- Write by:
-
Thursday, August 1, 2019 - 3:19:33 PM
-
910 Visit
-
Print
Mining News Pro - Australian private equity firm EMR Capital is considering selling its four copper mining assets through an initial public offering some time after 2019, looking to tap investor appetite for a copper miner as demand for the red metal is set to grow.
EMR’s chief executive Jason Chang said on Wednesday it is looking to package the Capricorn and Golden Grove mines in Australia, an 80% stake in the Lubambe mine in Zambia and its Redhill prospect in Chile into one entity that could potentially be listed.
EMR bought the Capricorn mine in 2015 for A$15 million ($10.3 million) and brought it out of care and maintenance mode before restarting production
“We’ve been approached by a number of parties to think about it,” Chang told Reuters in an interview. “You’ve got strong margins today and a good growth story as well which collectively represent an interesting platform.”
He declined to put a valuation on the assets, for which EMR paid more than $300 million, but said they produce more than 100,000 tonnes a year of copper, and the goal is to double output. EMR doesn’t disclose the total value of its assets, but its two mining funds raised a total of $1.31 billion.
The company has begun sounding out institutional investors but does not plan to go ahead with a float this year. “It’s not a 2019 initiative,” Chang said.
Trade sales would also be an option, but would probably involve a few deals, the EMR CEO said.
EMR bought the Capricorn mine in 2015 for A$15 million ($10.3 million) and brought it out of care and maintenance mode before restarting production. It bought the stake in Lubambe for $97 million, and bought Golden Grove for $210 million.
A deal to buy BHP Group’s Cerro Colorado copper mine in Chile for up to $320 million collapsed at the end of last year after EMR did not meet financing conditions.
EMR’s biggest deal so far has been the joint $2.25 billion acquisition with Indonesia’s PT Adaro Energy Tbk of an 80% stake in the Kestrel coking coal mine from Rio Tinto last year.
Short Link:
https://www.miningnews.ir/En/News/405864
Copper futures in New York rallied to a record high after a short squeeze that’s prompted a scramble to divert metal in ...
A Native American group said on Tuesday it will take its fight against Rio Tinto’s proposed Arizona copper mine to the ...
Teck Resources Ltd expects to generate annual earnings before interest, depreciation, tax and amortization (EBITDA) of ...
The state-run Chilean Copper Commission (Cochilco) will soon revise its copper price outlook, which will be considerably ...
Chilean mining giant Codelco is still working to meet its estimated output for the second quarter, CEO Ruben Alvarado ...
Truck drivers in Chile staged protests Monday in the mineral-rich north of the country and around the capital Santiago, ...
Democratic Republic of Congo’s government has lifted a suspension order on a Congolese copper and cobalt operation ...
Peru’s copper production came in essentially flat for March at about 219,000 metric tons, government data showed on ...
Oxford Economics Australia has released data showing mine maintenance spending may be hitting its peak. But what does it ...
No comments have been posted yet ...