Has the correction thrown up any bargain M&A opportunities for S32 to snap up?
GK has $US1.5b cash and a similar amount in stand-by credit with plenty more debt available if he wants it.
AAL is set to sell its share of the Mn JV once a price is agreed (Ha!). That will be a relatively modest spend.
His stated ambition is in base metals Cu and Zn. He is cool on Ni, which I consider THE opportunity (what would I know).
Cannington is ageing, though still producing abundant FCF and Hermosa, while still 2 1/2 years from first production, is a truly giant global resource. More Zn is possible but an asset of their quality seems unlikely.
So we are back again to Copper, Copper, Copper.
S32 can't raise equity or swap paper at its current share price, yet it does have cash.
Ash
S32 Price at posting:
$2.55 Sentiment: Buy Disclosure: Held
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