This morning OZ Minerals shareholders approved the takeover by BHP. One of the assets is West Musgrave Nickel and Copper deposit just inside the W.A. border with S.A. As I understand this is forecast to produce its first concentrate by 2026, ramping up to full production by 2030. Note that the project includes sealing of the Great Western Road from West Musgrave to Laverton.
Also, as I understand the current tolling agreement that Minco has with BHP ends at the end of 2025. I believe that BHP would desire to have Mincor supply nickel concentrate to the Kalgoorlie smelter at least until West Musgrave has sufficient production, whatever that may be. It’s in BHP’s interest to have the Kalgoorlie smelter at or near fullproduction.
I sold my Mincor this morning at $1.405 per share, so I am not sure who bought them. The shares reached a high of $1.41 yesterday.As I understand Tatterang currently has 15.05% of the issued shares and Squadron Resources (Wyloo) has 39.72% and growing. See https://www.marketindex.com.au/asx/mcr?src=search-all
So Andrew Forrest and wife Nicola current control around 55%. However someone else has been buying in!
I am speculating that MCR will be in a good position to negotiate a better Tolling agreement with BHP from 2026.
If MCR remains listed on the ASX and the price falls sufficiently in the future I intend buying back in.
I wish everyone good luck!
These are simply mythoughts only.
