Absolutely! GK & team's transactions have been strategic and well timed.
Right now, they have a pile of cash and a stated objective to grow into Cu and Zn.
Under-construction Hermosa Taylor will be one of the best Zn mines in the world. Any further Zn acquisition would have to be a compelling proposition.
So, Copper. S32 has many exploration partnerships and JV's underway. None will bear fruit in the short term. The quickest would be Arctic and Bornite - probably five years to first output.
I can see them buying Sandfire, though it would look bloody expensive and draw jeers from the commentariat. SFR's Zn production and further Zn/Cu potential at Magdalena are currently ignored. The Matsa and Motheo mining provinces would sit very nicely in S32's metals portfolio.
Acquiring AAL's share of their Mn JV is a no-brainer, though getting the misery-guts Poms to agree a price will be like pulling teeth.
Hey, S32 might find opportunity in Niobium or Antimony or summat. I do like their agnostic multi-metals approach and global reach. Use the very strong balance sheet, dont over-pay and seize genuine circumstance.
Ash
S32 Price at posting:
$3.64 Sentiment: Buy Disclosure: Held
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