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This has been talked about in the past, the 6 months was far too long and game changer is the interview ARCM made a few weeks back.

AA need to make an offer if they are ready, most would be disappointed if we dont hear by the end of April, but not the end of the world, Rothschild were brought in last week, so could push negotiations to be completed out to May depending on what is discussed already.

Other majors and notably Chinese who really want copper are keen to talk to us. AA need to be serious and offer something tempting or swiftly or we speak to others or go out ourselves for the foreseeable future.

Post on the EUA board this is ARCM if you hadn’t noticed

Lol fulmar

It’s nonsense, didn’t speak up before the drilling and won’t win the argument as funding was required and they didn’t have the cash. They will really lose this one

Yep fulmar

Probably none, depends on what the deal is,

JV you get a powerful ally that will bring onto commercial sooner than us here.

Full acquisition they become pretty well off and sell anyway for the right price. Or another view we buy from them and in exchange they get a stake in Arc and upside of ArCM sell out completely. There was a similar transaction last year where we bought a stake in exchange for the business.

Marco yep, the range is 20 to 40. Tbh we should be pushing for the higher end as we are in the driving seat. Others want a look at it and expressed interest, commodity bull run started.

AA would offer more if shares are thrown in, it derisks them for overpaying and we are tied in with the success of AA. 1% of their shares and cash would be good, but lets see. If they offer less than £300m, i am sure the board will easily walk away.

Agree Longfell, but to be honest I would say a range up to $800m as a JV, There is a lot of upside here and copper is in demand, everyone wants it for the future.

I would like to see $1.2bn, but realistically it wont be offered at current price AA will be nuts, could we get to $1.2bn value yes if we find more and more copper and prove up what we own (unless there is evidence there we have multiple tier 1 which the company have indicated is likely). What the company is looking to do now is accelerate value , some have talked about a JV and thats not a bad idea as it will add more value in the long term. A take out and It has to be really good, to sacrifice potential upside.

Someone talked about AA being £40bn MCAP and they have benefited from the share price rise due to commodities appreciating. A very good offer can come in the mix of cash and shares, £400m is 1% and if AA become significant cash generators, if you look at their presentation on 26th Feb, they reduced net debt significantly in H22020 and will continue to do so. They had c$0.7bn for M&A spent last year and $0.2bn in buybacks. Looking at their copper projects they usually have a 4 year payback.

Look at slide 66 on commodity outlook, they admit it will be strong and there are risks to supply.
Slide 68 look at the growth potential for future copper supply they need.

So in effect they really need to offer us a good price, or we walk away. We were far too generous to give them 6 months to conclude, but it will happen before then.

https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/media/presentations/2021pres/fy20-results-and-q1-roadshow-presentation.pdf

Nice to see the share price rise , ppl missed a chance to top up, myself included but have enough. Let’s see what happens now, but still time to load up as it’s cheap nothing leaked as share price would have sky rocketed.

Fulmar think a JV can be ruled out now with the RNS , a slim chance it could but unlikely. This is now more M&A territory.

I’m surprised this has come out now, an offer must have come in that’s serious and the advisers will structure and counter.

Anglo could offer shares to buy us and it would be next to nothing as there generating a lot of cash

Sounds like JV is not what’s on offer but full take out.

But they have found something that has caught AA eye also what we have found quoting the company the best in Zambia so far.

Surely that Indicates we have a lot of copper already and the reference sitting on multiple tier 1. They don’t jnodd weed how much they have.

Am I reading it wrong?

Good to see the tweets continuing I saw it.

Should hear about CASA soon if they don’t pay up will be interesting as we don’t need the cash and we could negotiate better terms if we get a similar thing to ars.

Don’t look at spot look at average assumed, but the average will be higher as they anticipate a supply shortage compared to demand.

Thought the 10 to 20 bagger was around 2p mark when he said it.

Tom fair point but dd has happened and AA would need time to investigate the readings.

In an interview from 2019, someone shared here, NVS said he wanted to spend $5m on exploration over 12-18 months.

Anyway let’s see when news happens.

Lol danjo

We should hear by the end of April,

Apr don’t think it answers the timeframe, quite simply if AA can’t give a decent offer why does it take 6 months.

You simply say no and move to other suitors or go alone and then look again down the line.

He obviously wants AA and a deal will have to happen, they have a lot of cash and mcap to offer a price that works for all, if they don’t the Chinese will or another major.

Why Max? With Cheyeza East we can start going into production with very little capital costs and an interesting cash generating business. When i talk about that I dont mean we wouldnt look at anyone joining but we dont have to sell the assets or company at a silly price.

If we didnt have any options and only one suitor we would be at the mercy, but we are in a strong position if AA dont offer anything else or another suitor comes along they can always come back but will have to pay much more.

Now is a fine balance of deal negotiations, I am sure an offer has been made and they are continuing to thrash out the deal, AA is £32bn MCAP if they are clever they will offer a mixture of cash and Shares, to get us tied in, also ARCM are expecting to receive $5m for CASA next month.

I expect AA to offer a hard bargain but they know there are others circling so they will need to be careful.