We would love to hear your thoughts about our site and services, please take our survey here.
Share price won’t tank wisha, we would have a powerful ally who market values us more than where we are. Also it would give more upside if we drill and find a shed load of tier 1 assets.
It would cost them more to buy us out later , yes they may build in options at a determined price.
Great posts , another way to think about it why is AAL the perfect partner? There are other majors out there bigger ones also. Copper is in big demand and will be going forward
Who is going to earn a lot by joining hands with ARCM and offering a deal that is attractive to both parties.
AAL can’t afford to give a low ball offer as it will be turned down , I am hoping it’s a decent offer to start with Rothschild help engineer a deal like you say that allows us to maximise value if we think there is so much copper there.
Casa money is due soon also I hope they use that to accelerate further drilling.
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.
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.
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
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?