IKN

Take physic, pomp

More consolidation in the copper sector

Quadra Mining (QUA.to) is moving to buy out Centenario Copper (CCT.to). Here’s the relevant PR so go look for yourself, but the all-stock deal values CCT.to shares at a buck and the whole company at a ballpark $50m (though QUA.to will likely trade lower than its $3.95 close Friday). CCT’s main project in Chile is a heap-leachable SX-EW mine that holds close to 7Bn lbs copper. So for those who like to follow in-situ valuations, that’s 0.7c per Lb copper, give or take.

Strangely (or otherwise, depending on your point of view) CCT.to decides the day that a friendly buyout deal is announced is the day to unveil a new plan of action to integrate its two main projects. Some kind of latent “look at us not too late for a counterbid” wink to the general market, I suppose.

Finally, here are the 12 month charts for CCT.to and QUA.to. They hardly need any comment from me.

Centenario Copper 12 month chart

Quadra Mining 12 month chart


Update:
A reader has just pointed out that my 7Bn lb number for the CCT.to resource is way wrong and it’s more like 1.5Bnlbs. Quite right, too. I have no excuse whatsoever for my calc/typing screw-up and will therefore leave the post unchanged as a testament to my own dumbassness. Apologies from me.

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