NSW copper miner raises $150 million

Metals Acquisition Limited (MAC), which is dual listed on the ASX and the New York Stock Exchange, has raised $150 million as it eyes future mergers and acquisitions.

The company said it attracted support from new and existing shareholders from both Australia and overseas, with 8.33 million new CHESS Depositary Interests issued at $18.00 per new CDI.

This represents a 13 per cent discount from MAC’s closing share price of $20.70 per CDI on Tuesday.

CDIs give ASX investors the same beneficial interests in internationally listed companies as holding these shares on a foreign exchange.

Metals Acquisition will use the funds to retire a mezzanine debt facility and optimise its balance sheet following the acquisition of the CSA copper mine from Glencore in 2023.

The company said it is also on the lookout for inorganic growth opportunities to build its footprint.

MAC launched the capital raise on Tuesday as it looked to raise $140 million, with the completed placement exceeding this number.

MAC chief executive officer Mick McMullen explained the inspiration behind the placement.

“Following the acquisition of CSA in mid-2023 and listing on the ASX in early 2024, MAC has placed greater focus on optimising its balance sheet and determining an appropriate capital structure more reflective of the strong asset quality and the markedly improved credit proposition that MAC today represents compared to mid-2023,” he said.

“Feedback from investors has been strong that moving to a more typical long-term capital structure is desired.”

McMullen said it was in the best interests of the company and its shareholders to retire the mezzanine debt facility by paying back the debts. The placement has enabled MAC to reduce its net debt position from $US455 million following the acquisition of the CSA mine to about $US134 million upon completion of the raise.

The CSA mine delivered 10,159 tonnes of copper at an average grade of 4 per cent copper in the September quarter of 2024. MAC said C1 cash costs were expected to be in the $US1.90–2 per pound range.

“We remain on track to deliver around the mid-point of our full-year 2024 copper production guidance of between 38,000-43,000 tonnes and will provide a more fulsome update on the status of operations as part of our quarterly report later this month,” McMullen said.