Faraday Copper is a Canadian mining company focused on the exploration and development of copper projects, primarily in North America.
Paul, you have extensive experience in gold. What led you to copper and specifically to Faraday Copper?
Well, I would say that copper is the new gold. Modern civilization would not exist without copper. And when we think about the future and the clean energy transition, copper will play a critical role. The project we have in Arizona through Faraday Copper was an exciting opportunity for me, which is why I got involved.
The story starts back in the summer of 2021, during the pandemic. I had just sold the company I was working for, GT Gold, and was seeking new opportunities. I was introduced to the founder of what was then called Copperbank Resources, a company set up to store copper assets. It had been around for about 10 years but with no active management. After doing our due diligence and seeing the potential, we took over the company in September 2021. One of the projects, Copper Creek in Arizona, stood out as one of the largest undeveloped copper resources in the U.S., and that was the driving force behind my decision to join.
What are the timelines for your Copper Creek project in Arizona?
We are currently drilling a 20,000-meter drill program, aiming to expand the mineral resource by extending known mineralization and testing new targets. Alongside this, we are conducting complementary studies.
The goal is to release a new mineral resource estimate in the first half of next year. Following that, we plan to update our Preliminary Economic Assessment (PEA) in the second half of the year, using all the data we have gathered to refine our understanding of the project.
Would you say that permitting is easier in Arizona compared to other places?
No, I would not say it is easier. In fact, permitting is the biggest challenge, not just in Arizona or the U.S., but globally, particularly in the West. It is a real conundrum because everyone wants a clean energy transition, but environmentalists and NGOs resist mining. There is a disconnect where people do not see the link between the materials they need and the mining required to produce them.
Permitting is taking longer everywhere, not just in the U.S. For example, I read about projects in Zambia that have taken up to 29 years. The situation reflects a broader challenge, as governments struggle to reconcile the demand for critical metals with opposition to new mining operations. It is a key factor slowing down the transition to clean energy.
As a junior in a competitive industry, how do you handle the challenge of attracting capital?
It has been a significant challenge. A few years ago, if you had predicted a gold price of over $2,000/oz and a copper price of over $4/lb, you would expect junior explorers to raise money easily, but that has not been the case. Traditional institutional investors have been stepping away from mining, making it harder to secure funds through the usual channels.
However, we are seeing shifts in capital availability. Governments are creating critical metals funds for early-stage exploration, and private equity groups are now accessing large amounts of capital. For Faraday, having the right investors with a long-term vision is essential, and being part of the Lundin Group has been crucial for us. Many investors seek quick returns, but in mining, you need a 10- to 20-year commitment.
Do you believe that retail investors are becoming increasingly important for the sector?
Yes, retail investors are certainly playing a role, but they tend to be short-term oriented. They often look for quick profits rather than long-term growth, but they can still have a significant impact on share prices in the short term, which can lower the cost of equity.
While retail investors do not always align with the long-term nature of mining investments, they do provide liquidity and can influence how companies are perceived in the market. This impact, though often temporary, is still crucial in maintaining investor interest.
What are your key objectives for the next couple of years?
We are focused on our 20,000-meter drill program, and you can expect continuous updates on the drill results. These results are already showing good potential to significantly expand our open-pit resource. We have also identified several new targets that have never been drilled, so there’s exciting potential for new discoveries.
Beyond that, we will be updating our mineral resource in the first half of next year, which will lead to an updated study. One major focus for us and the industry as a whole is ensuring technical excellence to avoid failures like those we have seen recently with heap leach failures in Turkey and the Yukon. These failures only fuel the arguments of anti-mining groups, so maintaining the highest technical standards is essential for the industry's future.
