Metals Acquisition to Buy Glencore's CSA Copper Mine in Australia
March 17 2022 - 7:37AM
Dow Jones News
By Robb M. Stewart
Metals Acquisition Corp. has struck a deal to buy Glencore PLC's
CSA copper mine in Australia for $1.1 billion, a move by the
blank-check company to tap into expected demand for copper in the
global energy transition away from fossil fuels.
The company said Thursday it entered a definitive agreement with
Glencore to buy the producing mine for $1.05 billion in cash and
$50 million in equity, plus a 1.5% copper net smelter royalty that
will be paid to Glencore.
CSA is an established copper mine in New South Wales state that
is expected to produce more than 40,000 metric tons of copper this
year, with an estimated mine life of more than 15 years, Metals
Acquisition said.
The company said that during the due diligence process for the
acquisition, it identified opportunities that could improve
production and reduce costs at the mine. CSA will benefit from
about $130 million of recent capital investment expected prior to
the acquisition's completion, the company said.
Metals Acquisition, which listed last year after an initial
public offering, said the $1.1 billion purchase price for CSA
implies a multiple of 4.5 times estimated 2022 earnings before
interest, tax, depreciation and amortization.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
March 17, 2022 07:22 ET (11:22 GMT)
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