Orion Minerals shares drop 17.4% as capital raise continues

ORION Minerals’ share fell 17.4% on Wednesday after the release of results that showed it had continued to work on its transition to an operating mining company focused on clean energy transition minerals during the year to June 30.

- EDWARD WEST

“Orion's work programs focused on the completion of the Definitive Feasibility Studies (DFS) for the company’s flagship Prieska Copper Zinc Mine (PCZM) and Okiep Copper Project (OCP). Each DFS was released on March 28, 2025,” the group said in a statement on Wednesday. The company, which is listed on the Australia stock exchange and the JSE, aims to be South Africa’s premier copper producer. The share price was trading at 19 cents on Wednesday afternoon, down from 22 cents a year before. The company is also in the process of raising A$5 million (about R57m) via a placement to investors, and Orion chairman, Denis Waddell, the outcome of which is expected to be released on Thursday.

Post year-end, a nonbinding term sheet was signed for $200m - $250m of financing and a concentrate offtake agreement with Glencore for the PCZM. Tranche A of the financing ($40m) would be used for the construction and startup of the Uppers at Prieska. At PCZM, the DFS, covering both the Upper-Level and Deeps mining, indicated a post-tax net present value (NPV) of A$568m (R7.11bn) and a post-tax IRR (internal rate of return) of 26.2% over a 13.2-year Life of Mine (LoM).