Capstone Mining (CS CN) Canada
Materials
There is a lot to like regarding Capstone's proposed US$1.3bn merger with Mantos Copper - it delivers meaningful scale and makes the new group very much a Chilean-focussed copper producer (Mantos Blancos and Mantoverde projects add ~100kt/yr of copper). There are also clear district level synergies with Mantoverde and the Santo Domingo development project only ~30km apart. The deal appears accretive to NPV (+9%) and 2023E EPS (+19%) and CFPS (+25%). CS at 1.0x P/NPV is attractively priced vs. midcap peers.
Edition: 125
- 10 December, 2021