coming on and looking forward to more updates.

Robert Winton: I appreciate the time, Gerardo, and you have a great day.

Gerardo Del Real: All right, cheers. Chat soon.

Robert Winton: You bet. Bye-bye.

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