Lumina has raised cash, now negotiations with KGHM are starting

The Canadian mining company wants to supply copper from its fields to KGHM's smelters. The parties have signed a letter of intent, and Lumina has already raised capital for investments.

Lumina Metals and KGHM Polska Miedź have signed a letter of intent to establish a framework for talks on possible strategic directions of cooperation. The negotiations are intended to lead to the establishment of the rules for potential supplies of copper concentrate from the Nowa Sól project to the smelters of KGHM, which is one of the key processors of this raw material in Europe.

Technical matters first

According to the signed document, Lumina and KGHM will cooperate on technical and commercial issues related to potential supplies of concentrate - especially in terms of quantity, product quality and metallurgical compatibility, as well as logistics and transport.

"The agreement is an important step in strengthening the Polish metal mining industry and implementing Lumina's strategy to position the Nowa Sól project as the foundation for copper and silver supplies in Poland and the European Union," said Jordan Pandoff, CEO of Lumina, quoted in the release.

In April, the Canadian company placed an issue worth CAD 312.5 million (PLN 830 million), and the charitable foundation of the head of the supervisory board, Ross Beaty, sold the securities for CAD 94 million (PLN 250 million). In total, investors received 32.5 million securities valued at CAD 12.5 per share. This translates into a market value of CAD 1.3 billion (PLN 3.45 billion).

Last week, Lumina began its stock market career with listings on the Toronto Stock Exchange, which is supposed to be its base market. The beginning of trading brought a slight increase in the exchange rate and during the last session of April it was possible to record a local peak at the level of 12.84 CAD. However, the last sessions brought a drop in quotations to around 10 CAD, which pushed the capitalization below PLN 3 billion. Lumina is also planning to debut on the Warsaw Stock Exchange on the basis of dual listing, it is probably a matter of a few months. The relevant application has already been submitted to the WSE.

High hopes in Nowa Sól

The proceeds from Lumina's public offering will finance the development of three copper and silver exploration and production projects in south-western Poland. The most advanced project is the one in Nowa Sól. According to the company's preliminary prospectus, these areas together constitute one of the most important discoveries of copper and silver in Europe in recent decades.

"We are pleased to start talks with KGHM, a globally recognized European leader in copper mining and metallurgy, continuing the development of the project towards the use of Polish local resources of the highest quality," adds Jordan Pandoff.

In 2025. Lumina reported a net loss of CAD 11.98 million, more than CAD 4 million more than it incurred in 2024. The company estimates that it needs USD 6.4 billion to start production in Nowa Sól, which is estimated at 390 thousand tons of copper equivalent in the first ten years.