MMG Limited (MMG, the Company) (HK.1208) today announced that it has entered into a Share Purchase Agreement (SPA) to acquire the parent company of the Khoemacau Copper Mine in Botswana, for an effective Enterprise Value of US$ 1,875 million[1]. Khoemacau is one of the highest quality new copper mines globally. The transaction aligns to MMG’s strategy to build a portfolio of high-quality mines supplying the minerals most important to a decarbonised world.
Key Highlights
- Annual copper equivalent production of 50 to 65 thousand tonnes with a near term expansion to 135 to 155 thousand tonnes
- Long life operation, with a mine life well in excess of 20 years and C1 costs in bottom half of the cost curve post expansion
- Dominant land holding in the emerging, highly prospective Kalahari Copper Belt, with a 4,040 km2 tenement package. Mineral Resources of 6.4 million tonnes contained copper and 263 million ounces contained silver[2]
- Stable and world-class mining and investment jurisdiction in Botswana
- Highly skilled team that has successfully developed, ramped up and operated the mine from the discovery of Zone 5 in 2012 to first production in 2021
Ash here.
The Chinese are not ideal neighbours, but there it is.
This arms-length transaction between a willing buyer and a willing seller allows Mr Market to put a contemporary value on Motheo.
SFR's market cap is about what it paid for Matsa. Yes, it overpaid for the opportunity, since enhanced by additional resources, production improvements and growth opportunities in Sotiel - so now about break-even, which means Motheo is valued at nil.
