Sandfire Resources in Australia to buy Spanish copper miner MATSA for $ 1.87 billion
Adds details, CEO quote
September 23 (Reuters) – Sandfire Resources Ltd. SFR.AX on Thursday announced that it would buy the Minas De Aguas Teñidas (MATSA) mining complex in Spain for $ 1.87 billion, making it one of Australia’s largest producers of copper-focused metals.
The deal is with global commodities trader Trafigura and Abu Dhabi state investor Mubadala, who co-own MATSA and its three underground mines in southern Spain. The mine also produces zinc and lead concentrates and has a lifespan of over 10 years.
Copper prices have jumped this year, hitting a record high of over $ 10,000 a tonne in February, as the global transition to a low-carbon economy has increased demand for the metal.
“Base metal assets that offer this combination of scale, grade, mine life and exploration potential are extremely rare in the world,” said Karl Simich, CEO of Sandfire.
Following the acquisition, the Perth-based company plans to produce 170 to 194 kilotons of copper equivalent in fiscal 2022. It had produced 70,845 tons of copper in fiscal 2021.
Sandfire will finance part of the transaction through a placement of A $ 1.25 billion (A $ 903.63 million) at A $ 5.40 per share, a discount of 13.2% per share. compared to its last close. A large number of banks, including ANZ and Citi, will also provide debt financing for the deal.
($ 1 = AU $ 1.3833)
(Reporting by Yamini CS in Bengaluru; Editing by Rashmi Aich)
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