MAC - Metals Acquisition

[System]

Metals Acquisition Limited is a company focused on operating and acquiring metals and mining businesses in high-quality, stable jurisdictions that are critical in the electrification and decarbonization of the economy.

The business of the Company is the operation of the CSA copper mine in Cobar, New South Wales. The CSA Mine is a high grade, producing, underground copper mine.

The Company, through Cobar Management Pty Ltd (CMPL), holds a Mining Lease (CML5) over the CSA deposit, which is supplemented by Mining Purpose Leases, MPL 193 and MPL 1094. The CSA Mine is surrounded by two Exploration Licenses, EL5693 and 5983. CML5 covers an area of approximately 2,474 hectares (ha), the MPLs total approximately 30 ha, while the surrounding exploration tenements (EL5693 and 5983) cover approximately 366 square kilometers. In addition, CMPL has a joint venture with AuriCula Mines Pty Limited (AuriCula) covering the Shuttleton and Mt Hope Exploration Licence tenements south of Cobar.

It is anticipated that MAC will list on the ASX during February 2024.

Metals Acquisition Limited - Overview

www.metalsacquisition.com

 

[Dona Ferentes]

Listing date	20 February 2024 ; 12:00 PM AEDT ##
Company contact details	https://www.metalsacquisition.com Ph: 0411 789 606
Principal Activities	Operation of the CSA Copper Mine in Cobar, New South Wales, Australia, and the acquisition and operation of metals and mining businesses in high quality, stable jurisdictions that are critical in the electrification and decarbonisation of the global economy.
Issue Price	AUD 16.00
Issue Type	Chess Depositary Interests
Security code	MAC
Capital to be Raised	$300,000,000
Expected offer close date	09 February 2024
Underwriter	Not underwritten. Barrenjoey Markets Pty Limited and Canaccord Genuity (Australia) Limited (Joint Lead Managers).

 

[Dona Ferentes]

Metals Acquisition Limited, owner of the CSA copper mine in NSW’s Cobar, upsized its IPO book-build to $325 million on Friday morning, after its brokers secured enough demand to cover the book at the top-end of the range.

Pricing would remain the same at $17 per CDI, but they could now bid for an extra $25 million by 1pm.

It’s the second upsize for the deal, which sought $200 million initially for its ASX debut.

 

[Dona Ferentes]

MAC hit the bourse today .... and closed at $19.00

Metals Acquisition jumped more than 9 per cent in its opening session, erasing the discount between the stock’s New York-listed and ASX-listed share prices. The $325 million IPO is the largest since last July. Shares were initially priced at $17 apiece.

 

[peter2]

Looking at MAC for a medium term hold in the copper sector. The thin market depth makes it impossible to trade short term. Can we hold this for the medium term 3mth - 1yr?

I uncertain about MAC leverage to a rising POC. It's only got one customer, GIAG. They've signed a new offtake agreement with the prices linked to industry indexes. Not sure what this means or which index they're looking at.

I see that they've also hedged about 31% of their production at $3.72/lb. With the current POC at US$4.20/lb MAC is already missing out on millions. I assume the hedge is to placate debt issuers.

As I'm bullish copper over the next year, will the MAC share price provide a reasonable return over this time?

 

[Sean K]

Looking at MAC for a medium term hold in the copper sector. The thin market depth makes it impossible to trade short term. Can we hold this for the medium term 3mth - 1yr?

I uncertain about MAC leverage to a rising POC. It's only got one customer, GIAG. They've signed a new offtake agreement with the prices linked to industry indexes. Not sure what this means or which index they're looking at.

I see that they've also hedged about 31% of their production at $3.72/lb. With the current POC at US$4.20/lb MAC is already missing out on millions. I assume the hedge is to placate debt issuers.

View attachment 174407
As I'm bullish copper over the next year, will the MAC share price provide a reasonable return over this time?

I've been trying to work this one out. Not sure if the hedging is good short term but, yes, must have been needed for finance.

There's another thing that is about to list in Australia worth looking at as well for the copper narrative. Much bigger than this, the name doesn't come to mind.

This would have been good to get into at IPO.

 

[frugal.rock]

There's another thing that is about to list in Australia worth looking at as well for the copper narrative. Much bigger than this, the name doesn't come to mind.

?
Capstone Copper is an established copper producer and developer with a portfolio of long-life operations in the Americas (US, Mexico and Chile). The company is currently listed on the Toronto Stock Exchange with a market cap of C$4.6bn.

 

[Sean K]

?
Capstone Copper is an established copper producer and developer with a portfolio of long-life operations in the Americas (US, Mexico and Chile). The company is currently listed on the Toronto Stock Exchange with a market cap of C$4.6bn.

Yes! My short term memory only lasts a day or so.

 

[peter2]

MAC reports increased resource and reserves along with a 3yr production guidance.

I'm disappointed that they didn't mention if they have any plans to take advantage of the rising Copper price (spot sales?)

Price has dropped a little but the market depth is very thin.

 

[peter2]

March Qrtly report: Mine life increased from 6yrs to 11yrs with further exploration results. Result show that the resource is open and further resource increases are probable.

Temporary reduction in production due to a 3 day power outage and lower grade ore is expected to be overcome.

C1 costs of US$2.15/lb up 8% due to the lower grade ore processed.

 

[peter2]

IPO priced at 17.00 and opened at 18.00, now only 19.00 after strong rally in the POC. Bought an initial parcel of MAC in this dip. Although this dip is concerning as SFR is going up (bought more SFR also).

MAC is a very thinly traded stock but I would like to see more demand than just mine.

 

[Dona Ferentes]

Polymetals POL has formed a non-exclusive strategic alliance with Metals Acquisition Limited (ASX: MAC) to advance synergies aiming to extract greater value from both the Endeavor and CSA Copper Mines, both located in the Cobar Basin, NSW Australia.

HIGHLIGHTS
• MAC to invest up to $5.0 million @ $0.35/share in POL.
• POL and MAC to enter into an agreement to treat high-grade zinc ore at POL’s Endeavor Silver Zinc Mine.
• POL to provide MAC with excess water offtake to enhance CSA ore treatment capacity.

ALLIANCE OBJECTIVES
MAC owns and operates the high-grade CSA Copper Mine located 5 km to the north of Cobar NSW. Polymetals high-grade Endeavor Silver Zinc mine is located 30km to the north of CSA.

The alliance between MAC and POL will allow each company to exploit synergies between the neighbouring mines. The relationship aims to deliver enhanced operational and financial outcomes by increasing mine production at both projects

 

[Dona Ferentes]

from the wires..
Metals Acquisition’s lucky placement strike

By Glenn Dyer |

Cobar copper miner Metals Acquisition (ASX:MAC) raised a little more than it planned in Wednesday’s placement.

It was looking for around $140m. But MAC told the ASX on Thursday it in fact had raised $150m before costs (around US$103m instead of the original US$96m).

The issue was made at a price of $18 a CDI (Chess Depositary Interest), a 13% discount to the market price of around $20.70

MAC said the placement "was well supported with support from new and existing institutional and sophisticated investors both in Australia and offshore, which is testament to the high-quality nature of the CSA Copper Mine and the significant work that has been undertaken by management to deliver on a range of operational improvements over the past year.”

The proceeds will be used to repay the company’s expensive mezzanine debt facility as soon as possible. That will leave it room to move to some low key “unorganic growth opportunities” which is bizspeak for M&A work.

There are a handful of other miners operating in the Cobar region with attractive copper or zinc assets. MAC has a deal with PolyMetals, for example, covering water and Poly’s Endeavour mine and processing plant, which MAC wants to be able to access.

MAC shares traded down to $18.27 by midday Thursday – just above the issue price..