BASE METALS

Aeris an unlikely CSA bidder

Copper miner Aeris Resources has confirmed it is trying to buy the CSA mine at Cobar in New South Wales from Glencore for US$575 million.

Michael Quinn
 Aeris sees blue sky at Glencore’s CSA operation in Cobar, Australia

Aeris sees blue sky at Glencore’s CSA operation in Cobar, Australia

Responding to media speculation in relation to the deal, Aeris said the consideration comprised $525 million cash and $50 million of shares.

The cash component could involve $250-$300 million of debt and equity of $185-$240 million, with a potential silver stream of $35-$40 million also in the mix.

PAG, Orion Mine Finance, RBC and Macquarie may all be involved in the funding equation.

CSA, the highest grade copper mine in Australia, has been producing since 1967 after being discovered in 1871.

As of earlier this decade, reserves were grading around 4.4% and mine life was defined for at least 10 years.

Production earlier this decade was typically around the 40-50,000t of contained copper, plus silver.

Aeris produces at a rate of about 25,000tpa of copper in concentrate from its Tritton operation, also in central NSW.

The ASX-listed company described last year as concluding a five-year turnaround, with debt reduced in 2018 from $63 million to $30 million.

Aeris started the current quarter with A$22 million in cash and receivables.

At a recent share price of A17c, the company was capitalised at $77 million.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.