Cobre Limited (ASX: CBE) has reached a significant financial turning point at its Sierra Atacama copper project in northern Chile, recording two consecutive months of positive operating cash flow. The company reported inflows of US$644,000 in April and US$601,000 in May 2026. This performance marks a material transition for the asset, shifting it from a development-focused acquisition into a cash-generative operation just eight weeks after Cobre assumed control at the end of March.

The rapid turnaround is attributed to a series of disciplined operational adjustments across the existing underground mine and solvent extraction-electrowinning (SX-EW) processing plant. Management implemented a redesigned mine plan, reinforced grade control, and optimized leach pad performance by refining the crush size. These technical improvements have successfully lifted head grades, increased recovery rates, and enhanced the quality of the final copper cathode product, simultaneously reducing cost penalties.

"Restoring Sierra Atacama to positive operating cash flow within two months of assuming control is a credit to the operating team. Our sequence is deliberate: stabilise, then optimise, then expand. Each subsequent stage - the optimised underground, staged open-pit development and, ultimately, the sulphide opportunity - will be advanced from a foundation that is already paying its way at the operating level." — Adam Wooldridge, Chief Executive Officer

Building on this stable footing, the company is now executing a structured ramp-up plan. Capital investment is currently being directed toward the underground mining fleet, ventilation upgrades, and processing infrastructure. These initiatives are designed to support a production target of 700 tonnes of copper cathode per month by the first quarter of 2027. Cobre expects these performance metrics to continue strengthening throughout the remainder of the year as the planned upgrades reach completion.

Beyond the immediate production gains, Cobre is advancing a broader six-part value-rerate programme for the project. This strategy extends well past the current operational turnaround, incorporating systematic resource definition and near-mine exploration to build long-term scale. While the company monitors the influence of geopolitical factors on input costs like diesel and sulphuric acid, leadership remains focused on maintaining the project’s newfound resilience. By establishing a self-funding platform, the company aims to support its future growth phases—including potential open-pit development and the delineation of deeper high-grade sulphide zones—without relying solely on external capital. This progress highlights the company's shift toward creating a sustainable, cash-generative foundation for its wider copper portfolio.

Read the full announcement: Sierra Atacama Copper Mine Delivers First Positive Cash Flow