RXM - Rex Minerals

Capital raising announced at a deep discount of 30c a share (last sale price being 36c). Nothing for retail yet again.

Retail needs a union.

Interesting Tweet from Aaron Colleran of AIC Mines this morning commenting on Copper Mountain Mining Corporation's sale of the Little Eva Copper Project near Cloncurry to South African based Harmony Gold Mining Company Limited for A$350M (A$260M upfront).


So, is Rex Mineral's Hillside Project seriously undervalued? RXM did their own benchmarking exercise when they compared Hillside to Metals Acquisition Corp's CSA copper mine which they acquired for over US$1 billion earlier this year.



All signs point to RXM being seriously undervalued. Market Cap currently ~$135 million, but potentially worth much more.

Chart looking very bullish. Price trading near yearly highs.

Since my last post price has drifted lower.
RXM needs massive capital to construct Aust's next copper mine. There's been speculation about their lack of progress with their funding.

Preliminary fund raising (only $8M @ 0.20) announced today at a massive discount to last price (0.25). Of the 8M, 1.7M will go to the equity and debt raising process (eg Macquarie Bank).

Doesn't appear to be an attractive investment or trading opportunity until the details of the massive capital raise is available.

Finally there's news of development progress. REX signs LOI with a Japanese company to establish a JV with respect to the Hillside copper -gold project.

REX is one of many companies on the ASX with a resource that needs plenty of capital to develop. Delays have seen their share prices slip sliding down.



Good candidate for the 2024 yearly comp?

Rex Minerals getting to the pointy end of Hillside financing process.​

Rex Minerals (ASX:RXM) is advancing the funding process for its Hillside copper-gold project on South Australia’s “Copper Coast”. The fully permitted project hosts a substantial resource of 1.9 million tonnes of copper and 1.5 million ounces of gold. An optimised feasibility study for the first stage of the project was released in December 2022, returning pre-production capital costs of A$854 million, a post-tax net present value of A$847 million and a post-tax real internal rate of return of 19%.

Speaking at the RIU Sydney Resources Round-up, Rex executive general manager investor relations and business development Peter Bird pointed out that the study used a copper price ofUS$3.92 per pound (currently trading at US$4.44/lb) and gold price of US$1610 an ounce. “Clearly the 4.3-year payback period is not getting worse,” Bird said.

The stage one mine plan would produce about 42,000 tonnes of copper per annum and 30,000ozpa of gold over 11 years. There is the potential for three additional stages which would result in a mine life in excess of 40 years.

Rex raised A$22.6 million in the March quarter, welcoming MACH Energy Australia as a cornerstone investor and leaving the company in a strong funding position as it advances project financing.

Rex has also signed a non-binding letter of intent with Nittetsu which would see the Japanese company take an initial 15% stake in the project with the potential to move to 45%.

Rex has a current enterprise value of A$150 million, which Bird said equated to A3.5c/lb of Hillside’s contained copper.

-from Finance News Network

and, in need of capital ..
.
Indonesian businessman Anthony Salim's Salim Group is moving to acquire all of copper-gold developer Rex Minerals for $393m in a deal backed by the target's board.

Rex's scheme deal is with its major shareholder MACH Metals Australia, ultimately a subsidiary of the Salim Group.
Salim Group subsidiary Droxford International is the major shareholder of MACH Energy Australia.

Rex said the 47c per share deal comes after a "competitive global partnering process and delivers Rex shareholders a certain outcome and an accelerated realisation of value".That process focused on the $854m funding and subsequent development pathway for Rex's Hillside copper-gold project located in SA. The transaction will be subject to approval from the Foreign Investment Review Board and investors in Rex.

The Rex board "unanimously recommends" the bid in the absence of a superior proposal and subject to the independent expert concluding and continuing to conclude that the transaction is in the best interests of Rex shareholders.

"Subject to approvals, we look forward to working with MACH through to completion and watching them develop the Hillside Project…," Rex chief executive Richard Laufmann said.

"Our strong focus on copper is critical to the energy transition process," said Ferdian Purnamasidi, MACH's managing director and the person responsible for managing the Salim Group's investment portfolio across Australia.

Another one bites the dust and goes to overseas ownership?

Asked if major miners like BHP had shown interest in Rex, MD Richard Laufmann declined to name names but said: “We had huge interest. But what I can say is Australian companies love to be first to be second [to be first in line to acquire a project once it is operational].

“And all of them, BHP included, want to buy operating assets. I don’t think anyone wants to take on development risk. I think we’ve had it too good for too long in this country. We’ve lost that appetite.”

Being sold for about half their NPV (post tax) which gives us somewhat of a measuring stick for any future comparable M&A.

Dona Ferentes said:

Asked if major miners like BHP had shown interest in Rex, MD Richard Laufmann declined to name names but said: “We had huge interest. But what I can say is Australian companies love to be first to be second [to be first in line to acquire a project once it is operational].

“And all of them, BHP included, want to buy operating assets. I don’t think anyone wants to take on development risk. I think we’ve had it too good for too long in this country. We’ve lost that appetite.”

Click to expand...

BHP has the motherlodes in the bottom drawer " AD23 - 425.7 m @ 3.04% CU " for when they feel the need to develop new mines as do RIO

On October 31st, 2024, Rex Minerals Limited (RXM) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between RXM and its shareholders in connection with the acquisition of all the issued capital in RXM by MACH Metals Australia Pty Ltd.