Why Cobre (ASX:CBE) now controls a producing Chilean copper mine and plans to expand its output

Sonal Goyal

03 November 2026 09:09 PM AEDT

Why Cobre (ASX:CBE) now controls a producing Chilean copper mine and plans to expand its output

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Key Highlights

Cobre lifted its stake in Sierra Atacama to 62.86% on 12 October 2026, giving it operational control with three of five project director seats.
September quarter Revenue was approximately US$11.8 million and EBITDA was approximately US$0.5 million, with copper recovery rising to 78%.
Stage 1 targets approximately 18,000 tonnes per year of cathode, with stages 2 and 3 ultimately targeting up to 50,000 tonnes.
A 40,000 metre drilling programme is underway, and the company completed an A$90 million Capital raise at A$0.30 per share in October 2026.

Cobre (ASX:CBE) has moved from pure exploration to copper production. On 12 October 2026 it lifted its interest in the Sierra Atacama copper operation in Chile to 62.86 per cent, giving it control, and it has set out a staged plan to expand output.

From explorer to operator

Cobre Limited is an ASX-quoted company with ordinary shares and a Materials sector classification. The ASX company page lists it in the S&P/ASX Emerging Companies index and the S&P/ASX All Ordinaries.

It has long explored in Botswana's Kalahari Copper Belt, and in Chile it now controls a working copper cathode operation through its Subsidiary Sierra Cobre SpA. The purchase of further shares from Minera Salar Blanco SpA cost about US$12 million and gave Cobre three of five project director seats.

What the September quarter showed

The Quarterly Report to 30 September 2026 gives the first operating picture. Sierra Atacama produced 818 tonnes of cathode, compared with 771 tonnes in the March quarter and 879 tonnes in the June quarter.

Quarterly capex was about US$4.0 million. Copper recovery rose to 78 per cent from 66 per cent in March. Revenue was about US$11.8 million and EBITDA was about US$0.5 million, which is positive but thin.

Cobre has not yet consolidated the operation, so its own Cash Flow shows no Chilean exploration spend. Ore from third parties, with 31,820 tonnes received, is intended to lift output, although the company projected only about 500 tonnes of cathode for October.

The expansion pathway

The company targets about 18,000 tonnes a year of cathode in Stage 1, 25,000 tonnes in Stage 2 and, subject to further studies, up to about 50,000 tonnes in Stage 3. These are indicative targets, not guidance.

Stage 1 means refurbishing the solvent extraction circuit and recommissioning a second electrowinning bay. Stage 2 recommissions the second solvent extraction line. A tender award is expected by the end of December 2026, although one chart in the report shows the first quarter of 2027. The company plans to submit an environmental declaration for the larger operation by the end of 2026.

A 40,000 metre drilling programme is under way, and the first diamond hole reached 986.9 metres. Assays are expected in mid-November 2026.

On 21 October the company signed an agreement with Chile's state miner ENAMI for about 150,000 tonnes of leached oxide material at about 0.65 per cent copper, with column testwork recovery of 58 per cent against an assumed 50 per cent at scale.

Funding and inherited debt

Cobre closed an A$90 million raising at A$0.30 per share on 2 October 2026. Cash at 30 September was A$67.3 million before a roughly A$18 million second Tranche arrived on 1 October.

Sierra Atacama carries creditor exposure of about US$32.2 million, down from US$51.7 million when Cobre took over. Structured Debt is being serviced at about US$600,000 a month, and creditors meet on 26 November 2026 to consider a discounted settlement.

Risks and what comes next

Execution is the main risk. Copper recovery, ore supply, approvals, tender outcomes and the capital programme of about US$28.6 million across 2026 and 2027 all need to go to plan. The existing resource is a 2025 NI 43-101 estimate, and a JORC-compliant estimate is still being prepared, so scale beyond it is unproven.

In Botswana, the Ngami demonstration well field is complete and testwork is planned for the December quarter. At Okavango, with Sinomine, about 1.6 kilometres of a planned 3 kilometres of drilling is done, and seismic work with BHP at Kitlanya is processed, with drilling to follow.

The Annual General Meeting in November 2026 will also change leadership: Phil Mitchell becomes Chairman, Martin Holland becomes Managing Director

FAQs

Q: What is the Sierra Atacama operation?

A: Sierra Atacama is a working copper cathode operation in Chile controlled through Cobre’s subsidiary Sierra Cobre SpA, producing copper cathode via a solvent extraction and electrowinning process.

Q: What were the September 2026 quarterly results?

A: Sierra Atacama produced 818 tonnes of cathode in the September quarter. Revenue was approximately US$11.8 million and EBITDA was approximately US$0.5 million, with copper recovery improving to 78% from 66% in March.

Q: What is the expansion pathway for Sierra Atacama?

A: Stage 1 targets approximately 18,000 tonnes per year via refurbishment of the solvent extraction circuit; Stage 2 recommissions a second solvent extraction line for 25,000 tonnes; Stage 3 could reach up to 50,000 tonnes subject to further studies.

Q: What debt does Sierra Atacama carry?

A: Sierra Atacama carried creditor exposure of approximately US$32.2 million at the time of the acquisition, down from US$51.7 million. Structured debt is being serviced at approximately US$600,000 per month.

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