Interview with Barry O'Shea, CEO of Highland Copper
Our previous interview: https://www.cruxinvestor.com/posts/coppers-new-era-from-cyclical-commodity-to-strategic-lifeline-10769
Recording date: 22nd September 2026
Highland Copper Company Inc. (TSXV:HI) has reached a significant financing milestone for its Copperwood copper project in Michigan's Upper Peninsula: final approval for a US$50 million grant from the Michigan Strategic Fund under the state's Strategic Site Readiness Program. No further state approvals are required, and the reimbursable structure returns funds to the company dollar-for-dollar as it spends on eligible regional infrastructure - power upgrades, telecommunications, and road improvements outside the mine gate.
The grant lands alongside a revised project timeline. CEO Barry O'Shea confirmed that the construction decision previously targeted for the second half of 2026 has shifted into 2027, with production now expected in the second half of 2030 rather than 2029. He attributed this to continued mine-plan optimisation work including cut-off grade and pillar-size adjustments identified in a June 2026 announcement, and the additional time needed to secure the Michigan grant, rather than to any fundamental setback. An updated feasibility study incorporating these changes is due in the first half of 2027.
Copperwood's economics carry substantial leverage to the copper price. The 2023 feasibility study produced a $168 million after-tax NPV and 18% IRR at a $4 per pound copper price which were insufficient at the time to attract meaningful capital. With long-term consensus pricing now closer to $5 per pound, company materials put the updated NPV at $507 million (33% IRR), rising to $855 million (48% IRR) at $6 per pound, a level copper is already approaching, with futures trading near $6.90/lb. The updated study will also incorporate the Michigan grant, a 1.6-percentage-point copper recovery improvement from newly adopted Jameson cell flotation technology, and potential mine-life extensions from the project's 79 million tonnes of inferred resource, partially offset by three years of cost escalation.
On financing, the Michigan grant is one piece of a broader non-dilutive stack. A separate US$50 million application is pending with the U.S. Department of Defense, though management expects to receive closer to $20-25 million based on precedent. The largest component remains a $250 million Letter of Interest from the U.S. Export-Import Bank, which remains non-binding; Highland Copper is running a competitive process to convert it into binding debt terms, potentially bringing in additional partners alongside existing 28% shareholder Orion Mine Finance. Together, non-dilutive sources could cover an estimated 70-80% of the roughly $400 million capital requirement, leaving $100-125 million to be raised as equity - which O'Shea expects to draw from a mix of Canadian, U.S. and other institutional investors once binding debt terms and the updated feasibility study are secured.
The company has also strengthened its leadership bench ahead of a potential build decision, adding Peter Hemstead (ex-Capstone Copper) as interim CFO and Trace Arlaud (ex-Rio Tinto Resolution Copper) as Project Director within the past six months. For investors, the key milestones to track are the H1 2027 feasibility study, the Q3 2027 conclusion of the debt financing process, and progress converting the EXIM letter to binding terms.
View Highland Copper's company profile: https://www.cruxinvestor.com/companies/highland-copper
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