About Flagship Minerals
Flagship Minerals is an exploration and development company focused on securing and developing assets situated in superior strategic settings, and which will produce the critical resources required for electrification and a low-carbon future.
As electrification gains momentum we provide exposure to the metals that matter, Copper and Lithium. We aim to do this in a responsible manner, with the future and environment in mind, as we strive to produce better outcomes.
Our Strategy
Flagship Minerals’ strategy is to secure and develop projects which it believes will position the Company as a low-cost producer of Copper and Lithium, metals that matter.
Specifically, Flagship Minerals seeks to secure low capital intensity projects in low-cost jurisdictions and infrastructure rich settings, projects which are positioned for high margin outcomes, and projects which are proximal to industry, chemical processing, and manufacturing.
We believe that, ultimately, a project’s cost environment and geographic setting will be the key determinants of economic success, assuming positive metallurgy.
Our Value Proposition
Our value proposition centers on an inclusive approach to our business, delivering positive outcomes for all stakeholders, and environment we operate in.
We believe in reciprocity – when communities thrive, we thrive. We envision a future where exploration and mining coexist harmoniously with the environment — both local and global — and sustainable growth, delivering positive outcomes for all stakeholders.
Metals that Matter
Copper
Flagship Mineral’s Rosario Copper Project is situated in an infrastructure rich setting 10km to the north of the famous El Salvador copper mine, in northern Chile.
Flagship Mineral’s Rosario Copper Project is situated in an infrastructure rich setting 10km to the north of the famous El Salvador Copper mine, in northern Chile. Rosario is a high-grade early-stage Copper (Cu) – silver (Ag) exploration project. Flagship Minerals recently reported rock chip results up to 8.9% Copper and 50ppm silver. Greater than 50% of Rock Chips reported had Copper values in excess of 0.10% Cu, with an average grade of 2.06% Cu and 12ppm Ag.
Copper is essential for electrification, regardless of the mode of energy transition, whether it be wind, solar, hydro, electric vehicles, or nuclear, Copper is required in the mode of transition itself, Copper is required to connect the mode to the grid, and Copper is required for new grid capacity and extensions to reach the mode. For Copper, the combination of high green transition demand, underinvestment in long cycle supply, declining mining grades and an insufficient pipeline of new projects, means that there is potential for significant price upside. Market commentary suggests that very strong Copper prices are needed to generate the short- term supply responses from scrap supply and substitution to prevent a disorderly and large deficit developing. Once the short-term responses are exhausted, outsized price moves may be required to solve fundamental and unprecedented shortfalls in the medium term, say the next 3-5 years. This is why Flagship Minerals seeks exposure to Copper.
According to market research from the CRU Group commissioned by the International Copper Association (ICA) in 2024, Copper demand is expected to increase at an annual growth rate of 1.85% per annum, or from 28.3 million tonnes in 2020 to 40.9 million tonnes in 2040. Other commentary suggests that there will be an 11.5 million tonne supply deficit by 2040. Growth is defined by regional trends and the green energy transition, with CRU’s research forecasting Copper demand in India to grow at 7% per annum in ASEAN by 6%, with both regions showing high growth in the manufacturing and construction industries. China is expected to remain the largest wire rod user. Demand is forecast to be primarily driven by energy infrastructure, which is forecast to be about 60% of total demand share over the long term. While CRU’s research indicates that wire and cable Copper are expected to lose around 3% market share by 2040, Copper is predicted to retain an 80 percent market share in the long term, and substitution will be offset by gains in total Copper demand, primarily driven by growth in end-use applications and the green energy transition.
Lithium
Flagship Minerals has two lithium projects.
Flagship Minerals has two Lithium projects. The Tama Atacama Lithium Project in northern Chile is one of the largest and most strategically positioned early-stage Lithium brine projects in South America. The project is on rail and road to Antofagasta, South America’s only Lithium chemical hub. Tama Atacama extends over 290 kilometers and consists of six project areas for a total of 1,500 square kilometers. Tama Atacama has highly elevated Li in surface samples, 56 of 177 samples >270ppm Li averaging 700ppm Li and ranging up to 2200ppm Li. The RK Lithium Project in southern Thailand is the only Lithium project with a JORC 2012 compliant Mineral Resource in Southeast Asia. Thailand is the largest electric vehicle producer in Southeast Asia and RK Lithium is strategically positioned to supply Lithium concentrates or chemicals into this vehicle manufacturing hub.
Lithium is the key component in Lithium-ion batteries, which power electric vehicles (EV) and battery energy storage systems (ESS). The Lithium supply chain has two primary supply sources, typically referred to as hard rock and brine. Hard rock is split again into spodumene and other sources. Since Lithium entered the mainstream investor vernacular in early 2016, the industry has gone through a steep learning curve, with the cost structure of Lithium producers and the environment they operate in determining the economic viability of many Lithium projects, particularly in the low Lithium price environments of 2019-20 and 2024. As a result, many hard rock projects, particularly those which have lower Lithium grades and are situated in high-cost environments, have been rendered marginal to uneconomic, with some commentators suggesting that as at December 2024 about half of the Lithium producers were operating at a loss.
Lithium from brines is generally much lower cost than hard rock. As a result, there has been a greater focus on Lithium brine projects in the current price environment. This is why Flagship Minerals has exposure to brine and has Lithium projects which are strategically located in low-cost environments near major Lithium chemical and EV manufacturing hubs.
The demand for EV and ESS has been increasing, assisted by increasing manufacturing capacity and rapidly declining Lithium-ion battery prices, which has led to competitively priced EVs. According to market research by specialist Lithium forecasting firms, Lithium battery cell production increased about 15-fold between 2015 to 2024, or from less than 100 GigaWatt Hours (GWh) in 2015 to about 1,500 GWh in 2024. Over the same period cell costs fell from about $240 per kilowatt hour (kWh) to $75/kWh in 2024, which has been the key driver in competitively priced EV production. In China, EV penetration in 2H 2024 was greater than 50% and EVs were up to 15% cheaper than traditional internal combustion energy (ICE) vehicles. Government policy is assisting consumer uptake of EVs, with many Governments setting policy targets for EV sales. For example, India is targeting 30% private, 70% commercial and 80% of two and three-wheeler vehicle sales to be EVs by 2030. Global EV sales have increased from about 3 million units in 2020 to over 16 million units in 2024. Although medium-term Lithium supply is forecast to be in surplus, the forecast is for a supply-demand balance by 2030 and a ~750kt supply deficit by 2035.