29M - 29Metals Limited

[System]

29Metals Limited is a new copper-focused mining company with a portfolio of long-life producing assets and a pipeline of organic growth opportunities, comprising:

• the producing long-life Golden Grove mine in Western Australia (copper, zinc, gold and silver);
• the producing long-life Capricorn Copper mine in Queensland (copper and silver); and
• a portfolio of exploration interests, including regional tenement interests surrounding Capricorn Copper and Golden Grove and a strategic tenement package and project in Redhill located in Chile, the world's largest copper producing country.

29Metals explores for, develops and produces metals in the form of mineral concentrates which are sold to commodity trading firms or smelters for refining and on-sale as a refined metal product for end use.

29Metals is headquartered in Melbourne, with support offices located in Perth, Western Australia, and Brisbane.

It is anticipated that 29M will list on the ASX during June 2021.

29Metals

Unlocking value to empower the future

www.29metals.com

 

[Dona Ferentes]

Listing date	23 June 2021 #
Contact details	https://events.miraqle.com/29metals-ipo/ Ph: 1800 500 095
Principal Activities	Mineral exploration, development, and production
GICS industry group	TBA
Issue Price	$2.00
Issue Type	Ordinary Fully Paid Shares
Security code	29M
Capital to be Raised	$900,000,000
Expected offer close date	21 June 2021
Underwriter	This offer is fully underwritten. Macquarie Capital (Australia) Limited, Credit Suisse (Australia). Limited and Morgan Stanley Australia Securities Limited (Underwriters and Lead Managers)

 

[Dona Ferentes]

looks like the easy money has already been made

Under the terms of the latest deal sheet, the float’s investment bankers, lawyers, tax advisers, bookbuilders and lead managers will all trouser their cut of $91.7 million in total offer costs out of $245 million in funds raised for the miner, which is being spun out of EMR Capital.
After adjusting for EMR’s secondary selldown of between $282.8 million to $361.5 million, the costs of the proposed offer are equal to 16 per cent of all cash sought when using the mid-point of the estimated selldown range. The total offer could raise up to $606.5 million.

Or put another way, the proposed costs worn by the 29 Metals spin-off are 37 per cent of the cash proceeds allocated to it from the raising. Out of the $245 million raised, $91.7 million will go on offer costs, $128.4 million on derivative payouts, debt reduction and reduced working capital. Just $24.9 million is left over for general corporate purposes.

The draft prospectus breaks down the investment bankers’ picnic enjoyed by Macquarie Capital as the raising’s sole global coordinator, alongside its role as joint lead manager with Credit Suisse and Morgan Stanley. Canaccord Genuity is listed as another institutional co-lead manager.
Legal eagles King Wood & Mallesons also take a cut and US law firm Sidney Austin earns fees for overseas work. 29 Metals also engaged KPMG as an investigating accountant and tax adviser. Mining consultants Behre Dolbear and AMC also earn a cut. And another consultant, listed as AME, is to be paid for work associated with the offer.

There’s more: 29 Metals’ nominated chief executive Peter Albert is in line for a $300,000 cash bonus and a $400,000 restricted share award as a “transaction fee” for work he did on the deal, engaged as an independent consultant by EMR. 29 Metals’ general counsel Clifford Tuck is also up for a $100,000 cash bonus and $250,000 worth of shares for work he did on the IPO.

Bill shock for 29 Metals’ IPO

The float being touted as one of the biggest this year has accumulated $95 million in costs and new investors have been asked to pick up the bill.

www.afr.com

 

[Dona Ferentes]

IPO at $2.00, .... came to market today; opened at $1.92 and made it to $2.04 by end of trading, close to the day's high

 

[Dona Ferentes]

looks like the easy money has already been made

In the last month, 29M has moved up, most days. Now $2.52 (& a M/C pushing past $1.2B)

 

[peter2]

looks like the easy money has already been made

There's always more to be made.
Considering the low daily volume, price has behaved as if it's read the textbooks. This is a pretty chart so far.
I am surprised by today's price action on no news. Something's in the air.

 

[peter2]

Selection for 2022 comp based on the world need for more copper.
29M is a new listed copper producer with multiple mines. OZL should also benefit but it's already a high price.

Disc: I already hold some and will trade 29M savagely during 2022 if copper price rallies.

 

[frugal.rock]

Selection for 2022 comp based on the world need for more copper.

Hmmm, I find myself here completely independent of P2 posting, and also thought it was probably a good candidate for the 2022 comp.
A solid ~50% rise in 6 months for a "listed newbie" mining all the right metals ATM...
Interesting. ?

 

[signalFollower]

watched EMR Capital present at Gold Events 2022, they highlighted that they own 45% of 29M as a JV with a large asian company on the Singapore Exchange (GEAR)

https://www.emrcapital.com/en-us/investments/investments

 

[Craton]

29M SP has been having an uptick of late, good enough reason for me to select for the Sep 2022 Tipping Comp.

 

[Dona Ferentes]

29M SP has been having an uptick of late, good enough reason for me to select for the Sep 2022 Tipping Comp.

better late than never, for the comp.

29M lifting nicely, now 24c

 

[peter2]

Selected for the 2023CY comp. Recent price has been thumped lower after news of reduced production and higher costs. I like the discount as I'm bullish copper in 2023. I'll be buying more 29M when price starts going up.

 

[Dona Ferentes]

29Metals, which operates the Capricorn Copper mine north of Mt Isa, said all its production and non-essential activity was suspended after it was hit by about 370mm of rain over the past week, including 200mm in one day.

“The extremely high rainfall on the evening of March 7 is expected to result in an extended loss to the site by road, impacting deliveries to the site of production consumables,” the company said.

 

[Miner]

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02643603-3A614836?access_token=83ff96335c2d45a094df02a206a39ff4

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02641645-3A614594?access_token=83ff96335c2d45a094df02a206a39ff4

 

[peter2]

Copper mine transforms into picturesque swimming pool after massive rain.

 

[frugal.rock]

Do you think they have drained it out now?

 

[frugal.rock]

Do you think they have drained it out now?

One wonders if they should be all over this like a dog rolling in poo.

"29Metals is pleased to advise that the recovery of operations is progressing to plan, with the re-commencement of mining in Mammoth and Greenstone, and mineral processing operations, this morning."

 

[peter2]

Nice market response to the 29M Entitlement Offer. Shares offered at 0.69 on a 1 for 2.2 shares held.

 

[peter2]

Selected to gain value in 2024.
29M has had a poor year and has taken a long time to recover from huge rainfall in Qld that flooded their copper mine. Production is due to resume soon and I'm hoping for a positive year for this copper producer.

 

[peter2]

Investors and punters got a little bit excited about 29M in Jan24 with the price spiking higher without any news. Price has settled back to the prior lows. This should be a sound level of support if there's any substance to the sudden demand that caused the price spikes.

Next Qrtly report is scheduled for 30th Jan. Interested to see if there's any significant response to the news. Will report after news.