Alma Metals Unlocking Porphyry Copper Scale Amid a Structural Supply Deficit

Alma Metals (ASX: ALM) is an emerging copper developer transitioning its Briggs project in central Queensland from exploration into formal mine planning.

Operating under a joint venture with Canterbury Resources (ASX: CBY), Alma currently holds a 51% controlling interest. Following its recent capital injection, the company is fully funded to complete its final stage-three earn-in expenditure and secure a 70% stake.

The investment thesis centres on transforming this large-tonnage, low-grade porphyry copper resource (currently holding 2.0Mt of contained copper) into an economically viable mining operation.

With a major 45-hole drill program underway, Alma is upgrading resource confidence to the Indicated category, optimising metallurgical flowsheets, and advancing its Pre-Feasibility Study (PFS).

Alma is establishing a capital-efficient pathway to production exactly as the global market seeks secure, long-life copper supplies.

Copper Supply Pressure

The global market is approaching a structural copper deficit. The electrification of the transport sector, the build-out of renewable energy grids, and the power demands of data centres require substantial volumes of copper.

Simultaneously, mature copper mines in South America and Africa are experiencing declining ore grades and operational challenges.

With a limited pipeline of new tier-1 discoveries, end-users are prioritising secure copper from stable jurisdictions.

This macro environment highlights the strategic value of large, long-life assets like Briggs that have the geological scale to deliver multi-decade supply.

How the Company Wins

• Scale and Upside: Porphyry systems account for the majority of global copper supply due to their high tonnage and long mine lives. Briggs is a district-scale system with explicit resource expansion optionality. It is further supported by a current resource of 73 million pounds of molybdenum and 16.5 million ounces of silver in by-product credits that can significantly offset operating costs.
• Location: Situated in central Queensland, Briggs benefits from a recognised, mining-friendly jurisdiction. The site is 60km from the deep-water port of Gladstone, with proximity to heavy-haul rail, high-voltage power lines, gas pipelines, and a skilled local workforce. This mitigates the infrastructure hurdles that frequently challenge remote projects.
• Low Capex Development Pathway: Rather than a capital-intensive underground build, the Briggs deposit geometry supports large-scale, near-surface open-pit mining. The company's PFS workstreams are focused on metallurgical optimisation to achieve high recoveries via standard flotation processing, keeping initial capital expenditure manageable.

Proof Points

• Oversubscribed $4M Capital Raise (May 2026): Alma recently announced a $4.0 million placement. The company has already successfully completed Tranche 1, issuing 368.2 million shares to secure approximately $3.68 million. The remaining Tranche 2 (director participation) is subject to shareholder approval at a General Meeting scheduled for June 2026. This funding removes near-term capital constraints and secures the pathway to the 70% JV milestone.
• Major Drill Program Underway (April/May 2026): A 12-to-15-month drilling campaign has commenced. The program is highly systematic: 1,250m of exploration drilling across 4 holes will test surface geochemical copper anomalies outside the current resource, while 12,500m of infill drilling across 41 holes will convert the existing estimate from Inferred to Indicated.
• JV Execution and Control: Alma has successfully met its earn-in commitments to secure a 51% controlling stake and is now aggressively managing the asset's development schedule.

Catalysts to Watch

• Steady Assay Flow: With drilling now underway, investors should expect regular assay results throughout the second half of 2026 as the company targets growing the total contained copper beyond 2 million tonnes (at a 0.15% copper cut-off).
• Metallurgical Enhancements: New drill cores will provide material for advanced metallurgical test work, aimed at optimising the mineral processing flowsheet for the PFS.
• PFS Progression & Permitting: Delivery of environmental baseline surveys and ongoing updates regarding the Pre-Feasibility Study design.

Key Risks

• Grade Sensitivity: As a bulk-tonnage, low-grade porphyry system, the project's economics are sensitive to prevailing copper prices and metallurgical recovery rates. Any variance in grade continuity could impact operating margins.
• Long-Term Financing: While the recent capital raise funds the PFS and current exploration milestones, advancing a project of this scale into construction will eventually require substantial project debt and equity. Alma will need a robust, de-risked PFS to attract tier-1 financiers.

Bottom Line

Alma Metals represents a strategic exposure to the looming global copper deficit.

By combining large-scale porphyry optionality, an advantageous central Queensland location, and a pragmatic open-pit strategy, the company is systematically de-risking its flagship asset.

Supported by a fresh $3.68 million injection (with more pending in June) and a highly targeted 14,000m drill program currently underway, Alma is actively advancing its development timeline.

A robust PFS will position the company as a key development target in a supply-constrained market.