ABY about $80 mil in cash. MLX will need to pat ABY 150m x $0.08 or about $12m cash- from a temporary Citibank facility, the other 20% of shareholders have not accepted yet but that would be about 60m x $0.08 or $4.8m sat 5 + 12 = 17m$ , plus transaction costs. Net addition to cash about A$60m+.
Nifty mine is having a much better run than its unfortunate past few quarters, where a sinkhole appearing caused major problems, a fatality near the loading point, and other things like poor stoping results- a bit random.
There is a big pile of tailings ore at about 0.8% copper that can be heap leached - about 17 million tons. Recovery in the last quarter was excellent at 97%.
The Nifty deposit in in the earlier stages of its mine life from the diagram on the website.
Copper prices in $A are up to about $6500, with the chart since early January 16 showing higher highs and higher lows. Trending upwards.
There are no commissioning costs as the mine is running normally as a going concern now.
Hindalco has decided to either go along for the ride with an injection of cash, for its half share or it will have about 30 mil MLX to sell. Given how much the Indians like gold they might well decide to stay on the register. They will still get the concentrate from the mine at the Indian smelter anyway, as some sort of agreement exists. No more Australian headaches from this mine for them. Smelting has probably been a difficult business cash wise lately so the wad of cash from MLX will probably be very handy.
Meanwhile MLX is not dipping further into its cash reserves with a bank facility available till the transaction settles.
This transaction might be looking like a winner for MLX. The enterprise value of ABY is about $375-$400 million book value, including cash and unsold inventory. This will put MLX into a larger size category as a miner, increasing annual turnover by something like $250-$350 million.
The extra cash will smooth out the bumps as the new/ old gold operations are brought into production.
Bit of a relief as it was staring to look like MLX was snookered on this one.
MLX Price at posting:
$1.06 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)