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Reviewed Condensed Consolidated and Separate Financial Statements for the Financial Year ended 28 February 2026
Copper 360 Limited
(Incorporated in the Republic of South Africa)
Registration number 2021/609755/06
JSE Share Code: CPR ISIN: ZAE000318531
("Copper 360" or "the Company")
OVERVIEW OF THE FINANCIAL YEAR ENDED 28 FEBRUARY 2026
• Transformative recapitalisation successfully concluded in December 2025, extinguishing R715 million of legacy debt and raising
R400 million in fresh equity - fundamentally reshaping the Group's balance sheet and positioning Copper 360 for sustainable
growth.
• Copper metal equivalent production sustained at 1 067 tonnes (2025: 1 054 tonnes), with concentrate copper production
increasing by 44% to 1 067 tonnes and plant recovery improving to 71.8% in the second half of the financial year.
• Total borrowings reduced by 63% to R304 million from peak levels of R824 million prior to recapitalisation.
• Post year-end, the Company completed an operational restructure, simplifying its mining strategy, selectively outsourcing
specialist functions, and rightsizing the organization.
OPERATIONS COMMENTARY
On a total metal-equivalent basis, copper production remained broadly flat year-on-year at 1,067 tonnes (2025: 1,054 tonnes),
notwithstanding a 44% increase in copper contained in concentrate to 1,067 tonnes (2025: 742 tonnes) following the suspension of
cathode production in the second half of FY 2025, thereby simplifying its focus around concentrate production that continued at the
MFP2-plant.
Total Production History
2026 2025
Unit of Concentrate Total Concentrate Cathode
Description Measure Production Production Production Production
Feed Tonnes tonnes 183 176 223 158 163 407 59 751
Total Grade % 0.87% 1.02% 0.95% 1.20%
Contained In-Situ tonnes 1 588 2 269 1 552 717
Recovery % 67.2% 46.4% 47.9% 43.4%
Copper Produced tonnes 1 067 1 054 742 312
Concentrate Production History
Description Unit of Variance
Measure 2026 2025 Qty Variance %
Feed Tonnes Tonnes 183 176 163 407 19 769 12%
Total Grade % 0.87% 0.95% - -0.08%
Recovery % 67.2% 47.9% - 19.3%
Copper Produced tonnes 1 067 742 325 44%
Encouragingly, concentrate copper production increased by 32% in the second half of the year to 608 tonnes (H1 FY 2026: 459
tonnes), with plant recovery improving to 71.8% in H2 (H1: 61.8%), demonstrating the underlying potential of the operation once
feed quality and operating disciplines stabilised.
Unit of Variance Variance
Description Measure Total FY2026H2 FY2026H1 Qty %
Feed Tonnes tonnes 183 176 104 448 78 728 25 720 33%
Total Grade % 0.87% 0.81% 0.94% - -0.13%
Contained In-Situ tonnes 1 588 846 742 103.56 14%
Recovery % 67.2% 71.8% 61.8% - 10.0%
Copper Produced tonnes 1 067 608 459 149 32%
FINANCIAL COMMENTARY
Financial Performance
Total revenue for the year remained even at R143 million, however revenue from the Concentrates segment increased by 47% to
R143 million (2025: R98 million). Revenue remained subdued due to the low grades from broken stock, extracted from Rietberg
Mine's glory hole. Not included in revenue, is finished goods in transit of approximately R24 million of which the revenue will be
recognised in the 2027 financial year.
Total gross loss for the year improved by 1% to R157 million (2025: R158 million). The gross loss on concentrates increased by 33%
to R157 million (2025: R118 million), due to a 44% increase in concentrate production.
Operating loss decreased by 42% to R213 million (2025: R370 million). The 2025 results included an impairment loss of R113 million.
Loss after tax decreased by 17% to R265 million (2025: R321 million). The 2026 result includes R34 million loss on extinguishment of
liabilities settled with equity on the rights issue date of 8 December 2025.
Financial Position
Total borrowings decreased by R520 million from their peak of R824 million (interim: 31 August 2025) to R304 million at year-end, as
short-term debt was settled and converted to equity following the recapitalisation in the second half of the 2026 financial year - a
reduction of R430 million relative to the prior year-end balance of R734 million (2025).
Trade and other payables decreased by R115 million from their peak of R201 million (interim: 31 August 2025) to R86 million at year-
end, reflecting accelerated supplier settlement and improved working capital management following the recapitalisation - a
reduction of R48 million relative to the prior year-end balance of R134 million (2025).
Instalment Sale Agreements reduced by R17 million to R49 million (2025: R66 million). This reduction is in the ordinary course of
business as the number of ISA contracts outstanding remained the same with one underground trackless mining machine being
returned and replaced with another TMM unit.
Intangible assets increased by R222 million to R232 million (2025: R10 million). These intangible assets were created, at the time of
the debt restructuring in December 2025, in consequence of certain royalty and other commission agreements cancelled, partly or
in full. The Company will enjoy the benefit of reduced costs and improved cash flow as a result.
The deleveraging resulted in the debt-to-equity ratio improving to 0.40 (prior: 2.92) and the current ratio to 1.36 (prior: 0.36).
Inventory increased by 118% to R52 million (2025: R24 million) and includes R24 million of finished goods in transit, the revenue to
be realised in the 2027 financial year.
Share capital increased by 158% to R1.9 billion (2025: R744 million) resulting mainly from the recapitalisation concluded in December
2025.
The Group's recapitalisation reshaped its cash position during the second half of the financial year. A successful R400 million equity
capital raise, enabled the Group to settle legacy obligations, reduce short-term borrowings and reinvest in its operations, while
closing the year in a stronger position.
Cash flow during the year was impacted by the delayed construction of the pan concentrator, which deferred the upgrading of ore
feed and consequently constrained higher revenue generation. The unit was commissioned in February 2026, three months later
than initially envisaged.
The resulting cash and cash equivalents improved to R84 million, reversing the overdrawn position of the prior year. The proceeds
from the cash issuance of equity were applied to strengthening the balance sheet by materially reducing short-term borrowings and
supporting the Group's operational reset. The Company still has undrawn facilities, leaving Copper 360 positioned to advance the
development of higher-grade ore at the Rietberg mine and to pursue its multi-mine model.
EXECUTIVE DIRECTOR'S STATEMENT
The 2026 financial year marked a significant turning point for Copper 360 as management focused on stabilising the balance sheet,
simplifying operations and repositioning the Group for sustainable growth. While the Group continues to report a loss for the year,
the underlying financial and operational improvements achieved during the period represent meaningful progress in restoring long-
term shareholder value.
The Company successfully restructured and repurchased legacy royalty and commission obligations, materially easing the historical
drag on revenue and enhancing the long-term investment case for the business. As a result of this recapitalisation, debt decreased
and equity increased. Together, these actions have meaningfully strengthened the Company's position to attract future growth
capital.
The business plan in support of the recapitalisation and rights offer was predicated on feeding upgraded ore from broken stocks to
the flotation plant (MFP2) by September 2025, while simultaneously investing in the mining bypass adit necessary to access the
underground copper sulphide ore body at Rietberg as indicated by the geological data.
The need to use all available funds to satisfy creditors, and the lack of further funding pending the rights offer, led to a delay in
implementing these capital projects. As a result, MFP2 was fed low-grade broken-stock ore with a significant oxide content, producing
lower metal-equivalent recoveries than originally planned.
With the pan concentrator commissioned in February 2026 and development work at Rietberg scheduled for the second half of FY
2027, we are confident that MFP2 can be reliably fed with sufficient-grade sulphide ore, upgraded by panning where needed, to
return the Company to profitability. Management commenced the first phase of a broader strategic restructuring programme shortly
before year end. This included leadership and board changes, a refined mining strategy, planned processing-plant improvements,
selective outsourcing of specialised functions, and a resizing of the organisation to better align the operational cost base with
production requirements. As part of this process, employee numbers were reduced materially across the reporting periods, together
with the implementation of stricter cost controls and operational disciplines.
As copper market fundamentals remain strong, Copper 360 is positioning itself to build greater scale and operational efficiency in
the year ahead. Emerging from this year's results are clear signs of a company with improved financial strength, a simplified and
technically focused operating model, lower overall risk, and an enhanced platform from which to pursue future capital growth
opportunities.
I would like to thank our employees, shareholders, lenders and stakeholders for their continued support during this important period
of transition. We look forward with confidence to the next phase of Copper 360's development.
FINANCIAL RESULTS
Reviewed % Audited
Comparison of Consolidated Results Condensed Change
28-Feb-26 28-Feb-25
R'000 R'000
Revenue 143 233 -0.4% 143 798
Loss before interest and tax (255 307) 31% (367 474)
Loss for the period (265 053) 17% (321 212)
Total Assets 1 753 190 33% 1 322 907
Total Liabilities 504 850 49% 985 394
Total Equity 1 248 340 270% 337 513
Basic loss per share (cents) (19.97) 56% (45.65)
Headline loss per share (cents) (19.46) 42% (33.82)
DIVIDEND DECLARATION
The dividend policy considers the declaration of dividends having regard to the Group's profitability, cash flow generation, capital
expenditure requirements, funding obligations and overall financial position at the relevant time. No dividend has been declared for
the period under review as the Company focuses all its cash resources on the development of the Rietberg Mine. The declaration of
any dividend remains at the Board's sole discretion and is subject at all times to compliance with the solvency and liquidity test
prescribed by section 4 of the Companies Act, No. 71 of 2008, as amended, and any other applicable legal and regulatory
requirements.
REGULATORY
The information in this announcement was extracted from the Reviewed Condensed Consolidated and Separate Financial
Statements for the year ended 28 February 2026, as reviewed by the group's auditors, Moore Pretoria Incorporated. Their
unmodified review report, is included as part of the full Reviewed Condensed Consolidated and Separate Financial Statements on
the Company website (https://copper360.co.za/annual-reports-financials/) and on the JSE's CloudLink
(https://senspdf.jse.co.za/documents/2026/jse/isse/CPRE/AFSFY2026.pdf). The Reviewed Condensed Consolidated and Separate
Financial Statements for the year ended 28 February 2026 were prepared by WA de Villiers CA(SA) and Registered Auditor.
Any investment decisions should be based on the full Reviewed Condensed Consolidated and Separate Financial Statements as the
information in this announcement does not provide full details.
The information on which this announcement is based is the responsibility of the directors of the Company and has not been
reviewed or reported on by the Group's independent external auditor.
FORECAST INFORMATION
The Group issued a forecast profit and loss statement, on 30 November 2023, relating to the results released in this announcement.
The variation between the forecast and the actual results for the year have been explained in the commentary above.
FORWARD-LOOKING STATEMENTS
Any forward-looking statements contained in this announcement have not been reviewed or reported on by the Company's external
auditors.
Stellenbosch
01 June 2026
Designated Advisor: Bridge Capital Advisors Proprietary Limited
Date: 01-06-2026 05:34:00
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