Key points
- Cobre Limited has signed agreements to purchase high-grade oxide ore from third-party miners
- Ore purchases expected to add approximately 300t of copper cathode per month from Q4 2026
- Agreements enhance Sierra Atacama's role as the processing hub for high-grade oxide ore in the Antofagasta region
Full summary
Cobre Limited (ASX: CBE, CBEO) has executed ore purchase agreements with two third-party copper oxide miners in the Antofagasta region. These agreements are expected to deliver 50-75 kt per month of 1.0-1.5% CuT oxide ore to the Sierra Atacama SX-EW plant, adding approximately 300t of monthly copper cathode production. This production is additional to the company's previously announced production targets, which remain unchanged. The agreements are expected to ramp up from Q4 2026, providing a step-change in near-term margin and cash flow. The incremental cathode carries no mining or development cost and uses existing, under-utilised SX-EW capacity with fixed plant costs spread over a larger tonnage base, lowering unit costs across the operation. These agreements also consolidate Sierra Atacama's position as the natural processing hub for high-grade oxide ore in the Antofagasta region and bridge seamlessly into the 2027 production growth phase.