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MAC - Metals Acquisition

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Metals Acquisition Limited is a company focused on operating and acquiring metals and mining businesses in high-quality, stable jurisdictions that are critical in the electrification and decarbonization of the economy.

The business of the Company is the operation of the CSA copper mine in Cobar, New South Wales. The CSA Mine is a high grade, producing, underground copper mine.

The Company, through Cobar Management Pty Ltd (CMPL), holds a Mining Lease (CML5) over the CSA deposit, which is supplemented by Mining Purpose Leases, MPL 193 and MPL 1094. The CSA Mine is surrounded by two Exploration Licenses, EL5693 and 5983. CML5 covers an area of approximately 2,474 hectares (ha), the MPLs total approximately 30 ha, while the surrounding exploration tenements (EL5693 and 5983) cover approximately 366 square kilometers. In addition, CMPL has a joint venture with AuriCula Mines Pty Limited (AuriCula) covering the Shuttleton and Mt Hope Exploration Licence tenements south of Cobar.

It is anticipated that MAC will list on the ASX during February 2024.

 
Listing date20 February 2024 ; 12:00 PM AEDT ##
Company contact detailshttps://www.metalsacquisition.com
Ph: 0411 789 606
Principal ActivitiesOperation of the CSA Copper Mine in Cobar, New South Wales, Australia, and the acquisition and operation of metals and mining businesses in high quality, stable jurisdictions that are critical in the electrification and decarbonisation of the global economy.
Issue PriceAUD 16.00
Issue TypeChess Depositary Interests
Security codeMAC
Capital to be Raised$300,000,000
Expected offer close date09 February 2024
UnderwriterNot underwritten. Barrenjoey Markets Pty Limited and Canaccord Genuity (Australia) Limited (Joint Lead Managers).
 
Metals Acquisition Limited, owner of the CSA copper mine in NSW’s Cobar, upsized its IPO book-build to $325 million on Friday morning, after its brokers secured enough demand to cover the book at the top-end of the range.

Pricing would remain the same at $17 per CDI, but they could now bid for an extra $25 million by 1pm.

It’s the second upsize for the deal, which sought $200 million initially for its ASX debut.
 
MAC hit the bourse today .... and closed at $19.00

Metals Acquisition jumped more than 9 per cent in its opening session, erasing the discount between the stock’s New York-listed and ASX-listed share prices. The $325 million IPO is the largest since last July. Shares were initially priced at $17 apiece.
 
Looking at MAC for a medium term hold in the copper sector. The thin market depth makes it impossible to trade short term. Can we hold this for the medium term 3mth - 1yr?

I uncertain about MAC leverage to a rising POC. It's only got one customer, GIAG. They've signed a new offtake agreement with the prices linked to industry indexes. Not sure what this means or which index they're looking at.

I see that they've also hedged about 31% of their production at $3.72/lb. With the current POC at US$4.20/lb MAC is already missing out on millions. I assume the hedge is to placate debt issuers.

mac1.PNG

As I'm bullish copper over the next year, will the MAC share price provide a reasonable return over this time?
 
Looking at MAC for a medium term hold in the copper sector. The thin market depth makes it impossible to trade short term. Can we hold this for the medium term 3mth - 1yr?

I uncertain about MAC leverage to a rising POC. It's only got one customer, GIAG. They've signed a new offtake agreement with the prices linked to industry indexes. Not sure what this means or which index they're looking at.

I see that they've also hedged about 31% of their production at $3.72/lb. With the current POC at US$4.20/lb MAC is already missing out on millions. I assume the hedge is to placate debt issuers.

View attachment 174407
As I'm bullish copper over the next year, will the MAC share price provide a reasonable return over this time?

I've been trying to work this one out. Not sure if the hedging is good short term but, yes, must have been needed for finance.

There's another thing that is about to list in Australia worth looking at as well for the copper narrative. Much bigger than this, the name doesn't come to mind.

This would have been good to get into at IPO.

Screenshot 2024-04-09 at 3.58.40 PM.png
 
There's another thing that is about to list in Australia worth looking at as well for the copper narrative. Much bigger than this, the name doesn't come to mind.
?
Capstone Copper is an established copper producer and developer with a portfolio of long-life operations in the Americas (US, Mexico and Chile). The company is currently listed on the Toronto Stock Exchange with a market cap of C$4.6bn.
 
?
Capstone Copper is an established copper producer and developer with a portfolio of long-life operations in the Americas (US, Mexico and Chile). The company is currently listed on the Toronto Stock Exchange with a market cap of C$4.6bn.

Yes! My short term memory only lasts a day or so.

Screenshot 2024-04-09 at 9.15.28 PM.png
 
MAC reports increased resource and reserves along with a 3yr production guidance.

I'm disappointed that they didn't mention if they have any plans to take advantage of the rising Copper price (spot sales?)

Price has dropped a little but the market depth is very thin.
 
March Qrtly report: Mine life increased from 6yrs to 11yrs with further exploration results. Result show that the resource is open and further resource increases are probable.

Temporary reduction in production due to a 3 day power outage and lower grade ore is expected to be overcome.

C1 costs of US$2.15/lb up 8% due to the lower grade ore processed.
 
IPO priced at 17.00 and opened at 18.00, now only 19.00 after strong rally in the POC. Bought an initial parcel of MAC in this dip. Although this dip is concerning as SFR is going up (bought more SFR also).

MAC is a very thinly traded stock but I would like to see more demand than just mine.

MAC2.PNG
 
Polymetals POL has formed a non-exclusive strategic alliance with Metals Acquisition Limited (ASX: MAC) to advance synergies aiming to extract greater value from both the Endeavor and CSA Copper Mines, both located in the Cobar Basin, NSW Australia.

HIGHLIGHTS
• MAC to invest up to $5.0 million @ $0.35/share in POL.
• POL and MAC to enter into an agreement to treat high-grade zinc ore at POL’s Endeavor Silver Zinc Mine.
• POL to provide MAC with excess water offtake to enhance CSA ore treatment capacity.

ALLIANCE OBJECTIVES
MAC owns and operates the high-grade CSA Copper Mine located 5 km to the north of Cobar NSW. Polymetals high-grade Endeavor Silver Zinc mine is located 30km to the north of CSA.

The alliance between MAC and POL will allow each company to exploit synergies between the neighbouring mines. The relationship aims to deliver enhanced operational and financial outcomes by increasing mine production at both projects
 
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