Cobre Limited (CBE.AX) Sierra Atacama Copper Mine Delivers First Positive Cash Flow

Sydney, July 6, 2026 AEST (ABN Newswire) - Cobre Limited (ASX:CBE) announced that the Sierra Atacama Copper Project, in the Antofagasta region of northern Chile, has returned to positive operating cash flow under Cobre's operatorship.

HIGHLIGHTS

- Sierra Atacama generated positive operating cash flow of US$644k (A$900k) in April and US$601k (A$860k) in May 2026 - the operation's first consecutive cash-flow-positive months - and is expected to remain profitable through June and beyond with performance continuing to strengthen as the year progresses. All this achieved within eight weeks of Cobre assuming operational control.

- The turnaround has been delivered through disciplined execution across the operation: p materially higher mined head grades following a redesign of the operational mine plan and rigorous grade control;

- improved leach recoveries from optimised leach pad design and finer crush size, with further gains targeted through ongoing metallurgical test work; and

- improved copper cathode quality, reducing product penalties.

- Targeted capital investment is now underway across the mining fleet, ventilation, electrification and cathode infrastructure, supporting a planned ramp-up toward 700 tonnes of copper cathode per month by Q1, 2027.

- Concurrently, the Company is advancing the potential introduction of open-pit mining, providing a pathway to expand production towards the plant's installed nameplate capacity of 20,000 tonnes of copper cathode per annum.

- This paves the way to producing c1,500 t per month by Dec-27, generating US$8 -10m (A$10 -14m) per month in operating cash flows.

The turnaround establishes a cash-generative foundation for the Company's broader value-rerate programme at Sierra Atacama, encompassing JORC-compliant resource definition, near-mine resource expansion, and delineation of the high-grade sulphide zone.

Commenting on the turnaround, Cobre's Chief Executive Officer, Adam Wooldridge, said:

"Restoring Sierra Atacama to positive operating cash flow within two months of assuming control is a credit to the operating team. Our sequence is deliberate: stabilise, then optimise, then expand. Each subsequent stage - the optimised underground, staged open-pit development and, ultimately, the sulphide opportunity - will be advanced from a foundation that is already paying its way at the operating level."

Cobre's Chief Financial Officer, Kaveen Bachoo, further added:

"Two consecutive months of positive operating cash flow mark a meaningful financial turning point for Sierra Atacama. We are continuing to reset supplier relationships and drive down cost, to create the resilient, cash-generative platform needed to support the Company's planned expansion and next phase of growth."

Since assuming operational control of the project at the end of March 2026, the Company has executed a structured turnaround programme across the existing underground mine and SX-EW processing operation, addressing the fundamental drivers of cathode output, product quality and unit cost.

The results have been immediate and measurable, with improvements achieved across mined head grade, leach recovery, cathode quality, production stability and operating costs. The turnaround underpins the Company's broader six-part valuererate programme for Sierra Atacama, detailed later in this announcement.

Whilst the copper price has been supportive, the Company notes the continuing impact of geopolitical tensions on key cost inputs, including sulphuric acid and diesel. Cobre continues to work closely with key suppliers to manage these costs and improve operating resilience.

The Company is now implementing a structured ramp-up to 700t/m of copper cathode with strategic capital investment into the mine fleet, ventilation, fortification, plant and crusher maintenance.

The focus for the coming months will be on increasing underground development to ensure sustained access to higher-grade material and support a more consistent production profile.

DRIVERS OF THE TURNAROUND

The reset is being executed across four practical, near-term workstreams that together feed a single chain from improved grade control through to stronger cash flow.

Mining and grade control

Tighter grade control - improved drilling, mark-up and ore/waste categorisation, an updated mine model and a refocus on higher-grade zones - has lifted the grade and consistency of feed delivered to the crushing circuit. The Company expects these disciplines to deliver further improvement as they mature and as increased underground development opens sustained access to higher-grade working areas, providing a more consistent and higher-grade feed to the plant over the coming quarters.

Infrastructure and throughput

Reduction of the crushing size from 11 mm to 9 mm, together with fleet repair and ventilation works, has improved the consistency and volume of material presented to the leach pads, supporting more stable acid consumption and leach kinetics.

Processing optimisation

SX-EW and solvent-extraction improvements, ore segregation and ongoing metallurgical test work are supporting cathode quality and saleability, and recovery remains a central focus of the turnaround. The Company anticipates continued recovery improvement as leach pad design, crush size and acid management are progressively optimised, converting a greater proportion of the contained copper into saleable cathode.

Commercial and cost efficiency

A reset of key contractor arrangements has restored equipment availability and reduced costs across the mine and plant, removing a major obstacle to consistent monthly delivery and enabling better commercial terms for essential supplies. This work will continue through the September 2026 quarter.

GUIDING TOWARDS A 1,500/MONTH RUN RATE BY DECEMBER 2027

With the operational platform now stabilising, the Company's near-term focus is to consolidate cathode output at approximately 400 tonnes per month, before ramping toward 500 -700 tonnes per month over the next 12 months.

Priorities for the September 2026 quarter include:

- assessing the processing of third-party ore to supplement mill feed and accelerate utilisation of installed capacity;

- ramping up underground development to open additional higher-grade working areas; and

- resourcing and strengthening the team to support the next phase of growth.

Indicative production ramp-up and operating cash flow (Figure 6*)

These improvements to the existing operation run in parallel with the Company's broader strategy to grow the resource base and progress staged open-pit development, as previously announced. The reset is intended to provide a stable, cashgenerative foundation from which that larger growth strategy can be advanced.

SIERRA ATACAMA VALUE RERATE

Value re-rating at Sierra Atacama has been divided into the following workstreams:

1. Underpinning the value of the asset with JORC compliant Resource and Reserves;

2. Optimising and expanding the current underground mine to return this to profitability;

3. Near mine expansion of the resource to progress to a staged open pit operations;

4. Delineating and developing the extensive high-grade suphide zone;

5. Capturing the extensive blue-sky exploration potential which remains untouched; and

6. Refinancing and cleaning the debt structure.

*To view the announcement including tables and figures, please visit:
https://cobre.com.au/announcements/

About Cobre Limited

Cobre Limited (ASX:CBE) is a global copper company focused on high-margin production and tier-1 exploration across two of the world's premier mining jurisdictions: the Atacama region in Chile and the Kalahari Copper Belt (KCB) in Botswana. By combining an operating asset at the Sierra Atacama Mine with a dominant, belt-scale landholding in the KCB, Cobre offers a unique, de-risked investment case that spans the entire copper value chain—from near-term cathode production to world-class discovery potential. Cobre's strategic portfolio includes the newly acquired Sierra Atacama Mine in Chile, located in the heart of the world's most prolific copper-producing district, alongside a massive 5,348km2 landholding in Botswana.

   

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