Metals Acquisition Ltd Dual Lists on ASX Following Upsized A$325 million IPO
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Insights
The dual listing of Metals Acquisition Limited (MAC) on the ASX and NYSE is a strategic move that bolsters the company's liquidity and broadens its investor base. The successful raise of A$325 million at the top of the indicative price range signifies strong investor confidence, which is pivotal in a sector where capital investments are substantial. The mining industry, particularly for commodities like copper that are essential for electrification and decarbonization, is expected to grow. This growth is fueled by the global push towards renewable energy and electric vehicles, which require significant amounts of copper for infrastructure and batteries.
MAC's disciplined acquisition strategy, targeting operating assets with turnaround potential, positions the company to potentially maximize shareholder value. However, investors should be mindful of the inherent volatility of commodity prices and the operational risks associated with mining activities. The company's commitment to ESG principles could also play a favorable role in attracting sustainably-minded investors, especially as the industry faces increasing scrutiny over environmental and social impacts.
MAC's IPO, the largest mining listing on the ASX in over five years, reflects a robust market appetite for mining and metal assets. With a market capitalisation of A$1.18 billion, MAC has established itself as a significant player in the sector. The use of IPO proceeds to repay a deferred payment to Glencore and invest in the CSA Copper Mine's development and exploration indicates a clear strategy for growth and value creation. The repayment of debt to Glencore will improve MAC's balance sheet and potentially reduce financial risk.
Future investors should closely monitor MAC's operational performance and execution of its growth strategy, particularly in the context of its foundational asset, the CSA Copper Mine, which is the highest-grade copper mine in Australia. The company's ability to improve production and optimize assets will be critical in delivering on its promises to shareholders.
The significance of MAC's IPO extends beyond its immediate financial impact. The company's focus on metals critical to decarbonization, such as copper, aligns with global economic trends towards sustainable energy practices. Copper's role in electrification, including its use in electric vehicles and renewable energy systems, underscores its importance in the transition to a low-carbon economy.
MAC's leadership, under CEO Mick McMullen, brings extensive experience in the mining sector, which may provide an advantage in identifying and capitalizing on growth opportunities. The company's emphasis on ESG stewardship is becoming increasingly important in mining, as stakeholders demand responsible and sustainable mining practices. Investors will likely scrutinize MAC's ability to adhere to these practices while pursuing its growth strategy.
Highlights
- Metals Acquisition Limited was admitted to the ASX under the code ‘MAC’ and is now dual listed on the ASX and NYSE.
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MAC raised
A via the issue of 19,117,648 Chess Depositary Interests (CDIs) at$325 million A per CDI (the Offer), being the top of the indicative price range for MAC’s bookbuild.$17.00 -
The implied market capitalisation of MAC following completion of the Offer is
A , making MAC’s ASX listing the largest mining listing on ASX in over 5 years, with the funds raised under the Offer representing the largest amount raised for a mining IPO on the ASX since July 2021.$1.18 billion - Strong support for the Offer was received from Australian and offshore institutional investors, including MAC’s existing shareholders.
- The dual listing on ASX provides MAC with greater liquidity and access to capital from Australian institutional and retail investors.
- Proceeds of the Offer will be used for further development of the Company’s CSA Copper Mine in NSW, to pay a deferred payment due to the previous owner of the CSA Copper Mine, Glencore, to fund growth opportunities at CSA, for working capital and costs of the Offer.
- MAC’s goal is to create a leading mid-tier, multi-asset producer of metals critical to the decarbonisation of the global economy.
- MAC has a disciplined acquisition strategy focused on operating assets in stable global jurisdictions that have turnaround potential to create value upside for shareholders.
- MAC is supported by a strong board and management team that have collectively operated in the world’s Tier 1 mining regions that is led by Australian CEO Mick McMullen, who was previously CEO of North America’s Detour Gold Corporation and Stillwater Mining Company.
ST. HELIER, Jersey--(BUSINESS WIRE)--
Metals Acquisition Limited ARBN 671 963 198 (NYSE: MTAL; ASX: MAC) (‘MAC’ or the ‘Company’) is pleased to announce that following completion of its heavily oversubscribed initial public offering in
MAC raised
Barrenjoey Markets Pty Limited and Canaccord Genuity (
Also listed on the New York Stock Exchange (NYSE), MAC’s goal is to acquire and operate metals and mining assets in high-quality, stable jurisdictions around the world that are critical in the electrification and decarbonisation of the global economy.
The Company’s foundational asset is the CSA Copper Mine (CSA) near Cobar, western
MAC will use the IPO proceeds to repay a
Backed by a strong board and management team, MAC is led by CEO Mick McMullen, who has more than 30 years of senior leadership experience in the exploration, financing, development, and operations of mining companies globally.
Mr. McMullen grew up in western NSW and was previously CEO and President of Canadian gold producer, Detour Gold Corporation, where he increased Detour’s market capitalisation from
Mr. McMullen said: “We are very pleased to have achieved an ASX listing and thank our new shareholders for their support for MAC. An Australian IPO and listing will allow us to pursue a range of organic and inorganic growth opportunities in
While we have made significant progress in improving overall operational performance at our CSA Copper Mine to date, our initial focus will be to assess further exploration, development, and production improvement opportunities.
With a disciplined M&A strategy, we will continue to evaluate prospects for growth through acquiring and operating assets in stable mining jurisdictions that will benefit from a turnaround and optimisation program to enhance value.
The listing is an important milestone for the Company as we continue to expand and work towards our long-term goal of owning and operating multiple metals and mining assets that are critical to the electrification and decarbonisation of the global economy and become a notable player in the industry.
As we grow, we are focused on ESG stewardship and a firm commitment to the responsible and sustainable discovery, development, extraction, and use of mineral resources. We are also committed to ensuring our assets are operated safely in partnership with local communities and other stakeholders.
On behalf of the Board and employees, I would like to thank our new shareholders for their support in what has been a strongly backed ASX IPO. We have received outstanding support and interest throughout the IPO process from investors, many of whom are existing holders continuing to support our vision.”
This announcement is authorised for release by the Board of Directors.
About Metals Acquisition Limited
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 decarbonisation of the global economy. It is dual-listed on the New York Stock Exchange and the Australian Securities Exchange.
MAC owns and operates the CSA Copper Mine in Cobar, NSW,
With a strong focus on environmental, social and governance stewardship, MAC’s team uses its deep technical and cost reduction expertise to identify assets with operational upside, cost reduction potential and/or expansion opportunities to extract value for shareholders.
MAC’s expertise extends across all commodities, including base metals, precious metals, battery metals, and through the value chain – from upstream mining through downstream processing and commodities trading, in all major mining jurisdictions.
For more information, please visit metalsacquisition.com
Forward Looking Statements
This press release includes “forward-looking statements.” MAC’s actual results may differ from expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside MAC’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things; the supply and demand for copper; the future price of copper; the timing and amount of estimated future production, costs of production, capital expenditures and requirements for additional capital; cash flow provided by operating activities; unanticipated reclamation expenses; claims and limitations on insurance coverage; the uncertainty in mineral resource estimates; the uncertainty in geological, metallurgical and geotechnical studies and opinions; infrastructure risks; and dependence on key management personnel and executive officers; and other risks and uncertainties. MAC cautions that the foregoing list of factors is not exclusive. MAC cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. MAC does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
More information on potential factors that could affect MAC’s or CSA Mine’s financial results is included from time to time in MAC’s public reports filed with the SEC. If any of these risks materialize or MAC’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that MAC does not presently know, or that MAC currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect MAC’s expectations, plans or forecasts of future events and views as of the date of this communication. MAC anticipates that subsequent events and developments will cause its assessments to change. However, while MAC may elect to update these forward-looking statements at some point in the future, MAC specifically disclaims any obligation to do so, except as required by law. These forward- looking statements should not be relied upon as representing MAC’s assessment as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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1 Further details concerning the use of funds raised under the Offer are set out in the announcement titled ‘Pre-quotation disclosure’ dated 16 February 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220718410/en/
Company:
Mick McMullen
Chief Executive Officer
Metals Acquisition Limited
mick.mcmullen@metalsacqcorp.com
Dan Vujcic
Chief Development Officer
Metals Acquisition Limited
+61 461 304 393
dan.vujcic@metalsacqcorp.com
Media
Shane Murphy
FTI Consulting
+61 420 945 291
shane.murphy@fticonsulting.com
Jane Munday
FTI Consulting
+61 488 400 248
jane.munday@fticonsulting.com
Source: Metals Acquisition Limited
FAQ
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