Copperstone Resources: Viscaria re-opens as permit work continues - ABG

Q2’21 an eventful quarter with Viscaria re-opening
Copperstone reported sales of SEK 0m (ABGSCe 0m) and EBIT of SEK -3m (ABGSCe -3m). The company stepped up its efforts towards submitting its permit application, with Viscaria re-opening during Q2 in order to conduct various environmental studies inside the mine. The opex base is also ramping up in tandem, increasing to SEK 25m in the quarter (vs. 10m in Q2’20), partly due to the company expanding its team. No changes were communicated regarding the timeline of the permit application, where the target is still to submit the application by the end of ’21. During the quarter, Copperstone completed a directed rights issue of SEK 96m, which entailed SEK 1.5m in transaction expenses. Moreover, the company’s exploitation concession Viscaria k no. 7 was confirmed by the Swedish government. Management estimates that the 64ha area covered by k no. 7 contains approximately 15% of Viscaria’s total mineral resources. However, they add that the confirmation of the concession was expected, and thus was already factored into their plans.