SFR is an Australian-listed mid-tier copper producer with mines in Botswana and Spain with high leverage to copper prices. However, its scale is too small for BHP, ~200ktpa vs BHP’s multi-million tonne requirement. Secondly, and arguably less importantly in this case its mines are nowhere near BHPs focal points.
- We would not buy SFR as a potential acquisition target of BHP, but we do still like the stock for quality exposure to copper.
MM is long and bullish towards SFR
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