Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Shouldn't S32 and SFR form a JV to bid for the Khoemacau copper mine in Botswana. SFR could fund its half share of Khoemacau by putting its existing Botswana Motheo copper project into the JV. SFR would not have to raise funds but the bigger S32 would need to have a rights issue. Both miners would then derive synergy benefits of owning both mines. At a later date, S32 could then bid for SFR.
Hi John,
Its an option, especially if you’re ultimately hoping that South32 (S32) would bid for Sandfire (SFR) but there are a numbers of ways these things can play out but we like your thinking, it would fit our current Active Growth Portfolio!
It’s been reported that S32 has engaged RBC and SFR Standard Chartered to help prepare indicative bids for Khoemacau Copper Mining in Botswana, the mines clearly in play with a likely price tag in excess of $US2bn, other interested buyers are likely from Canada plus local rival IGO i.e. there’s still plenty of water to go under this particular bridge.
South32 (S32) remains in the MM Hitlist with a large copper asset likely to increase its appeal assuming the purchase price wasn’t too inflated.
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