Some M&A/Transaction opportunities - - Mt Isa Mines Copper Mine (Glencore are closing, but could be opportunity for a smaller operator to takeover), AC has stitched together good transactions in the past - Capricorn Copper Gunpowder/Mt Morgan (29 metals - care and maintenance, but will be restarted soon) - grade is a little low, but with the right operator could work perhaps a merger of equals if A1M ramps production to 20-25kt p.a.) - Ernest Henry or North Parks - if EVN struggles or ever needs cash (e.g. EVN upgrades it's portfolio) - CSA - Tritton - Kanmantoo - Hillsgrove resources. A potential merger target.
I wouldn't rule out a 3 way merger as per EVN. It's a good way to generate scale quickly. E.g. Kanmantoo + Gunpowder in a single transaction.
AC and team have a track record of identifying quality mineralised systems. They know how to buy short mine lives, in good systems, invest in exploration and extend the life-of-asset while increasing profitability. I agree with other commentators that new-builds are not their style. As noted, regional consolidation (buying grade / tonnes) is a good strategy to increase LOM or production profile - hub and spoke, breathes new life into existing assets.
I do like the suggestion of not stopping at 20kt p.a. and going for 30kt. The region would definitely support that and there is plenty of opportunity.
A1M Price at posting:
45.0¢ Sentiment: Hold Disclosure: Held
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