- IGO Limited entered into a binding agreement for the acquisition of the Silver Knight deposit.
- The acquisition deal is anticipated to be finalised by 30 September 2021.
- OZ Minerals reported an increase of 22% in its copper production for the June quarter.
- OZL has set production guidance of 120-145 kt of copper and 205-228 koz of gold production for FY21.
The price of copper is on the rise again, and on Monday the red metal was trading at US$9,433.5/ Mt. is Floods in China and depleting inventory helped the prices to firm up. The floods in the Chinese industrial hub have impacted the extraction of copper and its movement.
Amid rising prices, two important updates from two ASX-listed copper players was out recently.
Copyright © 2021 Kalkine Media
IGO Limited (ASX:IGO) has entered into a binding agreement with Creasy Group, a entity owned by Mr Mark Creasy. The agreement is for the acquisition of 100% interest in Silver Knight nickel-copper-cobalt sulphide deposit. The binding agreement will also pave the way for a joint venture (JV) between the two companies, with IGO holding 65% interest in the JV, and the remaining 35% with the Creasy Group. The JV will be formed with an objective to explore the area surrounding the Silver Knight tenement.
Copyright © 2021 Kalkine Media
The agreement will involve a cash consideration of AU$45 million. The full-fledged documentation associated with the agreement will be finalised by 30 September 2021. The cash transaction has to be made in the next five days from the finalisation of the documents.
Mr Peter Bradford, MD & CEO of IGO Limited, said on the occasion that the acquisition agreement is strategic in nature as Silver Knight discovery validates the potential of the Fraser Range to host multiple commercial deposits of nickel-copper sulphide. The agreement will also aid in securing a second source of feed for the Nova processing plant.
“Our aim is to fast track the detailed assessment and permitting of Silver Knight in order to commence first pre-mining activity on the site by 2023,”Peter added further.
The shares of IGO are trading at AU$8.91 at around 2:30 PM (AEDT). The Company has a market cap of AU$6.87 billion as on 28 July 2021.
The Adelaide based gold and copper miner OZ Minerals Limited (ASX:OZL) announced a stellar gold and copper production numbers for the June quarter. OZ Minerals reported a jump of 22% in its copper production on QoQ basis. Total copper production stood at 32,681 tonnes, as against 26,842 tonnes for the previous quarter.
The Company also recorded an uptick in its gold production during the quarter. OZL extracted a total of 57,875 ounces of gold, up by ~5% from previous quarter.
The revenue for the first half of the year 2021 remained at AU$986 million. OZL is a zero debt company with a cash balance of AU$134 million as at the end of the June quarter.
Guidance for FY21
The management has maintained the copper production guidance range at 120,000-145,000 tonnes for FY21. For gold, the guidance range for FY21 is around 205,000-228,000 ounces. The AISC for the production is kept in a range of US cents 130-145/lb.
The shares of OZL soared 6.5% to AU$22.96 on the back of encouraging quarterly report. The Company has a market cap of AU$7.81 billion as of 28 July 2021.
Related Read: Why is Copper at a New Seven-Year High?