Why Anax Metals (ASX:ANX) hinges on funding to take its Whim Creek copper-zinc project to a decision

Sonal Goyal

03 November 2026 09:09 PM AEDT

Why Anax Metals (ASX:ANX) hinges on funding to take its Whim Creek copper-zinc project to a decision

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Key Highlights

Whim Creek DFS update shows a pre-tax NPV of A$501 million at a 7% real discount rate, a 98% IRR and pre-production Capital of A$77.2 million.
Mons Cupri Mineral Resource upgraded in August 2026 to 6.32 million tonnes at 1.38% copper equivalent, up 20% in contained metal.
Front-end engineering design for a proposed 400,000 tonne per year concentrator began on 27 July 2026.
Final Investment Decision targeted for the December 2026 quarter, subject to completing project finance and engineering design.

Anax Metals (ASX:ANX) is trying to move its Whim Creek copper-zinc project in Western Australia from study to construction, and the next few months hinge on engineering work, project finance and a Final Investment Decision (FID) that the company targets for the December 2026 quarter. A larger resource at the neighbouring Mons Cupri deposit adds to the case, but funding remains the central test.

Where Whim Creek sits

Anax is a Materials-sector mineral explorer and developer holding 80 per cent of the Whim Creek project in the Pilbara, with Develop Global holding the other 20 per cent. Its February 2026 definitive feasibility study update, on a 100 per cent basis, reported a base-case pre-tax net present value of A$501 million at a 7 per cent real discount rate, a 98 per cent internal rate of return and pre-production capital of A$77.2 million.

Those are study outputs, not outcomes, and they depend on metal prices, costs and financing. The Ore Reserve stands at 4.61 million tonnes at 1.36 per cent copper and 2.31 per cent zinc, and front-end engineering design for a proposed 400,000 tonne a year concentrator began on 27 July 2026.

Mons Cupri grows

On 25 August 2026 Anax reported a Mons Cupri Mineral Resource of 6.32 million tonnes at 1.38 per cent copper equivalent, under the JORC Code and a 0.50 per cent cut-off. About 78 per cent of the tonnes are Measured or Indicated. Figures are on a 100 per cent basis; Anax owns 80 per cent.

Contained copper equivalent rose 20 per cent against the 2018 estimate to 87,200 tonnes. The company cautions that the comparison is not like-for-like because cut-off criteria and equivalence factors changed.

Phase 1 diamond drilling has since completed 11 holes for 3,158 metres of a planned 5,000 metres. Hole 26ANXDD001 returned 85.9 metres at 2.89 per cent copper equivalent from 34.6 metres. An Ore Reserve update is targeted for the December 2026 quarter.

The money question

Anax reported a loss after tax of A$6.04 million for the year to 30 June 2026, against A$3.80 million a year earlier. Cash was A$11.15 million at that date, helped by about A$18.4 million of Equity raised during the year.

By 30 September 2026 cash had fallen to A$7.46 million after A$2.74 million of exploration and evaluation spending in the quarter. The company's own funding estimate was 2.08 quarters.

A secured A$3.1 million Jetosea loan, carrying 6 per cent interest and backed by the Whim Creek interest, matures on 31 December 2026. The Annual Report records a material uncertainty over Going Concern if funding initiatives fail.

Financing and offtake

The annual report refers to indicative, non-binding Debt offers of up to US$40 million relating to the 80 per cent interest, subject to due diligence, Credit approval and documentation. The September Quarterly Report says Due Diligence on non-binding term sheets is continuing.

Nothing binding has been announced, so an FID on schedule is a target rather than a certainty. Offtake arrangements also need securing.

Risks and milestones

Beyond financing, the risks include cost Inflation in construction, metallurgical performance, permitting and approvals, and Commodity price swings in copper and zinc. Equity raisings to bridge the gap could dilute existing holders.

A heap leach feasibility study, started on 3 September 2026, is due in the first quarter of 2027. Column testwork by CSIRO reported copper extraction of 77 to 80 per cent and zinc above 90 per cent from lower-grade ore, results the company stresses are not a production forecast.

First production is indicated about 18 months after an FID. The remaining Phase 1 assays, the Ore Reserve update, the FEED outcome and the Jetosea Loan Maturity are the dated items to watch.

Word count (article body only, recounted by script; excludes headline, subheadings, sources and publishing notes): 600

This article provides general information only and does not constitute personal financial advice.

Sources

1. ASX / Anax Metals — ASX company header and about data - Anax Metals (2026-11-03) [primary]: https://asx.api.markitdigital.com/asx-research/1.0/companies/ANX/header

2. ASX / Anax Metals — Quarterly Activities/Appendix 5B Cash Flow Report (September 2026) (2026-10-25) [primary]: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03152907-6A1351270?access_token=83ff96335c2d45a094df02a206a39ff4

3. ASX / Anax Metals — Mons Cupri Mineral Resource Update (2026-08-24) [primary]: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03125502-6A1340070?access_token=83ff96335c2d45a094df02a206a39ff4

4. ASX / Anax Metals — Annual Report to shareholders (FY26) (2026-09-21) [primary]: https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03137852-6A1344807?access_token=83ff96335c2d45a094df02a206a39ff4

Research date: 3 November 2026

Feature image

Image brief: Pilbara landscape or an exploration drill rig on red-earth terrain in Western Australia; no logos or invented plant renderings.

Alt text: Red-earth Pilbara landscape with an exploration drill rig on the horizon

Caption: Anax's Whim Creek copper-zinc project is in the Pilbara region of Western Australia.

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Verification notes

Status: Completed

Listing: ASX: ANX — Quoted

Verified index membership: None verified; no index named in the headline.

Dividends / distributions: Not covered

Editor notes: Quarterly report mentions offers up to A$57m for Anax's 80% interest; annual report says debt offers up to US$40m - article uses the annual-report figure only. Annual report truncated at end. Resource announcement dated 24 Aug UTC (25 Aug local). About endpoint listed no index. CSV not used.

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