Santa Cruz
Santa Cruz: Arizona Copper Targeting First Cathode in 2029
Location:
Arizona, USA
Operator:
Ivanhoe Electric
Asset Stage:
Development
Commodities:
Copper
Mine Type:
Underground
Royalty Key Terms:
1.68% NSR until the 6th anniversary of commercial production and then lowers to 1.57% NSR.
Ivanhoe Electric has a right to buyback 25% of the royalty for cUS$20m(1).
Asset Overview
Royalty on a Tier-One Copper Asset: Santa Cruz is a large-scale, low-cost underground copper project utilising a conventional mine design and processing flowsheet. The Project has an initial 24-year mine life, with average production of approximately 75,000 tonnes of copper cathode per annum over the first 15 years of mining.(2)
Premier Jurisdiction: Santa Cruz is located in Arizona, a globally top-ranked mining jurisdiction with excellent access to established infrastructure. The Project has demonstrated support of the US Government, including a US Export-Import Bank Preliminary Project Letter for US$1.1 billion in potential debt financing.(3) Ivanhoe Electric is in early construction at Santa Cruz with first production of copper cathode expected to commence in 2029.(5)
Low-Cost Production and Exploration Upside: Based on the 2026 PFS, Santa Cruz is expected to operate at an average C1 cash cost of approximately US$1.47 per pound of copper.(2) The Royalty is expected to cover approximately 84% of the current Mineral Reserves and associated Resources, providing Deterra with additional upside via the conversion of additional Resources into Reserves within the Royalty footprint.(4)
Royalty Overview
Deterra entered into an agreement to acquire an existing 1.75% NSR royalty over the Project from independent third parties. Concurrently, Deterra and Ivanhoe Electric entered into a series of agreements to update and modernise the Royalty, which also takes into account certain changes to the Royalty agreed between Ivanhoe Electric and Deterra, including a modest reduction in the royalty rate and a partial buyback option. Following this, and with Deterra’s agreement with the independent third party sellers, Deterra’s interest includes:
- 1.68% NSR royalty until the 6th anniversary of commercial production, then lowering to a 1.57% NSR royalty.
- ROFO on residual 0.25% of the existing Royalty (on an unadjusted basis)(6).
- Ivanhoe Electric has a right to buyback 25% of the royalty for cUS$20m(1) with any royalty receipts received prior to exercise of the buyback retained for Deterra's benefit.
Mineral Reserves and Resources Estimates
Current Mineral Reserves for the Project(2,4), including outside Deterra’s royalty area:
Current Mineral Resources for the Project (exclusive of Mineral Reserves)(2,4), including outside Deterra’s royalty area:
Notes
- Estimated buyback price does not include ROFO on further 0.25%.
- Ivanhoe Electric announcement dated 23 September 2026.
- Ivanhoe Electric announcement dated 24 August 2026.
- The Mineral Reserves and Mineral Resources estimates are not reported in accordance with the JORC Code and have been prepared using the SK-1300 regulations for the US Securities Act of 1933. Accordingly, the Mineral Reserves and Mineral Resources estimates are not, and do not purport to be, compliant with the JORC Code.
- Ivanhoe Electric announcement dated 23 September 2026. Production timing subject to project financing and necessary permitting.
- If Deterra acquires this further interest, it is expected to be amended and reflect similar terms to the rest of the acquired Royalty interest.
