Boliden to acquire the Neves-Corvo and Zinkgruvan mines
Boliden has entered into a definitive agreement to acquire Neves-Corvo mine in Portugal and Zinkgruvan mine in Sweden from Lundin Mining for USD 1,300 million, plus potential contingent payments up to USD 150 million. The transaction will significantly boost Boliden's mine production, increasing zinc concentrate production by 95% and copper by 43% based on 2023 figures.
The acquisition will be financed through a bridge loan, with approximately half to be refinanced through a share issue in the first half of 2025. The EBITDA contribution from both mines is estimated at USD 300-350 million annually over the next five years. The transaction is expected to close by mid-2025, subject to regulatory approvals.
Boliden ha stipulato un accordo definitivo per acquisire la miniera di Neves-Corvo in Portogallo e la miniera di Zinkgruvan in Svezia da Lundin Mining per un totale di 1.300 milioni di dollari, con potenziali pagamenti contingentali fino a 150 milioni di dollari. La transazione aumenterà significativamente la produzione mineraria di Boliden, con un incremento del 95% nella produzione di concentrato di zinco e del 43% in quella di rame, basato sui dati del 2023.
L'acquisizione sarà finanziata tramite un prestito ponte, con circa la metà da rifinanziare attraverso un'emissione di azioni nella prima metà del 2025. Si stima che il contributo EBITDA proveniente da entrambe le miniere sarà compreso tra 300 e 350 milioni di dollari all'anno nei prossimi cinque anni. La transazione dovrebbe chiudersi entro la metà del 2025, previa approvazione degli enti regolatori.
Boliden ha llegado a un acuerdo definitivo para adquirir la mina de Neves-Corvo en Portugal y la mina de Zinkgruvan en Suecia de Lundin Mining por 1.300 millones de dólares, además de posibles pagos contingentes de hasta 150 millones de dólares. La transacción aumentará significativamente la producción minera de Boliden, incrementando la producción de concentrado de zinc en un 95% y la de cobre en un 43% según las cifras de 2023.
La adquisición se financiará a través de un préstamo puente, con aproximadamente la mitad refinanciada mediante una emisión de acciones en la primera mitad de 2025. Se estima que la contribución de EBITDA de ambas minas ascenderá a entre 300 y 350 millones de dólares anuales durante los próximos cinco años. Se espera que la transacción se cierre a mediados de 2025, sujeto a aprobaciones regulatorias.
Boliden은 포르투갈의 네베스-코르보 광산과 스웨덴의 징크그루반 광산을 Lundin Mining으로부터 13억 달러에 인수하기 위한 확정 계약을 체결했습니다. 추가로 최대 1억 5천만 달러의 잠재적 조건부 지급이 있습니다. 이 거래는 Boliden의 광산 생산을 크게 증가시킬 것이며, 2023년 수치를 기준으로 아연 농축물 생산량은 95%, 구리는 43% 증가할 것으로 예상됩니다.
이번 인수는 브리지 론을 통해 자금이 조달되며, 약 절반은 2025년 상반기 주식 발행을 통해 재융자될 예정입니다. 두 광산의 EBITDA 기여는 향후 5년간 연간 3억에서 3억 5천만 달러로 추정됩니다. 이 거래는 규제 승인을 조건으로 2025년 중반까지 완료될 것으로 기대됩니다.
Boliden a signé un accord définitif pour acquérir la mine de Neves-Corvo au Portugal et la mine de Zinkgruvan en Suède auprès de Lundin Mining pour 1,3 milliard USD, plus des paiements conditionnels potentiels allant jusqu'à 150 millions USD. La transaction augmentera considérablement la production minière de Boliden, avec une augmentation de 95 % de la production de concentré de zinc et de 43 % pour le cuivre, sur la base des chiffres de 2023.
L'acquisition sera financée par un prêt relais, avec environ la moitié à refinancer par une émission d'actions au cours de la première moitié de 2025. La contribution EBITDA des deux mines est estimée entre 300 et 350 millions USD par an au cours des cinq prochaines années. La transaction devrait être finalisée d'ici mi-2025, sous réserve des approbations réglementaires.
Boliden hat eine endgültige Vereinbarung zur Übernahme der Neves-Corvo-Mine in Portugal und der Zinkgruvan-Mine in Schweden von Lundin Mining für 1,3 Milliarden USD unterzeichnet, zuzüglich potenzieller bedingter Zahlungen von bis zu 150 Millionen USD. Die Transaktion wird die Mineproduktion von Boliden erheblich steigern und die Produktion von Zinkkonzentrat um 95% sowie von Kupfer um 43% basierend auf den Zahlen von 2023 erhöhen.
Die Übernahme wird durch ein Brücken Darlehen finanziert, wobei etwa die Hälfte durch eine Aktienemission in der ersten Hälfte des Jahres 2025 refinanziert werden soll. Der EBITDA-Beitrag beider Minen wird auf jährlich 300 bis 350 Millionen USD für die nächsten fünf Jahre geschätzt. Die Transaktion soll bis Mitte 2025 abgeschlossen werden, vorbehaltlich der Genehmigungen durch die Aufsichtsbehörden.
- Immediate earnings per share accretion post-completion
- Significant production increase: 95% for zinc and 43% for copper concentrate
- Expected annual EBITDA contribution of USD 300-350M from both mines
- Increase in internal concentrate supply from 35% to 70% for zinc and 30% to 40% for copper
- Both mines are cash flow generative with Zinkgruvan's 2023 EBITDA at USD 104M and Neves-Corvo's at USD 91M
- Temporary increase in net debt/equity ratio to 30% (above 20% target)
- Significant share dilution expected from planned share issue
- Large upfront cash consideration of USD 1.3B requiring bridge loan financing
- Neves-Corvo's position in 75th percentile of mining cost curve indicates higher operational costs
"The addition of two cash flow generative zinc and copper mines in
- Boliden has entered into a definitive agreement to acquire the mines Somincor-Sociedade Mineira de Neves-Corvo, S.A. ("Neves-Corvo") and Zinkgruvan Mining Aktiebolag ("Zinkgruvan") for an upfront cash consideration corresponding to
USD 1,300 m plus a contingent payment up toUSD 150 m, on a cash and debt-free basis (the "Transaction"). - The Transaction has a strong industrial logic and strategic fit, complementing current Boliden operations with two well-invested mines. Following the Transaction, zinc and copper concentrate production will increase from
35% to70% of zinc smelting capacity and30% to40% of copper smelting capacity. - The Transaction will lead to a significant increase in production of metals in concentrate in Business Area Mines, by
95% for zinc and43% for copper, based on 2023 production figures. - The Transaction is expected to be immediately accretive to Boliden's earnings per share from completion of the Transaction and contribute with >
10% to Cash EPS1). - The EBITDA contribution from the Neves-Corvo and Zinkgruvan mines over the next five years is estimated to amount to
USD 300-350 m annually, assuming consensus prices and terms. - The upfront cash consideration will be fully financed through a bridge loan, which is expected to be refinanced through a share issue corresponding to approximately half of the bridge loan (the "Share Issue"), and the remaining amount in medium and long-term debt financing. The Share Issue will be based on an authorization from a general meeting or subject to approval by a general meeting. Boliden intends to explore options to conduct the Share Issue either as a directed share issue or as a fully underwritten rights issue. The Share Issue is expected to be carried out during the first half of 2025; however no decision has been taken at this time and the timing of the Share Issue is subject to, among other, prevailing market conditions at the time of the Share Issue.
- Completion of the Transaction is expected during mid-2025, subject to regulatory approvals, including merger control filings and approvals and other customary closing conditions.
1) Estimated as average impact during 2025 to 2027.
Neves-Corvo in brief
The Neves-Corvo mine is an underground zinc-copper-lead-silver mine with on-site processing facilities, located approximately 200 km southeast of
- Zinc 108,812 ton
- Copper 33,823 ton
- Lead 5,600 ton
- Silver 1.9 Moz
EBITDA generated by the Neves-Corvo mine in 2023 amounted to approximately
2) EBITDA is calculated as Revenue less Production Costs, General Exploration and Business Development expenses.
The Zinkgruvan mine is an underground zinc-copper-lead-silver mine with on-site processing facilities, located approximately 200 km southwest of
- Zinc 76,349 ton
- Copper 4,434 ton
- Lead 26,284 ton
- Silver 2.3 Moz
EBITDA generated by the Zinkgruvan mine in 2023 amounted to approximately
3) EBITDA is calculated as Revenue less Production Costs, General Exploration and Business Development expenses.
Post completion, Boliden will operate seven mining areas and five smelters, mainly focused on the value chains for zinc and copper. Out of the seven mining areas, four are located in
The upfront cash consideration consists of
The upfront cash consideration will be fully financed through a bridge loan provided by BNP PARIBAS, RBC Capital Markets ("RBC") and Skandinaviska Enskilda Banken AB ("SEB").
Assuming consensus prices and terms, the estimated EBITDA contribution from Neves-Corvo and Zinkgruvan over the next five years would amount to
Boliden's intention is to refinance the bridge loan by securing additional medium and long-term debt financing and issuing new equity through a share issue. The size of the Share Issue will be determined to achieve an efficient capital structure and is expected to correspond to approximately half of the bridge loan amount. The Share Issue is expected to be carried out during the first half of 2025. The Share Issue will be based on an authorization from a general meeting or subject to approval by a general meeting. To the benefit of Boliden's shareholders, Boliden intends to explore different options to carry out the Share Issue, including the option to carry out the Share Issue as a directed share issue or as a fully guaranteed rights issue, which will depend, amongst other things, on the prevailing market conditions at the time of the Share Issue.
Further, BNP PARIBAS and SEB have entered into a stand-by underwriting agreement with Boliden, whereby they have committed, subject to customary conditions, to enter into an underwriting agreement, covering the underwriting of the full amount of the Share Issue proceeds, should the Share Issue be carried out as a rights issue.
Prior to completion of the Transaction and the Share Issue, Boliden's net debt/equity ratio (September 30, 2024), was
Completion of the Transaction is subject to obtaining customary regulatory approvals, including merger control filings and approvals by the EU Commission and the Swedish Inspectorate of Strategic Products under the Swedish FDI Act, and the change of control approval under the Neves-Corvo Portuguese Concession Contract and Fundamental Permits Approval. The Transaction is not subject to shareholder approval and is subject to customary conditions to closing. The Transaction is expected to close by mid-2025.
The Share Issue is expected to be carried out during the first half of 2025; however no decision has been taken at this time and the timing of the Share Issue is subject to, among other, prevailing market conditions.
RBC Capital Markets is acting as lead financial advisor and Evercore Group L.L.C. is acting as independent financial advisor to Boliden. BNP PARIBAS and SEB are acting as Joint Global Coordinators, and RBC as Joint Bookrunner, in connection with the Share Issue.
In light of the above, a press and analyst conference will be held today, December 9, at 09:00 CET, and can be followed via webcast and telephone. The conference will be led by Boliden's President and CEO Mikael Staffas, and Executive Vice President and CFO Håkan Gabrielsson.
To participate in the webcast, please use the link below:
https://boliden.videosync.fi/2024-12-09
To participate in the telephone conference, please register 5 minutes before the opening of the conference via the link below. After the registration you will be provided with phone number and a conference ID to access the conference. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue.
https://service.flikmedia.se/teleconference/?id=100439
After the call, presentation material and the recorded webcast will be available on our website: https://www.boliden.com
For further information, please contact:
Klas Nilsson
Director Group Communications
+46 70 453 65 88
klas.nilsson@boliden.com
This information is information that Boliden AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of contact person above, at 07:00 CET on December 9, 2024.
Statements in this press release relating to future status and circumstances, including statements regarding future performance, growth and other projections as well as benefits of the agreement, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as "will", "expects", "believes", "intended" or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Actual results may differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Boliden AB. Any such forward-looking statements speak only as of the date on which they were made and Boliden AB, has no obligation (and undertakes no such obligation) to update or revise any of them, whether as a result of new information, future events or otherwise, except for in accordance with applicable laws and regulations.
This press release does not constitute an offer to sell, or a solicitation of offers to purchase, shares described in this press release in the United States. The shares of Boliden AB referred to in this press release have not been and will not be registered under the
This information was brought to you by Cision http://news.cision.com.
https://news.cision.com/boliden/r/boliden-to-acquire-the-neves-corvo-and-zinkgruvan-mines,c4079301
The following files are available for download:
Press release |
View original content:https://www.prnewswire.com/news-releases/boliden-to-acquire-the-neves-corvo-and-zinkgruvan-mines-302325904.html
SOURCE Boliden
FAQ
What is the acquisition price for Neves-Corvo and Zinkgruvan mines by Boliden (BDNNY)?
How will Boliden (BDNNY) finance the acquisition of Neves-Corvo and Zinkgruvan mines?
What is the expected EBITDA contribution from the acquired mines to Boliden (BDNNY)?
How will the acquisition impact Boliden's (BDNNY) production capacity?
