Idaho Copper is advancing its 100%-owned CuMo copper-molybdenum-silver project in Boise County, Idaho, one of the largest undeveloped copper-molybdenum deposits in the United States. In this interview with CEO Andrew Brodkey and Chairman Robert Scannell, I asked about the updated PEA economics, whether the low grades can support a mine, management’s track record and incentives, the shift away from the 2020 study’s massive scale, permitting and environmental risks, the reliability of the historical resource for a PFS, drilling and ore-sorting plans, funding, and the biggest remaining risks.
TL;DR
The story rests, in large part, on ore sorting. In the ground the deposit runs about 0.1% copper. Their idea is that the metals sit in thin veins, so sensors on the shovel bucket can reject most of the waste at the face. They told me that lets them send about 20% of mined material to a 35,000 tpd mill instead of the 150,000 tpd plant in the 2020 PEA. That cuts initial capex from $3.1B to $1.169B. The new PEA shows an after-tax NPV8 of about US$1.88B and an 18.5% IRR at $5 copper, $25 moly and $50 silver. Bob called it “the most glaring mispricing” of his career, and to be clear, that’s his description. Funding the next stage is the main challenge. They have about $10M and need about $40M more to get to a PFS.
What have they done for shareholders lately?
They uplisted from the OTC to the NYSE American this summer and raised money at $4.85. They also cleaned up a balance sheet that Bob admitted was a mess three or four years ago. The updated PEA just came out. They got Forest Service sign-off to drill, and this season the first rig in years is turning on the property. Andrew helped grow Magma Copper from a $200M market cap to nearly $4B before BHP bought it. Insiders own 18 to 20%, at an average cost they put at $2.25 to $2.75, so most of them are near or underwater. Despite all that, the stock has fallen. They blamed unit buyers selling the shares and keeping the warrants, retail selling after the PEA, and very thin trading: about $100K a day with a 10 to 15 cent spread. There are no royalties, streams or offtakes on the project. Each of them earns $350K salary with no bonus plan. On a change of control, their options vest and they get two years of severance.
How much money do they have and what are they spending it on?
They have about US$10M. G&A is roughly $300K a month, and drilling would cost about $1.5M a month with four rigs running around the clock. At full speed that cash lasts to mid-2027, or to the end of 2027 if they slow the drilling. Bob confirmed they need about $20M over the next 12 months, $50M in total to deliver a PFS, and $40M more than they have now. He said they won’t go back to the equity market at these prices. Instead they’re working on government money (grants, loans, loan guarantees, defense offtakes), a strategic investor taking about 9.9% with a board seat, royalties and offtakes. His goal is to have something done by the end of Q1 2027, and they’re in Washington within 30 days.
Upcoming catalysts
Andrew hopes to finish two holes of about 3,000 ft each before the snow, and expects assays from a Tucson lab before year-end. He plans to report them as an ore-sorted copper equivalent instead of raw in-situ grades. Drilling stops until about mid-May. Then the plan for 2027 is four rigs and 100,000 to 125,000 ft. Most of it is infill to upgrade inferred to M&I, plus geotechnical holes and step-outs to the south and west, where they want copper grades of 0.15 to 0.2%. A new resource would follow in 2028. Over the winter they start PFS side studies on tungsten recovery, which isn’t in the resource yet. They’re also planning a moly roaster and ferromoly plant near Boise. The other studies cover in-pit crushing and conveying versus trucks, power options including small modular reactors, and acid rock drainage. Andrew put the PFS 18 to 24 months out. Watch for a summary judgment ruling in the lawsuit and any government funding news.
Risks
The biggest one is the lawsuit. It’s the third major challenge from environmental groups over the project’s history, and the earlier ones won in court, including on Sacajawea’s bitterroot. This one goes after road stream crossings and asks the court to throw out the environmental assessment, require a full EIS and block further work. There’s no injunction, and both sides have filed for summary judgment. Andrew said their lawyers see the claims as minor administrative issues. Andrew’s own worry is getting four rigs for 2027. Bob’s is money. Specifically raising $40M when the market cap is $39M. The economics depend on 80% ore-sorting efficiency. Nobody has done this at this grade, and the second-stage penetrative scanning hasn’t been tested yet. The resource still rests on historical drilling, last done in 2012. Andrew also said copper-focused majors find a moly-led deposit a harder sell. A full EIS will be needed for any mine on federal land upstream of the Boise River, and the 7.7M warrants at $5.75 add overhang.
Idaho Copper CEO Interview
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