The Cheapest Way to Own a Copper Mine Is to Let Someone Else Build It

A carried 25% interest gives Salazar leveraged exposure to the El Domo build, while established royalty firms showcase the low-capex mine ownership model.

Rhea-AI Summary

Salazar Resources (SRLZF) reported a construction update for the Curipamba-El Domo polymetallic project in Ecuador, where it holds a 25% carried interest while Silvercorp funds and operates the mine, targeting commissioning in July 2027.

Proven and probable reserves total 7.13 million tonnes with grades including 1.93% copper and 2.55 g/t gold, supporting an after-tax NPV of US$573 million at 8% and a 45% IRR over an 11.5‑year mine life. Initial capex is estimated at US$283.7 million; cumulative spend reached US$66.2 million by June 30, 2026. Construction is fully funded, supported by a US$175.5 million Wheaton Precious Metals stream, of which US$87.8 million has been received.

The article also highlights royalty peers: Franco-Nevada (FNV) with 121 cash-flowing assets, 2025 adjusted EBITDA of US$1.66 billion and no debt; Royal Gold (RGLD) with Q1 2026 revenue of US$469.1 million, up 142.5% year over year at an 83% adjusted EBITDA margin; and Triple Flag (TFPM) with a 93% asset margin, record cash flow per share and a US$440 million gold stream on Ravenswood.

Positive

• Salazar holds a 25% carried interest in Curipamba-El Domo with no construction funding obligation
• Curipamba-El Domo after-tax NPV of US$573 million at 8% and 45% IRR with 11.5-year mine life
• Construction fully funded via a US$175.5 million Wheaton stream; US$87.8 million received by July 31, 2026
• Project build advancing with US$66.2 million cumulative capex and key plant foundations and equipment in place
• Franco-Nevada reported 2025 adjusted EBITDA of US$1.66 billion, 121 cash-flowing assets and no debt
• Royal Gold Q1 2026 revenue US$469.1 million, up 142.5% YoY, with an 83% adjusted EBITDA margin
• Triple Flag reported record cash flow per share with a 93% asset margin and a US$440 million Ravenswood gold stream

Negative

• Salazar is a non-operator at El Domo and depends on Silvercorp and contractors for schedule and budget
• Commissioning in July 2027 is a target, and large construction projects commonly experience delays
• Project jurisdiction risk: Curipamba-El Domo is in Ecuador, with regulatory, permitting, community and political risks
• Economic metrics rely on reserve/resource estimates and metal price and cost assumptions that may not hold
• Salazar remains pre-revenue from El Domo until commissioning and its own exploration assets lack defined reserves
• Commodity price volatility in copper, gold, zinc, lead and silver could materially reduce project value
• The article is a paid advertisement for Salazar, creating a conflict of interest and potential promotional bias

News Explained

Key plant work has progressed, but Salazar’s 25% carried interest does not control the targeted July 2027 commissioning date.

Construction is active: the processing-plant foundation is complete, major equipment is procured and shipping, and open-pit pre-stripping has begun; because Silvercorp operates and funds the build, Salazar’s retained 25% interest does not give it control over the schedule or commissioning.

The article describes a carried interest as a project ownership percentage funded through production by another partner, rather than a royalty; Salazar therefore retains project economics without being the project operator.

The next stated milestone is commissioning targeted for July 2027, but the page says the schedule, budget and commissioning depend on Silvercorp and third-party contractors.

The page identifies itself as a paid advertisement and discloses that Market Equities and its owners, directors and affiliates have a financial interest in promoting Salazar.

Key Figures

Cash-flow producing assets: 121 assets Adjusted EBITDA: US$1.66 billion Dividend increases: 19 consecutive years

Cash-flow producing assets

121 assets

2026 Asset Handbook

Adjusted EBITDA

US$1.66 billion

2025

Dividend increases

19 consecutive years

Company record cited in the article

Key Terms

carried interest, stream financing agreement, net present value, internal rate of return, +1 more

5 terms

carried interest financial

"A carried interest means one partner holds a percentage of a project"

Carried interest is a share of the profits earned by investment managers from the investments they oversee, serving as their reward for successful performance. It functions like a bonus that motivates managers to maximize returns for investors, similar to earning a commission based on performance. This income is often taxed at a lower rate than regular income, making it a significant aspect of investment compensation.

stream financing agreement financial

"under a US$175.5 million stream financing agreement with Wheaton Precious Metals"

A stream financing agreement is a contract where an investor provides upfront cash to a company in exchange for the right to buy a fixed portion of future production or revenue at a predetermined, often below-market, price or for a set royalty. Think of it like prepaying for a steady slice of output over time: it gives the company immediate funding while tying the investor’s returns to actual production and commodity or revenue performance. Investors care because it changes a company’s future cash flow profile and shifts risk from traditional debt or equity to production and price volatility.

net present value financial

"supporting an after-tax net present value of US$573 million"

Net present value is a way to measure the value of a future amount of money today. It considers how money available in the future is worth less than money now because of potential earning opportunities or inflation. Investors use it to decide whether an investment is worthwhile, aiming for projects with positive net present value, meaning they are expected to generate more value than they cost.

internal rate of return financial

"a 45% internal rate of return"

A percentage that represents the annualized yield an investment would earn, taking into account the timing and amount of all cash inflows and outflows; mathematically it is the rate that makes the discounted sum of future cash flows equal the initial cost. Investors use it to compare different projects or deals the way they compare interest rates — a higher internal rate of return suggests a stronger potential payoff, but it does not by itself show risk, scale, or timing nuances.

ni 43-101 technical report technical

"The NI 43-101 technical report underpinning the project figures"

A NI 43-101 technical report is a standardized, legally required study used in Canada that describes a mining project’s geology, exploration work, and estimates of how much mineral or ore might exist. Think of it as an independent inspector’s blueprint that explains the data, methods, and uncertainties behind those estimates so investors can judge how reliable the claims are and compare projects on a consistent basis.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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VANCOUVER, BC, Sept. 9, 2026 /PRNewswire/ -- Canada News Group News Commentary - Copper is the metal the energy transition cannot proceed without, and the market reflects it. Fortune Business Insights values the global copper market at approximately US$279.29 billion in 2026 and projects roughly US$466.67 billion by 2034, a compound annual growth rate of about 6.63%. The problem for investors is that owning copper usually means owning the cost of digging it up: capital budgets that run into the hundreds of millions, construction schedules measured in years, and a dilution cycle that grinds down early shareholders long before the first concentrate ships.

Active Companies from around the markets with current developments this week include: Salazar Resources Limited (OTCQB: SRLZF) (TSXV: SRL) (FSE: CCG), Franco-Nevada Corporation (NYSE: FNV), Royal Gold, Inc. (Nasdaq: RGLD), and Triple Flag Precious Metals Corp. (NYSE: TFPM).

Forecasters differ on the size without differing on the direction. Grand View Research puts the copper market at about US$260.2 billion in 2026 rising to roughly US$388.8 billion by 2033, a compound annual growth rate of around 5.9%. Both houses point at the same drivers: electrification of transport, grid modernization, renewable generation and data centre buildout, all of which consume copper in quantities that existing mines were not scoped to deliver.

The supply side is where it gets difficult. New copper mines are expensive, slow and concentrated in jurisdictions that require patience. A mid-sized project can absorb a quarter of a billion dollars of initial capital before it produces anything, and the junior company that found the deposit rarely has that money. The usual outcome is that the discoverer sells the asset, or issues so much equity to build it that the original shareholders own a fraction of what they started with.

Which is why the market has spent two decades building alternatives. Royalty and streaming companies exist precisely to separate exposure to a mine from responsibility for funding it, and they have become some of the best-performing businesses in the sector by doing so. The model is simple: put capital in early, take a defined slice of output forever, and never sign a construction contract.

There is a rarer version of the same idea, and it sits at the project level rather than the portfolio level. A carried interest means one partner holds a percentage of a project while another partner funds it through to production. The holder takes ownership economics rather than a royalty percentage, and pays nothing to get there. Very few juniors have one on an asset that is actually being built.

Salazar Resources Limited (OTCQB: SRLZF) (TSXV: SRL) (FSE: CCG) Provides Update on Construction of the Mine at the El Domo Project

• Salazar holds a 25% carried interest in the Curipamba-El Domo polymetallic project in Ecuador; Silvercorp holds the remaining 75% and is the operator.
  
  
• Construction is fully funded, with commissioning targeted for July 2027.
  
  
• Cumulative capital expenditure reached US$66.2 million through June 30, 2026, including US$12.3 million in the second quarter against US$4.8 million a year earlier.
  
  
• On July 31, 2026 the operator received the second of four installments, US$43.9 million, under a US$175.5 million stream financing agreement with Wheaton Precious Metals, taking total proceeds to approximately US$87.8 million.
  
  
• Proven and probable reserves of 7.13 million tonnes grading 2.55 g/t gold, 47.82 g/t silver, 1.93% copper, 0.26% lead and 2.63% zinc, supporting an after-tax net present value of US$573 million at an 8% discount rate and a 45% internal rate of return.

Salazar Resources Limited (OTCQB: SRLZF) (TSXV: SRL) (FSE: CCG) reported on September 9, 2026 on construction progress at the Curipamba-El Domo polymetallic project in the Bolivar and Los Rios provinces of Ecuador. The detail that separates this from most junior mining news is the ownership structure. Salazar retains a 25% carried interest in the project. Silvercorp holds the other 75%, operates the project, and is funding the build.

The economics attaching to that interest are not speculative. The project carries proven and probable mineral reserves of 7.13 million tonnes grading 2.55 grams per tonne gold, 47.82 grams per tonne silver, 1.93% copper, 0.26% lead and 2.63% zinc, containing 137.7 thousand tonnes of copper, 584 thousand ounces of gold, 187.7 thousand tonnes of zinc, 18.4 thousand tonnes of lead and 11.0 million ounces of silver. Measured and indicated resources stand at 11.4 million tonnes with a further 3.8 million tonnes inferred.

The economic analysis supporting those reserves shows an after-tax net present value of US$573 million at an 8% discount rate, or US$705.6 million at 5%. Table 22.2 of the technical report states a 45% internal rate of return and a three-year payback. Initial capital is US$283.7 million, sustaining capital US$72.5 million, and life-of-mine operating costs US$416.3 million, or US$58.39 per tonne milled. Reserves carry an average net smelter return grade of US$312 per tonne against a US$55 per tonne cut-off, which is an unusually wide margin. Mine life is 11.5 years at a nominal 666 thousand tonnes per year, and a refined flowsheet has improved copper recoveries by 5.4% and gold recoveries by 6.2% relative to the 2021 feasibility study.

"We have been following the ongoing construction at El Domo and are very pleased with the progress being made. Senior management of Salazar has just completed a site tour and have seen firsthand how the mine is developing. We look forward to the commissioning of operations targeted for July 2027," said President and Chief Executive Officer Fredy Salazar.

What has actually been built is the more useful measure. Since construction began in January 2025 and through June 30, 2026, cumulative capital expenditure on the mine reached US$66.2 million, including US$12.3 million during the second quarter of 2026 against US$4.8 million in the same period a year earlier, a pace that has roughly tripled. Approximately 604,600 cubic metres of earthworks excavation and fill were completed in the quarter across the non-contact water channel, the processing plant foundation and the initial tailings storage facility dam. The temporary camp is finished and operational, permanent camp earthworks are advancing, and open-pit pre-stripping has commenced against a planned total of approximately 4.1 million cubic metres.

Two details are worth pulling out. The processing plant foundation is complete and the major plant and water treatment equipment has been procured and is shipping to Ecuador, which moves the schedule risk from procurement toward assembly. And the plant construction contract went to the same contractor that built the flotation mill at the Mirador copper-gold mine in Ecuador, which is a meaningful piece of in-country execution history rather than a first attempt.

Funding is not an open question either. Construction is fully funded, and on July 31, 2026 the operator received the second of four installments under a US$175.5 million stream financing agreement with Wheaton Precious Metals, an amount of US$43.9 million that brought total proceeds under the agreement to approximately US$87.8 million. Alongside its carried interest, Salazar holds a wholly owned exploration portfolio in Ecuador comprising the Monja, Santiago, Pijili, El Tigre and Tarqui-Quimi projects. The NI 43-101 technical report underpinning the project figures is available on the Company's website and on SEDAR+.

There are several risks associated with the Company's plans. Salazar does not operate El Domo and does not control the construction schedule, the budget or the commissioning date; those rest with the operator, and the Company is dependent on the operator and on third-party contractors. A carried interest is not the same as a debt-free windfall, and the terms on which the carry is settled affect what ultimately reaches shareholders. The project is in Ecuador and carries regulatory, permitting, community and jurisdictional risk. Commissioning targeted for July 2027 is a target rather than a commitment, and construction projects of this scale routinely slip. Reserve and resource estimates and the economic analysis derive from a technical report prepared for the operator and for Salazar, are estimates rather than facts, and depend on metal price and cost assumptions that may not hold. Salazar itself is pre-revenue from this asset until commissioning, and its wholly owned exploration portfolio is at an early stage with no reserves defined. Copper, gold, zinc, lead and silver prices are volatile and a sustained fall would reduce the value of the interest.

Read this and more news for Salazar Resources Limited (OTCQB: SRLZF) at: https://canadanewsgroup.com

The mining industry is really coming to life since we are past Labour Day, there are many developments and happenings in the market this week including:

Franco-Nevada Corporation (NYSE: FNV) is the original expression of the idea that you can own mines without building them. The company released its 2026 Asset Handbook on May 6, disclosing 121 cash-flow producing assets, adjusted EBITDA of US$1.66 billion in 2025, no debt, and a nineteen-year unbroken record of dividend increases.

Those three facts together explain why the model attracts capital. A portfolio spread across 121 producing assets absorbs a single mine going wrong. No debt means no refinancing risk in a cyclical industry. And nineteen consecutive years of dividend growth through multiple commodity cycles is the kind of record that operating miners very rarely produce, because operating miners have to fund sustaining capital whether or not the metal price cooperates.

Royal Gold, Inc. (Nasdaq: RGLD) has been scaling the same model by acquisition. The company reported record first quarter 2026 revenue of US$469.1 million, up 142.5% year over year, at an 83% adjusted EBITDA margin, reflecting the first full quarter of contributions from its acquisitions of Sandstorm Gold Royalties and Horizon Copper. It followed with record operating cash flow in the second quarter alongside share repurchases and further debt repayment.

An 83% adjusted EBITDA margin is the number to sit with. It is the arithmetic consequence of holding interests in mines without carrying their operating costs, and it is the same arithmetic that makes a carried interest valuable at the single-project level. Note also that Sandstorm no longer trades as a separate company following that acquisition, which is a reminder of how quickly the composition of this sector changes.

Triple Flag Precious Metals Corp. (NYSE: TFPM) is the younger of the three and has been growing through deployment rather than consolidation. The company reported record gold equivalent ounces and record cash flow per share with a 93% asset margin, and raised its quarterly dividend for a fifth consecutive year.

On the deployment side it signed a stream on Evolution Mining's E44 gold deposit at Northparkes in February and completed a US$440 million gold stream on the Ravenswood gold mine, increasing its 2030 outlook. Triple Flag is included here because it shows the model still funding new construction rather than merely harvesting old deals, which is the mechanism by which projects like El Domo get built without their minority owners writing cheques.

Contact Information:

https://canadanewsgroup.com

Media Contact:

info@canadanewsgroup.com

DISCLAIMER:

Nothing in this publication should be considered personalized financial advice. We are not licensed under securities laws to address your particular financial situation, and no communication from us should be deemed personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor a recommendation to buy or sell any security. We hold no investment licenses and are neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances.

This article is being distributed by Canada News Group, which is wholly owned and operated by Market Equities Limited ("MEL"). This distribution is being made pursuant to a prior advertising and digital-media agreement for Salazar Resources Limited under which Baystreet.ca Media Corp. ("Baystreet") was paid a fee. Baystreet and Market Equities are separate companies. The owner/operator of Baystreet also serves as a director of Market Equities and receives a management fee from Market Equities for operating its business. Because of this relationship and the compensation described above, Market Equities and its owners, directors, and affiliates have a financial interest in the promotion of Salazar Resources Limited, which constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. We also expect to receive further compensation as part of an ongoing digital media effort to increase visibility for the company, and no further notice will be given. Because of this conflict, individuals are strongly encouraged not to use this publication as the basis for any investment decision.

Market Equities, Baystreet, and their respective owners, operators, directors, and affiliates do not currently own any shares of Salazar Resources Limited, but reserve the right to buy, sell, or hold shares of Salazar Resources Limited at any time without further notice, commencing immediately and ongoing. There may also be third parties who hold shares of Salazar Resources Limited and may liquidate their shares, which could have a negative effect on the price of the stock.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in this publication is not trustworthy unless verified by their own independent research. Because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may lose some or all of your investment. This document is governed by the laws of Ireland.

Qualified Persons and Technical Information. The scientific and technical information in this article relating to the mineral resource and mineral reserve estimates and the economic analysis for the Curipamba-El Domo project is derived from the NI 43-101 Technical Report on the Curipamba-El Domo Polymetallic Project prepared by SRK Consulting China Ltd. for Silvercorp Metals Inc., the operator and 75% holder of the project, and Salazar Resources Ltd., with an effective date of December 31, 2025 and issued May 31, 2026. Ms. Yanfang Zhao (MAIG) was responsible for the mineral resource estimate and Mr. Falong Hu (FAusIMM) was responsible for the mineral reserve estimate.  The publisher has not independently verified any scientific or technical information in this article.

Cautionary Note Regarding the Project and the Carried Interest. Salazar Resources Limited holds a 25% carried interest in the Curipamba-El Domo project and is not the operator. Silvercorp Metals Inc. holds the remaining 75% interest, operates the project and is responsible for its construction and funding. Salazar does not control the construction schedule, budget, commissioning date or operating decisions, and is dependent on the operator and on third-party contractors. Mineral resources and mineral reserves are estimates, mineral resources that are not mineral reserves do not have demonstrated economic viability, and estimates may prove inaccurate. Net present value, internal rate of return, capital cost, operating cost, recovery, mine life and payback figures are forward-looking estimates derived from the technical report referenced above and depend on assumptions regarding metal prices, costs, recoveries, permitting and schedule that may not be realised. Commissioning targeted for July 2027 is a target and not a commitment. Construction progress, expenditure and stream financing figures are as disclosed and are stated as at the dates indicated. The project is located in Ecuador and is subject to regulatory, permitting, taxation, community and jurisdictional risks. References to Wheaton Precious Metals and Silvercorp Metals Inc. describe counterparties to the project and its financing and are not comparisons; neither company is involved in the production or distribution of this article. Readers should review the Company's disclosure record on SEDAR+ at www.sedarplus.ca in full.

Cautionary Note Regarding Referenced Companies. References to Franco-Nevada Corporation, Royal Gold, Inc. and Triple Flag Precious Metals Corp. are provided solely as market and sector context. Those companies are not peers, competitors, or financial comparables of Salazar Resources Limited. They are large, established, revenue-generating royalty and streaming companies holding diversified portfolios of interests across many producing assets, whereas the profiled company is a junior exploration company holding a single carried interest in a project under construction together with early-stage exploration properties. Their revenues, margins, portfolios, dividends and share performance are not indicative of Salazar Resources Limited's prospects, and a carried interest is a different instrument from a royalty or a stream. None of those companies is involved in the production or distribution of this article. No partnership, affiliation, sponsorship, or endorsement is implied. Market-size figures cited in this article are third-party projections of total market value and do not represent addressable revenue for any company named, including the profiled company.

Eagle Eye Disclosure. Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article, and this reference constitutes promotion of an affiliated product. Eagle Eye is not a broker-dealer, and nothing in the platform or in this article is financial, investment, tax, or legal advice. Data provided in the platform is for informational purposes only and may be delayed. Always do your own research before making any investment decision. See it at eagle-eye.dev.

Cautionary Note Regarding Forward-Looking Statements. This publication contains "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of applicable United States securities laws, including statements regarding the construction schedule, budget and expected commissioning date for the El Domo project, expected timing of first commercial concentrate production, the use of proceeds from the stream financing agreement, mineral resource and mineral reserve estimates, projected economics including net present value and internal rate of return, mine life, and projections of copper market size and growth. Such statements are generally identified by words such as "expects", "plans", "anticipates", "believes", "intends", "estimates", "targeted", "potential", or that events "will", "would", "may", "could" or "should" occur. Such statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially, including risks related to construction and development delays, fluctuating commodity prices, the availability of financing, regulatory and permitting matters in Ecuador, reliance on the project operator and third-party contractors, community relations, and other risks associated with mineral exploration and development described in the Company's filings available under its profile on SEDAR+ at www.sedarplus.ca. Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of the Company's news release. Do not place undue reliance on such statements. The forward-looking statements in this publication are made as of the date above and Canada News Group undertakes no obligation to update them.

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FAQ

What does Salazar’s 25% carried interest at Curipamba-El Domo mean in practice?

Salazar holds a 25% ownership interest in the project while Silvercorp, with 75%, operates and funds construction through to production. Salazar therefore receives project economics linked to its ownership stake but is not responsible for funding the mine build, though the terms on which the carry is settled will affect what ultimately reaches shareholders.

How advanced is construction at the Curipamba-El Domo project?

Since construction began in January 2025, cumulative capex reached US$66.2 million by June 30, 2026, including US$12.3 million spent in Q2 2026 versus US$4.8 million a year earlier. Approximately 604,600 cubic metres of earthworks have been completed, the processing plant foundation is finished, major plant and water treatment equipment has been procured and is shipping, the temporary camp is operational, permanent camp earthworks are advancing, and open‑pit pre‑stripping has started.

What are the key reserve and resource figures for Curipamba-El Domo?

Proven and probable reserves total 7.13 million tonnes grading 2.55 g/t gold, 47.82 g/t silver, 1.93% copper, 0.26% lead and 2.63% zinc, containing 137.7 thousand tonnes of copper, 584 thousand ounces of gold, 187.7 thousand tonnes of zinc, 18.4 thousand tonnes of lead and 11.0 million ounces of silver. Measured and indicated resources are 11.4 million tonnes, with a further 3.8 million tonnes inferred.

What are the main economic assumptions for the Curipamba-El Domo mine plan?

The economic analysis outlines initial capital of US$283.7 million, sustaining capital of US$72.5 million and life‑of‑mine operating costs of US$416.3 million, or US$58.39 per tonne milled. Reserves carry an average net smelter return grade of US$312 per tonne against a US$55 per tonne cut‑off, with a stated three‑year payback period and improved copper and gold recoveries relative to the 2021 feasibility study.

What financial metrics did Franco-Nevada, Royal Gold and Triple Flag report?

Franco‑Nevada disclosed 121 cash‑flow producing assets, 2025 adjusted EBITDA of US$1.66 billion and no debt, along with a nineteen‑year record of dividend increases. Royal Gold reported record Q1 2026 revenue of US$469.1 million, up 142.5% year over year, with an 83% adjusted EBITDA margin, followed by record operating cash flow in Q2, share repurchases and further debt repayment. Triple Flag reported record gold equivalent ounces and record cash flow per share with a 93% asset margin, and has raised its quarterly dividend for five consecutive years.

Are there any disclosed conflicts of interest related to this publication?

Yes. The article is a paid advertisement distributed by Canada News Group under an advertising and digital‑media agreement for Salazar Resources. Baystreet.ca Media Corp. received a fee, and the owner of Baystreet also serves as a director of Market Equities, which owns Canada News Group. The parties expect to receive further compensation tied to Salazar’s promotion, and they reserve the right to trade Salazar shares without notice, which the disclaimer states creates a conflict of interest.