Prospect Resources
Primary tickers: ASX:PSC, FRA:5E8
Stage of development: Exploration, Development
Primary minerals: Copper and Lithium
Projects to promote: Mumbezhi Copper Project, Step Aside Lithium
Project locations: Zambia, Zimbabwe
Website: prospectresources.com.au
Prospect Resources Limited (ASX: PSC, FRA:5E8) is an Australian-based mineral exploration and development company focused on opportunities in future-facing critical battery and electrification metals.
Prospect holds strategic interests in three high quality projects across sub-Saharan Africa. An 85% ownership position in the Mumbezhi Copper Project in Zambia, 90% holding in the Step Aside Lithium Project in Zimbabwe and 100% ownership of the Omaruru Lithium Project in Namibia.
This southern African portfolio of exploration and development assets offers an excellent opportunity for further resource discoveries and a good base from which to grow substantial value for its shareholders.
Cash: AUD 13M
Debt: NIL
Major shareholders:
CITICORP Nominees – 26.58%
HSBC Nominees – 7.97%
Morgan Stanley Nominee – 5.01%
BNP PARIBAS Nominee – 4.57%
MBM Capital Partners – 3.78%
Management ownership- 6%
Financials
Management Profile
Sam Hosack- Managing Director and CEO
Mr Hosack is a proven senior mining executive with over 20 years’ experience within the global resources sector. He joined Prospect in 2018 and was instrumental in leading the advancement, feasibility evaluation, early piloting operations and subsequent strong value realisation of the Arcadia Lithium Project in Zimbabwe via its cash sale to Huayou Cobalt in 2022.
Prior to joining Prospect, Mr Hosack held senior managerial and operations roles over +12 years at leading global miner, First Quantum Minerals Ltd. This included lead project management of major infrastructure construction for the Minera Panama Project, including a copper and coal handling port facility, 128km transmission line and 300MW power station. His broader project development, mining and operations experience encompasses northern, central and southern Africa, Europe, Australia and Central America.
Mr Hosack holds a Bachelor of Engineering (BEng Hons) from Essex University, Master of Business Administration (MBA) from Ashcroft Business School (UK), AICD accreditation and relevant professional registrations.
What is your rationale for taking part in 121 Mining Investment?
To promote the current and future activites of the organisation, to discuss the pathways to production and to evaluate potential joint venture opportunities.
What recent news would you like to highlight to investors attending?
Prospect is rapidly advancing exploration and development drilling programmes at the outstanding Mumbezhi Copper Project in northwest Zambia.
Phase 1 drilling was recently completed at Mumbezhi in December 2024 for over 9,000m of diamond and RC drilling. Recent ground-based Geophysical IP Surveys have also outlined significant regional potential on the large 356 sq km licence held by Prospect over Mumbezhi.
The Company regularly update shareholders on results being returned from Zambia
At Step Aside and Omaruru, Prospect is looking to monetise these assets when conditions in the lithium commodity market improve.
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Publication of a copper Mineral Resource estimate for Mumbezhi, Phase 2 Drilling commencing in March 2025 (resource infill and extension/regional exploration across licence), Completion of Metallurgical studies, Internal Scoping Study
6 Months:
Award of Mining Licences, continued drilling and technical studies
12 Months:
Publish Independent Scoping Study (H2 2025)
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Copper commodity prices dropping unexpectedly
What do you think makes your company such a compelling investment?
The Prospect management team possesses deep, proven expertise in efficiently exploring for, rapidly advancing and successfully delivering world-class mineral projects in Africa. This team is based across Perth, Western Australia, Lusaka, Zambia and Harare, Zimbabwe, and is applying its specialist skillset to identifying, acquiring, progressing and developing value-accretive critical minerals projects, particularly Mumbezhi in the Zambian Copper Belt.
The Company has a proven track record of providing substantial shareholder value generation through the systematic de-risking and advancement of the world-class Arcadia Lithium Mine Project from 2016 to early 2022. The Arcadia Project was subsequently sold to Zhejiang Huayou Cobalt in April 2022 for approximately US$378 million.
The Company is now fully focused on the exploration and development of the Mumbezhi Copper Project which continues to deliver very promising exploration and development drilling results and significant regional potential on the large licence holding in Zambia.
What are the top 3 key investor takeaways?
1. Proven ability and successful track record in designing, developing and delivering battery minerals projects in Africa
2. Well-credentialled Board and Management team, focused on creating and realising long term shareholder value
3. Significant experience in mineral exploration, technical flowsheet design and marketing