EVENTS:   Semiconductors: Bubble Burst or Bear Market Trap? - David Scott/CHA-AM Advisors - 17 Sep 26     ROADSHOWS: US, European and Asian Equity Short Ideas - Robert Prather /Vision Research   •     15 Sep - 08 Oct 26      
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Report by Global Mining Research

OZL rebuffs BHP's A$25/share cash offer - goal is now to try and extract a higher bid, but with limits as it is not a “must have” for BHP (11% more copper, but not worth the effort from an EBITDA perspective; main appeal is safe jurisdiction with assets near one of BHP’s key mines). OZL’s Carajas projects would likely be sold, but West Musgrave is an interesting potential growth asset. The offer price is equivalent of US$0.26/lb of OZL’s contained copper in resources, which is on the lower side to recent deals. For 2023, GMR estimates the combined copper assets would have a sales revenue of ~US$3.6bn, EBITDA ~US$1.4bn, copper production ~340kt and an AISC ~US$2.20/lb.

Edition 142 - 19 Aug 22