Annual Report – End 30 June 2024

⚒️ Southern Hemisphere Mining Limited has released its Annual Report to shareholders dated 30 June 2024.

This includes Chairman Mark Stowell’s letter to shareholders discussing the work being done at, and planned for, the company’s major projects in Chile – including the flagship Llahuin Copper-Gold-Moly Project, the Los Pumas Manganese Battery Project and the Lago Lithium Brine Project.

Stowell comments:

Dear Shareholder

Thank you for your keen interest and financial support over the year(s) and please note that the copper price and commodity interest is now moving in the right direction for our flagship Llahuin copper-gold-molybdenum-silver project in Chile.

We have a unique project in the copper sector which has key quantities including:

• Tremendous scale potential for a large open pit and deeper underground higher-grade long-life mine that the majors and mid-tier copper producing companies are attached to. It already hosts a significant resource from surface of 680kt CuEq M+I+I including excellent results of up to 106m at 1.69% CuEq;
• A ~5,000m RC and diamond drilling program commencing October 3, 2024 targeted at the significant and underexplored prospects of Cerro-Ferro and Curiosity at Southern Porphyry;
• Located in an “A” internationally credit rated country Chile;  100% owned;  Low elevation – 1,100 – 1,500m above sea level;
• Neighbouring large mine 8km west (El Espino) is permitted and in construction demonstrating low barriers to production and a proven geological province;
• Low population and low employment area – Combarbala where our exploration team is based is ~14,000popn, 24km away, and Illapel ~30,000popn 45km;
• Power within 5km of site; and
• Water potential subsurface. Our 2023 drilling intersected a water table at ~40-60m in the key areas of resource growth.

During the year we promoted the Company at key conferences Latin Rocks in Santiago, PDAC in Toronto and a number of online seminars and presentations to investors, and regular Linked-In updates. As a result, we have a solid list of majors, mid tiers and specialist PE funds following the project, and included a number of site visits. Some of their feedback has been invaluable for our technical team.

There is a substantial disparity in the metals market where most of the value investors have moved out to other sectors and mining has been downgraded due to ESG with funds movement out of the minerals investment to tech, AI, etc and many specialist mining funds closed or moved focus to only major producers. Lead times for permitting have increased as a result of more ESG, and this adds cost and risk. The Basel II etc. banking regulations have reduced the banking of new projects by small companies to a handful of specialist funds who dictate price and terms without competition.

On the plus side, this is driving up base metal prices and the underlying value of projects such as ours over time. To recreate today what we have drilled to date would cost many multiples of our market capitalisation.

As this letter goes to print, we will be embarking on our 2024 drill campaign which will be tackling the potential higher-grade areas of this large system to add to resources ahead of a JORC resource update H1 2025.

Importantly, we have engaged the latest in resource identification/location technology. This aids in de-risking and optimising exploration. We are also planning on some deeper holes to test potential higher grades where our team’s work interprets the core of the deposit.

A typical porphyry deposit is more concentrated at depth (neck of the funnel from which the mineralisation was sourced – see Figure 1 below) and given the over 2km of strike we have defined there should be a significant core to discover. The Cerro-Ferro deposits core has not been intersected yet in any drilling as almost all has been relatively shallow to date.

Our meetings with the majors and recent M&A activity including BHP taking over Filo etc. indicates that intersecting a high-grade core is a catalyst de-risking event often sought prior to a potential transaction. Our work is taking us closer to this and hopefully success in this current drill campaign.

Our ultimate goal for Llahuin is to bring a major copper producer into the project to expand and develop it.

This is a very valuable project with large tonnage, simple open pit mining configuration characteristics, good location in a great copper country, as well as multiplier resource growth potential.

We are working towards the next JORC resource update in H1 2025.

The copper price is US$4.36 per lb at time of writing and forecasted to rise, which bodes well for advancing our flagship copper project Llahuin into 2025 and beyond.

There are very few opportunities with the endowment, location and optimum configuration like Llahuin independently held in the world today and given our market cap we sit as one of the cheapest copper companies in the world per tonne of copper resource and upside growth.

We have an excellent team on site in Chile and at head office, and the Board takes this opportunity to thank them and all our consultants for their work through the year and look forward to showcasing the results of their diligent work in due course.

Yours sincerely,

Mark Stowell
Chairman – Southern Hemisphere Mining Limited

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Southern Hemisphere Mining Limited is an experienced minerals explorer in Chile, South America.

Chile is the world’s leading copper producing country and one of the most prospective regions of the world for major new copper discoveries. The Company’s projects include the Llahuin Porphyry Copper-Gold-Moly Project, the Lago Lithium Exploration Project, and the Los Pumas Manganese EV Battery Project, all of which were discovered by the Company.

For the latest information about the Company – please visit our Latest News and Corporate Profile pages. We are also on LinkedIn and Twitter (X).