Metals Acquisition to Buy Glencore's CSA Copper Mine in Australia

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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