Copper Fox Metals Inc. (CUU:TSX.V; CPFXF:OTCQX; HPR:FRA) continues to deliver consistent resource growth across its portfolio of projects, noted an Atrium Research report.
Copper Fox Metals Inc. (CUU:TSX.V; CPFXF:OTCQX; HPR:FRA) caught the attention of Atrium Research, which initiated coverage on it with a Buy rating and a CA$0.50 per share target price, reported Atrium Research Analyst Ben Pirie in a June 10 research note.
"Since 2012, Copper Fox has nearly doubled its copper equivalent (Cu eq) inventory from 4,070,000,000 pounds (4.07 Blb) to 7.3 Blb," Pirie wrote. "When accounting for byproduct credits such as molybdenum, gold and silver, the Cu eq growth profile is even more compelling."
Pirie continued, "This trend demonstrates how the company continues to unlock value through improved recoveries and strategic reclassification, further positioning its assets to align with the development priorities of large copper producers."
At the time of Pirie's report, the Canadian copper development company is trading at about CA$0.27 per share, at "0.07x net present value (NPV) and CA$0.03 per lb (CA$0.03/lb) in the ground compared to its peers at 0.27x NPV and CA$0.19/lb in the ground," the analyst noted.
From this share price, the return to target is 89%.
Pirie presented the highlights of this Calgary-based company whose strategy is to advance undervalued porphyry systems in proven jurisdictions.
Schaft Creek: Copper Fox boasts advanced-stage assets in two of the world's top copper jurisdictions. The company's flagship asset is its 25% interest in the Schaft Creek joint venture project, a major undeveloped porphyry copper system in northwestern British Columbia (B.C.) and co-owned and operated by Teck Resources Ltd. (TECK:TSX; TECK:NYSE) (75%). Teck is responsible for all development costs, of which it will recoup 90% from future cash flow. Copper Fox does not have to contribute any capital until production. Schaft Creek is "fully carried to production," the analyst wrote.
"This structure gives Copper Fox significant leverage to rising copper prices without dilution," noted Pirie.
For this year, the work budget for Schaft Creek is CA$15.8 million (CA$15.8M). Last year, CA$24.6M were spent on geotechnical drilling and site infrastructure planning, the most extensive program since 2013, Pirie reported.
The 2021 preliminary economic assessment (PEA) of Schaft Creek outlined production of 5 Blb of Cu, 226,000,000 pounds (226 Mlb) of molybdenum, 16,400,000 ounces (16.4 Moz) of silver and 3.7 Moz of gold over a 21-year life of mine (LOM). Base case economics, are an US$842M after-tax NPV discounted at 8% and a 12.9% internal rate of return (IRR); these results assume a US$3.25/lb copper price and a US$1,500 per ounce (US$1,500/oz) gold price. C1 cash costs are US$1/lb of copper.
Van Dyke: Another of Copper Fox's assets, of which it owns 100%, is Van Dyke, an in situ copper recovery (ISCR) development project in Arizona's Globe-Miami Mining District, one of the U.S.' most established copper-producing regions, noted Pirie. Van Dyke's resource stands at 500 Mlb of soluble copper in the Measured & Indicated (M&I) category and 700 Mlb of soluble copper in the Inferred category.
As opposed to a conventional mining operation, Van Dyke is a low carbon footprint alternative that does not require open-pit development or tailings storage. As such, its environmental impact should be less, and its permitting, faster. Last year, Copper Fox starting doing technical derisking work on the project, including cost reviews, process refinements and hydrogeological assessments, in advance of a prefeasibility study (PFS).
"With a 43% IRR and strong margin profile, the project offers scalable, ESG-aligned copper exposure," Pirie commented.
Van Dyke has strong economics, according to the 2020 PEA, showing an after-tax NPV7.5% of US$645M, an IRR of 43.4% and a 2.1-year payback, using a US$3.15/lb copper price. Initial capex is an estimated US$291M, and projected C1 costs are US$0.98/lb. The analyst pointed out that a US$0.25/lb increase in the copper price (to US$3.40/lb) adds US$90M to the NPV and US$190M of free cash flow, "highlighting significant upside at spot prices."
"Van Dyke compares favorably to other ISCR projects in Arizona like Florence Copper," Pirie wrote.
Copper Fox also has a set of exploration porphyry copper assets in tier one mining jurisdictions, offering scalable, long-term upside.
Eaglehead: This is an underexplored, midstage, 15,712-hectare project in B.C. with 1.8 Blb of Cu eq and known geophysical anomalies. Copper Fox's work permit for Eaglehead is valid until March 2026.
"Eaglehead remains a high-potential porphyry asset with open-ended exploration upside and a compelling location adjacent to infrastructure and within a well-established mining jurisdiction," Pirie described.
Sombrero Butte: This is one of Copper Fox's two Laramide-age, drill-ready projects in Arizona. It contains more than 120 mapped breccia pipes near Faraday Copper Corp.'s (FDY:TSX) Copper Creek project. These pipes host an M&I copper resource of 4.2 Blb. The 2023 PEA outlined a project with a 32-year LOM and a US$713M after-tax NPV7%.
Mineral Mountain: This is Copper Fox's other Laramide-age, drill-ready project in Arizona. It features a "3.5-kilometer (3.5-km)-long copper-molybdenum footprint and 3.2-km-long buried chargeability anomaly underlying the surface footprint between the Florence and Resolution deposits," explained Pirie.
As of Jan. 31, 2025, reported the analyst, Copper Fox had CA$200,000 (CA$200K) in cash and CA$100K in total debt. Total assets, as reported by the company, were CA$85.1M; total noncurrent liabilities were CA$900K.
At the helm of Copper Fox is Geologist Elmer B. Stewart, its president, chief executive officer and chair, noted Pirie. Stewart has 40 years of experience with copper, gold and uranium projects, domestic and international.
Ernesto Echavarria is a director and Copper Fox's top shareholder. He is a highly accomplished executive; the principal of Frank's Distributing, a global produce distributor; and a director of multiple mining and industrial ventures in Mexico.
"Copper Fox is guided by a deeply experienced leadership team with a proven track record in mineral exploration, corporate development and governance," Pirie wrote.
Pirie reported that insiders own 59% of Copper Fox, of which Echavarria holds 57%. Other members of management and the board hold 2%. This level of insider ownership "ensur[es] tight control, minimal dilution and strong shareholder alignment."
Institutional and retail investors own the remaining 41%.
Copper Fox has 575.1 million (575.1M) shares outstanding and no options, warrants or other dilutive securities in the money. Its 6.9M outstanding warrants all are currently out of the money and therefore nondilutive. The company's market cap is CA$152.4M.
The several near-term catalysts for Copper Fox all are ongoing, reported Pirie. They include continuation of the 2025 work program at Schaft Creek and advancement of the project toward a PFS. Also underway is progressing Van Dyke toward a PFS, too.
Further, Copper Fox is continuing exploration efforts at its other three projects: Eaglehead, Mineral Mountain and Sombrero Butte.
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Disclosures for Atrium Research, Copper Fox Metals, June 10, 2025
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