Royal Gold acquires Horizon Copper to deepen copper exposure

Horizon Copper

Royal Gold acquires Horizon Copper for $196 million, advancing its copper growth strategy. The streaming and royalty company will buy all Horizon shares except Sandstorm’s. The cash offer is C$2 per share, or $1.46 per share. Royal Gold acquires Horizon Copper to consolidate high-quality copper interests.

Deal terms and portfolio exposure

The transaction values Horizon’s 86.49 million outstanding shares at the stated cash price. Horizon owns a 1.66% net profit interest in Peru’s Antamina mine. The open-pit operation ranks among the world’s largest copper producers. Horizon also holds 30% of the Hod Maden copper-gold project in Turkey.

Horizon owns 24% of Entrée Resources, providing exposure to Oyu Tolgoi in Mongolia. In a parallel move, Royal Gold agreed to acquire Sandstorm for $3.5 billion. Each deal depends on the other’s completion to close. Therefore, execution will follow coordinated regulatory and shareholder approvals.

Strategic rationale and copper market implications

Royal Gold acquires Horizon Copper to expand long-life, low-cost copper optionality. The portfolio adds tier-one assets across the Americas and Eurasia. As a result, cash flow diversity and duration should improve. Streaming economics also limit operating cost exposure and inflation risk.

This combination tightens alignment with global copper fundamentals. Antamina, Hod Maden, and Oyu Tolgoi anchor growth into the next cycle. Meanwhile, the Sandstorm acquisition scales platform reach and deal flow. Therefore, portfolio depth supports disciplined capital allocation through price volatility.

The Metalnomist Commentary

This is a scale play into copper with premier asset linkages. Integration discipline and royalty contract terms will determine value capture. Watch closing timelines, Antamina profitability, and Hod Maden development milestones.

Namibian Copper Assets Move Toward 2027 Restart as CCC Targets Brownfield Growth

Consolidated Copper Corporation

Namibian copper assets are moving back into focus as Consolidated Copper Corporation prepares to restart its Central Operations project in October 2027. The plan could add meaningful concentrate supply from Namibia at a time when copper buyers are seeking stable, diversified sources outside traditional high-risk jurisdictions.

Central Operations includes the Otjihase and Matchless underground copper mines. CCC expects 2028 to be the first full year of production, with copper concentrate output above 23,000t. Output is then expected to rise to more than 35,000t in 2029 and exceed 45,000t by 2033.

The restart also shows how brownfield copper assets can become strategically valuable in a tight global market. CCC is not building an entirely new mining system from scratch. Instead, it is rehabilitating existing operations, using established infrastructure, and scaling production as mining capacity improves.

Central Operations Highlights Namibia’s Brownfield Copper Potential

Namibian copper assets offer CCC a lower-risk route to growth because existing mines and processing infrastructure can shorten development timelines. In the initial phase, mining capacity will limit concentrate output more than concentrator capacity. CCC expects to use only one-third to one-half of the plant’s capacity at first, depending on how quickly ore production ramps up.

This approach reflects a broader shift in copper development strategy. As greenfield projects become slower, more expensive, and more exposed to permitting risk, brownfield restarts can offer faster supply additions. Namibia’s advantage lies in combining geological potential with a relatively stable operating environment.

CCC’s wider portfolio supports that strategy. The company also operates the Tschudi copper mine and owns Berg Aukas, a former zinc mine under redevelopment evaluation. At Tschudi, CCC has produced 6,946t of copper cathode since June 2024 from residual copper in an existing heap, including 3,237t in 2025.

Sulphuric Acid Supply Becomes a Strategic Constraint

Sulphuric acid supply is becoming a key cost and logistics issue for copper producers in Namibia and southern Africa. CCC has consumed 29,473t of sulphuric acid to date, including 15,432t in 2025. This highlights how copper output increasingly depends not only on ore and processing capacity, but also on reliable chemical supply chains.

Tschudi has a nameplate capacity of 17,000 t/yr of copper cathode. Production reached 6,000-7,000t in the first year and is expected to rise to 14,000-15,000t by year three or four. However, tight acid markets could influence operating costs, procurement strategy, and the pace of regional copper growth.

Namibia is also attracting broader copper development interest. Projects such as Koryx Copper’s Haib and New Horizon Copper’s Kombat mine show that the country is building a more visible position in the African copper pipeline. As buyers look for supply diversification, Namibia’s ability to provide regulatory stability and faster project execution could become a competitive advantage.

The Metalnomist Commentary

CCC’s restart plan shows why brownfield copper assets are becoming strategically important in the energy transition supply chain. Namibia’s opportunity is not only geological; it is also about infrastructure, policy stability, and secure inputs such as sulphuric acid.

European zinc premiums stay stable as LME stocks decline

European Zinc

European zinc premiums remained stable this week even as LME stocks fell further and demand stayed muted. Market participants report that European zinc premiums for special high-grade (SHG) material are caught between weak spot consumption and tightening warehouse inventories. As a result, the regional zinc market is balanced more by opposing forces than by any clear bullish or bearish trend.

Weak demand offsets tightening LME zinc stocks

Spot demand for SHG zinc in Europe remains subdued as industrial activity stays soft across core consuming sectors. However, lower buying interest has prevented European zinc premiums from reacting more strongly to the latest drawdown in exchange inventories. Buyers feel little urgency to chase units, even as visible stocks trend lower.

At the same time, LME three-month zinc prices show only modest movement. Prices settled at $2,930/t, down just 0.71pc week on week, underlining the market’s cautious tone. Meanwhile, LME zinc stocks fell another 6.63pc to 46,825t, tightening the buffer of readily available metal. Therefore, investors and physical traders are watching whether continued stock draws eventually push European zinc premiums higher if demand recovers.

New South African copper-zinc supply on the horizon

Supply-side developments also matter for long-term zinc balance. Australian developer Orion Minerals recently signed a non-binding term sheet with Glencore for up to $250mn in financing. The funds will support development of the Prieska copper-zinc mine in South Africa’s Northern Cape, alongside long-term concentrate offtake.

Prieska holds 31mn t grading 1.2pc copper and 3.6pc zinc, with a planned two-phase mine life of 13.2 years. Steady-state output is targeted at 65,000 t/yr of zinc and 30,000 t/yr of copper, which will add a meaningful new stream of concentrates into global flows once in production. As a result, prospective new supply such as Prieska could eventually ease tightness in refined markets and influence future European zinc premiums.

The Metalnomist Commentary

Europe’s zinc market is in a stand-off between demand weakness and steadily falling LME inventories. The next decisive move in European zinc premiums will likely depend on whether macro demand recovers first or new concentrate supply, like Prieska, arrives fast enough to cap any tightening. For now, physical players are managing exposure carefully, treating stability as temporary rather than structural.

Indonesia’s Nickel Ambitions Face Obstacles Amid HPAL Expansion

HPAL

Indonesia is poised to increase its nickel production in the coming years, primarily by boosting its high-pressure acid-leaching (HPAL) capacity. However, this ambitious plan faces significant hurdles, notably the scarcity of sulphuric acid and challenges in managing tailings waste effectively. Despite these concerns, production is still expected to grow, even as the global nickel market anticipates a surplus.

Sulphuric Acid Supply and Tailings Management: Key Challenges

The HPAL process relies heavily on sulphuric acid to extract nickel and cobalt from ore, producing mixed hydroxide precipitate (MHP), which is essential for downstream nickel sulphate and battery production. Indonesia is projected to produce between 325,000 to 345,000 tons of MHP this year, a jump from 269,000 tons in 2023. With several new MHP projects on the horizon, output is expected to rise significantly, potentially tripling to 800,000-900,000 tons by 2026, as highlighted by Indonesia's Deputy Minister Septian Hario Seto during a recent metal industry event in London.

The increase in MHP production will necessitate more nickel ore and sulphuric acid, raising concerns about the sustainability of limonite ore supplies, which could deplete quickly like saprolite ore, currently used for nickel pig iron and matte production. The Indonesian government plans to address these issues with industry stakeholders.

Currently, Indonesia's four operational HPAL facilities—Huayou's Huayue and Huafei projects, GEM's QMB project, and Lygend's HPAL project—have been importing sulphuric acid primarily from China and South Korea. However, the rising cost has led some producers, such as Halmahera Persada Lygend, to switch to cheaper sulphur alternatives. The startup of new smelters, like Freeport McMoran's Manyar in Java and AMNT's copper smelter in Nusa Tenggara, is expected to add 3 million tons per year of acid capacity by 2025, potentially easing supply pressures.

Another critical issue is the proper disposal of tailings waste, which has come under increased scrutiny due to environmental, social, and governance (ESG) standards. The HPAL process generates substantial amounts of waste, with energy consultancy Wood Mackenzie estimating 1.4-1.6 tons of tailings per ton of nickel produced. Three disposal methods—tailings dams, deep sea disposal, and dry stacking—each have their risks, with dry stacking viewed as the more sustainable option. Yet, Indonesia’s wet climate and seismic activity pose challenges for safe waste storage.

To ensure the successful expansion of its HPAL production, Indonesia must secure a stable supply of sulphuric acid and implement sustainable methods for managing tailings waste. Addressing these issues is critical for maintaining the momentum in the country’s nickel production growth while adhering to stricter ESG standards.