Freeport Resources and the Yandera Copper Project: A Strategic Opportunity Amid Rising Commodity Prices and Government Backing

The global copper market is undergoing a transformative phase, driven by surging demand from the energy transition, electrification, and artificial intelligence infrastructure. In this rising metals environment, undervalued resource equities are poised for re-rating, and Freeport Resources Inc. (TSXV: FRI) and its flagship Yandera Copper Project in Papua New Guinea (PNG) stand out as a compelling case study. With explicit government support, a robust optimization strategy, and a dramatic re-rating of commodity prices since its 2017 Pre-Feasibility Study, the project represents a strategic opportunity for investors seeking exposure to high-impact copper assets.

Government Backing and Strategic Importance

The Yandera Copper Project, one of the largest undeveloped copper projects globally, has secured strong political and institutional backing from PNG. During PNG Investment Week in December 2025, Prime Minister James Marape emphasized the project's potential to deliver long-term economic value, create jobs, and spur infrastructure development in the region. This support is critical, as it reduces regulatory and community engagement risks, which often plague large-scale mining projects. The PNG government's recognition of Yandera as a "nationally important initiative" underscores its alignment with regional development goals.

Freeport Resources has also made progress in securing operational continuity. The renewal of Exploration License EL1335, a key regulatory milestone, is underway, with a Warden's Hearing scheduled and supported by local stakeholders. Such milestones are essential for advancing the project toward a Feasibility Study and Final Investment Decision, which are prerequisites for large-scale capital deployment.

Commodity Price Tailwinds and Financial Re-Rating

The Yandera Copper Project's economic potential has been dramatically enhanced by the surge in global commodity prices. As of late 2025, copper prices have climbed to $5.49 per pound (up from $3.35/lb in 2017), molybdenum to $30.29 per pound (tripling from $10.00/lb), and gold to $3,348 per ounce (more than doubling from $1,400/oz). These price increases, combined with the project's historical resource base of 727 million tonnes grading 0.39% copper equivalent, suggest a significant re-rating of its net present value (NPV).

A 2025 Optimization Study by Practara highlights this potential. The study evaluated a high-grade, reduced-scale mining scenario that could generate early cash flows with lower upfront capital investment, thereby de-risking the project and enabling phased expansion. The 2017 Pre-Feasibility Study estimated a post-tax NPV (10%) of $1,038 million under 2017 pricing; current prices imply a substantially higher valuation, particularly as the project's life-of-mine (20 years) and production profile (100,000 tonnes of copper annually) remain intact.

Freeport Resources has also secured $3.5 million through a non-brokered private placement to fund the optimization review and advance stakeholder discussions. This capital infusion reflects investor confidence in the project's upside and aligns with the company's strategy to leverage strategic partnerships and offtake agreements to de-risk development as reported.

Undervaluation in a Rising Metals Environment

Despite these catalysts, Freeport Resources remains undervalued relative to its peers and the project's potential. As of January 2026, the company trades at a stock price of $0.05 per share, with a market cap of CAD 21.09 million-a 78.89% increase from December 2025 but still far below the implied value of the Yandera project. This discrepancy is partly due to the company's smaller scale and the time required to advance the project through feasibility and permitting stages.

Comparative analysis with other copper projects further highlights the opportunity. For instance, Northisle's North Island Project, which reported a post-tax NPV of $2 billion and a 29% IRR in 2025, benefits from similar high-grade resources and strategic positioning. However, Yandera's government-backed infrastructure development and lower capital intensity-thanks to the optimization study-position it as a more scalable and de-risked proposition.

Strategic Positioning and Future Outlook

Freeport Resources' approach to Yandera reflects a disciplined, phased development strategy. By prioritizing high-grade zones and optimizing capital efficiency, the company aims to generate early cash flows while preserving flexibility for future expansion. This aligns with broader industry trends, where companies are increasingly adopting modular, low-capital models to navigate volatile markets.

The project's potential to contribute to PNG's economic development also enhances its appeal. With global copper demand projected to grow by 4% annually through 2030, driven by green energy and AI infrastructure, Yandera's 20-year life of mine and proximity to key Asian markets position it as a strategic asset.

Conclusion

Freeport Resources and the Yandera Copper Project represent a rare convergence of favorable geology, government support, and rising commodity prices. The project's optimization study, combined with the PNG government's endorsement, has created a compelling case for re-rating. While the company's current valuation remains anchored to its development-stage status, the path to a Feasibility Study and eventual production is well-defined. For investors seeking exposure to undervalued copper equities in a rising metals environment, Yandera offers a high-conviction opportunity with significant upside.