Tuesday, October 4, 2022

Glencore to buy Newmont’s stake in Argentina project in $155M deal (NYSE:NEM)


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An underground loading machine carries a full bucket of ore. Special low-profile equipment for underground work


Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) said Friday it agreed to acquire Newmont’s (NYSE:NEM) 18.75% shareholding in the MARA mining project in Argentina for $124.9M upon closing and a $30M deferred payment.

The deal will raise Glencore’s (OTCPK:GLCNF) (OTCPK:GLNCY) ownership stake to 43.75%; Yamana Gold (AUY) will remain the project’s operator with a 56.25% stake.

MARA has proven and probable mineral reserves of 5.4M metric tons of copper and 7.4M oz of gold contained in 1.1B tons of ore with an initial mine life of 28 years.

Separately, Reuters reports Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) and Zambia’s state-owned mining company may team up to jointly lend $200M to Mopani Copper Mines to help cover operating costs.

The mine has the potential to produce 225K metric tons/year of copper, nearly triple its expected 2022 production, but Mopani needs investment of at least $300M to fund a complicated underground expansion.

Newmont’s (NEM) valuations “have been de-risked significantly to reflect its near-term challenges,” JR Research writes in a bullish analysis published on Seeking Alpha.

(Except for the headline, this story has not been edited by PostX News staff and is published from a syndicated feed.)


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