EVN +9.73%: rallied strongly today after announcing the purchase of its JV partners (Glencore) stake in a copper /gold mine in QLD for $1bn. The addition of 100% of Ernest Henry from 1 January 2022 increases FY22 copper production guidance for Ernest Henry from 17 – 19kt to 34 – 38kt, while there is no change to gold production guidance as Evolution already receives 100% of gold production from the current mining area. As Peter O’Connor put it succinctly today… A smart deal – sensible. Logical, on strategy and on first glance very accretive … such a nice change from other recent deals in the metals and mining sector – all sensible but none overwhelmingly compelling value
MM is bullish EVN & Gold stocks more broadly
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